New audit reveals potential for significant savings in rental aid program, complicating Mayor Mamdani's expansion plans.
A scathing audit by New York State Comptroller Tom DiNapoli has identified key issues with the CityFHEPS assistance program, which serves over 60,000 low-income households. The audit finds that the city could save millions of dollars by increasing oversight, vetting relationships between brokers and landlords to prevent overpayment, and refusing to contract with property owners who have hazardous violations.
According to the audit, a lack of oversight has driven up costs for the program, which currently has a price tag of nearly $1.2 billion. The city's Department of Social Services disputes the report's findings, arguing that the agency is already doing enough to protect tenants and taxpayer dollars.
However, Deputy Comptroller Tina Kim says that eliminating larger rent payments and requiring safer apartment conditions would drive down costs and make the program more efficient. "These are basic things that will make the program more effective because you want to serve as many tenants as possible," she said.
The audit also found that the city agency had agreed to pay rent for a tenant moving into the same unit it had previously allowed a tenant to transfer out of due to dangerous violations, and that the program paid rents higher than comparable units in 11 cases outside of the city. These findings suggest significant waste and mismanagement within the program.
Mayor Zohran Mamdani's pledge to expand access to housing aid has been complicated by these findings. Critics argue that expanding the program would force the city to pay potentially billions of dollars more in rental assistance, while proponents say that the added cost will be offset by hundreds of millions of dollars in shelter savings.
As the city struggles with its affordable housing shortage, where less than 1% of apartments priced under $2,400 are vacant, the audit's findings have raised questions about the effectiveness and efficiency of CityFHEPS. With the program facing a critical juncture, policymakers will need to carefully consider the implications of these recommendations in order to ensure that the city's most vulnerable residents receive the support they need.
A scathing audit by New York State Comptroller Tom DiNapoli has identified key issues with the CityFHEPS assistance program, which serves over 60,000 low-income households. The audit finds that the city could save millions of dollars by increasing oversight, vetting relationships between brokers and landlords to prevent overpayment, and refusing to contract with property owners who have hazardous violations.
According to the audit, a lack of oversight has driven up costs for the program, which currently has a price tag of nearly $1.2 billion. The city's Department of Social Services disputes the report's findings, arguing that the agency is already doing enough to protect tenants and taxpayer dollars.
However, Deputy Comptroller Tina Kim says that eliminating larger rent payments and requiring safer apartment conditions would drive down costs and make the program more efficient. "These are basic things that will make the program more effective because you want to serve as many tenants as possible," she said.
The audit also found that the city agency had agreed to pay rent for a tenant moving into the same unit it had previously allowed a tenant to transfer out of due to dangerous violations, and that the program paid rents higher than comparable units in 11 cases outside of the city. These findings suggest significant waste and mismanagement within the program.
Mayor Zohran Mamdani's pledge to expand access to housing aid has been complicated by these findings. Critics argue that expanding the program would force the city to pay potentially billions of dollars more in rental assistance, while proponents say that the added cost will be offset by hundreds of millions of dollars in shelter savings.
As the city struggles with its affordable housing shortage, where less than 1% of apartments priced under $2,400 are vacant, the audit's findings have raised questions about the effectiveness and efficiency of CityFHEPS. With the program facing a critical juncture, policymakers will need to carefully consider the implications of these recommendations in order to ensure that the city's most vulnerable residents receive the support they need.