New York’s Housing Trust Fund Corporation is correctly administering rental assistance payments but lacks sufficient oversight mechanisms due to missing federal reviews, according to a new audit by the State Comptroller’s Office.
The audit, released December 20, examined HTFC’s oversight of the Rural Rental Assistance Program (RRAP), which provides rental subsidies to low-income tenants in rural areas. While HTFC was found to be making correct subsidy payments, auditors identified gaps in monitoring due to delays in federal inspections by the U.S. Department of Agriculture (USDA).
RRAP is a joint program between HTFC and the USDA, with HTFC responsible for subsidy payments and USDA overseeing compliance through triennial supervisory reviews. However, the audit found that USDA has not provided HTFC with the results of these reviews, leaving state officials without key information on project conditions and tenant eligibility.
According to the report, USDA’s inspection delays were exacerbated by the COVID-19 pandemic, but in at least one case, a project had not been reviewed since 2006. The audit also noted that while USDA has contracted a third-party vendor for inspections, the current agreement does not require USDA to share these results with HTFC.
Despite these challenges, HTFC was found to be making proper subsidy payments. A review of $350,372 in payments across eight sampled properties confirmed they were correctly allocated. Additionally, maintenance requests were generally addressed promptly, with 91% of repairs completed within 14 days.
The audit recommended that HTFC work with USDA to ensure it receives supervisory review results and update their agreement to reflect current practices. In response, HTFC officials stated they plan to revise their memorandum of understanding with USDA by the end of 2025.
HTFC is required to report back within 180 days on actions taken to address the audit’s findings.
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