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    A Times Square Hotel Was Set To Become Affordable Housing. Then the Union Stepped In.

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    At the height of the Covid-19 pandemic, the Paramount Hotel, sitting empty in Times Square, was on the verge of turning into a residential building, offering a rare opportunity to create affordable housing in Midtown Manhattan.A nonprofit was planning to convert the hotel into apartments for people facing homelessness. But after 18 months of negotiations, the plan collapsed this year when a powerful political player intervened: the Hotel and Gaming Trades Council, the union representing about 35,000 hotel and casino workers in New York and New Jersey.The union blocked the conversion, which threatened the jobs of the workers waiting to return to the 597-room hotel. Under the union’s contract, the deal could not proceed without its consent.The Paramount reopened as a hotel this fall, an illustration of how the union has wielded its outsized political power to steer economic development projects at a critical juncture in New York City’s recovery.The pandemic presented a devastating crisis for the city’s hotel workers, more than 90 percent of whom were laid off. But as the union has fought harder to protect them, its political muscle has also drawn the ire of hotel operators and housing advocates, who say the group’s interests can be at odds with broader economic goals.After the conversion failed, the Paramount reopened this fall, saving about 160 hotel jobs.Ahmed Gaber for The New York TimesThe union’s impact ripples throughout New York. It can block or facilitate the conversion of large hotels into housing and homeless shelters, a consequential role in a year when homelessness in the city reached a record high of about 64,000 people. The union pushed for the accelerated expansion of casinos, which could transform the neighborhoods of the winning bids. And it was a driving force behind a new hotel regulation that some officials warned could cost the city billions in tax revenue.The union’s influence stems from its loyal membership and its deep pockets, both of which it puts to strategic use in local elections. Its political strength has resulted in more leverage over hotel owners, leading to stronger contracts and higher wages for workers.In this year’s New York governor’s race, the union was the first major labor group to endorse Gov. Kathy Hochul, whose winning campaign received about $440,000 from groups tied to the union. The group was also an early backer of Eric Adams, whose mayoral campaign was managed by the union’s former political director.“H.T.C. is playing chess while everyone else is playing checkers,” said Chris Coffey, a Democratic political strategist, referring to the union’s more common name, the Hotel Trades Council. “They’re just operating on a higher playing field.”Origins of the union’s powerHistorically, the Hotel Trades Council avoided politics until its former president, Peter Ward, started a political operation around 2008.Mr. Ward and the union’s first political director, Neal Kwatra, built a database with information about where members lived and worshiped and the languages they spoke. This allowed the union to quickly deploy Spanish speakers, for instance, to canvass in Latino neighborhoods during campaigns.Candidates noticed when the Hotel Trades Council, a relatively small union, would send 100 members to a campaign event while larger unions would send only a handful, Mr. Kwatra said.The Aftermath of New York’s Midterms ElectionsWho’s at Fault?: As New York Democrats sought to spread blame for their dismal performance in the elections, a fair share was directed toward Mayor Eric Adams of New York City.Hochul’s New Challenges: Gov. Kathy Hochul managed to repel late momentum by Representative Lee Zeldin. Now she must govern over a fractured New York electorate.How Maloney Lost: Democrats won tough races across the country. But Sean Patrick Maloney, a party leader and a five-term congressman, lost his Hudson Valley seat. What happened?A Weak Link: If Democrats lose the House, they may have New York to blame. Republicans flipped four seats in the state, the most of any state in the country.To recruit members into political activism, the union hosted seminars explaining why success in local elections would lead to better job protections. Afterward, members voted to increase their dues to support the union’s political fights, building a robust fund for campaign contributions. Rich Maroko, the president of the Hotel Trades Council, said the union’s “first, second and third priority is our members.”Ahmed Gaber for The New York TimesThe Hotel Trades Council ranked among the top independent spenders in the election cycle of 2017, when all 26 City Council candidates endorsed by the union won. Some of these officials ended up on powerful land use and zoning committees, giving the union influence over important building decisions in New York.In a huge victory before the pandemic, the union fought the expansion of Airbnb in New York, successfully pressuring local officials to curb short-term rentals, which the union saw as a threat to hotel jobs.Mr. Ward stepped down in August 2020, making way for the union’s current president and longtime general counsel, Rich Maroko, who earned about $394,000 last year in total salary, according to federal filings.The union’s sway has continued to grow. Some hotel owners, speaking on the condition of anonymity, say they are fearful of crossing the union, which has a $22 million fund that can compensate workers during strikes. In an interview, Mr. Maroko pointed out that the hotel industry is particularly vulnerable to boycotts.