New York City is preparing for the worst. The city plans to extend its contract with local hotels to help house migrants for up to three more years at a staggering added cost of more than $1 billion.
The revised contract’s projected new $1.365 billion price tag — nearly five times what the original deal called for — would pay the rental fees to more than 100 hotels converted into emergency migrant shelters.
It doesn’t include the cost of city facilities and other rented sites housing homeless asylum seekers pouring into the Big Apple by the thousands every week.
Critics raged that the Adams administration’s contract with the New York City Hotel Association, which is set to be extended from this year through August 2026, reeked of a taxpayer giveaway.
Earlier in September, the city said that more than 110,000 asylum seekers had come to the five boroughs since April 2022.
The wave of arrivals has since continued.
Mayor Eric Adams said it equates to about 10,000 individuals each month which has resulted in some protests, with some locals saying the city should make its own residents a higher priority.
The housing costs have been a particular sore spot. Some politicians say it’s a sweet deal for hoteliers but hurts the city’s bottom line.
“The migrant crisis has evolved into a financial boondoggle, with quietly extended contracts fattening the pockets of a few at the taxpayer’s expense,” Robert Holden, a city councilman, told the New York Post.
But it’s not just hotel expenses that are adding up. In all, Mayor Adams has said it will run the city $12.45 billion over the next three fiscal years to deal with the migrant crisis. He has argued for increased financial assistance from New York state and the federal government.
“Our compassion may be limitless, but our resources are not. This is the budgetary reality we are facing if we don’t get the additional support we need,” Adams said in August.
Recently, a 95-year-old Korean War veteran was given short notice the long-term senior care facility was closing and will open as an illegal immigrant housing shelter.
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