UPPER WEST SIDE, NY — Over 80 affordable homes for low-income and formerly homeless New Yorkers are coming to the Upper West Side through the funding of a $1.1 million settlement between the city and a controversial UWS hotel operator, Mayor Eric Adams announced on Monday.

The affordable housing will be coming to 258 West 97th Street (between West End and Broadway), which is the former home of Hank Freid’s Royal Park Hotel.

The Department of Housing Preservation and Development will work with the Fortune Society to turn the building into 100 percent affordable housing, with rent protections, rehabilitation, and social services on-site.

The building will create 82 rent-restricted apartments, with 58 units for formerly homeless New Yorkers, nine homes to be filled through the city’s affordable housing lottery, and 15 units for existing tenants.

Since 2017, the city has been in a legal battle with Freid over operating buildings as illegal hotels and illegal short-term rentals.

Freid also owned the Marrakech Hotel on West 103rd Street and Broadway, along with the Broadway Hotel & Hostel at 2651-2657 Broadway (101st Street).

The 2017 lawsuit from the city sought to force Freid to cease operations at his hotels due to this practice of renting rooms to tourists, violating the 2010 Multiple Dwelling Law requiring buildings with a Single Room Occupancy (SRO) classification to be used for permanent housing only.

As the court battle dragged on over the years, Freid sold all of his controversial Upper West Side properties.

The lawsuit that was settled Monday has generated nearly $2 million in total penalties and stopped the illegal use of more than 300 Manhattan homes in this building and two other illegal hotels, a spokesperson from the city said.

“Today, we are not only shutting down an illegal hotel operator but also creating 80 new affordable homes for New Yorkers struggling to get by,” Adams said in the news release. “The old approaches to the affordable housing crisis are no longer enough — which is why my administration is pursuing bold, innovative strategies like this one to create housing New Yorkers can actually afford. We need a response with the urgency to match the crisis, and we will explore every opportunity, in every corner of the city, to create the affordable housing New Yorkers need and deserve.”

Upper West Side City Council representative Gale Brewer praised the mayor’s office for the settlement and its commitment to new affordable housing in the neighborhood.

“I congratulate the team at the Office of Special Enforcement on the actions taken against the illegal short-term rental scam at 258 West 97th Street perpetrated by Hank Freid,” Brewer said in a news release. “Not only will short-term rentals stop, and Freid will leave management of the property, but the city will receive over $1 million in fines and penalties, and a nonprofit will take over the property and transform it into 100 percent rent-stabilized housing for low-income and formerly homeless New Yorkers in one of the most expensive neighborhoods in the city.”

The announcement from the mayor’s office does not specify how much renovation will go into the current seven-story building at 258 West 97th Street, or if there will be any construction at all.