The city and a well-connected homeless shelter operator on West 95th street had a nice little arrangement going for months — the Department of Homeless Services had a “handshake” deal with the shelter operator to pay the operator millions, even though they didn’t have a contract. The mega-shelter, housing up to 400 adults at 316 and 330 West 95th street, was opened on a six-month emergency contract last summer, but that contract ended in February and the DHS did not formally submit a new contract for approval by the Comptroller’s office.
Upper West Siders have been fuming about this no-bid deal since we first broke the story last July, and local politicians have said the community is “getting played” as the city is quietly paying a “scum landlord.”
We asked the city and local officials a couple of months ago how a shelter could pay out tens of millions of dollars without any oversight, but we were met with complete silence.
It turns out the deals the city has been making are so sketchy, a judge lashed out at them on May 31, saying that the DHS is acting like the CIA and apparently has no problem ignoring the city charter. The judge was referring to a Bronx shelter, but the ruling is relevant to dozens of shelters, including the one on 95th street.
“In essence, the Department of Homeless Services has made itself a little like a CIA black op, spending unbudgeted funds without apparent restraint,” wrote Bronx Supreme Court Justice Geoffrey Wright in an order that we have posted below. “To accept their arguments would be to vitiate, if not annul the City Charter.”
“The history of the funding of the homeless shelter in question is suffused with subterfuge, double talk and evasion,” he added.
In 2008, the city was operating 107 shelters like this, according to a report from the comptroller. “The practice of cutting backroom deals with shelter operators cannot and should not be tolerated,” said Comptroller John Liu in a statement his office sent to us.
The ruling came down on May 31, and lo and behold the city submitted a contract to operate the 95th street shelter just a few days later. Guess they were just dotting the i’s and crossing the t’s. The shelter operator, Aguila, stands to make about $3,700 per room per month at the shelter — a total of $46.8 million over five years, according to the most recent version of the contract that we’ve seen. The rooms are bare-bones, with no refrigerator or bathroom. That’s right, $3,700 a month for no bathroom or kitchen. Even on the UWS that’s a luxury tab. The deal gives DHS the option to extend the contract to nine years.
DHS officials said at the one community meeting they attended that the community was essentially fighting the shelter because of NIMBYism. It’s the kind of argument that attempts to insulate them from any criticism whatsoever. How about the massive payoffs to a notorious landlord, whose shelters are known for drug abuse, prostitution and violence? NIMBYism! The fact that former DHS commissioner and current Aguila CEO Robert Hess, who has a long history with this particular site, skipped every meeting with the community even as he stands to make a boatload? NIMBYism! The concern that 17 supportive facilities in an 18-block radius (according to one activist group) is more than this community’s fair share? NIMBYism! The lax screening procedures at the shelter, the residents going without heat, the lack of public notice, the lack of public meetings, the shelter residents themselves complaining that the community is getting ripped off? Yup, you guessed it, it can all be brushed off because of the community’s apparent NIMBYism.
We reached out to the DHS for comment on this story and have yet to hear back. The agency has never responded to any of our questions about the shelter, despite assurances at a public meeting that they would. In general, when journalists have asked hard questions about this deal, they’ve gotten completely cut off.
The contract is now in Comptroller John Liu’s hands. He’s running for mayor and has a surprising amount of support on the Upper West Side (at least one local Democratic district club endorsed him) and he is likely to listen to how Upper West Siders feel about this deal. (Mayoral candidate Bill de Blasio already returned donations from the shelter landlord after we started inquiring about his position on the shelter.) If you’re for or against the shelter, now is probably the best time to act. Liu’s office tells us the comptroller usually rules on contracts within 30 days from when the contract was submitted (it was submitted on June 5). Activist group Neighborhood in the Nineties previously has urged people to call the comptroller at 212.669.4185, and/or his assistant, Nancy Cruz or the general number, 212.669.3500, and ask to speak to Mr. Liu or Ms. Cruz. You can also send an email to: Comptroller John C. Liu, c/o Nancy Cruz at ncruz@comptroller.nyc.gov.
