Boyle Street Community Services has been operating this hotel as transition housing for over a year now. It seems they either want to extend this current use, or go the next step to permanent supportive housing. During the pandemic they expressed there was a desperate need for this kind of 'transition' housing (folks that are already approved for supportive housing but on the wait-list), and due to restrictions on capacity in shelters there wasn't a lot of other options.
Ideally they will be doing some consultation with adjacent residents and businesses before they proceed with the application so people can fully understand what they're proposing. Is this more of the same use or an intensification? In the past the community league and residents have met with Boyle to better understand their current operation and try to mitigate some issues that had been happening (disorder and garbage around the building, loitering etc). Since then I haven't heard a lot of complaints about the facility itself, more the disorder and crime Downtown in general. Also you have businesses on the main floor that won't want to be impacted.
If this is changing from what they were doing before, and there's more people and more services, this would definitely need to be fully understood and discussed about how it's going to affect the area. Long term supportive housing is probably not ideal in that location, and you'd want uses that compliment the 'entertainment' area and complete the 103 Street block from 102 to 103 Ave. But the hotel has never been viable for Urban Sparq and requires new ownership.