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Denver plans to convert 194-unit, $26M hotel into city’s next homeless shelter

The city would start leasing the complex through its Department of Housing Stability (HOST) on Sept. 1.
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Posted at 7:02 AM, Jul 29, 2023

Denver’s Housing Authority hopes a 194-unit hotel in Central Park will become the city’s next permanent homeless shelter.

The DHA has approved the purchase of the Best Western hotel at 4595 Quebec Street for $26 million, with plans to convert it into what it calls “supportive housing.”

The deal has not yet closed, but the housing authority – which is appointed by the mayor – believes the 194 units will make significant headway toward Mike Johnston’s goal of housing 1,000 unsheltered people by the end of the calendar year.

The city would start leasing the complex through its Department of Housing Stability (HOST) on Sept. 1.

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According to a news release Friday morning, the purchase will be made with $11 million from bond funds and $16 million more from a bridge loan – a term for short-term financing used until permanent funds can be secured – from the Denver bank Northern Trust.

The DHA hopes the permanent funds come via American Rescue Plan Act money.

One hundred ninety-three of the units would be used for housing low-income people, with 40% of the units designated for tenants earning 30% of the Denver area’s median income.

One unit would be used for staff.

“Partnerships are essential to creating stable housing options for those exiting homelessness in our community. The acquisition of hotels for conversion to supportive housing helps expand the pipeline quickly by leveraging existing buildings,” HOST Executive Director Laura Brudzynski said, according to the news release. “We’re proud to help move another hotel acquisition forward for supportive housing, and are excited about the opportunity to provide non-congregate shelter as an interim use at this site prior to its conversion to housing.”

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