What started as a makeshift shelter with tarps, umbrellas and wooden pallets has transformed into what residents are calling an actual house outside a Kips Bay co-op.
Since February, board members at 311 East 25th Street in Kips Bay have been locked in a months-long standoff with an unhoused couple who created a semi-permanent encampment on the property.
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“We pay a lot of money in our building’s budget, in taxes, and we feel like they have more rights to inhabit this corner than we do,” resident Marc Sterling told PIX11.
Lisa Palumbo, the co-op board president, has been documenting the ongoing situation for months, sharing photos with PIX11 that show the slow evolution of the encampment — from a basic shelter to what she describes as an intermittent, outdoor dwelling.
While the encampment has sparked tension among residents, it also highlights a broader issue that cities across the country are struggling to address.
Safety concerns growing
Beyond the tents, mattresses and pillows lining the sidewalk, Palumbo said her concerns go deeper than just clutter.
“They do drugs, drink — bottles all over the place, syringes,” Palumbo said.
Sterling has captured videos of people passed out on the stoop, allegedly from drug use. He said he’s lost count of how many times he’s called 911 and 311 for help. While 24-hour security remains too costly for the building, the co-op has recently installed a new surveillance system that has already recorded other problems, including a couple dumping bags of trash in front of the property.
Scenes like this are becoming more common across New York City. In April 2025 alone, more than 108,000 people slept in city shelters each night, with thousands more living unsheltered. The estimated number unhoused New Yorkers to an estimated 350,000.
Last year, the Adams administration spent $3.5 million last year clearing more than 2,300 encampments, many have since reappeared elsewhere.
In Lower Manhattan, a section of FDR Drive between Catherine Slip and Pier 11 became a gathering spot for unhoused New Yorkers. Makeshift shelters built from discarded furniture, old mattresses and even the occasional barbecue lined the stretch.
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Bigger issue
Even after repeated sweeps by the NYPD, sanitation crews and outreach teams, the couple always seems to find their way back.
“The cops come and say, ‘You need to move or we’ll have to arrest you.’ It’s like constantly mowing the lawn,” Sterling said.
City Hall told PIX11 that multiple agencies have been involved in addressing the co-op’s ongoing safety concerns. But without long-term housing or support, the cycle continues.
In his 2025 State of the City address, Mayor Eric Adams pledged to address the root causes of the city’s homelessness crisis. His proposals include expanding Safe Haven and low-barrier shelter beds from 4,000 to 4,900 and ensuring 24/7 coverage across all five boroughs.
The city also plans to roll out a new initiative called Bridge to Home, a community-based treatment program offering behavioral health care in supportive, home-like settings for individuals with mental illness leaving inpatient care without housing. The Adams adminstration has set aside $650 million for the plan.
For now, residents of the Kips Bay co-op hope their concerns will be addressed, not only for the sake of their safety, but as part of a broader effort to bring long-term housing solutions to those living on the margins.
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