“The customer has to walk through that picket line,” he said, “and then they have to try to get a good night’s rest while there are people chanting in front of the building.”The Hotel Trades Council’s contract is the strongest for hotel workers nationwide, labor experts say. In New York City, where the minimum wage is $15 an hour, housekeepers in the union earn about $37 an hour. Union members pay almost nothing for health care and can get up to 45 paid days off.During the pandemic, the union negotiated health care benefits for laid-off workers, suspended their union dues and offered $1,000 payments to the landlords of workers facing eviction.Along the way, the union has become known for its take-no-prisoners approach to politics, willing to ally with progressives or conservatives, with developers or nonprofits — as long as they support the union’s goals.“There may be no union which has more discrete asks of city government on behalf of its members,” said Mark Levine, the Manhattan borough president, who was endorsed by the union. “You can’t placate them with nice rhetoric. To be a partner with them, you really need to produce.”Political wins during the pandemicLast year, the union scored a victory it had sought for more than a decade, successfully lobbying city officials to require a special permit for any new hotel in New York City.The new regulation allows community members, including the union, to have a bigger say over which hotels get built. The move is expected to restrict the construction of new hotels, which are often nonunion and long viewed by the Hotel Trades Council as the biggest threat to its bargaining power.Budget officials warned that the regulation could cost the city billions in future tax revenue, and some developers and city planners criticized the rule as a political payback from Mayor Bill de Blasio in the waning months of his administration after the union endorsed his short-lived presidential campaign in 2019. Mr. de Blasio, who did not return a request for comment, has previously denied that the union influenced his position.In the next mayoral race, the union made a big early bet on Mr. Adams, spending more than $1 million from its super PAC to boost his campaign. Jason Ortiz, a consultant for the union, helped to manage a separate super PAC to support Mr. Adams that spent $6.9 million.Mr. Ortiz is now a lobbyist for the super PAC’s biggest contributor, Steven Cohen, the New York Mets owner who is expected to bid for a casino in Queens.The union, which shares many of the same lobbyists and consultants with gambling companies, will play an important role in the upcoming application process for casino licenses in the New York City area. State law requires that casinos enter “labor peace” agreements, effectively ensuring that new casino workers will be part of the union.A new threatDuring the pandemic, as tourism stalled, there was growing pressure to repurpose vacant hotels. With New York rents soaring, advocates pointed to hotel conversions as a relatively fast and inexpensive way to house low-income residents.But the union’s contract, which covers about 70 percent of hotels citywide, presented an obstacle. A hotel that is sold or repurposed must maintain the contract and keep its workers — or offer a severance package that often exceeds tens of millions of dollars, a steep cost that only for-profit developers can typically afford.A plan to convert a Best Western hotel in Chinatown into a homeless drop-in center was scuttled by city officials after the effort failed to win the union’s endorsement.Ahmed Gaber for The New York TimesEarlier this year, Housing Works, a social services nonprofit, planned to convert a vacant Best Western hotel in Chinatown into a homeless drop-in center. There was opposition from Chinatown residents, but city officials signed off on the deal. It was set to open in May.Right before then, however, the Hotel Trades Council learned of the plan and argued that it violated the union’s contract.Soon, the same city officials withdrew their support, said Charles King, the chief executive of Housing Works. He said they told him that Mr. Adams would not approve it without the union’s endorsement. Mr. King was stunned.“Clearly they have the mayor’s ear,” Mr. King said, “and he gave them the power to veto.”A spokesman for the mayor said the city “decided to re-evaluate this shelter capacity to an area with fewer services,” declining to comment on whether the union influenced the decision.The Chinatown hotel remains empty.An obstacle to affordable housingIn the spring of 2021, state legislators rallied behind a bill that would incentivize nonprofit groups to buy distressed hotels and convert them into affordable housing. They sought the Hotel Trades Council’s input early, recognizing that the group had the clout to push then-Gov. Andrew M. Cuomo to oppose the bill, according to people involved in the discussions.The union supported the conversions, but only if they targeted nonunion hotels outside Manhattan. Housing groups have said that, unlike large Midtown hotels, nonunion hotels are not ideal candidates for housing because they tend to be much smaller and inaccessible to public transit.As a compromise to gain the union’s support, the bill allowed the Hotel Trades Council to veto any conversions of union hotels.