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Gotbaum Report: City Agency Funds Unsafe Apartments for Homeless Families; Department of Homeless Services Approves Violation-Ridden Buildings for Families and Continuously Writes Checks to Slumlords

New York City Public Advocate Betsy Gotbaum today released a report detailing the failure by the City’s Department of Homeless Services (DHS) to adequately house homeless families. The report, titled Subsidy Shame: City Pays Landlords for Hazardous Housing, reveals that DHS houses families in buildings with serious code violations without ensuring that necessary repairs have been made.

The report finds that among buildings recently registered in the program, nearly 40 percent had maintenance code violations in the past year, and 20 percent had over 25 violations each in the past year. Thirty-one percent of the buildings had Class C violations including: rodents, lead-based paint, lack of heat, hot water, and electricity. The most egregious offenders had hundreds of violations, including dozens of Class C violations.

“Families are being moved into housings units where the landlords maintain deplorable conditions. This is disgraceful, especially because of the amount of Class C violations such as lead paint in homes with toddlers,” said Gotbaum. She also blasted DHS for providing landlords with an assistance unit to call upon when they have problems with tenants, but failing to provide any form of structured tenant assistance.

When I moved into my apartment, the conditions were really awful. There was no stove and no refrigerator, so I couldn't cook food for myself and my son in what was supposed to be our new home. With pealing paint, exposed electrical wiring, no fire detector and no locks on the doors to the building or the fire escape window in my apartment, I really didn't feel that we were safe,” said Angela Ortega, a Crown Heights tenant and mother of a three-year old son.

Housing homeless families is now conducted primarily through a rental assistance program known as Housing Stability Plus (HSP), which has drawn frequent criticism from Gotbaum since taking effect in December 2004. According to Gotbaum’s latest report, DHS allows families to move into buildings with dangerous and hazardous conditions because of a lack of an adequate screening process for prospective units.

"The declining value of HSP means that unscrupulous landlords are often the ones most likely to accept it, with the intention of getting a quick cash infusion and then evicting the family after they cannot continue to pay the rent. By subsidizing some of the city's worst property owners, it undermines the ability of low-income building residents to organize and improve conditions," said David Greenberg, Policy Director of the Association for Neighborhood and Housing Development, a coalition of 90 neighborhood housing groups.

“Landlords who fail to keep their units safe see HSP as an easy way to collect taxpayer money, especially if DHS is allowing into the program units with serious building code violations as documented by the Department of Housing Preservation and Development (HPD),” said Gotbaum. DHS claims to screen buildings by reviewing HPD issued violations, but allows into the program buildings with hundreds of violations. Additionally, DHS does not re-inspect apartments where they have deemed repairs are necessary. The City has a blighted record in the area of paying rent to landlords known for maintaining substandard housing conditions. A May 2003 report by Gotbaum exposed slum-like conditions in the City-funded scatter-site shelter program.

“These landlords have no reason to repair the buildings if the city keeps writing checks for them to maintain slum-like conditions. There needs to be accountability here,” said Gotbaum, citing an audit by the City Comptroller’s office which found that over a three-year period almost one-third of building owners falsely certified code corrections following HPD inspection.

Gotbaum’s report makes several recommendations to address this situation, including:

• Before allowing an individual or family to move into an apartment with an HSP voucher, DHS should ensure that the building meets the requirements of the City’s housing maintenance code.

• Buildings found to have significant housing maintenance code violations issued by HPD should be screened out of the HSP program.

• If HSP is to be the primary path out of shelter for homeless New Yorkers, as the City expects, the program must be made attractive to landlords who can provide safe, decent housing.

“Apartments should pass inspection before anyone moves in. That is currently not happening,” added Gotbaum.

 

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