Division of Housing and Community Renewal

Oversight of Mitchell-Lama Housing Replacement Reserves (Follow-Up Review)

The Division of Housing and Community Renewal oversees New York State's middle-income housing program, which includes about 95,000 apartments in 242 housing developments that were built under the Mitchell-Lama Law. Each housing development is owned and maintained by a private housing company, which is required to set aside reserve funds for capital replacements. In our prior audit report 92-S-86, we examined the Division's oversight of these reserves. We found that funding requirements could not be determined for the reserves at many housing developments because the physical condition of the developments had not been assessed; moreover, at the developments that were assessed, many of the reserve accounts were insufficiently funded. We also determined that many accounts were not reconciled and some expenditures appeared to be questionable. In our follow-up review, we found that actions have been taken by Division officials to address these problems; however, additional actions are needed if our prior audit recommendations are to be fully implemented.

For a complete copy of Report 97-F-2 click here.