After he left Rikers Island jail here, Strauss-Kahn, 62, was taken to a building with rental apartments in Lower Manhattan where he will live temporarily with his wife Anne Sinclair, a television journalist.
Strauss-Kahn, who was widely expected to run in the 2012 presidential race in France, will have to wear an electronic monitoring device.
He will be allowed to leave the house only on medical emergency. The US media reported that Sinclair had tried to rent an apartment at the posh Bristol Plaza but was turned down once it was discovered that Strauss-Kahn would be living there.
"It doesn't seem quite right for him to be put here with the rest of us, enjoy our hospitality, after what he's been accused of doing," said Sandra Pohutsky, of San Francisco, who was staying in the Bristol with a friend, The New York Times reported.
"The discrepancy between Rikers and here is probably very great, and it doesn't seem quite right," she said.
"I think it's an inconvenience for all of us," a resident, Michele Smith, said.
Strauss-Kahn was granted a USD I million bail yesterday after he was formally indicted on all seven counts of sexually assaulting a chambermaid at Sofitel hotel in Manhattan.
The former IMF chief was also asked to pay an additional bond of USD 5 million. He will also shell out 200,000 for armed guards.
Strauss-Kahn, who has claimed innocence, was locked up in a New York prison since last week, when he was bundled out of a Paris-bound flight and taken into custody on charges of sexually assaulting the maid.
Strauss-Kahn has been charged with a criminal sex act, attempted rape and unlawful imprisonment. He allegedly forced the maid, who is a native of Guinea, to perform oral sex and submit to anal sex.
Meanwhile, yesterday, a law enforcement official reportedly said at least two other Sofitel employees told investigators that Strauss-Kahn made advances toward them during his stay.