AUSTIN (KXAN) — The city of Austin will end its contracts with Front Steps, a homeless services nonprofit that manages the city’s Austin Resource Center for the Homeless, or ARCH, in downtown Austin, a spokesperson confirmed Monday.

A city spokesperson said Austin Public Health made this decision after city staff met with Front Steps’ board of directors about “organizational challenges faced by the nonprofit.” A third-party consultant helped guide this decision.

“After much discussion, the Board has identified a need for an intensive strategy and reimagining of the organization to better prepare its staff and leaders to provide Homeless services in the wake of the pandemic. While Front Steps redefines its operations, the City has determined that all Front Steps contracts will be discontinued no later than September 30, 2022,” a city statement read.

A spokesperson said this change will not disrupt current services to people experiencing homelessness.

The city is looking at alternative nonprofits to replace Front Steps, and emergency contracts will be executed before Oct. 1 to prevent disruption of services. Long-term contracts will be confirmed next year and start in October 2023.

The city-owned ARCH shelter at 7th Street and Neches provides emergency shelter for men, basic services and housing connections, according to the city.

Austin City Council approved major changes to ARCH services in 2019, including an approach that focuses on quality over quantity in people helped. These changes included reducing the number of overnight beds and a new prioritization system for getting beds and services.

With these changes, council members approved a five-year, $13.5 million contract with Front Steps.

In addition to managing ARCH, Front Steps also has contracts with the city for the city’s Southbridge shelter and permanent supportive housing.

“Over the years, Front Steps, Inc. staff and board members have shown dedication to serving individuals who are experiencing homelessness. However, to minimize potential disruption of services for clients, the City is identifying alternate nonprofit vendors to assume city-funded programs currently delivered by Front Steps,” the city statement said.

KXAN reached out to Front Steps for comment. This article will be updated when a response is received.