Photo Courtesy of Comptroller Stringer’s Office
Comptroller Stringer also said that the Department of Housing Preservation and Development has indicated that it agrees with his Office’s recommendations.
By Forum Staff
The City agency responsible for the construction and preservation of affordable housing for low- and moderate-income New Yorkers has failed to collect tens of millions of dollars in fines from landlords, a new audit released last week by City Comptroller Scott Stringer shows.
In Fiscal Years 2014 and 2015, nearly $35.1 million in judgments and settlements was to be collected from landlords across more than a thousand cases by the Department of Housing Preservation and Development’s Judgment Enforcement Unit. Yet, Stringer noted, $34.2 million was still uncollected as of Oct. 29, 2015 – a collection rate of just 2.46 percent.
“We are not giving these families, our fellow New Yorkers, a fair shot. Even though we know these tenants – many who need us most – are often living in unfathomable conditions, we aren’t holding landlords accountable. It’s unfair and it’s unacceptable,” Stringer said. “When we fail to protect affordable housing for our neighbors, we’re giving landlords a free pass to break the law. When bad landlords win, tenants lose. This system must be based on a higher standard of accountability. This is $34 million that could help address record homelessness, provide more affordable housing, support tenants, and help give working families a fair and fighting chance. Instead, it’s been left on the table, and tenants are suffering. It’s just not right.”
Audit findings include:
HPD Did Not Collect Fines for Hazardous Building Conditions
- HPD transferred 650 cases that were opened in FY14 to its Judgment Enforcement Unit. As of October 2015, however, just 3.36 percent of the $20.3 million owed had been collected.
- The agency referred 433 cases initiated in FY15 to the Judgment Enforcement Unit. But as of October 2015, only 1.22 percent of the $14.8 million owed had been collected.
- Overall, by October 2015, HPD and its enforcement unit had collected just 2.46 percent of the $35.2 million owed by landlords in FY14 and FY15.
Thousands of Backlogged Cases Languished for Years
- After a case is transferred to HPD’s Judgment Enforcement Unit for collection, it is assigned to the next available attorney. As of the end of March 2016, there were 2,100 open judgment enforcement cases – including 1,043 “backlogged” cases that had been transferred to the enforcement unit but not yet assigned, Stringer noted.
- Of these 1,043 unassigned cases, nearly two-thirds had languished for at least a year – and the oldest case was nearly nine years old.
- On average, the other 1,057 cases – that had been assigned to attorneys – were left open but unassigned for two years.
- Each attorney’s caseload consisted of 250 cases, on average, potentially discouraging them from taking legal actions that require increased time and effort, Stringer said.
The audit recommended HPD explore hiring additional attorneys and working with other City agencies to improve its collection rate. According to Stringer, the agency agreed with the recommendations.
“I’m pleased HPD agrees with our recommendations, so together, we can send a clear message to bad landlords: break the law and there will be consequences,” Stringer added.
