The Zohran Mamdani administration has finalized a $1.86 billion contract with the city’s hotel industry to provide emergency housing for homeless residents over the next three years.
The deal comes amid continued high levels of homelessness in New York City, which currently sees around 85,000 people living on the streets.
The contract is with the Hotel Association of New York City Foundation, representing roughly 300 hotels.
According to the foundation’s CEO, Vijay Dandapani, the contract is intended for emergency housing needs, not migrants, and allows capacity to expand based on demand.
Currently, the city operates a separate $929 million contract with the foundation, running from January 2025 through June 2026, providing 10,651 hotel rooms for homeless families. Of that total, $626 million has already been paid.
The new agreement effectively triples funding for hotel-based emergency housing over the next three years to address the city’s ongoing housing crisis.
