NEW YORK (1010 WINS) – An audit released by New York State Comptroller Thomas DiNapoli on Tuesday found unsafe conditions and over $1 million in questionable spending at three affordable housing complexes.
The report highlighted the need for better oversight of the Mitchell-Lama program, which provides affordable rental and cooperative housing to middle-income families, by the New York City Department of Housing Preservation and Development (HPD).
Auditors discovered issues like broken fire safety doors, mold, collapsed ceilings, and pest infestations at developments in Manhattan, Queens, and Staten Island.
"Every New Yorker deserves safe and clean affordable housing," DiNapoli said. "The conditions identified in this audit are unacceptable. The city needs to do a much better job overseeing the Mitchell-Lama program and ensure funding for these buildings goes toward their maintenance."
HPD oversees 93 developments with about 46,902 apartments, relying on the Housing Development Corporation (HDC) to inspect and report on their conditions.
In 2023, auditors inspected Arverne/Nordeck in Queens, Arlington Terrace/North Shore on Staten Island, and York Hill in Manhattan. They found significant issues, including collapsed ceilings, water damage, exposed electrical wiring, mold, and pest infestations across the three sites. In Staten Island and Manhattan, unsafe façade conditions were also noted.
"Mitchell-Lama has for decades been a vital tool for affordable housing, as rents rise rapidly citywide, yet affordability cannot come at the expense of safety," said New York City Public Advocate Jumaane Williams.
The audit criticized HPD for failing to monitor the developments properly and for not following up on HDC inspection reports that had flagged these safety issues. Auditors estimated around $1.5 million in lost revenue from apartments vacant for over 120 days and flagged about $1.6 million in questionable spending at the three developments, including $620,000 in contracts that lacked proper approval or competitive bidding.
HPD responded by disputing some findings, claiming funding had already been allocated to the sites to address the issues and stating that competitive bidding was not required for contracts under $100,000.
DiNapoli’s audit recommended HPD improve its monitoring practices at these developments.