The collapse in New York tourism caused by the pandemic could have a silver lining.
With so many hotels currently under occupancy, the difficult buildings need to be bought and hotel rooms converted into hundreds or even thousands of affordable micro-apartments.
“If we get it right, we’ll take these properties that are empty and in the market and turn them into affordable housing,” said Senator Michael Gianaris (D-Astoria), who now supports laws that would allow New York State buying empty hotels and converting them into apartment blocks. “It’s the best solution for New York.”
To some extent, the idea is already being tested. For months, urban social workers have housed homeless New Yorkers in hotel rooms to encourage social distancing.
“This is a more permanent solution,” said Gianaris of his bill to create a “Distressed Property Conversion Fund” that the state can use to buy hotels. Then the buildings would be turned over to nonprofits who can renovate the rooms and move low-income and formerly homeless New Yorkers to the new apartments. The new housing units would be equipped with support services such as psychological counseling right in the buildings.
By some estimates, converting a hotel room into an apartment costs half as much as building a brand new unit. And since the installation is already in place, hotel conversions can be done in half the time. According to Gianaris, hotels are also attractive because hundreds of new, greatly reduced residential units can be created in one building – compared to traditional development agreements that only cover a handful of affordable units.
“The current model with which we have tried to build affordable housing fails because it ultimately depends on the profit motive of private developers,” said Gianaris.
In California, the Hope of the Valley rescue mission is working with the city of Los Angeles to open tiny houses to people struggling with homelessness. Founder and CEO Ken Craft came to NBCLX to explain how tiny homes help restore dignity, safety and autonomy to residents.
Both the Senate and Assembly versions of the Distressed Hotels Act are currently on the housing committee of the respective chamber. The legislation would restrict government purchases of hotels to buildings with fewer than 150 rooms, most of which would be on the outskirts. If the bill is passed by lawmakers and signed by Governor Cuomo, New York could buy vacant hotels by the summer.
But the urge to convert hotels into apartments isn’t waiting for Albany’s timeline.
Breaking Ground, a nonprofit that owns and operates several converted New York hotels, is currently in talks to acquire another unnamed hotel with hundreds of rooms in the Theater District. Even before the pandemic, the housing company was renovating rooms on 90 Sands Street, a former hotel in DUMBO that will offer nearly 500 new apartments.
“Our chance won’t be here forever,” said Brenda Rosen, CEO of Breaking Ground. “Tourism and hospitality – everyone expects it to come back. And that’s wonderful and we all want that, but in the meantime there’s a silver lining. We could help New Yorkers in need, and we simply cannot miss this opportunity. “
A New York judge temporarily blocked New York’s plan on Thursday to move the shelter’s residents from the Lucerne Hotel on the Upper West Side to another hotel in the city center.
Breaking Ground started its first project back in 1991, bought the former Times Square Hotel on West 43rd Street and converted more than 600 rooms into permanent efficient apartments.
Gregory Hatcher, a former homeless resident who lives in one of the converted hotel rooms in Times Square, said he saw the building’s social workers change lives.
“We have people here who can help you do better than you did before,” said Hatcher. “I slept in Central Park and one of the outreach staff found me. And look where I am now. “
