The Ramada Hotel in Lewiston would be converted to affordable housing, under a plan from Lewiston Housing.
Executive Director Chris Kilmurry says the Authority plans to create 117 efficiency apartments and a one bedroom apartment to help residents who are at risk of becoming homeless.
"Where we can hopefully help them come in, get back on their feet, get some breathing room, and then give them assistance to move up and on to their forever home."
Kilmurry says Lewiston Housing signed a purchase and sale agreement last week for more than $7 million. He says it would be paid for using the same funds that had been planned for a new homeless shelter, including a $3.7 million grant from Maine Housing.
Lewiston Housing hopes to close on the sale of the Ramada in October.