Loveland Council To Discuss $2.85M Shelter, Tightening Encampment Rules
Loveland City Council will dicuss Jan. 6 a $2.85 million purchase of a building to house a 24/7 nonprofit-operated shelter. The council will also consider revisions to the city's encampment ban, potentially reducing shelter requirements before clearing camps from public property.
The January decisions come with a March deadline—the current shelter's temporary permit expires then. Together with the shift to nonprofit operators, the moves could significantly reshape where unhoused residents can legally sleep in Loveland and how nearby businesses and neighbors experience homelessness.
The ordinance revision reflects the U.S. Supreme Court's Grants Pass decision. That ruling would allow the city to remove camps from public property without offering 60 days of shelter or storage, raising the stakes for maintaining adequate shelter capacity as enforcement tightens.
City staff will propose purchasing 599 71st Street in northwest Loveland, a building in an industrial area near public transit, healthcare providers and the county mental health facility. The site has no immediate residences nearby.
The purchase is contingent on securing an experienced nonprofit operator through a Request for Proposals (RFP) closing Jan. 8. The city aims to confirm a long-term solution by mid-March.
Loveland is currently the only Colorado city that directly owns and operates both daily and overnight shelter services. The shift to nonprofit operation mirrors the approach used by most other Colorado municipalities and will change who controls daily operations and community engagement around the shelter.
"The City has determined it can no longer operate shelter services alone but remains committed to being a strong partner in a comprehensive, community-driven response to homelessness," the city stated. The city says the nonprofit operator will work closely with the surrounding community so that expectations, rules and ongoing communication support both the shelter's success and local concerns.
Loveland has spent $8.2 million on homelessness services since enacting its encampment ordinance in 2022. Current shelter operations cost $1.68 million annually.
The city will fund most of the purchase from Capital Expansion Fees, with the remainder from the General Fund. It also plans to sell the current Loveland Resource Center building, with proceeds returning to the General Fund.
Residents can track evolving plans and frequently asked questions at lovgov.org/homelessness.