It goes over the back-and-forth finances of the albergue project, which dates back to before the change of regional government. (when Feijoo and the Partido Popular took over Galician government they "cleaned house" and lots of established projects, including Camino-related things, were put on hold... and now even decade-old projects delays are always blamed on this.)
So despite clamor from local civic groups and regional pilgrim associations, pilgrims in Betanzos continue to sleep at the sports hall. The town is missing out on all the "vibrancy" (aka "MONEY") the pilgrims might bring to town, but what can you do?
(Personally, I´d stay in the scruffy pension rooms above the Pulperia Universal, one of the most fabulously named restaurants in Spain!)