City comptroller’s audit found that the New York City Housing Authority lacked oversight on repairs done by vendors, leading to potential government waste and corruption. The audit revealed a lack of documentation for work paid for, with $30 million estimated as government waste. The audit also highlighted a pattern of corruption in the awarding of small contracts, with workers taking bribes. Recommendations were made to improve oversight, including implementing a “Yelp-like” app for tenant feedback on repairs. The Housing Authority is working on reforming its processes in response to the audit findings and recommendations.
The New York City Housing Authority (NYCHA) is under scrutiny for its lack of oversight on apartment repairs conducted by hired vendors. The city comptroller’s audit team discovered that in many cases, NYCHA could not provide evidence that the work paid for had actually been completed. This lack of oversight is believed to have contributed to corruption within NYCHA, with 70 workers being arrested for taking kickbacks in exchange for awarding “micro-contracts” without proper competitive bidding protocols.
According to Comptroller Brad Lander’s audit, the lack of scrutiny on these smaller contracts allowed corruption to go undetected for years. The audit focused on $135 million in smaller contracts awarded in 2022 and 2023, revealing an estimated $30 million in government waste due to the lack of documentation for completed work. The audit team sampled 120 contracts from 10 developments across all five boroughs, finding that nearly half lacked documentation to verify the work was done.
In response to the findings, Lander recommended that NYCHA implement a feedback system similar to a “Yelp-like” app where tenants can provide comments on the quality of repairs. This would allow NYCHA to better assess vendor performance and make informed decisions on future hires. The audit also highlighted the need for NYCHA to track vendor performance and gather tenant feedback systematically.
NYCHA spokesperson Michael Horgan acknowledged the need for reform and stated that the agency is actively working on improving its procurement, contract administration, and vendor management processes. The agency has already implemented or is in the process of implementing many of the recommendations from the audit report. However, NYCHA disagrees with some of the audit’s findings and analysis, citing unsubstantiated claims.
Following the arrests in February, the city’s Department of Investigation provided NYCHA with 14 recommendations to overhaul its practices. While NYCHA has accepted all the recommendations, five are still pending full implementation as of the latest update.
In conclusion, the audit of NYCHA’s smaller contracts has revealed significant shortcomings in oversight and documentation, leading to government waste and potential corruption. By implementing the recommended reforms and improving transparency in vendor management, NYCHA aims to enhance the quality of repairs and services provided to public housing residents.
Source: TheCity.NYC
