Denver offers a former motel for just $10, but the catch is that it must be transformed into supportive housing for the homeless.
At a Glance
- Denver is selling the former Stay Inn motel for $10 to be converted into supportive housing
- The city bought the motel for $9 million in 2023 but it has remained unused
- The buyer must agree to operate it as income-restricted housing for 99 years
- The property requires significant renovations and rezoning
- City aims to finalize a deal by the end of the year
Denver’s Innovative Approach to Homeless Housing
In a bold move to address its growing homelessness crisis, the city of Denver is offering a former motel for sale at the bargain price of $10. The catch? The buyer must commit to converting the property into supportive housing for the homeless. This unusual proposal comes as the city seeks creative solutions to a problem that has seen a 10% increase in the homeless population in the Denver metro area from 2023 to 2024.
The property in question is the former Stay Inn, located at 12033 E. 38th Ave. The city purchased the motel in August 2023 for $9 million, but it has remained vacant since then. Now, Denver officials are looking for a firm or organization willing to take on the challenge of transforming this unused space into much-needed housing for those experiencing homelessness.
The $10 Deal: What’s Involved?
While the $10 price tag may seem too good to be true, potential buyers should be aware of the significant responsibilities that come with this purchase. The new owner will be required to undertake comprehensive renovations to convert the building into supportive housing. This includes potential structural repairs to walkways and railings, as well as electrical system upgrades.
Additionally, the property will be sold with a covenant requiring it to operate as income-restricted housing for 99 years. This long-term commitment ensures that the housing will remain accessible to those most in need for nearly a century.
Challenges and Opportunities
The former Stay Inn is a four-level structure with 96 units. While it has already undergone some renovations, including the addition of kitchenettes and a new sprinkler system, significant work remains. The building also requires rezoning to allow for residential use, a task that will fall to the new owner.
“We are hopeful that the procurement will result in a path forward for delivering supportive housing at the site,” Derek Woodbury said.
Despite these challenges, the opportunity presents a unique chance for a community-minded organization to make a substantial impact on Denver’s homeless situation. The supportive housing is intended for individuals earning up to 30% of the area median income who are facing homelessness, providing a crucial lifeline for some of the city’s most vulnerable residents.
Next Steps in the Process
The Denver Department of Housing Stability is currently in the process of selecting a development partner for this project. Any purchase and sale agreement will require approval from the Denver City Council, with city officials hoping to present a proposal later this year.
As negotiations continue, the city aims to finalize a deal by the end of the year to begin the transformation. In the meantime, the property’s parking lot hosts a network of shed-like structures for the homeless, part of a micro-community that could remain for four years or more.
