New York Hotels Housing Migrants Say City Owes Them $130 Million in Unpaid Costs
New York Hotels Housing Migrants Say City Owes Them $130 Million in Unpaid Costs
More than one hundred hotels are waiting on payments from City Hall, according to The Hotel Association of New York City
Published |Updated
Dan Gooding
Hotels housing hundreds of migrants in New York City say they are owed some $130 million in total, after the city failed to pay them for over two months, a group representing owners said Thursday.
The Hotel Association of New York City told ABC 7 News that 110 hotels being used to house the thousands of new arrivals are still waiting for money from city hall, with some not paid since September.
“Nobody expected it would take this long to get paid,” Vijay Dandapani, the head of the Hotel Association, told the outlet.
Dandapani said frustrated hotel owners are calling the Association on a daily basis, asking when their money will come. That’s in contrast to reports earlier this year that the hotel industry had been boosted by the payments.
“You will get paid,” Dandapani said he tells managers and owners. “It’s not a question of if, but it’s a question of when.”
In October, it was revealed that the daily cost of housing a migrant in NYC was around $394, having risen steadily over the past several months. At the same time, the city was spending millions on private security contracts at shelter sites.
Recently arrived migrants gather outside of the Roosevelt Hotel in New York City on August 14, 2023 in New York City. Spencer Platt/Getty Images
However, Dandapani said that he believes the costs have now outstripped what city hall budgeted for.
A Department of Social Services spokesperson told The Messenger that a contract extension had now been agreed and that the city was in the process of paying outstanding bills.
“Since last spring, New York City has managed a national crisis largely on its own, opening over 210 emergency sites to care for the more than 150,000 asylum seekers who have come to us seeking shelter and services,” the spokesperson said.
“DSS is committed to paying our contractors for their services in a timely manner after receiving all required documents. If payments are ever delayed, we work closely with everyone involved to quickly rectify the situation and pay any and all outstanding invoices.
“We are incredibly grateful for our contractors and vendors who have stepped up in the face of this unprecedented crisis to provide essential capacity and services to those in need.”
The Messenger approached HANYC for further comment but did not immediately receive a response.
New York has welcomed some 150,100 migrants since spring 2022, with around 60,000 still in the city’s care. Last week, Mayor Eric Adams visited Washington D.C. to plea for federal aid, which didn’t appear to be coming.
Other cities, including Chicago, Washington D.C. and Los Angeles have also had to find room for thousands of new arrivals, mostly from the southwestern border.