The Denver City Council unanimously approved two contracts Monday night worth $3.7 million to fund two affordable housing developments, or 187 income-restricted units in Capitol Hill and Northeast Park Hill, for people overcoming homelessness. 

The move came just hours after a new report found that the Denver metro homeless population was estimated to be more than 31,000 people, a significantly greater count than previously estimated. 

“We’re continuing to partner with many organizations to help ensure that the experience of homelessness is a rare, brief and one-time occurrence,” Mayor Michael Hancock said in a statement. “The solution to homelessness is housing, and we’re proud to support the much-needed supportive services that make a lasting impact for so many.”

About $3.1 million of the funds will support 48 units at the future Warren Residences, which will be led by the St. Francis Center and located in a former church at 1630 E. 14th Ave. The funds will help cover services for people experiencing homelessness, including case management, transportation, legal and education services and life skills training. 

The church was unanimously approved by Denver’s Landmark Preservation Commission to be converted into dormitory-style housing with individual rooms, shared kitchens and living spaces. The project is also supported by a $1 million grant for supportive services and a $2.1 million loan to St. Francis Center from Denver’s Department of Housing Stability to help fund a portion of the renovation construction costs.

The remaining funds, about $600,000, will be funneled into supportive services for Fusion Studios, a former Quality Inn & Suites hotel in northeast Denver that was converted by the Colorado Coalition for the Homeless in January into 139 micro-apartments for individuals and couples who are experiencing or at risk of homelessness. A full-service food pantry is also available for residents living at that location. 

The acquisition of both properties was made possible through a partnership between the city and the Denver Housing Authority, according to Denver’s housing department. The “DHA Delivers for Denver” Program (D3) has drawn from property tax mill levy revenue to generate $129 million in bond funding for the development and preservation of nearly 2,500 affordable housing units over the next five years. Fusion Studios and Warren Residences represent the first of the D3 projects.