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CRAIN’s: By any measure, shelter in old Park Savoy is a good deal

In Uncategorized by w58

Fron Crain’s:

Last week Manhattan residents protested a men’s homeless shelter set to open inside the former Park Savoy Hotel on West 58th Street. One of their arguments is that the de Blasio administration is spending more than usual to convert this location—nestled among luxury condo towers and just one block north of Billionaires’ Row—to make a political point about sticking it to the rich. The Department of Homeless Services has in turn questioned opponents’ math, arguing that the costs are below average. But no matter whose numbers you use, the city seems to be getting a deal when the high cost of Midtown real estate is taken into account.

The department said it is proposing a $61 million, nine-year contract with a Yonkers-based nonprofit to rent space and provide services for 150 homeless men. That comes out to around $45,000 per person annually, which the department said is below the typical $54,000 rate. Opponents say the contract is actually for more money and covers fewer people, and the typical cost of a singles shelter is $36,300 per person. That would make the Park Savoy location 38% more expensive than the average. Even if that is the case, it would still be below the premium for the area. Median home prices and rents in Midtown are around 100% and 60% more than citywide figures, respectively, according to U.S. Census data. That means the city is getting a relative bargain under the scenario outlined by the shelter’s critics and a steal according to its own numbers.

Granted, the department would get the most beds for its money by putting them all on the cheapest blocks in the city. But officials here and across the country are already grappling with past decisions to concentrate low-income housing and jails in a few far-flung locations, and Mayor Bill de Blasio has said he plans to distribute homeless shelters more widely to serve needy New Yorkers in their own neighborhoods. That will require the city to spend more. And if last week was any indication, de Blasio will meet heavy resistance along the way.

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