Denver’s Surprising $10 Deal: Transform A Motel Into Supportive Housing

Denver is offering the Stay Inn motel for just $10, but with a challenging twist: it must be converted into supportive housing for the homeless.

Quick Takes

The Stay Inn motel in Denver is on sale for $10, conditional on conversion to supportive housing.
The motel was purchased by the city for $9 million and remains largely unimproved.
Interested buyers must commit to a 99-year income-restricted housing covenant.
The Denver City Council’s approval is required for the sale to proceed.

A Unique Real Estate Opportunity

The City of Denver is selling the Stay Inn motel at 12033 E. 38th Ave. for just $10 to a developer willing to convert it into supportive housing for the homeless. Initially acquired for $9 million in August 2023, the property has remained unused since then. The sale comes with a condition of a 99-year income-restricted housing covenant, intended to ensure affordable rental rates going forward.

Despite being structurally sound, the motel requires significant renovation. City officials cite the need for electrical and walkway repairs, among others. The city hopes this approach will attract developers committed to addressing the rising homelessness problem in the area. The Denver Department of Housing Stability is tasked with selecting a suitable development partner.

Strategic Approach to Housing Crisis

Denver’s approach is aimed at socially conscious developers capable of making substantial investments. The motel, featuring four levels and 96 units already fitted with kitchenettes and a new sprinkler system, offers a foundation ready for further transformation into supportive housing. Interested parties must secure rezoning, though the city has pledged support through this process. The effort underscores a broader movement to creatively leverage city-owned properties to address 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.

Approval from the City Council remains a critical step in formalizing this transaction. The move to sell as a means of conversion was seen as the best method to ensure the property’s effective use, according to city spokesperson Derek Woodbury. The council is anticipated to review and potentially approve any purchase agreements later this year.

Implications for Social Change

Supportive housing developed from the Stay Inn could provide relief for many experiencing homelessness. The use of the motel is part of a larger strategy to address the increase in homelessness, which saw a 10% rise in the Denver metro area from 2023 to 2024. By transforming the property into housing for those earning up to 30% of the area median income, the city hopes to create a lasting community impact.

Meanwhile, the property currently supports a micro-community with temporary structures for the homeless, establishing a temporary safety net while more permanent solutions are developed. As negotiations for a developer partner continue, there is optimism about finalizing a deal before year-end, initiating the much-needed transformation.