More than two years after a motel-turned-homeless shelter in West Denver closed, plans to turn the site into permanent housing are starting to come to life.

The Denver Housing Authority and the Colorado Coalition for the Homeless announced it teamed up to develop a vacant lot in the Sunnyside and Berkley neighborhoods — once home to the Rodeway Inn motel and El Padrino restaurant — into affordable housing for families.

The new complex at 4745 Federal Blvd., located near Rocky Mountain Lake and Regis University, will bring in 135 income-restricted units.

The site was leased to the City and County of Denver as a homeless shelter until 2023.

It was one of the only non-congregate shelters in the city that served women, transgender and nonbinary people who were homeless. DHA purchased the Rodeway Inn in May 2020 for nearly $11 million with the intention of turning it into affordable housing through D3, a program designed to partner with developers to build permanent housing.

The shuttering of the homeless shelter sparked pushback when Denver did not renew its lease, but DHA’s Chief Real Estate Investment Officer Erin Clark said at the time that the shelter was always meant to be temporary and continuing its operations was increasingly difficult.

The building had expensive issues and the costs for constructing a new development were rising, Clark said.

“Rodeway Inn was having roof issues, consistent plumbing issues, that is tens of thousands of dollars every month going into that property,” Clark said.

The motel was demolished in 2024. DHA also said it led environmental abatement of the site to prepare it for future development.

Denver City Council President Amanda Sandoval noted her commitment to see permanent affordable housing come to 4745 Federal Blvd. when the property was first purchased in 2020.

“As Northwest Denver has experienced significant gentrification and displacement, using publicly owned land for affordable housing is critical,” she said. “I am grateful to the Denver Housing Authority and the Colorado Coalition for the Homeless for partnering to move this vision forward.”

The new development on the nearly 4-acre plot will include larger units, playgrounds, outdoor areas, a community space and more extensive outdoor areas, said Britta Fisher, CEO of the Coalition, in a news release.

About 40% of the apartments will be for families with earnings of 30% of the Area Median Income. DHA said it would currently mean families of three and four who make about $37,850 and $42,050, respectively. The rest of the units will be restricted for those at or below 60% of the AMI.

Under the partnership, the coalition will be in charge of designing and constructing the site. DHA will manage the leases and ensure its permanently affordable.

Construction is set to begin in late 2027. The complex is set to open as early as 2029, though it could depend on how soon it gets awarded tax credits, a DHA spokesperson told The Denver Gazette.

“With affordable housing increasingly out of reach, projects like this are essential,” said Joaquín Cintrón Vega, CEO for DHA. “By leveraging DHA’s D3 program, our partnership with the coalition will expand access to family-sized, income-restricted units, addressing the urgent housing needs of Denver’s children and families today and for years to come.”