Thursday, October 17, 2013

Salvation Army Sued Over Use of Hotel as Shelter

The Chronicle of Philanthropy reports that New York’s Court of Appeals, the state’s highest court, heard oral arguments yesterday in a case in which the owner of a New York City hotel, the Carlton House Hotel in Queens, seeks damages from the Salvation Army to the tune of $200 million.  The claim reportedly is that the building was damaged when the charity used it as a homeless shelter.  According to the story, the property owner, a holding company, has already received $10 million as a lease termination fee from the city, which negotiated the lease.  The Salvation Army argues that, under the lease, New York City’s Department of Homeless Services was “the exclusive source of funds” for the property’s use as a shelter.   For additional coverage, see this entry posted on The Real Deal.


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