Is it possible to turn struggling hotels into affordable housing?

The traveling industry is yet to recover after the destructive impact of the COVID-19. When the pandemic shut down New York City in the spring of 2020, hotels lost most of their clients and became empty. Even after most of COVID restrictions were lifted, the hotel industry in NYC is still struggling due to low occupancy, loss in revenues, and increasing debt. 

The State of the Homeless 2021 report shows that the rate of single adults who are homeless in New York City has reached its peak level. Many non-profit developers and homeless service organizations indicate that NYC has a once-in-a-lifetime opportunity to turn underused hotels into permanent supportive housing. On average, the city spends $56,000 per year for each person in a shelter system. Project Renewal suggests that the conversion of struggling hotels into affordable housing can lower this cost to $36,000. 

California has successfully turned dozens of hotels into permanent housing for more than 8,000 individuals. For New York City, this number is zero. Most hotels that could be potential candidates for the conversion are in Manhattan. But before the conversion of hotels into permanent housing becomes possible, the city has to review and change the zoning restrictions and building code requirements. 

Resources:

“Is the Chance to Turn Hotels Into Affordable Housing Slipping Away?” by Stefanos Chen (the New York Times, 2021)

“Homekey: A Journey Home 2021 Legislative Report,” (California Department of Housing and Community Development, 2021)

“NYC hotels getting busier, but still struggling,” by TRD Staff (The Real Deal, 2021)

“Why New York City's homeless rates skyrocketed for single adults but dropped for families during the pandemic,” by Tyler Kendall (CBS News, 2021)

“State Of The Homeless 2021,” (Coalition for the Homeless, 2021)

“Supportive and Affordable Housing and Services,” (NYC Human Resources Administration Department of Social Services)