The signs still read Pan American Hotel but for the past year, the only people checking in here are homeless families.

Last June, the city converted the former hotel into an emergency homeless shelter.

"The city is violating its own laws, by trying to put homeless families here," said State Senator Tony Avella.

Back in May, the service provider Samaritan Village proposed a five-year, $42 million dollar contract with the Department of Homeless Services to turn the hotel into a permanent shelter.

It was rejected due to safety concerns. But now the proposal is being resubmitted.

Avella says the location does not meet city requirements for a permanent shelter.

He says rooms don't have kitchens as required, and residents have complained about bed bugs, rodents and lead paint.

"We’re spending, probably three times the amount of money to house one family here, than it would cost to put them in a two or three family home," said Avella.

According to the Department of Homeless Services, it costs approximately $3300 a month to house each family at the Pan American location.

Senator Jeff Klein introduced a bill, which passed in the Senate, that would require the city to notify residents and community boards before opening a shelter or social service facility in the neighborhood.

"We have a duty to take care of those who are less fortunate but at the same time, I don't know why we wouldn't want the community engaged, in such an important process," said Klein.

These residents say they support the legislation and believe this kind of shelter is not what the community needs.

"This was a total surprise to us," said Anna Orjuela, a member of Elmhurst United.

A DHS spokesperson tells NY1, "DHS has a legal and moral obligation to provide temporary emergency shelter to all those who need it, and we oppose any legislation that could impede our ability to house individuals and families that have nowhere else to turn."

City Comptroller Scott Stringer's office has until next week to either accept or reject the proposal.