If you do contact them and hear back from Liu or his office, let us know the response (also let us know if those are the wrong phone numbers).
Neighborhood in the Nineties is also considering filing a lawsuit over the shelter, Aaron Biller tells us.
Check out all of our coverage of homeless shelters here.
The UWS needs yuppies, not bums. Why is tax money going to anti-social, often psychotic losers instead of entrepreneurs?!
“Why is tax money going to anti-social, often psychotic losers instead of entrepreneurs?!”
Because they’re the ones who know how to develop the properties the wealthy want to buy!
And, yes, how about some tax support for the *real* entrepreneurs — the mom-and-pop stores that have defined this neighborhood for generations, now being supplanted (as another post notes below) by unaffordable boutiques servicing only the rich folk gobbling up the neighborhood.
More yuppies?? Thanks anyway, but we’ve already got more than enough of those, too! How about supporting the Upper West Siders who can no longer afford to live where their parents and grandparents thrived?
Another well- written article, exposing HPD’s hypocrisy.
The Coalition for a Livable West Side demands a thorough investigation of ALL of HPD’s contracts.
No funds for the now-defunct Advantage Program, which allowed people to remain in their apartments but hundreds of millions of dollars for well-connected owners of shoddy “hotels”.
We urge Comptroller John Liu to reject this contract and begin an investigation of HPD’s contracts.
Why do entrepreneurs need tax money?
Why are Sandy victims (35 – 40 on the UWS) psychotic losers?
And don’t those yuppies drive up housing prices, both rental and owned, and promote unaffordable stores, like Brooks Brothers and Whole Paycheck?
We are not talking about 35-40 Sandy victims here. No one would have an issue with that. Did you read the part below:
“The mega-shelter, housing up to 400 adults at 316 and 330 West 95th street, was opened on a six-month emergency contract last summer, but that contract ended in February and the DHS did not formally submit a new contract for approval by the Comptroller’s office.”
In addition to 400 adults at this mega location, there are a number of other shelters on the UWS. The UWS was already doing our share. I also agree with the poster who is asking why are homeless that have no ties to NYC being sheltered here, the most expensive metropolitan area in the state?
It’s an insult to say this is a NIMBY issue. No one is saying that there shouldn’t be any shelters. Are there shelters housing this many people in the 90’s on the UES? Tribeca or any other concentration of wealthier individuals then the UWS? The sleazy relationship between the company running these shelters and the DHA is very concerning to me as a taxpayer.
Bernie its me. – Old Upperwestsider
We the taxpayers are paying $3k a month per person for a room. Many of them are not New Yorkers. Why do we have to bare the burden of a country wide problem. If nothing else, we the New York City taxpayer can buy them entire houses for $5K in buffalo. it would be cheaper in the long run.
this is a scam on all of us.
City council do something
Hear hear! Thanks to Neighborhood in the Nineties for their aggressive pursuit of justice.
This is egregious overspend of taxpayer money. $3700 for a bedroom? For ‘bare bones’ rooms, in a shelter that has reportedly lost heat numerous times and had issues with vermin? I recall seeing bedbug-infested mattresses on the street on an almost daily basis.
Let’s not forget that when these shelters first opened, there were two fatal stabbings and a man shot nearby the shelters. This is a family neighborhood, and there is a school directly across the street. How safe do parents and children feel now? There was no notice given to residents when these shelters opened.
Back to the figures – $46.8 million over 5 years to the shelter owners who are reputed crooks. We can’t let these sharks turn such a high profit on shelters that are not only bad for the neighborhood, but operating on shiesty ‘deals’ with the government. As it gets closer to the election, hopefully officials who need the UWS demographic will tkae interest in this and listen to the community!
I am a 25 year resident of 330 W 95th Street and am along with my fellow permanent residents enduring our second incarnation as a homeless shelter. Many of my long time neighbors left after the first incarnation fearing another.
These rooms are rent stabilized and it is illegal to charge more for them. They are the affordable housing of Manhattan and the owners enjoyed tax breaks for decades as these SROs or Single (Adult) Room Occupancies helped to stabilize this neighborhood when you couldn’t go into Riverside Park at night and 94th Street was a drug mart.
