New York City's Rental Aid Program Under Scrutiny: Auditors Identify Inefficiencies and Potentially Savings.
A recent audit by the state comptroller's office has exposed inefficiencies in New York City's rental assistance program, which could lead to cost savings and improved oversight. The CityFHEPS program, launched in 2017, provides rental aid to nearly 60,000 households, mostly formerly homeless New Yorkers.
The audit found that lax oversight and poor communication with landlords have led to overpayment and increased costs for the program. In some cases, landlords received up to $112,000 in additional fees and incentives from the city after tenants moved into units with hazardous conditions. The auditors also discovered instances where the city paid rent for a tenant moving into a unit it had previously allowed them to transfer out of due to dangerous violations.
To address these issues, the audit recommends increasing oversight, vetting relationships between brokers and landlords to prevent overpayment, and refusing to contract with property owners whose apartments amass hazardous violations. These measures could free up extra money to cover rents for more tenants.
The proposed changes are significant, as Mayor Zohran Mamdani has pledged to expand access to the program under a 2023 law approved by the City Council. However, some economists and budget watchdogs argue that expanding the program would require billions of dollars in additional rental assistance, while councilmembers and homeless rights advocates claim that the added cost will be offset by hundreds of millions of dollars in shelter savings.
As the city considers implementing these changes, officials are facing criticism from both sides. The Department of Social Services has disputed the report's findings, arguing that its oversight is effective, while Deputy Comptroller Tina Kim emphasizes the importance of improving efficiency and effectiveness in the program.
With the audit highlighting the potential for cost savings and improved oversight, New York City may finally take steps to address long-standing issues with its rental assistance program.
A recent audit by the state comptroller's office has exposed inefficiencies in New York City's rental assistance program, which could lead to cost savings and improved oversight. The CityFHEPS program, launched in 2017, provides rental aid to nearly 60,000 households, mostly formerly homeless New Yorkers.
The audit found that lax oversight and poor communication with landlords have led to overpayment and increased costs for the program. In some cases, landlords received up to $112,000 in additional fees and incentives from the city after tenants moved into units with hazardous conditions. The auditors also discovered instances where the city paid rent for a tenant moving into a unit it had previously allowed them to transfer out of due to dangerous violations.
To address these issues, the audit recommends increasing oversight, vetting relationships between brokers and landlords to prevent overpayment, and refusing to contract with property owners whose apartments amass hazardous violations. These measures could free up extra money to cover rents for more tenants.
The proposed changes are significant, as Mayor Zohran Mamdani has pledged to expand access to the program under a 2023 law approved by the City Council. However, some economists and budget watchdogs argue that expanding the program would require billions of dollars in additional rental assistance, while councilmembers and homeless rights advocates claim that the added cost will be offset by hundreds of millions of dollars in shelter savings.
As the city considers implementing these changes, officials are facing criticism from both sides. The Department of Social Services has disputed the report's findings, arguing that its oversight is effective, while Deputy Comptroller Tina Kim emphasizes the importance of improving efficiency and effectiveness in the program.
With the audit highlighting the potential for cost savings and improved oversight, New York City may finally take steps to address long-standing issues with its rental assistance program.