When Medicaid funds became available to nursing homes in the early 1970s, the Association planned to tear down and replace the building with a modern facility. A group of historic preservationists with ties to nearby Columbia University fought to preserve the building, making it into a community cause. Despite a fire during the New York City blackout of 1977 the preservationists prevailed and by the late 1970s, the building was acquired by the City of New York, and declared a New York City Landmark in 1983. During the 1980s the building was unoccupied as American Youth Hostels arranged neighborhood and government support for rehabilitating the building. They opened the hostel in January 1990 and with 670 beds it is now the largest hostel in North America.