Bronx residents gathered Saturday to protest a new homeless shelter in Pelham Bay.

The protesters say the Pelham Grand building currently houses low-income people with AIDS, diabetes and hepatitis. The AIDS Service Center of New York plans to provide two-year transitional housing for the current occupants. Neighbors say they often see people with drug issues outside of the building asking for money.

Residents in the area say the building should instead be turned into a senior housing complex. The protesters say this is their third organized rally and they hope they can change the minds of authorities.

Longtime residents say they understand the need for homeless shelters, but say Pelham Bay's residential community is not the place for them.

State Sen. Jeffrey Klein and other elected officials say they are pushing to halt federal funding for the project.