"Seattle’s Shelter Crisis: A Tale of Empty Rooms and Unmet Needs"

Seattle’s Civic Hotel: A Case Study in Homelessness Management

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This article was produced for ProPublica’s Local Reporting Network in partnership with KUOW public radio. Sign up for Dispatches to get our stories in your inbox every week.

Reporting Highlights

• Using a Hotel as a Shelter: Seattle leased the Civic Hotel as shelter space, with a nonprofit utilizing the Civic and other buildings to house homeless individuals transitioning from the city’s troubled Third Avenue.
• Placements Halted: Despite a $2.7 million lease extension, the city instructed the nonprofit to cease new placements, leading to vacant rooms while many remained homeless.
• Major Need: Of an estimated 5,000 shelter beds in Seattle and nearby Vashon Island, only 3% were available each night last year.

When Brenna Poppe moved into the Civic Hotel off the damp streets of Seattle in late 2022, she felt an overwhelming sense of relief. For the first time, she had a roof over her head, a stark contrast to the uncertainty of life on the streets. However, as the months passed, the once-bustling shelter began to quiet down. The bright yellow doors that once welcomed new residents started to remain closed, leaving Poppe and a dwindling number of guests in a “deafening silence.”

The Civic Hotel, converted into a shelter during the early days of the pandemic, was initially a beacon of hope for many. In February 2024, the city signed a $2.7 million lease extension to continue using the Civic and other buildings as shelter space. Yet, despite this financial commitment, the city halted new placements, leaving many rooms empty even as the homeless population continued to grow.

The Cost of Empty Rooms

By December 2024, Seattle taxpayers were effectively paying $4,200 per month for each unoccupied room at the Civic Hotel. This situation arose during a time when thousands of Seattle residents were without shelter. City officials described the decision to leave the rooms vacant as a “pause” while they assessed a looming budget deficit. They cited the need to explore cheaper alternatives for shelter, despite the pressing demand for housing.

Internal records revealed a more complex narrative. While the city halted placements, it also rejected a proposal for a more affordable shelter location. A top official in Mayor Bruce Harrell’s office expressed animosity toward the nonprofit leader advocating for the new site, indicating a breakdown in collaboration that ultimately harmed those in need.

A Rising Crisis

Seattle’s homelessness crisis is not unique; many West Coast cities are grappling with similar challenges. Before the city’s decision to stop placements, the Civic Hotel had successfully transitioned hard-to-reach homeless individuals from the streets to stable shelter and, in many cases, to permanent housing. However, the city’s decision to maintain financial support for a suspended program has drawn criticism, especially as cities like Los Angeles face scrutiny for failing to track the outcomes of their homelessness initiatives.

Despite Mayor Harrell’s commitment to better tracking shelter capacity and ensuring that beds do not go unfilled, the reality has been starkly different. A spokesperson for Harrell noted that city-funded shelters had an average occupancy rate of 87% last year, but this statistic does not account for the empty rooms at the Civic.

The Blade: A Troubling Landscape

The area around Third Avenue, known as The Blade, has become a symbol of the city’s homelessness crisis. Here, disorder is commonplace, with individuals struggling to survive amid the affluence of nearby landmarks like Pike Place Market. In 2022, a coalition of nonprofits and businesses initiated the Third Avenue Project, aiming to reduce violence and open drug use while providing shelter.

The project adopted a “housing-first” approach, emphasizing the importance of shelter as a precursor to addressing other issues like addiction and mental health. Despite the shortage of shelter beds and affordable housing, the initiative aimed to help individuals transition indoors.

The Halt in Placements

The Civic Hotel’s success was overshadowed by rising costs. After the initial lease, the rent increased to approximately $2.6 million annually. In January 2024, nonprofit leader Lisa Daugaard proposed a more affordable alternative: an apartment building in North Seattle that could accommodate more clients for $1 million less. However, city officials opted to halt placements at the Civic instead, citing budget uncertainties and a desire to “wind down” operations.

Internal communications revealed a more personal motive behind the decision. Chief Deputy Mayor Tiffany Washington expressed a desire to remove Daugaard from the homelessness sector, questioning the efficacy of her organization despite evidence to the contrary. Data indicated that Daugaard’s program had successfully transitioned a higher percentage of clients into permanent housing compared to other emergency shelter operators.

The Fallout

The disruption in placements at the Civic Hotel had immediate repercussions. The type of shelter provided—individual rooms with supportive services—was particularly valuable for individuals grappling with mental illness or addiction. Traditional shelters often lack the privacy and personal space that many need to begin their recovery.

As placements ceased, safety ambassadors who had been working to de-escalate conflicts on Third Avenue found themselves with fewer resources to connect individuals to shelter. Data from the nonprofit We Deliver Care indicated a significant drop in placements from 47 in 2023 to just 30 in 2024.

A Glimmer of Hope

In July 2024, the city lifted the pause on placements, allowing individuals like Tiffany Fields, who had been struggling to stay safe outdoors, to finally secure shelter. The new venue, the Turina James, was the very apartment building Daugaard had proposed over a year earlier. Fields expressed her relief and gratitude, stating, “I’m happy. I’m in a very, very, very good place.”

While many individuals are still waiting for housing, the paths available to them have changed significantly since 2022 and 2023. The city’s renewed focus on placements, albeit with a shift in emphasis toward different neighborhoods, offers a glimmer of hope in a complex and ongoing crisis.

Conclusion

Seattle’s experience with the Civic Hotel serves as a case study in the challenges and complexities of managing homelessness. The interplay between budget constraints, political motivations, and the urgent need for shelter underscores the necessity for a coordinated and compassionate approach to addressing this pressing issue. As the city continues to navigate these challenges, the stories of individuals like Brenna Poppe and Tiffany Fields remind us of the human cost of policy decisions and the critical importance of providing stable housing for all.