NYC Wastes $1.7 Million on Empty Hotel Rooms for Migrants
New York City (NYC) paid approximately $1.7 million for hotel rooms that remained empty, intended for potential use by migrants. This expenditure was part of a broader initiative where NYC allocated funds to secure hotel rooms in anticipation of housing migrants, part of the city’s response to an influx of migrants, which has been a significant issue under Mayor Eric Adams’s administration. The city’s approach included not only securing hotel rooms but also exploring other housing solutions like using private residences and houses of worship to accommodate migrants.
The payment for empty rooms was criticized as wasteful, especially given the context of the city’s financial constraints and other pressing needs, like homelessness among veterans and local residents. The rooms were kept in a “state of readiness,” suggesting they were reserved just in case they were needed, which led to them being unused and thus empty. This situation highlights broader discussions on public spending, the management of migrant crises, and the prioritization of city funds.
DocGo’s contract — awarded through a no-bid process to give housing and support services to asylum seekers — allowed it to charge $170 per night for lodging, regardless of the actual hotel room price. This allowed DocGo to collect a $409,000 profit on the empty hotel rooms, auditors said.
It’s part of $4.7 million that auditors claim the city was overcharged. DocGo billed New York for extra security guards and social workers above the amount specified in their contract and for nearly 260,000 meals — which would amount to roughly five meals per day for each asylum seeker, the audit said.
Overall, the audit said $11 million of the $13.8 million (80%) the city sent to DocGo in May and June 2023 should not have been paid. The city will not try and recoup the money, a spokesperson for DocGo told Bloomberg.
New York has spent another $168 million on the contract since then. Auditors speculated $134.5 million of that may have been spent improperly, assuming the 80% error rate remained.