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Housing

New York Law to Turn Vacant Hotels Into Homeless Housing Is Failing

The state set aside $100 million for New York City conversions, but lawmakers haven’t removed regulatory hurdles for developers.

A former Jehovah's Witness hotel being converted to affordable housing in the Brooklyn borough of New York on Tuesday, June 29, 2021. 

A former Jehovah's Witness hotel being converted to affordable housing in the Brooklyn borough of New York on Tuesday, June 29, 2021. 

Photographer: Jeenah Moon/Bloomberg

A state law designed to help developers convert vacant New York City hotels into housing for homeless people has so far gone nowhere, and the $100 million set aside for the program is unspent.  

New York state officials say two nonprofits have expressed interest, but haven’t filed formal applications. The developers say their efforts have been hamstrung because the law, enacted last year, didn’t ease zoning and building code rules, making projects too costly and time-consuming.