A follow-up audit found the state has made limited progress fixing problems in a major supportive housing program meant to serve vulnerable New Yorkers.
State Comptroller auditors said the Office of Mental Health addressed some issues tied to the Empire State Supportive Housing Initiative, but many key weaknesses remain unresolved years after they were first flagged.
Oversight problems persist
The initiative, launched in 2016, aims to create 20,000 units of supportive housing by 2031. OMH oversees contracts that provide housing and services for high-risk populations, including people experiencing homelessness.
The original audit found serious failures in oversight, including missed face-to-face visits, delayed support plans, unverified income, and poorly maintained apartments. In one case, a resident disappeared for an extended period. In another, a relative allegedly moved in and changed the locks.
The follow-up shows those concerns have not been fully resolved.
Monitoring visits increased, but issues remain
OMH increased provider monitoring visits from nine projects during the original audit period to 28 projects between early 2024 and mid-2025. Officials said more visits were scheduled.
Even so, auditors found ongoing problems. During reinspections of two provider projects, auditors found that providers had failed to fix most previously identified maintenance issues. In seven of eight units revisited, nearly 70% of earlier problems remained unresolved. Auditors also found new issues, including damaged walls, cabinets, windows, and appliances.
Contract standards still unclear
Auditors said OMH still has not updated supportive housing contracts to include clear, measurable performance goals.
While OMH created standardized contract language for newer programs, it has not applied those standards to supportive housing contracts under the initiative. Officials said updates will come later, when contracts are renewed.
Because of that delay, auditors said field offices lack guidance on how to review work plans or measure provider performance.
Key recommendations not implemented
Of five recommendations from the original audit, three were only partially implemented. Two were not implemented at all.
OMH has not developed policies for reviewing work plans during monitoring visits. It also has not begun reviewing those plans to evaluate whether providers meet program goals.
The agency has started exploring a way to track data on residents without serious mental illness, but testing is still ongoing and no timeline has been set.
Bottom line
Auditors said OMH made some progress but still lacks the controls needed to ensure providers deliver required services and maintain safe housing.
OMH officials were asked to outline next steps within 30 days of the report’s release, though they are not required to submit a formal corrective action plan.
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