Albuquerque city councilors postponed votes on two Gateway Center expansion contracts Monday, citing concerns about transparency and unconfirmed state funding for the $3.6 million proposal.
The City Council voted Aug. 4 to delay approving two $1.8 million agreements—one with Chicanos Por La Causa to expand women’s services, and another with Community Bridges for men’s beds—until its next meeting on Aug. 18.
The contracts would expand the Gateway Center’s capacity from 50 to 192 beds, adding 50 beds for men and 92 for women. But several councilors said they were uneasy moving forward without a clear funding plan, detailed budgets, or more information about the out-of-state providers involved.
State funding uncertainty drives concerns
Council members questioned why the city was seeking contract approval before securing the $3.6 million in state funding needed to run the expanded Gateway services.
Confusion during the meeting centered on whether the facility was ready to operate or if only capital improvements were complete.
“We’re going to go under a contract and be liable under this contract without the funding, yet we’re signing a contract, correct?” Councilor Dan Champine asked.
Chief Administrative Officer Samantha Sengel acknowledged the city was seeking approval to negotiate contracts in anticipation of state funding, explaining the goal was to move quickly once money becomes available.
Sengel clarified that the beds are in place, but the city is still waiting on operational funding. She distinguished between capital investments, which were complete, and operational funding, which was still pending from the state.
If the state funding falls through, Sengel said the city will return with an alternative plan to open the beds.
Sengel said the city is in ongoing talks with the governor’s office, but doesn’t have a timeline for when the funding might be approved.
“We are continuing in discussions right now with the governor’s staff, and working through those discussions,” she said. “We do not have an exact time at this point, and we feel incredibly positive and hopeful that that will be very timely.”
Questions about contract process and costs
Several councilors raised concerns about the contract process and questioned whether the proposed Gateway services are cost-effective.
Public commenter James Freeman estimated the contracts would cost about $39,130 per bed each year. By comparison, the Albuquerque Housing Authority serves roughly 3,200 households with $23 million in annual voucher funding—about $7,200 per household.
Councilor Nichole Rogers said the city should bring funding proposals through formal resolutions—not executive communications, as both Gateway items appeared on the Aug. 4 agenda—so councilors can clearly track what’s being appropriated.
“I want Gateway to be successful, I need Gateway to be successful for my district,” Rogers said. “I need people to be able to walk up to that place and get headed to a home. It’s just hard to extrapolate what’s happening when I feel like we’ve already appropriated.”
She said boilerplate contract language often ties execution to available appropriations, making it harder to follow what’s been funded.
“I just want to understand what’s happening, and it’s hard to do that this way,” she said.
Councilor Joaquin Baca called for stronger collaboration and transparency from the administration.
“This is supposed to be a team effort,” Baca said. “It’s hard to work together when one hand doesn’t know what the other is doing.”
He said he was initially discouraged from visiting the Westside shelter but gained clarity after seeing the site. In contrast, he said he’s seen little activity at the Gibson Health Hub and questioned the use of House Bill 2 funds there.
“We sent a joint resolution from the city and the county to the legislature for housing projects, and now $4 million is going to be used for operations for one year,” he said. “Is that the most efficient way to house people in Albuquerque? I struggle to see that as the most efficient way.”
Baca said the administration should be more transparent about what’s happening at Gateway.
“We gave you $1.8 million for 42 beds. Those are open or not, and now we’re prepping for the next 100 beds,” he said. “That is not a team working together to solve an issue that is getting worse in Albuquerque.”
Councilor Dan Champine also pushed for clarity on whether the Gateway facility is truly ready.
“So we paid for these beds, and it’s basically an empty building waiting for people to come in?” Champine asked. “Because it sounded like the 42 beds were already set up and ready to go.”
She said the facility has a certificate of occupancy and 42 beds are in place, but the city still needs funding to staff and operate the site.
“The beds are there,” Sengel said. “What we’re waiting for is funding to bring in the operator and begin services.”
She said the original 42 beds were paid for through capital funds, while the planned 50 additional beds for men and 50 for women are part of an upcoming expansion expected to be finished in September.
“We’re asking for approval to negotiate contracts so we’re ready to move on operations once that funding is secured,” Sengel said.
Gateway’s ongoing expansion
The contracts involve expanding services at the main Gateway Center on Gibson Boulevard, located in a 572,000-square-foot former hospital at 5400 Gibson Blvd. SE. The facility, part of the city’s larger Gateway network, currently operates 50 beds for women in a housing navigation program. The city has invested $59 million in the site as of December 2023, according to city presentations.
The proposed expansion would add 50 beds each for men and women, bringing the total capacity to 92 beds for men and 100 for women. Both contracts follow a 90-day program model designed to connect participants with permanent housing or treatment.
The women’s program, run by Chicanos Por La Causa, has shown promising results, with 88% of participants accessing housing or treatment, according to Sengel. But the Gateway Center continues to face operational hurdles. A total of 42 men’s beds are already in place and have a certificate of occupancy, but remain unopened due to pending state funding. The additional 50 men’s beds are expected to be ready in September.
Chicanos Por La Causa would continue running the expanded women’s program. Community Bridges, a nonprofit based in Mesa, Ariz., was selected to operate the men’s services. Founded in 1982, the organization specializes in behavioral health and homelessness and is accredited by the Commission on Accreditation of Rehabilitation Facilities. While based out of state, Sengel said Community Bridges plans to hire local staff.
Combined, the two contracts could total up to $3.6 million in annual compensation, not just the $1.8 million in expansion funding currently being requested through the state’s House Bill 2 appropriation.
City officials said long-term funding remains uncertain and acknowledged the need for a sustainability plan to keep the expanded services running beyond the initial state support.
Previous contract challenges
The Gateway Center has faced operational challenges in recent months. The University of New Mexico Health Sciences Center announced in February that it would not renew its contract to operate the facility’s first responder receiving area. Additionally, the city terminated a contract with Listo Health for the medical sobering center due to staffing and insurance issues.
City officials say Gateway is part of a broader network designed to serve approximately 1,000 people daily when fully operational, comparable to other large healthcare providers in Albuquerque.
What’s next
The council’s next meeting is scheduled for Aug. 18, when the deferred contracts are expected to return for consideration.
Residents can watch the meeting live on GOVTV or attend in person at the Vincent E. Griego Chambers, One Civic Plaza NW. Public comment signup is available until 4:00 p.m. on meeting days at the city website.
For more information about Gateway Center services, visit the city’s Health, Housing & Homelessness Department website.