Quick Hit:

New York City is seeking contracts with hotels to provide 14,000 rooms for migrants, pushing total housing costs to over $2.3 billion since 2021. Critics argue the burden on taxpayers is unsustainable, and pressure mounts on state leadership to intervene.

Key Details:

• The Department of Homeless Services (DHS) is seeking contracts with hotels for 14,000 rooms to shelter migrants through 2025.
• NYC's projected costs for migrant housing over the past two years and the current fiscal year are set to surpass $2.3 billion, much of it paid to hotels.
• Mayor Eric Adams' administration faces growing criticism, with calls for Governor Kathy Hochul to step in and manage the migrant crisis.

Diving Deeper:

New York City’s ongoing struggle to manage its migrant crisis continues as the Department of Homeless Services looks to secure contracts with local hotels for an additional 14,000 rooms. These contracts are expected to extend at least through next year, as the city grapples with skyrocketing housing costs. Since 2021, NYC has spent over $2.3 billion on housing migrants, with much of that cost going toward hotel accommodations.

With about 150 hotels currently housing migrants, total spending on migrant services is set to reach a staggering $5.76 billion over the course of three years. Critics argue this approach is unsustainable, with taxpayers bearing the financial burden. Nicole Gelinas, a senior fellow at the Manhattan Institute, voiced her concern: “The taxpayers can’t pay for this indefinitely,” calling for Governor Kathy Hochul to take control of the situation, given Mayor Eric Adams’ administration is facing increasing disarray and a criminal indictment.

Gelinas criticized the city’s use of hotels, particularly in prime tourist areas like Midtown and downtown Manhattan. "We should stop using hotels as shelters by the end of the year," she argued, emphasizing the negative impact on the tourism industry.

The financial arrangement between the city and hotels, however, has benefited some properties, especially those in outer boroughs with lower occupancy rates. With the city filling rooms at $352 per night—$130 of which goes directly to hotel owners—hotels are receiving a reliable revenue stream. The New York City Hotel Association, which already administers three contracts with the city, is set to apply for the new contract. Its president, Vijay Dandapani, confirmed the association would participate in the request for proposal (RFP) process.

Despite the mounting costs, city officials remain committed to providing adequate capacity for migrants. 

"Lower Manhattan from Jersey City November 2014 panorama 1" by King of Hearts licensed under CC BY-SA 3.0 DEED.