Building and zoning laws would require gut renovations to increase living space and to accommodate ADA requirements to name a few obstacles. Zoning that allows hotels often does not allow for residential living.
The state budget did allocate another $100 million to HONDA, but money will not solve the zoning issues.
Interestingly, hotel rates are beginning to increase in New York as travel rebounds. The window for HONDA to occupy hotels may be closing as a result.