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State comptroller criticizes agency for longstanding Mitchell-Lama issues

Two years after audit, Thomas DiNapoli’s office still not happy

<p>New York State Comptroller Thomas DiNapoli and New York State Homes and Community Renewal commissioner RuthAnne Visnauskas with an aerial view of 633 Olmstead Avenue in the Bronx (Getty, Google Maps, New York State Homes and Community Renewal)</p>
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Key Points

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This summary is reviewed by TRD Staff.

  • A follow-up report from the state comptroller found persistent problems at four Mitchell-Lama developments, echoing issues raised in an audit two years prior, including vacant units and questionable spending.
  • At Jamie Towers in the Bronx, approximately 10 percent of units were vacant, some for as long as seven years, and some vacancies were not reported to the Division of Homes and Community Renewal.
  • The comptroller also alleged HCR did not properly review large contractor payments.

Two years ago, an audit from the state comptroller’s office revealed dangerous conditions, strange spending and a growing number of vacant units at four developments in the Mitchell-Lama affordable housing program. It seems not much has changed since then.

A follow-up report from the state comptroller detailed persistent problems at the four developments, Gothamist reported. The issues are much the same as they were a couple of years ago, according to the latest report.

At the 620-unit Jamie Towers in the Bronx, approximately 10 percent of the units were vacant in April, according to the report. Some vacancies were not reported to the Division of Homes and Community Renewal, which oversees the developments, and some units had been vacant for seven years.

“The number of affordable apartments that Homes and Community Renewal has allowed to remain vacant is troubling, particularly because my office flagged this issue two years ago,” DiNapoli said.

Another development, Cathedral Parkway Towers in Manhattan, had listings on online rental platforms when potential tenants should have come from an official waiting list. The building’s management company denied knowledge of the listings.

The comptroller also alleged HCR did not review large contractor payments for repairs and security, allowing those with missing documentation to slide by, as well as those who didn’t engage in a competitive bidding process.

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A spokesperson for HCR said the agency was working to adopt the recommendations from two years ago, adding that HCR’s oversight role in day-to-day management is limited.

The state comptroller did give HCR credit on a few fronts: compiling reports for housing code violations and sending memos to management firms about improper spending.

There are more than 100,000 Mitchell-Lama co-op and rental units across the city. The program is designed to provide affordable housing for middle-income families, but developments have been dogged by debt linked to rising costs and a troubling dearth of oversight, in the eyes of the comptroller.

The comptroller’s office asked HCR to file a written response to the latest report in 30 days.

Holden Walter-Warner

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