Many of the families have applied to join waiting lists for city-owned apartments.
Officials at the agency said the residents should join the waiting list for other city-owned apartments.
Cheaper to house those homeless in city-owned apartments than to let them languish on the streets.
Since 1980, 14,169 city-owned apartments have been turned over to alternative management, mostly cooperatives.
Berlin, for example, has had a vast auction of state- and city-owned apartments.
While 45,000 people signed the petition, out of a population close to 500,000, there are 70,000 residents in the city-owned apartments alone.
Another was to stop using the shelter system as a route to getting a city-owned apartment.
At present 47 families remain in the hotel, and half of them are waiting to move into city-owned apartments found for them.
Under the existing plan, a total of 29,000 occupied city-owned apartments would have been renovated.
If they qualify, they will eventually move to housing projects or city-owned apartments.