The New York City Housing Authority (NYCHA) has faced widespread criticism over its handling of apartment repairs and vendor management, according to a new audit by Comptroller Brad Lander. The audit found that NYCHA failed to adequately follow up on repairs by hired vendors and often lacked documentation to prove that the work was done.
In 2022 and 2023, $135 million in smaller contracts were awarded to development level managers, but only 54% had proper documentation to support the work. This includes $30 million in potential government waste during that time. The audit sampled 120 small contracts worth $646,000 from 10 developments across all five boroughs and found that more than 46% lacked sufficient documentation.
The audit team also discovered that a favored vendor was awarded multiple small contracts without going through competitive bidding protocols. This work-around allowed the vendor to pocket millions of dollars in bribes. The scheme allegedly dates back to at least 2013, with NYCHA workers taking kickbacks in exchange for handing out hundreds of micro-contracts.
The audit’s findings are part of a larger investigation by the city Department of Investigation, which led to the arrest of 70 NYCHA workers on charges of corruption. Since then, 58 of those workers have pleaded guilty, and one was found guilty at trial. Another worker is currently on trial in Manhattan Federal Court.
Comptroller Lander recommended that NYCHA adopt a “Yelp-like” app to allow tenants to provide feedback on the quality of repairs after they’re completed. This would help identify vendors who don’t show up or do shoddy work, and inform NYCHA’s decision-making process.
NYCHA officials claim that the agency is reforming its processes and has already implemented some of the recommendations made in the audit report. However, the comptroller’s office disputes some of the audit’s findings and claims that more needs to be done to address corruption and waste within the agency.
Source: https://www.thecity.nyc/2024/11/20/lack-of-oversight-led-to-nycha-corruption-audit-finds