Three New York City affordable housing developments showed unsafe living conditions and questionable spending despite operating at financial losses, according to a new audit released by State Comptroller Thomas DiNapoli.
The audit examined Clinton Towers in Manhattan, Evergreen Gardens in the Bronx, and Tivoli Towers in Brooklyn, all part of the Mitchell-Lama program overseen by the city’s Department of Housing Preservation and Development. Auditors found crumbling building conditions alongside more than $114,000 in bonuses, gratuities, and holiday-related payments to staff.
The Mitchell-Lama program provides affordable rental and cooperative housing to middle-income families. HPD oversees 92 Mitchell-Lama developments citywide, totaling nearly 47,000 apartments. The audit reviewed conditions and finances from January 2019 through April 2025, covering 1,076 apartments across five buildings.
Auditors documented a wide range of safety and maintenance problems at all three sites. At Clinton Towers, inspectors found evidence of rodents in a ground-floor day care center, water-damaged ceilings, missing lobby tiles, and long-closed community spaces. Evergreen Gardens showed broken fire doors, foundation holes, mold, peeling paint, and water damage in many apartments. At Tivoli Towers, auditors cited delayed facade repairs, inoperable fire doors, standing water in mechanical rooms, repeated flooding, and community areas closed for years.
The audit also found that none of the managing agents submitted required annual apartment inspection reports to HPD, limiting the agency’s ability to monitor tenant safety.
Financially, all three developments operated at net losses for multiple years while spending money on bonuses and unsupported expenses. Auditors reviewed nearly $3.9 million in transactions and identified more than $163,000 in questionable or unsupported spending. In several cases, developments failed to notify HPD when vendor payments exceeded $100,000 or lacked evidence of competitive bidding.
Vacant apartments and unpaid rent further strained finances. Auditors estimated Clinton Towers and Tivoli Towers lost more than $327,000 in potential rent from long-vacant units in 2024 alone. Across all three developments, tenant rent arrears totaled nearly $4 million over five years.
DiNapoli said the findings show a clear need for stronger oversight to ensure affordable housing remains safe and well maintained. The audit recommends tighter monitoring, required inspections, clearer rules on bonuses, improved review of expenses, and faster action to fill vacant units.
HPD disputed some findings but agreed with many recommendations and said improvements and financing efforts were already underway during the audit period.
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