Council Member Sanchez on HPD audits and shareholder arrears
Sanchez asks how frequently HPD audits Mitchell-Lama books and raises concerns about a development with over $1M in shareholder arrears, asking whether rent increases become self-defeating. Phillips describes annual financial statement requirements and the limited operating subsidy tools available.
And how frequently...
Does HPD audit?
the books of the city's Mitchell Lama developments?
We require annual financial statements and annual audits, and then our housing supervision team reviews the annual financials that are submitted.
And finally, research, if I may.
Research on my district shows I have a development that has over a million dollars in shareholder arrears.
When arrears signal that the current changes are unaffordable, how does HPD couch further rent increases, such as those at Tracy Towers, with the program's purpose of affordability?
Is the agency identifying a point in which rent increases become almost self-defeating?
So the biggest operating subsidy source that we have, like I've said before, is Section 8, which is a federal source that we need to advocate together to get more of.
That is our main, besides that, there's scree and tree.
Those are like the three main sources for operating subsidies.
We don't have, our city capital cannot be used as an operating source.
It's only for construction.
Thank you so much.
Thank you.