Audit: landlords misused tax breaks

An audit conducted by city comptroller Bill Thompson’s office found the city gave tax breaks tied to building rehabilitations to landlords who did not adequately follow through on the rehabilitation work. Thompson’s office conducted an audit of 26 randomly selected properties that received the credits and found that all but one had not utilized the money for its intended purpose. Of the funding that was reviewed, Thompson said that over $2.5 million was misused. The Department of Housing Preservation and Development, which oversees the J-51 tax break program, said that Thompson’s report was seriously flawed. more [Post]