The cost to purchase the Hi-Way 40 Motel on East Fourth Street is more than what was anticipated when Reno City Council initially approved $2 million for its purchase.
Reno City Council members on Wednesday approved an additional $350,000 to buy the property, which will be used for “transitional permanent supportive housing” with preference given to individuals with mental health needs.
Council members in February 2022 struck an agreement with Volunteers of America to support the purchase of the motel. American Rescue Plan Act (ARPA) funding will be used for the additional purchase amount.
According to Monica Cochran, housing manager for the city, the property will consist of affordable units with preference given to individuals dealing with mental illness coordinated by Northern Nevada Adult Mental Health Services (NNAMHS), who has agreed to support the project long-term.
“Those [residents] will be referred through NNAMHS with complete wraparound services, and there will be VOA staff members on site 24 hours a day,” Cochran said.
Once all the units are converted, there will be 22 units offered as part of the program and rented to individuals with incomes at or below 60% of the Area Median Income.
“This is very positive and very needed in our community,” Taylor said.
“I’m really elated and I don’t think people realize how big this is,” Schieve said. “Honestly, this is huge. We don’t have anything else like this, and it is so desperately needed not only in our city but throughout the country.”
Schieve said that transitional housing such as this project will save lives.
The Hi-Way 40 Motel is located at 1750 E. Fourth St. and the purchase agreement includes a restricted deed which will guarantee the project remains affordable for a minimum of 20 years.
Council approved the grant agreement unanimously.
