City of Greensboro acquires site of long delayed housing project

The Greensboro City Council on Tuesday approved acquiring a former motel property on O'Henry Boulevard just months after officials severed ties with a group set to convert it into housing for the chronically homeless.

In 2021, the city loaned nonprofit developer Partnership Homes $3 million to purchase the Regency Inn. On Tuesday, the council voted 7-1 to pay the group an additional $210,500 to acquire the property directly, with Mayor Nancy Vaughan voting against the move.

She said she was in favor of owning the site but didn't believe the city should be on the hook for paying more to do so.

"It is regretful that we are now paying additional money to get a property back in worse shape than it was when we bought it," Vaughan said. "I have a real problem with that."

Partnership Homes was originally set to transform the property into permanent supportive housing, but was unable to secure needed financing. The city directed another nonprofit, Step Up on Second, to take the reins, but that deal fell through too after the parties couldn't agree on terms.

City staff are now expected to have a new proposal for the site by December.