New York Law Eases Hotel Conversions

A press release from New York Governor Governor Kathy Hochul’s office announces the governor’s signature of a law that eases the conversion of hotels into housing. “Converting underutilized hotel space into affordable housing will provide thousands of struggling New Yorkers an affordable home in locations that otherwise would have been inaccessible to them,” said Lieutenant Governor Antonio Delgado. The law is part of Gov. Hochul’s $25 billion plan to “create or preserve 100,000 affordable homes in urban and rural areas across New York including 10,000 homes with supportive services.”

According to the press release, “The new law authorizes Class B hotels that are located in or within 400 feet of districts that permit residential use and meet certain criteria to use their existing certificates of occupancy to operate as permanent residential spaces. The new bill further allows such hotels to provide permanent housing if they enter into an agreement with the City or if they receive State financing, through the Housing Our Neighbors with Dignity Act (HONDA).”

The flexibility provided by the new bill addresses some past criticisms of the plan. In March, after the governor announced plans to fund hotel conversions, some housing advocates warned that the law may not do enough to foster conversions in New York City, where real estate costs remain high and demand for hotel rooms is rapidly rebounding.