“While we certainly support the vision of finding shelters and supportive housing for the people that need it,” Mr. Maroko said, “our first, second and third priority is our members.”One housing advocate involved in the legislation, who spoke on the condition of anonymity, said she warned elected officials that the veto provision would diminish the law’s effectiveness.The law, which passed last year, came with $200 million for conversions. Housing experts criticized the legislation for not sufficiently loosening zoning restrictions, prompting another law this spring that made conversions easier.Still, no hotels have been converted under the new law.Now, with tourism rebounding, housing nonprofits say the window of opportunity has largely passed.“It’s not like hotel owners are clamoring to sell the way they were two years ago,” said Paul Woody, vice president of real estate at Project Renewal, a homeless services nonprofit.How the Paramount deal endedIn the fall of 2020, the owners of the Paramount Hotel began discussing a plan to sell the property at a discount to Breaking Ground, a nonprofit developer that wanted to turn it into rent-stabilized apartments for people facing homelessness.But as the deal neared the finish line, Breaking Ground failed to anticipate pushback from the Hotel Trades Council. In a series of meetings last year, the union said its obligation was to fight for every hotel job and it proposed a range of solutions, including keeping union employees as housekeepers for residents. Breaking Ground, however, said the cost was too high.The nonprofit even asked Mr. Ward, the union’s former president, to help facilitate the conversion. Mr. Ward said he agreed to call Mr. Maroko to gauge his interest in Breaking Ground’s severance offer.This spring, lobbying records show, union representatives met with Jessica Katz, Mr. Adams’s chief housing officer, and other officials about the Paramount. Soon after, Ms. Katz called Breaking Ground and said city officials would not be able to make the conversion happen, according to a person familiar with the conversation. A spokesman for the mayor said the city “cannot choose between creating the housing the city needs and bringing back our tourism economy,” declining to comment on whether the union swayed the decision on the Paramount.The failed conversion saved about 160 hotel jobs, and the Paramount reopened to guests in September.It was a relief for workers like Sheena Jobe-Davis, who lost her job there in March 2020 as a front-desk attendant. She temporarily worked at a nonunion Manhattan hotel, making $20 less per hour than at the Paramount. She was ecstatic to get her old job back.“It is something I prayed and prayed for daily,” she said. More

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      Turn Empty N.Y.C. Hotels Into Permanent Housing for Homeless, Adams Says

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      Hotels in New York City that have been left empty by the pandemic would be converted into “supportive housing” that provides a wide range of assistance to people struggling with mental illness or substance abuse and to people leaving the prison system, under a plan proposed on Monday by Eric Adams, who is likely to be the city’s next mayor.More than 20 percent of the city’s hotels are now closed, a trade association says. At the same time, the city faces a homelessness crisis, growing sentiment against warehousing homeless people in barrackslike shelters and a lot of severely mentally ill people living in the streets.“The combination of Covid-19, the economic downturn and the problems we’re having with housing is presenting us with a once-in-a-lifetime opportunity,” Mr. Adams, who won the Democratic primary for mayor in June, said as he stood outside a boarded-up hotel in Sunset Park, Brooklyn. “Use these hotels not to be an eyesore, but a place where people can lay their eyes on good, affordable, quality housing.”Details of the plan were thin. Mr. Adams mentioned the possibility of 25,000 converted hotel rooms, but he said that he would focus on boroughs outside Manhattan, where the number of rooms in closed hotels is much smaller than that.He was not clear about whether there was any overlap between his plan and those that the current mayor, Bill de Blasio, and the former governor of New York, Andrew M. Cuomo, have already launched to build 25,000 supportive housing units in the city by about 2030. A spokesman for Mr. Adams’s campaign said that Mr. Adams was also considering converting rooms in former hotels that have already become homeless shelters into permanent supportive-housing apartments, something that Mr. de Blasio has also discussed.The nexus of hotels and homelessness has been a contested one during