Seattle Spent Millions on Hotel Rooms to Shelter Unhoused People. Then It Stopped Filling Them.

Published: Monday, October 6, 2025 at 9:00 am

Seattle's Homeless Shelter Stalls, Then Resumes, Amidst Scrutiny

Seattle's efforts to combat homelessness have faced scrutiny after the city paused placements in a city-funded shelter, the Civic Hotel, despite continuing to pay for the vacant rooms. The city signed a $2.7 million lease extension in early 2024 to maintain shelter space, but stopped placing individuals in the Civic, leading to dozens of empty rooms while thousands remained unsheltered.

City officials cited budget concerns and the potential for a cheaper location as reasons for the pause. However, internal records revealed additional factors, including a top official's disapproval of a nonprofit leader's proposed alternative shelter. This decision resulted in a year of paying for shelter space without effectively reducing street homelessness.

The Civic Hotel, initially converted to a shelter during the pandemic, provided individual rooms and support services. A program called the Third Avenue Project, which included safety ambassadors, referred individuals to the Civic and other shelters. This program had shown success in moving people from the streets to shelter and, in many cases, into long-term housing.

The city's decision to halt placements came after a nonprofit proposed a cheaper alternative shelter. Despite the proposal, the city extended the Civic's lease and continued to pay for empty rooms. Placements resumed in a new location in North Seattle, after a 16-month gap.

The city's actions have drawn criticism, particularly in light of Mayor Bruce Harrell's commitment to better track shelter capacity. The city's actions also come as other West Coast cities are facing criticism for failing to accurately track outcomes of their massive outlays on homelessness.

BNN's Perspective: The situation in Seattle highlights the complexities of addressing homelessness. While budgetary constraints are a reality, the decision to leave shelter beds empty while people remain on the streets raises serious questions about priorities and the effectiveness of current strategies. A more transparent and data-driven approach is needed to ensure that resources are used efficiently and that the most vulnerable members of the community are served.

Keywords: Seattle homelessness, Civic Hotel, shelter, vacant rooms, Third Avenue Project, CoLEAD, Mayor Bruce Harrell, budget deficit, housing, homelessness crisis, shelter beds, North Seattle, Tiffany Fields, Lisa Daugaard

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