Loveland is the only city in Colorado that directly owns property and operates both daily and overnight shelter services. While most cities partner with nonprofit organizations for these services, Loveland has managed these services as a City since 2022. 

That approach is changing. 

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. Since September, the City has been working with nonprofit organizations, faith groups, businesses, residents, and medical providers to develop long-term solutions focused on prevention, including access to affordable housing and supportive services. 

Proposed partnership model 

Under the proposed new model, the City would no longer directly operate overnight shelter services. Instead, like other municipalities across Colorado, Loveland would work with qualified nonprofit partners to provide shelter and resource services. 

To support this transition, City staff will present a proposal that includes a conditional $2.85 million offer to purchase a building at 599 71st Street in northwest Loveland. The facility could serve as a 24/7 Resource Center and overnight shelter operated by an experienced nonprofit provider identified through the City’s current Request for Proposals (RFP), which closes on Jan. 8, 2026. 

The proposed shelter site was identified after discussions with the community, including preliminary findings from Community Conversations held in September and October 2025, as well as input from council. The location offers several advantages: it is in an industrial area with no immediate residences nearby, is close to public transit and other services such as healthcare providers and the county’s mental health facility and is large enough to support both daytime services and overnight shelter operations. The purchase would move forward only if a qualified nonprofit operator is secured, and part of selecting that operator will include ensuring they work closely with the surrounding community so that expectations, rules, and ongoing communication support both the shelter’s success and local concerns. 

Funding for the potential acquisition would come from Capital Expansion Fees (CEFs) and the General Fund, with CEFs covering 96.6% of the cost and the remaining 3.4% ($95,989) coming from the General Fund. 

The City also plans to sell the current Loveland Resource Center (LRC) building — purchased in 2024 for $410,000 — with proceeds returning to the General Fund. 

Next steps 

The City aims to confirm a long-term solution by mid-March, when the temporary permit for overnight shelter operations expires at the LRC. 

If a nonprofit operator is selected and the purchase moves forward, the City will work closely with the operator to conduct community outreach and maintain proactive communication throughout the transition. 

This proposed shift reflects the City’s commitment to a sustainable, partnership-based model that continues to support residents in need while engaging the broader community in long-term solutions, like other cities in Colorado.