Chair Sanchez on financial distress data and state audit findings
Sanchez cites 10% of remaining Mitchell-Lamas in financial distress, 37 developments with ~29% average rent increases in 2025, and a March 2026 state audit finding hazardous conditions and $2.3M in misspent funds.
And yet, despite decades of public oversight and substantial public investment, too many Michilama residents are living with both deteriorating conditions and rapidly rising housing costs.
At least 10% is our understanding of the city's remaining.
Michoamas are experiencing financial distress.
And in 2025 alone, 37 developments received rent increases averaging approximately 29%.
Compare that to this year's 0% increase for rent-stabilized apartments.
A March 2026 audit by the state controller found hazardous or unsafe conditions, as well as structural issues at 12 of 15 developments examined statewide, including every single one of the 10 New York City developments that were sampled.
The audit also identified approximately $2.3 million in misspent or inadequately documented funds.