After not housing a single homeless person, a former hotel that Denver purchased for $9 million for use as a new homeless shelter is set to be sold off again — well over two years after its initial purchase, according to Denver’s Department of Housing Stability.

The city’s new price tag? Just $10.

That is, of course, if an interested developer is willing to continue transforming 12033 E. 38th Avenue, a former Stay Inn hotel, into a shelter providing “supportive” homeless services, according to stipulations set by HOST.

“To make this financially viable, the property will be sold for $10 — a strategic move that reflects our commitment to long-term affordability rather than short-term financial returns,” spokesperson Julia Marvin told The Denver Gazette via email.

“We’re working to transform this property into permanent supportive housing for people experiencing homelessness,” Marvin said.

The Denver Assessor’s Office shows the appraised value of the building and land is $8.4 million. There’s been zero property taxes paid since the city has owned it, but a new private owner will be on the hook for that. 

HOST officials blamed a lack of federal resources, such as housing vouchers, under the current President Donald Trump’s administration.

“State and local vouchers are constrained by ongoing budget shortfalls,” Marvin said.

City council approval is necessary for the property transfer, according to HOST officials. That approval might come later this year.

Officials also project the former hotel needs $5 million in further renovations. Windows on the property remain boarded up.

“In the fall of 2024, HOST issued an RFP to identify a partner for ownership transfer of the property, to convert it into supportive housing,” Marvin said on Thursday. “We were looking for a partner who was well-equipped to handle the complexities of renovations, managing the project, and operating it as supportive housing.”

In January 2023, then-Mayor Michael Hancock said the city was proud to “transform” yet another hotel into a shelter for homeless people, costing taxpayers $9 million to purchase the 12033 38th Avenue former hotel.

Back then, HOST officials said it anticipated the site would begin housing the homeless by late 2023. But that never happened.

In July 2024, Denver officials described the former Stay Inn hotel as having recently undergone updates.

A four-story building, it has an elevator, a lobby and a community space. As envisioned, 89 of its 96 units would be converted to have micro-kitchens with mini-microwaves, coffee makers, mini-fridges, hotplates, food storage and sinks.

The hotel was already furnished, according to the purchase agreement from 2023. Rooms were fitted with carpets, beds, microwaves, nightstands, dressers and televisions, the agreement said.

The 96-unit hotel sits on an existing “micro-community” property, which is already housing homeless people under Mayor Mike Johnston’s homeless housing program.

Last year, when asked why the building wasn’t being used for homelessness, Johnston’s administration pointed to delays in renovations. A councilmember attributed it to zoning issues.

“HOST was previously in negotiations with a potential partner, but during the due diligence process, our staff determined that this organization wasn’t the best partner for this project,” Derek Woodbury, a HOST spokesperson, previously said.

The news comes amid the development that The Salvation Army on Thursday, announced it isn’t renewing service provider contracts at three-of-five existing temporary shelters formerly a hotel.

In May 2021, U.S. Rep. Diana DeGette and then-Denver Mayor Michael Hancock first announced a plan to tap federal funding to buy the hotel at 12033 E. 38th Ave. Officials said then that the hotel would be ready as a homeless shelter by the end of that year.

At the time, DeGette requested $2 million in federal funding for the project.

Nearly a year later, the building sat empty. DeGette’s office said that, unfortunately, Congress had yet to pass the bill containing her funding request.

When Congress finally approved the legislation in December of 2022, the congresswoman said it was a big deal for the community.

The city had considered buying the former Stay Inn for $7.8 million in 2021 but ultimately landed it two years later for $1.2 million more. 

Woodbury said renovation costs remain unclear, but that they include structural repairs to walkways and railings as well as the electrical system.

“Both the former and current administrations have shared the vision for supportive housing at the Stay Inn site,” he said.