Main Banner

NEWS from the Office of the New York State Comptroller
Contact: Press Office 518-474-4015

DiNapoli: NYC's Shelter Repair Process Needs Its Own Fix

August 25, 2020

New York State Comptroller Thomas P. DiNapoli today released an audit of the New York City Department of Homeless Services’ (DHS) efforts to make capital improvements to shelters. The audit found that badly-needed shelter repairs are too often delayed with little or no explanation, allowing conditions to deteriorate further and, in some cases, forcing residents to relocate.

“The growing homeless crisis in New York City has been met by shelter conditions that are too often unsafe and unacceptable,” DiNapoli said. “The city has put money toward fixing shelters, but it’s clear that DHS doesn’t provide the necessary oversight to ensure repairs are made on time and on budget. The men, women and children in the city’s shelters are extremely vulnerable, and even more so during this pandemic, and the city needs to do a better job protecting them.”

As of April 2019, there were 415 homeless shelters in the city, including 53 owned by the city, subject to DHS oversight. Over the years, a significant number have fallen into disrepair. Prior audits by State Comptroller DiNapoli have addressed a range of substandard conditions that pose dangers to already vulnerable homeless men, women and children.

For city fiscal years 2014 to 2018, DHS had a total of 21 capital improvement contracts (17 construction and 4 design) with 69 projects totaling approximately $39 million. Of the 53 City-owned shelters, 30 had capital improvement projects.

DiNapoli’s audit examined nine projects. Among its findings, the audit determined that DHS had failed to set clear priorities on its 10-year capital plan. Projects lingered, for years sometimes, before work began, with no assurance that other projects moving forward were in fact more critical.

  • At Regent Family Residence (Manhattan) a plan to reroute 13 heating pipes -- needed to repair ceiling and flood damage from burst pipes that had forced residents to relocate -- was put on the capital plan in Oct. 2013. Work didn’t start until four years later in Sept. 2017. When it was done in Nov. 2019, only three pipes were repaired due to lack of funds. Even scaled back, it was over budget by more than $1 million.
  • Upgrades to the antiquated communal bathrooms at the 172-unit Auburn Family Residence (Brooklyn) were supposed to finish in Dec. 2018, but that was changed to Dec. 2022. When auditors visited in July 2019, they were told by the project manager that the contractor did not have the proper permits and licenses, that it was their first big contract and that they had not worked on it since Dec. 2018. DHS had to relocate clients because of the delays.
  • A roof replacement project at the Park Slope Women’s Shelter (Brooklyn) was put on DHS’ capital plan in March 2015 but work didn’t start until June 2018. The project manager told auditors during their May 2019 visit that prior to the start of construction, the conditions forced residents to relocate and they used buckets to catch leaks in the shelter’s cafeteria, meeting room, atrium, and art studio. DiNapoli’s audit concludes that a faster response could have saved additional damage and the need to relocate residents.
  • A broken steam pipe at the Fort Washington Armory shelter (Manhattan) caused mold conditions that required removing flooring and renovating two bathrooms. DHS listed the work as complete in March 2014, but auditors visiting in June 2019 found only one bathroom was renovated, and the low quality of the materials used was causing problems, including major leaks from the new shower fixtures.
  • Upgrades to the stairway, heating system, and roof at the Willow Ave. Men’s Shelter (Bronx) was added to the capital plan in 2000, with work starting in 2009 and not finishing until 2014.

Six of the nine projects went over budget, by amounts ranging from $202,889 to $2.7 million. A sewer line replacement at the East 119th St. Veterans Residence, for example, was budgeted at $511,000 but cost $3.2 million. Five of the nine projects went past their completion date by delays ranging from six months to four-and-a-half years.

DiNapoli’s audit also found DHS lacked many of the required monthly reports from project managers and contractors, along with minutes of meetings between project managers and contractors, all of which is meant to ensure projects timeliness and costs are monitored.

The audit made a number of recommendations for improving tracking and monitoring capital projects, including that DHS:

  • Create written policies for managing all aspects of the capital improvement process, including justification for the work and project prioritization.
  • Ensure monthly reports and meeting minutes that record project progress are completed, reviewed, and retained.
  • Ensure New York City Procurement Policy Board Rules are followed regarding competitive bidding, including keeping records of all bids.

In response to the audit, DHS did not agree that it lacked an appropriate process for planning and prioritizing projects, but did agree to create specific written policies to support them. The agency also agreed to develop procedures for monthly reporting on projects and systems to track their progress. The full response is included in the audit.

Background

DHS’ capital budget is mainly used to repair and improve its shelters and other facilities. DHS’ 2019 adopted capital budget totaled about $84 million and includes the costs of shelter renovations and equipment purchases. To be considered a capital project, a project must have a minimum cost of $35,000 and a useful life of five years or more. Examples of shelter capital projects are new roof installations and major bathroom renovations.

Report

Audit of DHS’ oversight of capital repairs to shelters

Other Recent Audits of Homeless Shelters by the Office of the State Comptroller

Audit of the Office of Temporary Disability Assistance Oversight of Homeless Shelters

Audit of DHS’ Oversight of Security Expenses

Audit of DHS’ Oversight of Homeless Shelter Contracting


Find out how your government money is spent at Open Book New York. Track municipal spending, the state's 170,000 contracts, billions in state payments and public authority data. Visit the Reading Room for contract FOIL requests, bid protest decisions and commonly requested data.