The provincial government is buying the Lighthouse Supported Living's downtown property in Saskatoon, with a plan to flip it once it's empty.

The province made the announcement in a news release Tuesday.

"Through this investment, we are providing safety and stability for Lighthouse tenants," Social Services Minister and Minister Responsible for Saskatchewan Housing Corporation Gene Makowsky said in the release.

"We want to ensure all people who currently reside at that location continue to have access to services and supports that help maintain their connection to housing as we work with them to transition to alternate accommodations in the community."

Louise Michaud, assistant deputy minister of housing with social services, said the province is spending just over $11 million to make the deal happen.

"This includes just over $8 million in forgivable loans that we had yet outstanding with the Lighthouse," she said. "So the actual cash purchase price was only $2.5 million."

The province is scheduled to take possession on Jan. 5, 2024. The building currently has 58 self-contained rental suites and 59 supportive suites. At one point, the site also had 61 emergency shelter spaces, but they were closed down after the non-profit ran into financial problems in late 2022.

In its release, the province said the Lighthouse will not be taking any more tenants once the province takes possession.

"Once alternate housing and support services are in place and long-term transition plans are complete, SHC plans to divest the property," the release said.

Earlier this year, a King's Bench judge in Saskatoon approved a proposal by receiver MNP Ltd. to sell the Lighthouse's assets in the city.

Michaud said the government knows finding a spot in the community for the tenants, who have a variety of needs, is going to be challenging.

"Right now we know there is certainly limited capacity, and that's why we're giving ourselves enough time to identify, to look at what's possible and to bring forward options," she said.