NYC's Migrant Crisis: Was Overspending on Empty Hotel Rooms a Catastrophe?

NYC's Migrant Crisis: Was Overspending on Empty Hotel Rooms a Catastrophe?

Last year, Mayor Eric Adams faced a growing migrant crisis in New York City. To alleviate the pressure on the shelter system, he started sending hundreds of asylum seekers to hotels in upstate counties.

But a new audit by City Comptroller Brad Lander has revealed a shocking truth: the city spent millions of taxpayer dollars on unused hotel rooms.

The audit found that the Department of Housing Preservation and Development (HPD) had failed to properly oversee a $432 million no-bid contract awarded to DocGo, a company responsible for providing migrant services.

DocGo, which has faced criticism for its handling of migrant services, billed the city for thousands of vacant rooms at multiple hotels.

For example, DocGo charged the city $833,340 for 4,902 empty rooms at the Armoni Inn and Suites in Orangeburg, N.Y., even though a court order prohibited the use of the hotel for migrants at the time.

In Queens, the city paid DocGo $569,500 to rent out the Crowne Plaza JFK Hotel for 10 nights, but not a single room was used.

HPD officials defended the overspending, claiming the extra rooms were a safety net in case the need for emergency housing surged.

However, investigators found that HPD allowed DocGo to understaff hotels, overcharge for security, and hire subcontractors without proper vetting and approval.

The audit concluded that only 20% of the invoices reviewed should have been paid.

“It was a catastrophically poor decision to hire DocGo in the first place,” said Lander, who is challenging Adams in the upcoming mayoral election.

“It’s an appalling lack of oversight to pay them when they can’t properly document 80 percent of the expenditures.”

The audit also uncovered concerns about the quality of food provided to migrants at the hotels and reports of bedbugs and roach infestations.

While DocGo is being phased out of its emergency contract with HPD, the company is still receiving millions from other city contracts.

The audit raises serious questions about the city's spending on the migrant crisis and the effectiveness of its oversight of contracted services.

It also highlights the challenges faced by the city as it continues to manage the influx of asylum seekers.

[Image: An exterior view of the Armoni Inn in Orangeburg, N.Y., its parking lot largely empty.]