Denver’s Homeless Solution: Repurposing Hotels Into Affordable Housing

City skyline with a lake and distant mountains

Transforming The Stay Inn in Denver comes with a surprising $10 price tag, but the responsibility is much greater than the cost.

Key Takeaways

A previous motel, The Stay Inn, may soon provide housing for the homeless.
Interested buyers would pay $10, handling extensive renovation and adhering to a 99-year affordable housing mandate.
The city seeks approval from the City Council to finalize the sale.
The building needs significant upgrades to fulfill safety and housing codes.
The initiative embodies Denver’s innovative approach to addressing homelessness.

A Charity-Focused Sale

A city-owned former motel in Denver might soon change hands for an unprecedented $10, though prospective owners must commit to turning it into supportive housing for those facing homelessness. Located at 12033 E. 38th Avenue, the Stay Inn has stood empty since its $9 million purchase in August 2023.

The proposal presents an opportunity for socially conscious investors ready to support community welfare. Once sold, the buyer must conduct major structural upgrades to comply with city standards, enhancing the property before it serves as housing for the needy.

Significant Commitment Required

The successful bid will require more than a buyer willing to meet the $10 ask. City officials have been clear: substantial repairs are necessary. “Possible renovations include structural repairs to walkways and railings, and electrical system repairs,” city officials said. The plan’s scope emphasizes buyers aligned with the mission of providing long-term housing solutions.

“We are hopeful that the procurement will result in a path forward for delivering supportive housing at the site,” said Derek Woodbury.

With income-restricted housing covenants lasting 99 years, sustainable housing for those earning up to 30% of the area median income is a core objective. Current and future zoning challenges fall to the new owners, though city support remains. “Would support anyone awarded this through the rezoning process,” noted Woodbury.

Navigating Red Tape

The path to conversion involves selecting an organization suited to the task with a developer agreement and purchase details pending City Council approval. The Department of Housing Stability has begun identifying potential partners, pushing to finalize a deal by year-end to initiate transformation.

This nuanced initiative reflects Denver’s commitment to tackling its housing crisis innovatively, though it remains to be seen how the project will unfold practically. Completing negotiations and starting renovations mark the first steps towards the successful realization of supportive housing in this iconic area.