Objective

To determine the extent of implementation of the five recommendations included in our initial audit report, Controls Over the Empire State Supportive Housing Initiative (2022-S-22).

About the Program

Established in 2016, the Empire State Supportive Housing Initiative (ESSHI) is part of the Executive’s comprehensive plan for affordable and supportive housing to ensure all New Yorkers have access to safe and secure housing. As part of this plan, ESSHI’s goal is to develop 20,000 units of supportive housing over a 15-year period ending in 2031. The Office of Mental Health (OMH) serves as the lead procurement agency for ESSHI, which provides up to $34,000 annually per individual toward supportive housing for vulnerable populations experiencing homelessness. As such, OMH issues Requests for Proposals annually with the goal of developing 1,400 units of supportive housing each year.

Proposals should address the needs of the various populations to be served by both OMH and the other State agencies under ESSHI. Each of OMH’s ESSHI contracts contains a work plan detailing the provider’s objectives as well as the housing-related support services to be provided. OMH’s Supportive Housing Guidelines (Guidelines) provide a framework for operating supportive housing programs, such as ESSHI, and require OMH to engage in monitoring of supportive housing programs once per 5-year contract cycle.

Additionally, case managers are required to have monthly face-to-face visits with residents, make quarterly in-home visits, develop an initial support plan within 30 days, and verify their income annually. The face-to-face visits allow case managers to ensure residents remain stable, monitor their needs for changes, and aid in ensuring the support plan is relevant. Further, in-home visits allow the opportunity for the provider to see the residents’ living environment.

From the program’s inception in 2016 through September 2025, there have been 355 ESSHI projects and 10,304 units permanently awarded across all State agencies. OMH has contracts for 97 of these projects comprising 3,366 units. Of the 97 projects, only 75 (relating to 2,671 units) are currently active and providing supportive housing. The remaining 22 projects are in the process of becoming active and are in various stages of construction.

The objectives of our initial audit, issued on December 21, 2023, were to determine whether controls over ESSHI were sufficient to ensure the needs of high-risk target populations were being met, and whether providers deliver the services that are required in their contracts with State agencies. The audit covered the period from July 2017 through March 2023. The audit found significant deficiencies in OMH’s oversight of the ESSHI program. For example, a review of selected residents’ progress notes identified a lack of face-to-face meetings or in-home visits, delays in developing support plans, and that annual income was not being verified in all cases. Furthermore, two residents were missing for extended periods of time and one resident’s alleged relative moved into the unit and changed the locks. Also, four of six providers that auditors inspected had critical issues with housing units, such as water leaks, water stains, and mold. Lastly, contract work plans lacked attainable, measurable objectives to allow providers to track their progress toward stated objectives.

Key Findings

OMH officials made some progress in addressing the problems identified in our initial audit report. Of the initial report’s five audit recommendations, three have been partially implemented and two have not been implemented.

Key Recommendation

Officials are requested, but not required, to provide information about any actions planned to address the unresolved issues discussed in this follow-up within 30 days of the report’s issuance.