MAMDANI’S NYC: Mamdani Extends $1.86 Billion Hotel Shelter Program Through 2029 Despite Mounting Criticism
New York City Mayor Zohran Mamdani’s administration has approved a massive extension of the city’s hotel shelter program, renewing a contract worth as much as $1.86 billion that will allow hotels throughout the five boroughs to continue housing homeless individuals and families through 2029.
According to the New York Post, the renewed agreement with the Hotel Association of New York City Foundation, which represents nearly 300 hotels, covers the period from July 1, 2026, through June 30, 2029. The arrangement allows the city to place people seeking emergency shelter in hotel rooms when additional space is needed to comply with New York City’s legal right-to-shelter requirement.
A spokesperson for the Department of Homeless Services said, “Over the last 15 years, DHS has faced numerous crises that forced it to rely on commercial hotels to temporarily house clients.”
The spokesperson continued, “DHS is focused not only on upholding New York City’s right to shelter but improving outcomes for all the New Yorkers we serve. 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.”
City officials said the extension is intended to preserve enough emergency shelter space while the city transitions to more permanent housing facilities. Under New York City’s right-to-shelter law, officials are required to provide housing to anyone who requests it.
As of July 31, the Department of Homeless Services reported that 82,929 adults and children were staying in shelters across New York City.
Explaining the decision, the department said, “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.”
Officials emphasized that while the agreement authorizes spending of up to $1.86 billion, the city is not expected to necessarily use the full amount because hotel rooms will only be utilized when additional shelter capacity is required.
New York City dramatically expanded its reliance on hotels during the COVID-19 pandemic in an effort to reduce overcrowding in traditional shelters. The same approach was later used during the migrant crisis, when thousands of asylum seekers arrived in the city.
At the height of that influx, approximately 150 hotels, motels, and inns were converted into temporary shelters.
The Hotel Association of New York City Foundation said it was awarded the original contract in January 2025 after prevailing in a competitive bidding process.
“It is a continuation of HANYC’s well-documented role as a responsible stakeholder since the COVID crisis when the organization moved, pro bono, over 18,000 people from shelters to hotels on an emergency basis from May 2020 to December 2021,” said the organization’s chief executive officer, Vijay Dandapani.
Beyond the hotel agreement itself, the Department of Homeless Services also approved more than $87 million in contracts through its Integrated Commercial Hotels Program to provide services for homeless residents housed in those facilities.
Housing Works received a $47.2 million contract, while Neighbors 4 Neighbors was awarded $40.28 million to provide on-site support and assist homeless individuals and families with their daily needs.
The city’s continued use of hotels as shelters has sparked criticism from those who argue that removing thousands of hotel rooms from the tourism market contributes to New York City’s already high lodging prices.
Homelessness advocates, however, contend that the program remains necessary because the city still lacks sufficient shelter space and affordable housing to meet existing demand.
