City Takes Steps to Streamline Payments for Nonprofit Homeless Shelter Providers

City officials are implementing measures to ensure timely payments to nonprofit organizations managing homeless shelters. During a recent oversight meeting, council members discussed ongoing challenges and introduced strategies aimed at improving the payment process.

The Department of Homeless Services (DHS) reported that they have disbursed $288 million to providers since November, alongside an additional $68 million from the Human Resources Administration (HRA) (Source: https://youtu.be/Oo8ZET9rUQ4&t=2113). While officials acknowledged issues with the current payment system, they expressed commitment to accelerating the distribution of funding while maintaining accountability.

To improve efficiency, the city has adopted a new passport system for invoice processing, which is expected to enhance operational effectiveness in the long term. However, the transition has presented difficulties, coinciding with a 50% increase in contracts compared to previous years (Source: https://youtu.be/Oo8ZET9rUQ4&t=2072).

Currently, the payment process varies for different types of providers. Family service providers receive upfront payments at the start of the month, while single adult and street providers submit invoices after services are rendered (Source: https://youtu.be/Oo8ZET9rUQ4&t=2005). The introduction of guidance for partial payments aims to address some issues by allowing funding to be distributed for uncontested portions of invoices (Source: https://youtu.be/Oo8ZET9rUQ4&t=2072).

Council members raised concerns regarding nonprofits needing to borrow funds due to delayed payments, which can create additional financial burdens (Source: https://youtu.be/Oo8ZET9rUQ4&t=1891). Officials admitted that the agency does not track how many providers are borrowing, though they recognize the urgency of the issue (Source: https://youtu.be/Oo8ZET9rUQ4&t=2113).

As the oversight discussions continue, city representatives committed to providing technical assistance to organizations navigating the complex contracting processes and expressed determination to streamline payment procedures to better support homeless service providers (Source: https://youtu.be/Oo8ZET9rUQ4&t=1968).