New York City government has recently signed a nearly $1 billion contract with the New York City Hotel Association Foundation to provide emergency accommodations for homeless individuals and asylum seekers. This move comes as Mayor Adams claims that the immigration crisis has been alleviated, sparking skepticism.
According to the contract received by the New York Post, the city will pay up to $9.29 billion to the New York City Hotel Association Foundation as part of the emergency housing plan. The program is applicable to approximately 86,000 homeless individuals and asylum seekers across the city. The contract, effective since January of this year, will run until the end of June 2026.
The city government stated that the choice of the hotel industry as a partner is mainly due to limited available housing resources and time constraints. According to the mayor’s office, this contract was initially signed through a “negotiated procurement” method and later went through an open bidding process.
Concerning the long-term use of hotels as shelter spaces by the city government, Nicole Gelinas, a senior researcher at the conservative think tank Manhattan Institute, suggested that turning emergency measures into a long-term practice may not only occupy rooms that originally belonged to the tourist market but also potentially raise hotel accommodation costs for guests. She proposed that the city government should encourage hotels to bid against each other rather than exclusively partnering with one.
Under the contract provisions, the Hotel Association will act as the financial agent to assist the city government in coordinating with various hotels to ensure an adequate number of rooms for individuals and families in need of emergency shelter. City data indicates that the average nightly cost per immigrant placed is $352, with hotels charging $130, and the remaining amount covers administrative and related service fees. The Hotel Association emphasized that they only charge a nominal administrative fee.
Vijay Dandapani, the CEO of the Hotel Association, clarified that the contract amount is the maximum authorization and not the actual total expenditure. The city government’s spending on this project has been decreasing over the past two years.
Since the pandemic, the city government has significantly relied on hotel resources to contain virus spread. Subsequently, the influx of immigrants peaked in 2022, with weekly arrivals reaching up to 4,000 individuals, prompting the city to establish numerous temporary shelters. By January 2024, the number of sheltered individuals rose to around 140,000, more than doubling from pre-pandemic levels.
According to New York City’s “shelter policy,” the city government is responsible for providing temporary accommodation to all those in need. City data shows that total shelter and housing expenses related to the immigration crisis since 2022 have reached $3.12 billion.
As the pace of immigration inflow has slowed down, the city government has been gradually closing some large temporary shelter facilities, including the tent camps on Randall’s Island and at Bennett Airport. Recently, several hotels located in tourist hotspots or near airports have also resumed serving regular guests.
President Trump strengthened border control measures upon taking office, leading to a significant decrease in illegal border crossings, further reducing the influx of undocumented immigrants. Several hotels previously used to accommodate immigrants, including those near Times Square and Kennedy International Airport, have been gradually returning to tourist purposes.
As one of the symbols of New York City’s immigration crisis, the Roosevelt Hotel shelter will officially close next Tuesday, ending its three-year shelter mission. Located in the heart of Manhattan, this historic hotel has served as an immigrant reception center since May 2023, accommodating up to 2,900 immigrants at its peak.
Moreover, in February of this year, the federal government withdrew the allocated $80.5 million funding for New York City, citing concerns that some funds were used to provide immigrants with “luxurious accommodations.” The city government denied such allegations, emphasizing that all arrangements meet basic needs standards. Mayor Adams has filed a lawsuit against the federal government to restore the funding.