BIRMINGHAM, Ala. — The Birmingham City Council has approved a $2.69 million funding package to construct micro-shelters and provide support services for the city’s homeless population, a step aimed at addressing the growing issue of homelessness in the area.
The funding will be divided between two organizations, Faith Chapel Care Center and Urban Alchemy, both tasked with building and operating the shelters while offering additional resources to help unhoused residents transition into stable living situations.
Faith Chapel Care Center will receive $1.19 million to construct 15 micro-shelters at its downtown location on Second Avenue North. The center already provides services such as case management, mailing addresses, counseling, showers, laundry facilities, and computer access. The additional funding will allow it to expand its services to accommodate more individuals in need.
Urban Alchemy, a nonprofit that specializes in providing career pathways for formerly incarcerated individuals, will receive $1.5 million to construct and manage up to 60 micro-shelters at two yet-to-be-determined locations. These shelters will also include wraparound services designed to address the needs of residents as they work toward long-term housing stability.
The initiative comes as Birmingham faces a rise in homelessness. According to One Roof, an organization that coordinates services for the homeless in central Alabama, the 2024 point-in-time count recorded 911 homeless individuals across Jefferson, Shelby, and St. Clair counties—an increase from 847 the previous year.
The micro-shelters are expected to provide immediate relief by offering lockable units equipped with heating, cooling, and basic amenities like desks. Faith Chapel’s shelters are slated to open later this year, while Urban Alchemy’s sites are expected to launch by winter.
City leaders have emphasized that these shelters are part of a broader effort to address homelessness in Birmingham. The funding is tied to the city’s “Home For All” initiative, which aims to provide temporary housing alongside supportive services such as mental health care and job training.
The approval of this funding follows other recent efforts by Birmingham to tackle homelessness, including the HEART program launched in January 2025. That program has already provided outreach services to hundreds of individuals experiencing homelessness.
Officials hope the micro-shelter initiative will serve as a model for addressing homelessness by combining immediate shelter with long-term solutions aimed at helping residents achieve stability.