ST. PETERSBURG, FL-American Community Development Group, Inc. (ACDG) announced plans to acquire a motel in the St. Petersburg area for an undisclosed amount. ACDG transforms Tampa Bay area motels into affordable housing units.

ACDG President John Folger tells GlobeSt.com the 21-unit motel can house 42 people and generate $300,000 of annual revenue. He is predicting 90 percent occupancy in 90 days. But industry watchers can’t see how the numbers add up.

“We have a backlog of tenants who are clients of these non-profits that really need places to live,” Folger says. “Housing needy populations and providing the social services they need is a good formula for us right now. The need for affordable housing is growing. In this economy, we are making poor people at an alarming rate.”