Kappes believes the existence of such projects and other SROs throughout the city means that doing away with the State Street SROs won't diminish low-income housing.

"It sounds like it can be a substitute," she said.

But others say the Holiday Inn is too far from downtown — although it will be close to the State Street bus corridor and a TRAX station — and that with its background checks, it won't serve the same needs as the Regis and Cambridge.

"We think both things need to happen, that we need to preserve the SROs on State Street and they need to do what they're going to do on 10th South," Funk said. "We don't want the argument to be, 'Should they be on 10th South or should they be on State Street?' They should be on both."

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