New Audit Reveals Potential for Savings in City's Rental Aid Program Amid Expanding Pledge by Mayor Zohran Mamdani
A recent audit by New York State Comptroller Tom DiNapoli has identified potential inefficiencies and problems within the city's rental assistance program, potentially complicating Mayor Zohran Mamdani's pledge to expand access to housing aid. The audit found that increasing oversight, vetting relationships between brokers and landlords, and refusing contracts with property owners having hazardous violations could help reduce costs and improve the program's effectiveness.
According to the audit, the city currently spends approximately $1.2 billion on its CityFHEPS assistance program, which serves over 60,000 households, mostly formerly homeless New Yorkers. The voucher program has grown significantly since its inception in 2017, providing crucial support for low-income families struggling to find affordable housing.
However, the audit highlights a grim picture of how low-income tenants and taxpayers are affected by the city's affordable housing shortage. With less than 1% of apartments priced under $2,400 vacant, and over one-third of households requesting relocation due to hazardous conditions in their apartments, the program faces significant challenges.
The auditors found that the social services agency failed to create sound monitoring processes for apartment conditions that can endanger tenants and increase program costs. As a result, the city paid brokers and landlords nearly $112,000 in additional fees and incentives in five cases where families did move. In another case, the city agreed to pay rent for a tenant moving into a unit it previously allowed a tenant to transfer out of due to dangerous violations.
Eliminating larger rent payments and requiring safer apartment conditions could help reduce the program's costs and make it more efficient. Deputy Comptroller Tina Kim noted that these measures would allow the agency to serve as many tenants as possible, while maintaining the program's effectiveness.
However, officials with the city's Department of Social Services disputed the report's findings, citing inaccuracies and misstatements about the agency's quality of oversight. The department also argued that the poor conditions of apartments are a result of the housing crunch, rather than any failure on the part of the social services agency.
Mayor Mamdani has pledged to expand the CityFHEPS program under terms approved by the City Council in 2023 legislation. However, this plan faces opposition from former Mayor Eric Adams and some economists who argue that it would force the city to pay potentially billions of dollars more in rental assistance. A court battle over the future of the measures continues, with councilmembers and homeless rights advocates pushing for its implementation.
A recent audit by New York State Comptroller Tom DiNapoli has identified potential inefficiencies and problems within the city's rental assistance program, potentially complicating Mayor Zohran Mamdani's pledge to expand access to housing aid. The audit found that increasing oversight, vetting relationships between brokers and landlords, and refusing contracts with property owners having hazardous violations could help reduce costs and improve the program's effectiveness.
According to the audit, the city currently spends approximately $1.2 billion on its CityFHEPS assistance program, which serves over 60,000 households, mostly formerly homeless New Yorkers. The voucher program has grown significantly since its inception in 2017, providing crucial support for low-income families struggling to find affordable housing.
However, the audit highlights a grim picture of how low-income tenants and taxpayers are affected by the city's affordable housing shortage. With less than 1% of apartments priced under $2,400 vacant, and over one-third of households requesting relocation due to hazardous conditions in their apartments, the program faces significant challenges.
The auditors found that the social services agency failed to create sound monitoring processes for apartment conditions that can endanger tenants and increase program costs. As a result, the city paid brokers and landlords nearly $112,000 in additional fees and incentives in five cases where families did move. In another case, the city agreed to pay rent for a tenant moving into a unit it previously allowed a tenant to transfer out of due to dangerous violations.
Eliminating larger rent payments and requiring safer apartment conditions could help reduce the program's costs and make it more efficient. Deputy Comptroller Tina Kim noted that these measures would allow the agency to serve as many tenants as possible, while maintaining the program's effectiveness.
However, officials with the city's Department of Social Services disputed the report's findings, citing inaccuracies and misstatements about the agency's quality of oversight. The department also argued that the poor conditions of apartments are a result of the housing crunch, rather than any failure on the part of the social services agency.
Mayor Mamdani has pledged to expand the CityFHEPS program under terms approved by the City Council in 2023 legislation. However, this plan faces opposition from former Mayor Eric Adams and some economists who argue that it would force the city to pay potentially billions of dollars more in rental assistance. A court battle over the future of the measures continues, with councilmembers and homeless rights advocates pushing for its implementation.