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Denver finalizes $100M spending plan for federal COVID recovery funds

The Denver City Council gave final approval Monday to spend nearly one-third of its $308 million in COVID-19 recovery funds from the American Rescue Plan Act.

The city will allocate over $100 million of the funds in 2022, with $73.6 million going to recovery efforts, $25.3 million going to restoring city services and $1.3 million going to contract support to assure fund compliance.

The plan passed in a 12-1 vote Monday, with Councilwoman Amanda Sawyer voting no. Sawyer said she opposed the plan because it will delegate $4 million for the expansion of Safe Outdoor Spaces, or managed homeless camps, in the city.

“I’m just not willing to support $4 million for Safe Outdoor Spaces,” Sawyer said Monday. “It’s something my district feels really strongly about. This money is meant for long-term investments and SOS sites are not a long-term solution.”

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Councilman Chris Hinds, whose District 10 housed the city’s first two Safe Outdoor Spaces, defended the funding last week. Hinds called the program transformative, saying it’s an option for homeless residents who don’t want to be separated from their partners or pets in regular shelters.

“We’re in a housing crisis right now and, while I don’t believe Safe Outdoor Spaces are an appropriate long-term solution, we need middle-term and inter-term solutions,” Hinds said. “The Safe Outdoor Spaces are an amazing option that we added to our tool belt for the city.”

The $25.3 million to restore and supplement city services cut during the pandemic will be split among more than 15 agencies, said Stephanie Adams, the city’t budget and management director.

About 70% of the restoration funds will go to the Denver Fire Department ($7.2 million), Denver Police Department ($3.2 million), Department of Transportation and Infrastructure ($3 million), General Services ($2.1 million) and Parks and Recreation ($2 million).

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The $73.6 million for additional recovery efforts in 2022 will be split among three categories: housing and homelessness, community recovery and business recovery.

Housing and homelessness will receive the bulk of the funds with $50.3 million. Of that, major allocations include $28 million for the affordable housing fund, $7.47 million for operations at the 48th Avenue homeless shelter and $4 million for expanding Safe Outdoor Spaces.

Community recovery will get $13.2 million, including $2 million for neighborhood grants, $1.8 million for after school and summer programs, $1.5 million for community safety grants and $1.4 million for child care and neighborhood centers.

Lastly, business recovery will get $10.1 million, for $5 million in business grants, $2.5 million in downtown support, $2 million for an entrepreneurship center and $600,000 for small business outreach and technical assistance.

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