The Regis Hotel has its problems with cockroaches and blown circuit breakers, but David Ungerecht stays, if for no other reason, because nobody asks about his past.

"If you paid your rent and stayed quiet, they would keep you around," he said.

That was not always the case for the convicted felon, whose three prison stints for theft and burglary led to being turned away by countless landlords and employers.

But, as the city looks to revamp the Regis and Cambridge hotels on State Street, Ungerecht, and the hundred or so others who live there, wonder where they will go.

The latest possibility: the remodeled Rio Grande Hotel at 428 W. 300 South.

Salt Lake City's Redevelopment Agency is now looking at purchasing the 49-unit hotel to make up for some of the 116 single-occupancy units that will be lost when the Regis and Cambridge hotels are demolished or remodeled.

The Rio Grande could be a friendlier alternative to Palmer Court, where many Regis and Cambridge renters are expected to land, said Councilman and RDA vice chairman Luke Garrott.

Run by the Road Home, the 60-unit building at 999 S. Main will open its doors in June. But some tenants are worried about a no-pets policy in the furnished apartments. Others are concerned about credit checks, background checks, costly deposits and "most anything that keeps people in a place like this," Ungerecht said.

"I think Palmer Court is built in a spirit of temporary shelter," said Garrott. "The Regis and Cambridge became a permanent home for some people. I think they need a more comfortable place."

That place could be the Rio Grande, Garrott said. If the city purchases the property, the operator would allow pets, while background checks and drug test will be prohibited.

The building could be had for about $375,000, and the Rio Grande would provide a balance to the neighborhood, Garrott said.

"Socioeconomic diversity is really important for a healthy city, especially downtown," Garrott said. "This neighborhood is a major challenge to establish some balance. The shelters aren't going to be there forever. I'm worried about a completely gentrified neighborhood, frankly."

At the Regis, residents are not thrilled by the prospect of leaving.

Ungerecht and his wife have lived there for the past six months and stayed for two years from 2006-2007. Their bed fills up most of the room, leaving just enough space for a table, a small dresser and a television. But they can afford the $90 a week rent.

Billy Mick has spent the last year and a half living in the hotel. He survives on a disability check that leaves him with $10 a day after he pays his $340 monthly rent.