Mayor Adams Shutters Illegal Hotel at 258 West 97th Street, Announces New Affordable Housing Building on Upper West Side

View of 258 West 97th StreetView of 258 West 97th Street

New York City Mayor Eric Adams announced plans to construct a new 82-unit affordable housing property at 258 West 97th Street on Manhattan’s Upper West Side. The project is the direct result of a $1.1 million settlement with illegal hotelier Hank Freid who owned and operated the property for more than a decade.

The city’s lawsuit against Freid has generated nearly $2 million in penalties and resulted in the seizure of more than 300 illegal short-stay apartments at 258 West 97th Street and two other illegal hotels.

“Today, we are not only shutting down an illegal hotel operator but also creating 80 new affordable homes for New Yorkers struggling to get by,” said Mayor Adams. “The old approaches to the affordable housing crisis are no longer enough—which is why my administration is pursuing bold, innovative strategies like this one to create housing New Yorkers can actually afford.”

The Fortune Society has acquired 258 West 97th Street and is working with the Department of Housing Preservation and Development (HPD) and the Department of Social Services to redevelop the building into a 100-percent affordable housing property with rent protections, rehabilitation, and social services on site.

A total of 58 units will be reserved for formerly homeless New Yorkers. Another 15 units will be designated for existing tenants who will receive additional protections from the city to maintain their affordable rent.

“The Office of Special Enforcement and its sister city agencies deserve extraordinary accolades for closing this illegal hotel,” said JoAnne Page, president and CEO of Fortune Society. “As the new building owner and a nonprofit with decades of experience serving people impacted by the justice system and developing award-winning housing, the Fortune Society is deeply gratified and proud to be part of an effort that will lead to the creation of desperately needed safe, affordable permanent housing in a neighborhood of opportunity.”

The city has not announced a design team for the project, nor an anticipated project timeline.

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8 Comments on "Mayor Adams Shutters Illegal Hotel at 258 West 97th Street, Announces New Affordable Housing Building on Upper West Side"

  1. So is this a renovation or demo, new construction or a combination of both?

    • It is going to be reopened as a homeless shelter.

      • It’s not a homeless shelter. It’s permanent supportive housing. Holier than thou nonprofit operators who don’t think their tenants should have rights aside, supportive housing has been a tremendous success story for thousands of poor, formerly homeless, and people with psychiatric and/or substance abuse issues. Holland House. The Prince George. Kenmore Hall. The Times Square. Former SROs turned into permanent affordable housing.

  2. Upon research, this is not going to be “affordable housing”, it is going to be a housing for homeless men. The city is flipping these three hotels into homeless shelters.

  3. I know these hotels were bad news, but the end result of all this spending is going to be fewer beds. That’s a mixed blessing.

  4. Good job Mayor Adams. It sad how they’re only thinking about the rich building all these luxury buildings. Where are the working class and the homeless and poor going to stay.

  5. Looking for a 2. People apt. …
    Interested
    Email
    Thank you

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