Revitalizing a Welfare Hotel: A Social Experiment in Shared Living

Strategic Insights -

In the former Times Square Hotel, a unprecedented social experiment is taking place. A mix of formerly homeless and mentally ill individuals, people with AIDS, and working-class residents are living together in a newly restored building, once known for its notorious welfare clientele. This bold initiative, spearheaded by nonprofit organizations Common Ground Community and the Center for Urban Community Services, aims to demonstrate that single-room-occupancy hotels can be more than just dumping grounds for those with problems.

Key Takeaways:

  • The Times Square Hotel, once a notorious welfare hotel with 735 units, has been transformed into a thriving community with 652 units, thanks to a $28.8 million loan from the Department of Housing Preservation and Development and Federal historic rehabilitation tax credits.
  • The building's facade and interiors have been fully restored, with each floor featuring a special activities room, including an art studio, computer lab, music rehearsal space, and weight room.
  • The number of units was reduced from 735 to 652 to provide private bathrooms and 80% of residents with their own kitchens.
  • Residents who are mentally ill or formerly homeless have access to 100 jobs within the building, including security guard positions and stockroom work.
  • A Ben & Jerry's ice cream shop has been added to the building, with all profits going towards the jobs program and economic development plans for the remaining commercial space.
  • The breakdown of tenants is based on a 50-50 formula, with half of new tenants qualifying for social services and the other half having low incomes.
  • The project has limited the number of residents with AIDS to 50 and those with mental illness to 200, with income ceilings generally lower than other projects in the city.
  • Common Ground plans to repeat the model at the 13-story Prince George, but faces potential community opposition and must navigate complex fundraising and approval processes.

Statistics:

  • $28.8 million: Amount of funding from the Department of Housing Preservation and Development for the purchase and renovation of the building
  • 652 units: Reduced number of units in the building after renovation
  • 80%: Percentage of residents with private kitchens
  • 100 jobs: Number of opportunities available to residents within the building
  • 50: Limited number of residents with AIDS in the building
  • 200: Limited number of residents with mental illness in the building
  • 200 jobs: Number of jobs in the community initiatives program
  • 50-50 formula: Breakdown of new tenants in the building

Sources:

  • Rosanne Haggerty, Executive Director of Common Ground Community, (no date)
  • Rebecca Robertson, President of the 42d Street Development Project, (no date)
  • Ruby Washington/The New York Times, (no date)
  • Norman Y. Lono for The New York Times, (no date)