City officials said Tuesday they are looking to purchase a hotel to provide 15-20 rooms for an emergency shelter.
Tyler Yount, director of special projects, said funds would come from a second infusion of COVID-19 money from the federal government for housing needs.
He said the first allocation of $938,930 went for housing and utility assistance.
The city has now received another $1,448,742.
Mr. Yount said that would provide the upfront funds the city has long needed to provide a 24/7 permanent low-barrier shelter.
He said the city has been spending over $600,000 a year to pay hotels for space for homeless individuals, and the money could be better spent for a facility owned by the city.
Mr. Yount said $900,000 would be available for purchase and other funds for rehab and hiring a non-profit manager for two years. There would be a $100,000 contingency.
He said that other cities trying the same tactic often wind up converting the facilities to affordable apartments.
Donna Williams, who heads city Economic and Community Development, said the city would be open to partnering with an outside group on the project. She said that would allow for many more rooms.
Councilman Anthony Byrd said, after talking with officials at the Community Kitchen, there may be a need for a facility with up to 150 rooms.
Mr. Yount said the Community Kitchen is one group interested in managing the hotel. He said there would be a request for proposals go out.
It is hoped to buy the hotel by next spring and be open by summer.