Two affordable housing properties in Westchester face hazardous physical conditions and fiscal mismanagement, according to an audit by the state Comptroller’s Office.
The audit sampled five Mitchell-Lama developments outside New York City. The Mitchell-Lama program is a state initiative launched in 1955 to create affordable rental and cooperative housing for moderate- to middle-income families.
Two of its buildings are in Westchester, Barker Terrace in Mount Kisco and Sunnyside Manor in Yonkers.
The audit found that management across the five properties had mismanaged nearly $330,000 in funds. Some buildings faced hazardous conditions, including rusty railings and water damage that were not repaired for years.
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The report showed Sunnyside Manor, a 121-unit co-op building managed by Metro Management, failed to “disclose conflict of interest and did not have appropriate mechanism to ensure that all bids were solicited and evaluated fairly.”
For example, it paid $14,159 to a construction company owned by the management superintendent, who handled purchasing and obtaining estimates for work contracted to outside vendors.
Barker Terrace, a 92-unit co-op building managed by Ferrara Management Group, was accused of operating under outdated management plans and making reimbursements to individuals not employed by the company. In 2021, it had net losses of $141,027 and applied for rent or maintenance increases.
“Developments that spend funds on unnecessary transactions and operate at a loss will eventually have to pass the cost down to tenants and cooperators through rent and carrying charge increases,” the report said.
Health and safety hazards, such as water damage and structural deficiencies, were also identified in Barker Terrace. Although the management had been aware of the issues in 2020, they were not repaired for years, according to the report.
State Comptroller Thomas DiNapoli urged the agency supervising the Mitchell Lama program, the state Division of Housing and Community Renewal, to strengthen its oversight and recoup money to fix unsafe conditions.
“New York is in an affordable housing crisis and Mitchell Lama is an invaluable resource of affordable rental and cooperative housing for working families,” DiNapoli said. “It is vital that Mitchell Lama developments are properly managed so that they remain places where middle class families want to live.”
This article originally appeared on Rockland/Westchester Journal News: Westchester NY affordable co-ops mismanaged, comptroller finds
Amanda Smith is a dedicated U.S. correspondent with a passion for uncovering the stories that shape the nation. With a background in political science, she provides in-depth analysis and insightful commentary on domestic affairs, ensuring readers are well-informed about the latest developments across the United States.
