Exclusive | Mamdani admin extends $1.86B emergency contract for NYC hotels to serve as homeless shelters

The Mamdani administration re-upped a $1.86 billion contract that will see hotels across the five boroughs provide emergency space for the homeless.The three-year- contract with the Hotel Association of New York City Foundation, which represents nearly 300 hotels, runs from July 1 of this year through June 30, 2029.“Over the last 15 years, [the Department of Homeless Services] has faced numerous crises that forced it to rely on commercial hotels to temporarily house clients,” a DHS spokesperson said.“DHS is focused not only on upholding New York City’s right to shelter but improving outcomes for all the New Yorkers we serve,” the spokesperson added.“As such, we continue to work to transform the city’s shelter system by opening new, high-quality shelters while gradually phasing out the use of commercial hotels for families with children.”But the city has to continue to maintain capacity during the transition under “Right to Shelter Laws” which mandate access for anyone seeking shelter in the city.

There were 82,929 adults and children in Big Apple shelters as of July 31, according to the department.“By exercising the renewal option of the agency’s master contract with HANYC, DHS will be able to retain critical hotel capacity, as needed, while we work to bring more traditional capacity online, reduce reliance on hotels, and rightsize our shelter footprint over the coming years,” the spokesperson said.The hotels will only be activated as shelters if needed and the DHS representative emphasized that the city may not spend the full $1.86 billion allotment.The city relied heavily on using hotels for emergency shelter to help curb COVID-19 during the height of the pandemic shutdown and continued to utilize the space during a migrant crisis where thousands of asylum seekers were bused into the Big Apple.About 150 hotels, motels and inns were converted to shelters during the peak of the migrants influx.The hotel association said the original contra...