Division of Housing and Community Renewal
Oversight of Mitchell-Lama Housing Replacement Reserves
The Division oversees New York State's middle-income housing program, which includes about 99,000 apartments in 253 housing developments that were built under the Mitchell-Lama Law. Each housing development is owned and maintained by a private housing company. These companies are required to set aside reserve funds for capital replacements. We examined the Division's oversight of these reserves and found that improvements were needed. For example, the accuracy of the funding requirements could not be determined for the reserves at many housing developments because the physical condition of these developments had not been assessed. At the developments that were assessed, many of the reserve accounts were insufficiently funded. We also identified weaknesses in the Division's monitoring of reserve account activity, as many accounts were not reconciled and some expenditures appeared to be questionable.