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NY Post
New York Post
19 Dec 2023


NextImg:NYC demands migrant shelter landlords cut costs — or risk leases being torn up

Mayor Eric Adams’ administration is demanding all migrant shelter landlords cut costs — or risk their city-funded lease contracts being torn up — as the Big Apple struggles with the surging price of housing asylum seekers, The Post has learned.

In a letter fired off Tuesday, City Hall called on the owners of every migrant shelter site to start offering up rent reduction proposals and other cost-saving measures — just weeks after Hizzoner revealed a slew of city-wide budget cuts to offset the multi-billion-dollar asylum seeker crisis.

“The city is forced to reexamine all costs related to the provision of services to migrants, including real estate costs at sites currently serving as respite centers or Humanitarian Emergency Response and Relief Centers (HERRCs),” Molly Schaeffer, the city’s director Office of Asylum Seeker Operations, wrote in the letter obtained by The Post.

“Where real estate costs are too high, the city will consider immediate closure of facilities and termination of existing space agreements.”

Officials are also weighing whether it would be more cost effective to just buy up the locations that are used to house migrants, instead of coughing up money to property owners, City Hall sources said.

City Hall on Tuesday urged the owners of every migrant shelter site city-wide to start offering up rent reduction proposals and other cost-saving measures. ZUMAPRESS.com

The administration called on the shelter site landlords to submit their cost-cutting proposals by Dec. 29.

More than 67,300 migrants are currently being put up in the 214 taxpayer-funded shelter sites scattered across the five boroughs, City Hall’s latest figures show.

It wasn’t immediately clear how much the Big Apple currently forks out to rent the shelter spaces, but officials said the crisis had already set the city back more than $7 billion.

The move comes after the mayor faced widespread backlash when he unveiled his updated 2024 financial plan last month, after ordering all agencies to slash spending by an initial 5% to balance the city’s bulging $7.1 billion gap forecast for next year.

Under the plan, the mayor said migrant costs were set to be slashed by 20%, in part, by reducing staffing and services.

Mayor Eric Adams
Mayor Eric Adams’ administration is demanding all migrant shelter landlords cut costs in a bid to cope with budget woes. Bonnie Cash/UPI/Shutterstock

After unveiling the proposed cuts, Adams subsequently ordered agencies to submit proposals for how they will trim spending by an additional 5% come January — before warning another round of cost-cutting was likely by spring in a bid to offset the cost of the migrant crisis.

In Tuesday’s letter, the administration blamed the cost-cutting measures on inadequate funding from the federal and state governments.

“New York City is in the midst of responding to an unprecedented humanitarian crisis as thousands of migrants arrive seeking shelter and care,” Schaeffer wrote.

“Despite months of advocacy, and even with some financial support from the state and federal government, including by members of our congressional delegation and local elected officials, New York City has been largely left to fend for itself, absorbing the great financial costs to serve these new arrivals,” the letter added.

“Unfortunately, this response by the city to a crisis of national scale has caused fiscal strain that now threatens to undermine municipal services.”