Evictions Uncover NYC’s Underground Cannabis Boom: Is the Housing Crisis to Blame?

BRONX, N.Y. — What started as a routine eviction on Kelly Street in the Bronx took an unexpected turn when city officials stumbled upon a hidden cannabis processing operation. The bust has raised concerns about a growing trend in New York City—tenant evictions increasingly leading to the discovery of illegal at-home cannabis operations.

On Thursday, New York City Sheriff Anthony Miranda announced the bust, revealing that the tenant had been using the basement apartment as a full-scale cannabis grow house. Upon entry, authorities were confronted with rooms lined with cannabis plants, sophisticated air filtration and irrigation systems, and even propane tanks. The walls had been torn down to accommodate the operation, transforming the residential space into a makeshift cannabis farm.

The discovery adds to a string of incidents where tenants facing eviction are found running illegal cannabis operations out of their homes. With housing prices soaring and rent becoming increasingly unaffordable, many renters have turned to alternative and often illicit means to make ends meet, including at-home cannabis cultivation. This troubling trend seems to be gaining momentum as evictions rise and New Yorkers struggle to stay afloat financially.

New York City’s housing crisis has been well-documented, with rising rents and a lack of affordable housing forcing many residents into precarious situations. As a result, some renters may resort to underground cannabis production, hoping to tap into the lucrative market to cover rent or other financial burdens.

People are desperate, and in a city where it’s increasingly difficult to survive financially, some tenants are looking for quick ways to earn extra cash,” said a housing expert who wished to remain anonymous. “For those who can’t break into the legal market or face barriers due to high entry costs, illegal operations can seem like the only option.

While cannabis is legal in New York, setting up a legal grow house or dispensary is no easy task. It involves navigating layers of bureaucracy, obtaining expensive licenses, and meeting strict regulatory requirements. These barriers have pushed some into the shadows, turning their homes into illegal grow operations.

Mayor Eric Adams has placed a spotlight on illegal cannabis shops and grow houses this year, concerned about the safety hazards they pose.

This is a residential building, this is not a building where you should be growing cannabis, Adams said. The combination of flammable chemicals like propane and the presence of high-voltage lighting and irrigation systems presents a dangerous mix, heightening the risk of fires and gas leaks in densely populated urban areas.

The eviction on Kelly Street is just one example of a larger effort to crack down on illegal cannabis operations in New York City. Between April and July 2023 alone, law enforcement shut down over 750 illegal cannabis shops, according to Governor Kathy Hochul. However, the rise in at-home grow houses is proving to be a more difficult problem to tackle.

City officials are now faced with the challenge of addressing both the illegal operations and the economic desperation that drives some tenants to take such risks. A spokesperson for Wavecrest Management, the building’s management company, emphasized their commitment to resident safety.

Our top priority is ensuring a safe and secure living environment for all residents,” they said in a statement following the bust. The company assured the public that they would continue cooperating with authorities to prevent similar situations in the future.

The intersection of the housing crisis and the rise of illegal cannabis grow houses points to a deeper systemic issue. As rent costs continue to rise and affordable housing options dwindle, many tenants are being squeezed out of legal avenues for both housing and income. The lengthy approval process for opening legal cannabis shops, combined with high operational costs, further exacerbates the issue.

As the city ramps up its eviction processes in the wake of the pandemic, there’s concern that more of these hidden grow operations will come to light, bringing with them significant safety risks to tenants and neighbors alike. It’s a clear sign that the housing crisis is fueling unintended consequences, with desperate tenants resorting to illegal and dangerous means of survival.

Mayor Adams’ focus on shutting down illegal operations, while necessary for safety, must also address the root causes behind them. Without real solutions to the housing crisis and more accessible paths to participate in the legal cannabis market, many tenants may continue to risk everything for a shot at financial survival.

Could NYC’s housing crisis be fueling the rise of illegal cannabis grow houses? Should the city address housing affordability as part of its crackdown?