An audit released by New York State Comptroller Thomas P. DiNapoli on Oct. 31 exposed the failures of the New York City Department of Social Services (DSS) to adequately manage the City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) program meant to address the city’s ongoing housing affordability crisis.
CityFHEPS, launched in 2018, was established to provide rental assistance to homeless families and individuals. According to DSS, the program has processed 41,563 cases and assisted 87,588 individuals in finding permanent housing through January 2024. However, the audit covering July 2019 to December 2023 reveals a dramatic increase in expenses from $174 million in fiscal year 2019 to $365 million in fiscal year 2023, with a budget of $816 million for fiscal year 2024, according to a press release.
The audit uncovered faults with data management following a review of 57 cases in which auditors found discrepancies indicating that many households listed as having left shelters had not.
The audit also found that there were lengthy delays in determining eligibility for CityFHEPS, with households approved for assistance waiting an average of nearly 10 months before exiting shelters. In one case, a household waited over three years for approval. The issuance of “Shopping Letters,” which allow families to begin searching for housing, was also delayed, prolonging their stay in shelters.
Auditors further discovered that DSS failed to provide timely rental assistance payments to landlords in multiple instances, with one case showing payments continued even after a tenant had moved back into a shelter. Some affordable units exceeded the CityFHEPS rent limits, raising concerns about the program's effectiveness in matching clients with suitable housing.
The audit also raised alarms about supportive housing units contracted by DSS, with 20% of 567 units remaining vacant and reported uninhabitable as of December 2023. Many of these units had significant open housing code violations, including hazardous conditions that could jeopardize tenant safety.
DiNapoli called on DSS to improve monitoring of client eligibility, streamline the issuance of Shopping Letters and enforce better oversight of rental payments and supportive housing conditions
“The New York City Department of Social Services should improve its management of the CityFHEPS program to ensure every dollar goes towards helping people experiencing homelessness,” DiNapoli stated. “The housing affordability crisis in New York City underscores the importance of an effective and efficient rental assistance program.”
