Objective

To determine the extent of implementation of the six recommendations included in our initial audit report, Housing for Seniors (Report 2021-N-4).

About the Program

The New York City (NYC or City) Department of Housing Preservation and Development (HPD) is the nation’s largest municipal housing preservation and development agency. Its mission is to promote the quality and affordability of the city’s housing and the strength and diversity of its many neighborhoods. The NYC Housing Development Corporation (HDC), the nation’s largest municipal housing finance agency, seeks to increase the supply of multi-family housing, stimulate economic growth, and revitalize neighborhoods by financing the creation and preservation of affordable housing for low-, moderate-, and middle-income New Yorkers. HPD and HDC work together to administer several programs to assist in the development and rehabilitation of housing for senior citizens, including the Senior Affordable Rental Apartments Program (SARA Program), federal Section 202 Supportive Housing for the Elderly Program (Section 202 Program), and HPD's Senior Citizen Homeowner Assistance Program (SCHAP).

The objective of our initial audit, issued on July 5, 2023, was to determine whether HPD and HDC effectively oversaw the awarding of senior housing units and a program assisting senior homeowners. Our audit covered the period from January 2014 through September 2022. The audit reviewed a sample of four developments assisted through the SARA Program—HANAC Corona Senior Residence in Queens, Serviam Heights LLC in the Bronx, Victory Plaza in Manhattan, and Woodlawn Senior Living in the Bronx—and one development assisted through the Section 202 Program, Bensonhurst Housing for the Elderly in Brooklyn. The audit found HPD and HDC needed to do more to effectively oversee the awarding of senior housing units as well as their senior homeowners’ assistance program. Despite the scarcity of affordable housing for seniors, we found several instances where senior housing units were left vacant for long periods of time, and senior housing units were not always awarded to the correct applicants. The audit also found several instances where SCHAP requirements were not met.

Key Findings

HPD and HDC officials have made some progress in addressing the problems identified in the initial audit report; however, further improvements are needed from HPD. Of the initial report’s six audit recommendations, three (addressed to HDC) were implemented, two (addressed to HPD) were partially implemented, and one (also addressed to HPD) was not 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.