City To Close Second Homeless Facility in Midtown East

The Department of Homeless Services will not renew a contract for Mainchance, a homeless drop-in center on 33rd Street, after reports that the facility turned clients away in violation of city rules. Its closure would come shortly after the city shutters nearby Bellevue, the main intake center for single homeless men.

Two years ago, Mainchance, a homeless drop-in center on 33rd Street in Midtown East, fought off an attempt by then-Mayor Eric Adams’ administration to close the site before its contract was up.

But the reprieve appears to have been temporary: last week, the facility got word that the Department of Homeless Services (DHS) would not renew its contract.

“This is deja vu all over again,” said Marc Gross, a lawyer and member of Mainchance’s board.

Mainchance’s CEO, Brady Crain, said the drop-in-center serves 40,000 clients a year by providing a low-barrier place to stay overnight, get a free meal, or access other services. Now they worry that their absence will leave a hole in the city’s safety net for the homeless in the busy Midtown East neighborhood.

Mainchance got a letter from DHS administrators earlier this month that alleged the drop-in turned away clients in violation of its contract, spurring complaints from peer service providers. In a second letter, the agency said it would not renew Mainchance’s contract, which ends on June 30.

“We are dedicated to ensuring that New Yorkers experiencing unsheltered homelessness are able to access comprehensive services and a safe place to stay. In order to deliver on this goal, we must ensure that our not-for-profit providers are offering all contractually mandated services and effectively addressing the needs of our clients,” a DHS spokesperson told City Limits in a statement.*

It would be the second homeless services facility to close in the neighborhood in as many months, if DHS gets its way. Last month, the mayor announced that the city would close the infamous Bellevue shelter a few blocks east, which serves as an intake center for homeless men entering the wider shelter system.

The city is facing a legal challenge to its Bellevue plan, which would move shelter intake to another building on East 3rd St. downtown. East Village residents sued to prevent its opening, and a judge granted a preliminary injunction against the change, until May 7. 

“We don’t understand why [the DHS administrator] wants to shut down the only facility that is going to be serving people in Midtown Manhattan after Bellevue is being closed,” said Gross.

The drop-in center serves up to 72 people a night, who sleep in chairs in high-ceilinged rooms in the thin Midtown building. The center has been open for 30 years, leaders said.

Without the contract, “we would have to close,” said Crain, and Mainchance’s clients would have to find other places to stay.

The center has some big backers, including the Grand Central Partnership and a few elected officials.

“It makes no sense,” said Councilmember Gale Brewer, who said she has a lot of respect for the work Mainchance does.

“It’s a model place,” Brewer added. “Where are all those people going to go?”

A DHS spokesperson said the agency is “coordinating closely with Mainchance to ensure that all clients are connected to comparable resources and appropriate shelter placements.”

DHS and City Hall said that in general, they are moving city resources from drop-in centers to safe haven shelters, which are also low-barrier options but which have beds, and sometimes private rooms. 

But closure of the two facilities would leave a hole in a high traffic area. There are three other drop-in centers in Manhattan, but none in Midtown East.

“Midtown Manhattan is a place where we see too many street homeless New Yorkers,” said David Giffen, director of the Coalition for the Homeless. “We need drop-in centers in Manhattan, but we need those drop-in centers to be compliant with the laws and to treat anybody who comes to them with decency and humanity and helps provide them with the services that they need.”

Two years ago, a judge ruled that DHS could not terminate Mainchance’s contract prematurely because it did not provide a good reason for doing so. While DHS also alleged performance issues in that instance, Mainchance argued that shuttering resources for the homeless during a housing crisis was uncalled for.

The agency appears to have come to the fight more prepared this time around. In a letter from Assistant Commissioner Jennifer Wilcox on April 13, DHS said it received several complaints about Mainchance earlier this year and began an investigation. According to DHS, other homeless services providers in the area said that Mainchance refused referrals from other sites, turned away a client because they had too many bags, and rerouted clients to mobile warming centers during February’s cold spell.

“We have repeatedly heard from outreach teams that they no longer refer clients to your site because of the poor treatment they and their clients receive,” wrote Wilcox.

Mainchance leadership denied the allegations and said they are often at capacity. They said they found one instance of someone being denied access, after which they fired a security guard involved in the incident.

After receiving complaints, DHS began an investigation into the site, sending “fraud investigators” claiming to be homeless and attempting to access services. Investigators were turned away improperly on three occasions in March, Wilcox said.

Drop-in centers are required to be open to street homeless individuals 24 hours a day.

“Your site refuses to provide services for street homeless individuals outside of mealtimes. Your site repeatedly refused to allow access to basic services as required pursuant to your contract,” wrote Wilcox.

Four days after the letter, Mainchance CEO Crain received notice of their contract’s expiration.

“DHS should have given us prior notice, should have presented us with a corrective action plan, but never did. If they’ll send somebody back, they’ll find that there’s no problem at this point,” said Gross. 

Mainchance said it submitted a proposal to convert the facility into a safe haven—the type of shelter DHS says it would prefer to invest in—two years ago, but never heard back.

“We were very optimistic with new leadership coming in,” said Crain. 

City Hall stood by DHS’s decision. “The Mamdani Administration is committed to ensuring that homeless New Yorkers not only have access to shelter, but to spaces that are truly humane and livable. In our short time in office, we have already opened new shelters and safe havens that demonstrate our commitment to creating high quality shelters,” said a spokesperson for the mayor in a statement.

Mainchance vowed to fight the decision in court again.

*This story was updated after publication to include a response from the Department of Homeless Services.

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