Shelter guests allege Urban Alchemy staff engaged in drug use, distribution, and sexual harassment

Shelter guests in Portland have raised serious concerns about the conduct of Urban Alchemy staff, alleging drug use, distribution, and sexual harassment. These claims have been brought to the attention of the city’s Ombudsman, who has received over 80 complaints since the nonprofit began operating under a city contract in 2023. The allegations, which include reports of misconduct by both staff and former employees, reflect a pattern of behavior that has sparked concern among those seeking shelter.

The city of Portland entered into a contract with Urban Alchemy in 2023, initially set to expire in 2025. However, the city amended the agreement in 2024, extending it to 2028 with a total funding cap of $40 million, bringing the overall amount of public funds to approximately $90 million. This significant investment underscores the city’s reliance on Urban Alchemy to provide essential services to the homeless population.

Urban Alchemy operates roughly 700 of Portland’s 865 alternative shelter beds, utilizing village-style sites that include tiny homes and RVs. The organization’s second-chance model employs individuals with criminal records, aiming to offer them opportunities for rehabilitation and reintegration into society. Despite these efforts, recent allegations suggest that some staff members have engaged in behaviors that contradict the organization’s mission.

In 2025, two Urban Alchemy employees in Portland were terminated after felony charges were filed against them for alleged violent crimes. These incidents highlight the challenges of maintaining accountability within a nonprofit that serves a vulnerable population and receives substantial public funding.

The complaints received by the Ombudsman’s office include allegations of sexual harassment, drug use, and drug dealing, as well as claims of theft and retaliation. Some of these reports come from individuals who have stayed at various Urban Alchemy-run shelters, while others are from former employees. The gravity of these claims has prompted KATU to investigate further, speaking with both complainants and shelter guests who have not submitted formal complaints.

The situation raises important questions about the oversight of nonprofit organizations that receive public funds. Ensuring that those in positions of responsibility act with integrity and compassion is essential, especially when serving the most vulnerable members of society. As Proverbs 31:8-9 reminds us, we are called to speak up for those who cannot speak for themselves and to defend the rights of the marginalized.

The allegations against Urban Alchemy underscore the need for transparency and accountability in the provision of shelter services. While the nonprofit’s mission is rooted in compassion and care, the actions of a few individuals can undermine the trust placed in such organizations. It is crucial that both the organization and the city take these concerns seriously, ensuring that the dignity and safety of all individuals are upheld.

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