WORCESTER — As emergency shelters remain at or near capacity and housing waitlists grow, city officials are advancing a proposal they say could address a key gap in Worcester’s response to homelessness: a centralized Day Resource Center on Gold Street.
The project, recently taken up by the City Council’s Economic Development Committee, includes a request to approve a certified project designation and a tax increment financing agreement to support the $11 million facility. The committee approved the request following discussion at its April 13 meeting.
Led by the Central Massachusetts Housing Alliance, or CMHA, the center would consolidate services currently spread across the city’s network of shelters and nonprofit providers, offering daytime support to individuals who often have nowhere to go between overnight stays.
Recent data from service providers underscores the need. Worcester’s annual point-in-time count identifies several hundred people experiencing homelessness on a given night, including both sheltered and unsheltered residents. Over the course of a year, that number increases as people cycle in and out of homelessness.
At the same time, shelters regularly operate at or near full capacity, particularly during the winter months. While overflow beds are often added during cold weather, providers say demand can still exceed available space. Waitlists for transitional and permanent supportive housing can stretch for months.
Advocates say that while Worcester has expanded its emergency shelter system, daytime services remain fragmented.
Worcester Chief Development Officer Peter Dunn said the Gold Street project is intended to address that gap.
“I think the benefit of this is that it’s more of a community-driven project,” Dunn said. “We’re going to benefit from this new facility because it’s addressing a critical gap in the assistance we provide to the unhoused population.”
City officials said the project has already secured the funding needed for construction.
“All of the resources for construction have been raised, and the total development cost is estimated at $11 million,” Dunn said.
The proposal includes a tax increment financing agreement, a tool municipalities use to support projects that provide a public benefit. In this case, officials say the benefit is a more coordinated and accessible approach to homelessness services.
Day resource centers typically provide meals, hygiene facilities, medical and behavioral health services, and housing navigation in a single location.
The project is being developed through a partnership between CMHA and a limited liability company, or LLC, which handles certain financing components.
“There will be a lease agreement between the LLC and CMHA, but it’s controlled by CMHA’s governance,” Dunn said. “There may be funds exchanged to cover debt service related to construction.”
City Councilor-at-Large Satya Mitra voiced support for the proposal during committee discussion.
“I think it’s a great project. It’s much needed, and I thank CMHA for coming forward to help us,” Mitra said.
While construction funding is in place, long-term operations will depend on a mix of funding sources that are still being finalized.
CMHA CEO Leah Bradley said the organization is pursuing multiple streams to support ongoing costs.
“There are a variety of sources we’re looking at,” Bradley said. “We are seeking funding from the Executive Office of Housing and Livable Communities to cover a portion. We’ve also become a Medicaid biller, so we’ll be able to bill for some services. It’s not a substantial amount — we estimate about 10% of total costs.”
Bradley said additional funding sources are still being explored.
“We’re aiming to open the Day Resource Center this winter, so we’re continuing to work on securing operational funding,” she said.
If the project moves forward as planned, CMHA is targeting an opening later this year.
City officials say the Gold Street center could become a key part of Worcester’s broader homelessness strategy, providing consistent daytime access to services as longer-term housing solutions continue to develop.