the pandemic. Early in the lockdown imposed to stem the spread of the coronavirus, thousands of people who had been living in dorm-style shelters were moved to hotel rooms, mostly in Manhattan where their presence led to complaints from some residents about harassment and sometimes violence. The city has since moved most of those people back to group shelters.Several advocates for homeless people and for supportive housing endorsed Mr. Adams’s plan and stood with him at the news conference. “Adams can be the mayor who uses this inflection moment to change the trajectory on homelessness,” Laura Mascuch, executive director of the Supportive Housing Network of New York, said in an interview. “We look forward to working with Adams to implement the strongest supportive housing program in the nation.” More

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      How the Candidates for N.Y.C. Mayor Would Tackle Homelessness

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      In the Democratic primary’s last days, and with New York’s economy starting to regain its footing, a chronic problem gains new urgency.Random slashings on the subways. Groups of men clustered outside Midtown Manhattan hotels serving as homeless shelters. Anti-Asian attacks on the streets.In the closing days of New York’s Democratic primary for mayor, the city’s chronic struggle with homelessness has taken on increasing urgency. As the city moves to reopen for business and tourism, public concern — and the candidates’ attention — has focused on a small number of people who are mentally ill and potentially violent.The issue is complicated. Homeless people are not involved in every unsettling incident, and they also have been targeted in vicious killings and other attacks. Their advocates warn against demonizing a large group of people who are struggling just to survive. Most of the 48,000 people in the main shelter system are families with children, not single men.Before the pandemic hit, the shelter population had increased since Mayor Bill de Blasio took office, even as he doubled spending on homeless services to more than $3 billion. The number of families in shelters has dropped sharply since early last year, largely because of an eviction moratorium that has been extended through August. If it expires then, hundreds of thousands of tenants who collectively owe over $1 billion in back rent could lose their homes.Now, a spate of attacks on the streets and in the subway, combined with an increase in gun violence, have fed a perception in many quarters that the city is in danger of sliding into chaos. The candidates seem to be split, seeing the issue through two different lenses: the plight of people with an illness that can last their whole lives, and the safety and quality of life of everyone else.At the final debate on Wednesday, Andrew Yang, the former presidential candidate, left no doubt where he stood.“Yes, mentally ill people have rights,” the Democratic candidate Andrew Yang said at a mayoral debate this week. “But you know who else have rights? We do.” Andrew Seng for The New York Times“Mentally ill homeless men are changing the character of our neighborhoods,” Mr. Yang said. “We need to get them off of our streets and subways and into a better environment.” Later, he added: “Yes, mentally ill people have rights. But you know who else have rights? We do: the people and families of the city. We have the right to walk the street and not fear for our safety.”Candidates with more progressive agendas took a softer stance. Scott M. Stringer, the city comptroller, described his plan to build 30,000 units of so-called supportive housing, where people with mental illness would get a range of services. Maya Wiley, a former counsel to Mr. de Blasio, lamented that the Rikers Island jail complex had effectively become the city’s biggest psychiatric facility.Unlike some of Democratic rivals, Maya Wiley does not favor assigning more police officers to the subway system.Jonah Markowitz for The New York TimesThe causes of the apparent increase in the number of homeless people on the streets and in the subway of pandemic-era New York are many.When the lockdown hit last year, the city moved thousands of people from barrackslike group shelters across the city into unused hotels — many of them in densely populated middle-class and wealthy Manhattan neighborhoods — to stop the spread of Covid-19. Many people living under precarious conditions lost their jobs and, thus, their homes. With workers doing their jobs remotely, far fewer people were in the main business districts, leaving those who live on the streets to stand out. Some hospitals used inpatient psychiatric beds for Covid patients. Many libraries and other places where homeless people typically spend their days closed.The city is accelerating its efforts to move homeless people off the Manhattan streets. On Wednesday, Mr. de Blasio said that 8,000 people would be moved from 60 hotels back to group, or congregate, shelters by the end of July. Starting next week, the police will begin sweeps along 125th Street in Harlem to clear it of homeless people and those using drugs, according to a senior city official who spoke on the condition of anonymity because the plan has not been publicly