City Council approved an approximate $10.4 million contract Monday with Colorado Coalition for the Homeless. The money will go toward purchasing the former Clarion Hotel, which the city wants to turn into income-restricted rental units and non-congregate shelter space. It's the latest in a string of property purchases aimed at expanding Denver's housing and shelter stock in response to the city's homelessness and housing problems.
The site, located at 48th Ave. in Globeville, will consist of 108 studio and one-bedroom supportive housing units and 107 non-congregate shelter units for people experiencing homelessness. Half the rental units will be capped at 30% Area Median Income (AMI), or an annual income up to $24,650 for a single person or $28,150 for a household of two. The other half will be capped at 50% AMI, or up to $41,050 for a single person, or $46,900 for a household of two.
Residents will have access to state housing vouchers so that none of them will spend more than 30% of their income on rent, including those without a job. The city is paying for the 60-year contract with American Rescue Act Funds, which are one-time federal pandemic funds that need to be allocated by the end of 2024. City officials say rehabilitation of the property and leasing units should begin at the end of 2023.
"We learned that we can bring housing resources to those that need them most at lower cost and in less time than it would take to build from the ground up," said Cathy Alderman, Chief Communications and Public Policy Officer for the Colorado Coalition for the Homeless, in a statement Monday. "We are honored to be able to partner with the city, state, and federal government to provide these critical and life-saving resources to our unhoused community members."
