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Denver audit of homelessness initiative puts focus on cost dispute, with Mayor Mike Johnston pushing back

Report says city underreported $20 million in expenses, but officials say those weren’t part of initiative

From left, Eugene Braziel, 65, Brittany Goodrich, 32, and Roberta Ramirez, 40, are residents of The Aspen, a noncongregate homeless shelter in a former hotel in Denver, on Tuesday, April 9, 2024. The shelter is part of a network of former hotels and micro-communities opened under Mayor Mike Johnston's All In Mile High homelessness initiative. (Photo by Hyoung Chang/The Denver Post)
From left, Eugene Braziel, 65, Brittany Goodrich, 32, and Roberta Ramirez, 40, are residents of The Aspen, a noncongregate homeless shelter in a former hotel in Denver, on Tuesday, April 9, 2024. The shelter is part of a network of former hotels and micro-communities opened under Mayor Mike Johnston's All In Mile High homelessness initiative. (Photo by Hyoung Chang/The Denver Post)
Elliott Wenzler in Denver on Tuesday, Jan. 14, 2025. (Photo by Hyoung Chang/The Denver Post)
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Denver Auditor Tim O’Brien released a critical report on Mayor Mike Johnston’s homelessness program Thursday, calling his key initiative “poorly planned” and claiming it had cost millions of dollars more than the office reported.

“They needed to have, really, a better plan in place before they started executing,” O’Brien said in an interview with The Denver Post.

In a response to , Johnston’s office sent out its own news release to take issue with several of its findings.

“The city’s review of this report finds it misstates key facts and is in some instances willfully misleading,” Johnston’s office wrote.

Denver Auditor Tim O'Brien poses for a portrait in the Wellington E. Webb Municipal Office Building in Denver on Thursday, December 11, 2025. (Photo by Hyoung Chang/The Denver Post)
Denver Auditor Tim O’Brien poses for a portrait in the Wellington E. Webb Municipal Office Building in Denver on Thursday, December 11, 2025. (Photo by Hyoung Chang/The Denver Post)

The two sides were disagreeing publicly — and not for the first time — over an audit report that analyzed the All in Mile High homelessness program between July 2023, when Johnston took office, and June 2025. Johnston had promised to end street homelessness while running for office, and he launched the initiative in the second half of 2023 by opening a network of temporary shelters in former hotels and new micro-communities that used tiny homes and other structures.

One of the key disagreements Thursday was over whether the mayor’s office underreported the cost of the program to the City Council by about $20 million. According to the auditor’s office, the mayor’s office told the council late last year that the initative’s total cost in its first two years was about $158 million.

But the auditor’s office said expenses in the city’s “system of record” were estimated at $178 million in the same period.

Johnston’s office said the discrepancy came from auditors including costs for some homelessness services that city officials didn’t consider part of All in Mile High — like cold weather shelters and noncongregate shelters that had opened under previous administrations.

“Itap just inaccurate, unfortunately,” Johnston said in an interview with The Post. “Not a single dollar was overspent, not a single dollar is not accounted for.”

Johnston met an initial goal of moving 1,000 people indoors from street encampments by the end of 2023. As of Thursday, the city’s counted 3,530 moves of people into All In Mile High’s noncongregate shelters since July 2023, with some of those involving the same people more than once. A broader measure that includes other programs says the city has moved about 7,300 people into more permanent housing during Johnston’s administration.

Annual point-in-time counts have found that the number of people sleeping on Denver’s streets went down by 45% between early 2023 and early 2025, but advocates for homeless people dispute the reliability of those single-day counts, saying weather and other factors can influence the results.

Denver Mayor Mike Johnston, center, with city officials, speaks to members of the media at the new Overland Park micro-community in Denver on March 11, 2024. The mayor, together with Councilwoman Flor Alvidrez, announced the opening of the first micro-community of 2024. This long-in-the works micro community on CDOT land in far southern Denver is the continuation and re-naming of Johnston's House 1,000 homelessness Initiative from last year. The program is now called All In Mile High with aims to bring another 1,000 people off the streets in 2024. The micro-community in the Overland Park neighborhood includes 60 individual indoor and will provide wraparound services to residents. During the same week, outreach teams will engage people living outdoors to offer them indoor accommodations, connections to a suite of wraparound services, and a pathway toward permanent housing. People from the selected encampment will be moved to the Overland Park micro-community, while others will be offered indoor accommodations at other sites..The opening of the Overland Park micro-community and upcoming encampment resolution will mark the first major milestone of All In Mile High, one of Mayor Johnston's 2024 citywide goals. All In Mile High focuses on increasing the total number of people brought indoors from unsheltered homelessness to 2,000 by Dec. 31, 2024 and is the long-term name for the House1000 initiative that launched in 2023. The initiative aligns with Mayor Johnston's vision to bringing those experiencing homelessness indoors and improving access to supportive services like mental health treatment, drug rehabilitation, and job training programs. (Photo by Helen H. Richardson/The Denver Post)
Denver Mayor Mike Johnston, center, with city officials, speaks to members of the media at the new Overland Park micro-community in Denver on March 11, 2024. (Photo by Helen H. Richardson/The Denver Post)

Besides questions about cost reporting, raised concerns about how the city reported outcomes for people in the program, how and where it selected locations for shelter sites, and how it awarded some contracts.

On Thursday, both sides discussed the report during an Audit Committee meeting.

After audit staffers began the meeting by acknowledging what the homelessness program had accomplished, the two sides went back and forth over whether the mayor’s office was doing enough to track its expenses, inform the public on the program’s progress and create strategic plans.

Patrick Schafer, a senior audit manager, said that the disagreements about what should be included in the program’s cost indicated that there was the potential for problems like the misuse of funds, inefficiencies and incomplete planning.

“I think that shows there’s a systematic problem with how you guys track the expenditure amount,” he said. “I think there is a problem.”

Such assertions drew pushback from the mayor’s administration. The report, the committee meeting and Johnston’s response also amounted to a parade of comments from both sides as they made and rebuffed criticisms about how the other side had behaved during the audit process.

According to the auditor’s office, the mayor’s office failed to provide documents showing overall spending and refused to give access to expense-tracking spreadsheets.

“The Mayor’s Office also said the $20.1 million in underreporting was unintentional,” according to a news release from the auditor’s office.

Johnston’s office said officials did provide those documents and added about the underreporting characterization: “The Auditor’s Office said this, not the Mayor’s Office. We did not say that, as we do not believe we underreported any figures.”

Tensions between O’Brien’s and Johnston’s offices intensified last year during the budget process, as they fought publicly over the mayor’s attempt to cut O’Brien’s budget during a citywide budget crisis. At the time, O’Brien said Johnston was interfering with his work as a separately elected official.

The mayor’s office agreed with seven of the 12 recommendations made in the All In Mile High audit report.

Amid the back and forth at Thursday’s meeting, Schafer at one point expressed a wish that there had been more dialogue on some issues during the audit process.

“I think we could have had more progress as a result of this audit,” he said.

Cole Chandler, a senior adviser to Johnston on homelessness,  responded plainly: “Our relationship just doesn’t lend itself to that kind of conversation. Thatap not the way those meetings are set up, and not the outcome they’re seeking. So I would encourage you to go back and look at the way you’re structuring that and structuring that partnership moving forward.”

The auditor’s office has announced plans to investigate several other city initiatives this year, including the 16th Street mall reconstruction, Vision Zero efforts to reduce pedestrian deaths and the city budget process.

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