Funding shortfall threatens closure of Madison’s Dairy Drive homeless campground

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Madison’s first sanctioned campground for people experiencing homelessness may close by year’s end, as federal COVID-19 relief funding that sustained the project has dried up, according to WMTV. The Dairy Drive site, which houses about 30 residents in small, heated and air-conditioned shelters, was launched in 2021 as a temporary response to an illegal encampment in Reindahl Park.

Initially created to offer a safer, legal alternative to tent cities, the site was equipped with 30 prefab tiny homes purchased from Pallet. While the campground struggled early on with issues of drug use and violence, city officials say it has since stabilized and served as a successful model for transitional housing, with nearly two-thirds of its 97 residents moving on to permanent homes.

Jim O’Keefe, Madison’s community development director, acknowledged that without new funding — unlikely at this point — the city will begin winding down the site. The project, which has cost $2.5 million to date and requires about $65,000 a month to operate, was largely funded by pandemic-era federal dollars. With those resources now exhausted, city leaders say they’re left with few options.

Advocates like Brenda Konkel of Madison Street Medicine say the project’s results are proof the model works, even if it’s costly. She praised the high level of on-site services and the profound changes seen in residents over time. Still, Konkel admitted the campground’s future is uncertain without a new infusion of funding from foundations or private donors.

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A large men’s shelter is currently under construction on Bartillon Drive, set to accommodate approximately 250 individuals. Even so, supporters of Dairy Drive say the loss of the tiny home village would be a setback for a city still grappling with homelessness.

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