Denver’s Unique $10 Motel Strategy Towards Solving Homelessness

Person sleeping on a bench in a public area.

Denver’s innovative approach to solving homelessness has placed a former motel on the market for only $10, with the catch of converting it into supportive housing.

Key Takeaways

City-owned former Stay Inn Motel in Denver is on sale for $10, with conversion to supportive housing required.
The buyer must adhere to 99-year income restrictions, ensuring housing for those earning up to 30% of the area median income.
Repairs and approvals, including City Council approval, are needed before the project can proceed.
Denver aims to finalize the purchase by the end of the year to address rising homelessness.

The $10 Sale: A Unique Opportunity

A city-owned motel in Denver, located at 12033 E. 38th Ave., has captured attention due to its unusual sale price of $10. Yet, this is not a simple transaction. The buyer must convert the building into supportive housing, a challenging task that involves meeting specific structural and safety standards. Originally acquired for $9 million in August 2023, the motel has not been used since its purchase. The city bought the property to combat homelessness and has now decided on a new strategy.

Potential buyers must acquire City Council approval, and the purchaser will bear responsibility for necessary renovations, including structural repairs to walkways, railings, and electrical systems as noted by city officials. The goal is to establish a supportive housing project operating under a 99-year income restriction, ensuring continued assistance to those most in need.

Supporting the Homeless Community

Denver’s solution involves taking a financially struggling property and transforming it into a vital community resource. Supportive housing serves those with incomes up to 30% of the area median income facing homelessness. The motel, featuring 96 units with upgraded kitchenettes and a new sprinkler system, requires additional work to meet housing standards. Meanwhile, the property hosts a micro-community of shed-like structures in its parking lot, part of a multi-faceted approach to homelessness.

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

In addressing the rezoning process for housing people in the motel, the city has expressed support for any buyer awarded the contract. The Denver Department of Housing Stability is already involved in the selection process for a development partner, with the City Council’s blessing required to move forward.

Wrapping Up the Plan

Negotiations are ongoing as potential development partners assess the opportunity. The city anticipates finalizing an agreement before the year’s end to commence the conversion. This effort is crucial, especially considering the 10% rise in homelessness in the Denver metro area from 2023 to 2024. The ultimate aim is to turn a commercial failure into a triumph for community welfare, with city executives optimistic about the path forward.

“We have explored various options for converting the property to supportive housing, and in the fall of 2024, we identified a possible ownership transfer as the best means for accomplishing this,” said Woodbury.

As the city continues its efforts to provide lasting housing solutions, the unique $10 sale initiative exemplifies a proactive stance towards an increasingly urgent societal challenge.