The Des Moines City Council on Monday approved allocating $2.5 million to a housing project that would convert a hotel into rental housing for low-income adults. Greater Des Moines Supportive Housing, a nonprofit group that provides housing and services to people facing housing barriers, plans to buy the Holiday Inn-Mercy hotel at 1050 Sixth Ave. and convert it to 160 single-room apartments. Numerous on-site services would be provided to residents. The acquisition and renovation of the property is expected to cost $33.8 million. The council approved providing the group with $1.25 million from the 2021 federal economic stimulus bill and $1.25 million in Community Development Block Grant funds. The housing group has three years to complete the project.