Federal Lawsuit Seeks Emergency Injunction Over Conditions in NYC Veterans Housing Program

Timothy Pena • May 11, 2026

Disabled Navy veteran alleges unsafe shelter conditions, exclusion of women veterans, and failure of oversight within federally funded transitional housing system

New York - A federal lawsuit filed in the Southern District of New York is bringing renewed scrutiny to conditions inside New York City’s only federally funded transitional housing program for homeless veterans. In Pena v. City of New York, et al., Case No. 26-CV-0176, disabled Navy veteran Timothy Pena is seeking Emergency Injunctive Relief against the New York City Department of Homeless Services (DHS), the Institute for Community Living (ICL), and associated oversight officials over alleged failures within the Veterans Affairs Grant & Per Diem (GPD) program.


The lawsuit centers on the Borden Avenue Veterans Residence in Long Island City, a large congregate shelter operating under the federal GPD transitional housing framework. Pena alleges the facility functions more like a MICA shelter than a recovery-oriented veterans program, exposing vulnerable veterans to violence, open drug use, unsafe communal conditions, and barriers to medical care.


Pena’s experience with veteran transitional housing began years earlier while working at MANA House in Phoenix, Arizona, where veterans entering the program were stabilized, mentored, and gradually transitioned into structured housing. By contrast, Pena describes Borden Avenue as “an environment of despair,” where elderly veterans and veterans suffering from PTSD and mental illness are subjected to repeated instability and degrading treatment that worsens hopelessness and suicide ideation. 


The federal injunction request argues that disabled veterans face additional hardship because Borden Avenue sits in an isolated industrial section of Queens with limited transportation access to the Manhattan VA Medical Center. Pena instead proposes preserving portions of the 400 E. 30th Street “Bellevue” shelter as a medically integrated transitional housing center for veterans, particularly women veterans currently excluded from the city’s only GPD program.

 

The lawsuit also highlights what Pena describes as a missed opportunity by city agencies and veterans oversight bodies. With migrant shelter usage declining, numerous hotel properties once used for emergency housing now sit vacant. Pena proposes converting those hotels into decentralized veteran housing facilities modeled after successful Tunnel to Towers Veterans Villages programs operating in other cities.

 

On other proposal identifies the vacant Stewart Hotel in Midtown Manhattan as a potential national flagship for veteran transitional housing because of its proximity to VA hospitals, public transportation, and community services. 


The filing further criticizes the 2025 New York City Veterans Advisory Board report for failing to meaningfully address homeless veterans, unsafe shelter conditions, or the exclusion of women veterans from transitional housing despite repeated complaints raised by advocates and residents. 


Pena argues that the city already possesses the infrastructure needed to create safer and more dignified housing for veterans. The question, he says, is whether city agencies are willing to prioritize veterans in the same way resources were mobilized for other shelter populations.


“The failure to act is not due to a lack of resources,” Pena wrote in a previous housing proposal. “It is a lack of prioritization.”


Printable pdf (2 pages)


Timothy Pena is a service-connected disabled Navy veteran for PTSD and has written about his experiences with mental health, homelessness, and the judicial system. Suffering mental illness, he initially visited NYC to collaborate on a documentary for veteran suicide but decided to stay after realizing he would rather be homeless in NYC than dead in Phoenix. He has been writing stories and blogs about his journey from “homeless to homeness” in the NYC Dept of Homeless Services system and possible corruption within DHS and Veterans Affairs Grant & Per Diem Transitional Program.