DiNapoli report finds oversight failures threaten Mitchell-Lama affordable housing units

Thomas P. DiNapoli Comptroller at New York State
Thomas P. DiNapoli Comptroller at New York State
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State Comptroller Thomas P. DiNapoli released a report on Mar. 9 recommending urgent actions to improve building conditions, protect tenant health and safety, and strengthen management practices in New York’s Mitchell-Lama housing developments. The report found that ongoing oversight problems by city and state agencies have led to unsafe living conditions, financial mismanagement, and prolonged vacancies, putting thousands of affordable apartments at risk or leaving them unoccupied.

The findings are significant because the Mitchell-Lama program is one of the few long-term affordable housing options for middle-income New Yorkers. When repairs are not made or apartments remain vacant, these units are effectively removed from the available housing supply during a statewide crisis.

DiNapoli’s review covered five audits between 2019 and 2025 at 26 developments across New York City and statewide. The audits revealed systemic failures by both the New York City Department of Housing Preservation and Development (HPD) and the State Division of Housing and Community Renewal (DHCR). “Too often, serious problems in Mitchell-Lama buildings were identified but not resolved,” DiNapoli said. “When state and city agencies fail to ensure necessary repairs are made, unsafe conditions persist and New Yorkers who need affordable apartments can’t access them. Immediate action on our recommendations is needed to address the many issues these audits found and safeguard one of New York’s most important affordable housing programs.”

The report detailed hazardous physical conditions in many developments, including collapsed ceilings, mold, pest infestations, and other structural deficiencies that had gone uncorrected for years despite being cited in agency reports. Financial oversight was also lacking; some developments spent millions without proper documentation or competitive bidding while operating at a loss. For example, Evergreen Gardens in the Bronx paid nearly $4 million to vendors without evidence of required procedures while facing significant maintenance needs.

Long-term vacancies were another major issue: a July 2021 audit found that HPD-supervised developments took an average of 222 days—almost twice the allowed time—to fill vacant apartments. More than 200 units remained empty for over a year during high demand for affordable housing.

In response to these findings, elected officials called for immediate reforms. Assemblymember Linda B. Rosenthal said: “State Comptroller DiNapoli’s most recent report…prove what I have been saying for years: without proper stewardship at the city and state level, these critical units are falling into an unforgivable state of disrepair.” Manhattan Borough President Brad Hoylman-Sigal added: “I’m grateful to State Comptroller DiNapoli for shining a light on these oversight failures…Our city and state agencies should act quickly to ensure these homes are safe.”

The report recommends establishing clear timelines for repairs, verifying completion of work, enforcing corrective action on vacancies, improving transparency in spending practices, enhancing reporting requirements, and better monitoring standards so public investments lead to real improvements.

As New York continues investing hundreds of millions into preserving its affordable housing stock—including $440 million since State Fiscal Year 2023—the effectiveness of those investments depends on stronger accountability measures moving forward.



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