The Mamdani administration has extended a three-year, $1.86 billion contract with the Hotel Association of New York City Foundation to provide hotel rooms as emergency shelters for the city's homeless population. The agreement, which runs from July 1, 2024, through June 30, 2029, involves nearly 300 hotels across the five boroughs.
According to a Department of Homeless Services (DHS) spokesperson, the city has utilized commercial hotels for temporary housing for clients over the past 15 years due to numerous crises. The renewal of the master contract with the Hotel Association of New York City (HANYC) is intended to maintain critical hotel capacity as the city works to increase traditional shelter options and reduce reliance on hotels.
The city is obligated under its "Right to Shelter Laws" to provide accommodation for anyone seeking shelter. As of July 31, the department reported 82,929 adults and children were residing in New York City shelters. The DHS spokesperson emphasized that hotels will only be activated as shelters if needed and that the full $1.86 billion may not be expended.
Hotels have been a significant part of the city's shelter strategy, particularly during the COVID-19 pandemic to curb virus transmission and more recently during a migrant crisis that saw thousands of asylum seekers arrive in the city. At the peak of the migrant influx, approximately 150 hotels, motels, and inns were converted into shelters.
The Hotel Association stated that the original contract was finalized in January 2025 after they successfully bid against numerous other organizations. Vijay Dandapani, CEO of HANYC, noted the organization's role in housing over 18,000 people from shelters to hotels on a pro-bono basis from May 2020 to December 2021 during the pandemic.
In addition to the main hotel contract, DHS has awarded over $87 million in contracts to social service providers for its "Integrated Commercial Hotels Program." Housing Works received $47.2 million and Neighbors 4 Neighbors received $40.28 million to support homeless individuals and families in hotels with their daily needs.
While critics have pointed to New York City's high hotel rates and the impact of removing rooms from the market on tourism, advocates for the homeless describe the use of hotels as an "unfortunate necessity." David Giffen, executive director of the Coalition for the Homeless, stated that while hotels are not ideal, the city must ensure sufficient beds due to its legal and moral obligation to provide shelter. He also suggested that the long-term solution lies in building more affordable housing to reduce the overall need for shelters. He noted that some individuals died on the streets during the previous winter.