Bronx Borough President Vanessa Gibson has criticized the Mamdani administration's decision to award a $1.86 billion contract for hotel accommodations to house homeless individuals, describing the move as "insane." The contract, set to run from July 1, 2026, through June 30, 2029, is with the Hotel Association of New York City Foundation and covers nearly 300 hotels across the city.
Gibson expressed frustration with the pace of permanent housing development, stating that the city needs to accelerate the construction of affordable and permanent housing. She noted that some housing projects in her former Council district have yet to be finalized with the Department of Housing Preservation and Development, while shelters can be established more quickly. "There should be no need for more shelters. We have work to do," Gibson said.
Mayor Zohran Mamdani, speaking at the groundbreaking of a new supportive and affordable housing project in The Bronx, acknowledged the housing crisis as the city's primary concern. He stated that his administration is committed to increasing housing construction to reduce reliance on shelters and hotels. The new residence in Hunts Point will offer 96 affordable homes with on-site services provided by The Doe Fund.
Mamdani also mentioned that a multi-agency task force is working to expedite the creation of more housing units. His office indicated that 15% of new affordable housing is being reserved for homeless residents, and a comprehensive "homelessness blueprint" is in development.
Leila Bozorg, the deputy mayor for housing and planning, added that funding for supportive and all affordable housing is being increased, with a significant portion set aside for formerly homeless New Yorkers. The administration plans to release a broader homelessness blueprint later this year.
City officials defended the hotel contract, explaining that hotels remain necessary for providing emergency shelter capacity during the transition to more permanent solutions and to comply with the city's legal obligation to offer shelter to those in need. Hotels were extensively used during the COVID-19 pandemic and a subsequent migrant influx to provide immediate accommodations.
A spokesperson for the Department of Social Services/Homeless Services stated that renewing the master contract with the Hotel Association of New York City allows the city to retain critical hotel capacity while working to increase traditional shelter options, reduce hotel reliance, and optimize the city's shelter footprint.
Despite her criticism of the hotel contract, Gibson welcomed the new housing development announced by the mayor in her borough, congratulating The Doe Fund and its partners on the investment in Hunts Point.