announced. A spokeswoman for the mayor said the effort was focused on “helping people with substance abuse issues access harm-reduction resources” and that offer would be on hand to “assist as needed.”The leading Democratic candidates have proposed many plans to address the homelessness problem. Here are some of them. More details can be found in voter guides produced by RxHome and the Family Homelessness Coalition and City Limits.Reduce or end reliance on congregate shelters.Kathryn Garcia, a former sanitation commissioner who calls shelters “a band-aid solution to a long-term problem,” says she would cut the shelter population in half. Shaun Donovan, a former city housing commissioner under Mayor Michael R. Bloomberg, said he would end the use of congregate shelters entirely in his first term. (Mr. Donovan’s tenure was the only time during Mr. Bloomberg administration that homelessness fell). Ms. Wiley cites “real concern” that people who stayed in hotels during the pandemic “will be unwilling to come to shelter if we shift back to congregate settings.”Build more “deeply affordable” housing — a lot more.All of the candidates say they will do this. Mr. Stringer says that Mr. de Blasio, despite highlighting his record on creating affordable housing, “has built more housing for people who make over $150,000 a year than for people who make $40,000 or $30,000.” He says he would require most new residential buildings financed with city subsidies to house people with very low incomes.Expand the use of shelters that offer more privacy and have fewer rules.So-called safe haven and stabilization shelters offer single-occupancy rooms and fewer rules and restrictions as to who qualifies for them than group shelters do. Many of the candidates want to build more of such shelters, including Raymond J. McGuire, a former Wall Street executive, and Mr. Yang, who said, “It’s a sign of the city’s broken politics when the choice is either temporary hotels or overcrowded shelters.”.css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-w739ur{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-w739ur{font-size:1.25rem;line-height:1.4375rem;}}.css-9s9ecg{margin-bottom:15px;}.css-uf1ume{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}.css-wxi1cx{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;-webkit-align-self:flex-end;-ms-flex-item-align:end;align-self:flex-end;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}Get more people into psychiatric treatment.Mr. McGuire, Mr. Yang and Ms. Garcia all say they would press for wider use of Kendra’s Law, which allows courts to require treatment for people with mentally illness.Add psychiatric beds.Mr. Yang said that the number of psychiatric beds in city hospitals had decreased 14 percent and that he would double the current number, although he did not say how he would pay for it. Eric Adams, the Brooklyn borough president, and Mr. Yang both favor adding psychiatric “respite beds” for people with mental illness who are not deemed sick enough to be admitted to a hospital but are too sick to return to a shelter or to the streets.Focus more on providing mental health services to people in the streets and less on arresting people.“We cannot continue criminalizing being Black and brown, criminalizing mental illness, criminalizing having substance abuse issues,” Dianne Morales, a former nonprofit executive, said at the debate. “That is not the answer for creating a safe city.” Ms. Garcia supports sending “crisis teams” into the subway that include mental-health professionals “who will make a determination and get people the treatment that they need.” Ms. Wiley says Mr. de Blasio’s approach, which she called overpolicing, “never tried to solve homelessness and merely led to displacement, for example, moving those experiencing homelessness from the subways to the streets.”Close the prison-to-shelter pipeline.Mr. Donovan notes that more than half of the people released from state prisons to New York City go directly to homeless shelters, a cycle he pledged to break by providing housing vouchers to people leaving jail.Increase pressure on shelter operators to find permanent housing for clients.Mr. McGuire says he would shorten shelter stays by holding operators responsible for moving people into permanent housing and by “shifting contracts and investment to the most successful operators.”Build more domestic violence shelters.Mr. Yang has noted that domestic violence is one of the main reasons that families seek shelter and that only 23 percent of domestic-violence victims in shelters are in ones that are designed for them. He says he would build more of those.More police in the subway.Mr. Adams, a former transit police officer, says, “We should have a police officer on every train.” Ms. Garcia wants officers “walking the platforms and riding the actual trains, not just standing around.” Mr. Yang, Mr. McGuire and Mr. Donovan also want more police in the subway. Ms. Morales, Mr. Stringer and Ms. Wiley do not.Help tenants and landlords alike in order to prevent evictions.Mr. Donovan favors a “holistic approach” that would “provide direct rent payments for hard-hit tenants” and “offer stabilizing funds to landlords” who agree not to evict.Joseph Goldstein contributed reporting. More