Urban Alchemy, the San Francisco nonprofit known for its black-and-green vests and hiring people with lived experience, has rocketed from city streets into the center of a high-stakes fight over homelessness policy in Santa Fe. After taking over operations at the longtime Pete’s Place shelter, the group’s round-the-clock staffing model, sanctioned “oases,” and roaming outreach teams have drawn praise from some officials and sharp concern from advocates and attorneys. The debate only intensified this week as reporting and city documents showed the Santa Fe contract had already burned through most of its funding halfway into a year-long term.
What the group does
Based in San Francisco, Urban Alchemy has quickly expanded into a multi-city operator that runs low-barrier shelters, sanctioned tent sites, and outreach teams that patrol encampments, according to reporting on the organization. As described by Bloomberg, the group presents itself as an alternative to conventional policing and leans heavily on hiring people with lived experience to stabilize public spaces. Investigations into the sector, including work by CalMatters, have also noted that Urban Alchemy’s rapid contract growth has raised oversight and safety questions in several jurisdictions.
How it landed in Santa Fe
City records show Santa Fe invoked an emergency procurement in 2025 to replace the Interfaith Community Shelter at 2801 Cerrillos Road and bring in Urban Alchemy to run the municipal facility, which the new operator has renamed Agape House. A purchasing memo from the City of Santa Fe outlines a roughly $1.5 million contract, set to run 12 to 14 months, for a low-barrier, 24-hour shelter. The document explicitly cites thousands of police and fire calls in the area as part of the emergency rationale. Local coverage at the time, including reporting from Yahoo, chronicled the contentious council vote and intense neighborhood reaction to the handoff from Interfaith.
Money and metrics
Local reporting based on city invoices found that by the end of January, Urban Alchemy had already received roughly $1.2 million of the $1.5 million shelter contract – about 80 percent of the budget – prompting fresh scrutiny of how the money is being spent. KSFR reviewed the invoices and the timeline presented at a February council meeting where Urban Alchemy laid out a revised service plan.
City data cited in the procurement record show heavy call volumes around the shelter before Urban Alchemy’s arrival. After the takeover, local broadcasters reported a sharp drop in calls in the following weeks, while also noting overdoses and a separate bedbug-related closure that complicated the early rollout. KOAT provides the underlying numbers and on-the-ground coverage of those early months.
Controversies and lawsuits
Urban Alchemy’s model has not expanded quietly. Investigative reporting and public records show multiple legal claims and labor complaints tied to the group’s operations in California and elsewhere. CalMatters and other longform local investigations have documented alleged incidents, labor suits, and contract disputes, some of which were later settled. Those reports also question whether front-line staff consistently have the certifications and oversight required for what many describe as quasi-security work. All of that history now shadows the debate over whether Urban Alchemy’s model can scale responsibly.
Local reaction in Santa Fe
The switch at Pete’s Place set off a fierce local argument. Volunteers and Interfaith leaders objected to what they saw as the speed and limited transparency of the city’s move, while some neighbors and councilors defended the emergency shift as a necessary response to mounting public-safety strain. Community groups and the Democratic Party of Santa Fe publicly called for stronger oversight and more clarity on long-term plans and funding after the transfer, and the issue has become a live political topic at recent council meetings. Reporting by Yahoo and statements from neighborhood organizations capture the split in public sentiment.
Legal and oversight questions…