Who are the permanent residents? We are your doormen, MTA workers, pre-school teachers, artists, hardware store clerks, waiters and retirees. And we appreciate the efforts of our elected officials and especially the SRO Law Project to protect our rights as our home has been converted into a shelter but we feel that City Hall has abandoned us.
$3700 a month for a single room, no kitchen OR bathroom. My previous two-bedroom apartment in this neighborhood cost less than that!
Three months of that money upstate would get them an actual apartment for a year and a used car.
Disgusting squandering of resources.
Don’t forget housing is just the start.
they get that NYS “benefits” card – like a credit card almost.
Free food, medical, cell phones, transportation.
New York is the mooch capital magnet of the world.
and we all pay for it. Why? because we are mostly liberal, but the far left wing extremists take things to point of ridiculousness and try to shame those who speak up against them.
The Upper West Side has too many shelters, period. While this contract is CRIMINAL for a number of reasons, the fact is it shouldn’t be there at all even if it were put into effect properly. Homelessness in NYC is an issue we all share, but this neighborhood is being taken advantage of and ignored. We have done MORE than our fair share. So much attention is being placed on “up and coming” neighborhoods in Brooklyn- being developed on and promoted while the UWS has to put up with this. We must all pay attention to who we vote for in this next election. Gale Brewer has claimed to be in favor of fair housing and would keep the shelter in place if the paperwork is sorted out. I say spread the burden. See how the rich folks on the UES would like it. Enough taking advantage of the UWS.
I asked Gale about it and that was not her position. She is against those shelters and said that was not what was supposed to happen to those buildings. She has spoken out against the shelters.
I have also asked Gail about it at a recent meeting and she said she is “in favor of fair housing”. She then went on about her issue with this particular building – namely the corrupt way it was put into place, not that it is there. She is extremely liberal and sees no reason to cap a quota on the UWS. That’s one of the reasons this continues to happen. Our compassion is taken advantage of and I repeatedly hear notions of “stick it to the liberals”. Again ENOUGH IS ENOUGH.
MJ NAILED it. We pay some of the highest taxes in the city and have MORE then our fair-share of low income housing and shelters. Where are the shelters in the UES? Gramercy? West Village? Brooklyn Heights? Williamsburg? Park Slope?
We don’t need a “fair contract” we need to eliminate it. Enough is enough.
I am a homelessness researcher from another country. I have been studying homelessness in New York for a while now. I just spend one full afternoon and one late evening observating these two shelter buildings. The only thing I noticed was a couple of workers with uniforms passing by every now and then. Otherwise they seemed like any other working class building in the NY. No drug dealers, prostitutes, panhandlers what so ever. What is the problem here?
researcher: you’ve got it right. I live on the block and walk up and down past those “shelters” 4-10 times per day. I have never seen any problems. there are always security guards out in front. Occasionally i get panhandled but that was always the case on this block — and, so what?
there IS an issue that the shelters are a bad solution to homelessness and that the city is spending way way too much money. and it was an “inside deal” that was put through without community input, and a former deputy commissioner appears to be making a lot of money on it.
but change the nature of the block? no, it has not, not as yet.
A lot of people who bought in at high prices are worried about their property values. that is why all the fuss.
I’m a renter who lives next door to the shelter. And (besides the shady back-scene dealing that put the shelter there in the first place) there are all kinds of problems with the way it’s run. Forgive me if I sound grumpy, but I don’t get much sleep these days. My apartment windows face the shelter’s courtyard, and I’m routinely jolted out of sleep by screaming and shouting from the shelter residents, punctuated by breaking glass (some of them like to throw bottles out of the window). That’s apparently one of the things Bruce Bernstein and the alleged nameless “Researcher” are missing when they take their little strolls down the block. They seem to also be missing all the police cars and fire trucks that come to visit the shelter.
There are MULTIPLE eyewitness reports to the contrary. Not to mention police reports.