New York to Transform Distressed Hotels Into Affordable Housing

The law allows for Class B hotels to use certificates of occupancy to operate as residential spaces.

Governor Kathy Hochul at the Hotel Conversion Bill signing event

Governor Kathy Hochul signed new legislation (S.4937C/A.6262B) to allow more flexible rules for converting underutilized hotel space into affordable housing, along with Senator Brian Kavanagh, New York City Mayor Eric Adams, as well as housing and labor advocates.

The law allows for Class B hotels located within 400 feet of districts that permit residential use and meet certain criteria to use their respective certificates of occupancy to operate as permanent residential spaces.

This initiative will help struggling individuals access affordable housing in New York locations that would have otherwise been inaccessible, said Lieutenant Governor Antonio Delgano in prepared remarks.

Also addressing the need for more affordable, quality housing in New York, the legislation is included in Governor Hochul’s plans to support affordable housing development. The state official previously proposed a new $25 billion Housing Plan which is set to create and preserve approximately 100,000 affordable homes across New York over the next five years, including 10,000 which will have support services. Moreover, the governor secured an additional $100 million in Housing Our Neighbors with Dignity Act (HONDA) funding to transform vacant commercial spaces and abandoned hotel properties across the state.

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