A state audit released in January paints a bleak picture of life inside three New York City Mitchell‑Lama affordable‑housing complexes, describing a mix of safety hazards, stalled construction and shaky finances. Inspectors found mold, water damage, broken self‑closing fire doors and renovation projects that tenants say have dragged on for years. On top of that, the review flagged questionable vendor payments and tens of thousands of dollars in undocumented expenses at buildings already running operating deficits. Residents at the three developments in Manhattan, the Bronx and Brooklyn say they are still waiting for fixes they can count on.
What the audit found
According to a report by the New York State Comptroller's office, auditors examined Clinton Towers in Manhattan, Evergreen Gardens in the Bronx and Tivoli Towers in Brooklyn and found hazardous conditions and gaps in oversight. The audit, which covered January 2019 through April 2025, identified roughly $163,862 in transactions that were unrelated to normal operations or lacked adequate documentation, more than $114,000 in bonuses and gratuities, and nearly $327,500 in unrealized rent tied to long‑vacant units. Inspectors photographed façade damage, apartments with mold and water damage and fire doors that did not self‑close, violations the report labeled immediately hazardous in some cases.
Tenants say repairs dragged out
Tenants told CBS News New York that, despite the scrutiny, many of the same problems keep resurfacing. At Tivoli Towers, Alicia Cardenas‑Solano, president of the tenants association, showed auditors a broken smoke detector and said, "It makes me angry ... the issues are still the same." At Clinton Towers, tenant leaders said lobby and façade work has stalled for years because contractors were not paid. CBS also quoted city officials who said HPD is reviewing the buildings' financials and looking for ways to tighten oversight of Mitchell‑Lama managing agents.
Evergreen Gardens in the Bronx
In the Bronx, the two‑building Evergreen Gardens complex in Soundview drew some of the sharpest criticism. Auditors found holes in foundations, pest infestations, mold in sampled units and dozens of open housing violations, some classified as immediately hazardous, according to the Bronx Times. Local reporting says auditors concluded that Nelson Management had paid multiple vendors more than $100,000 without HPD approvals or evidence of competitive bidding, a finding the manager disputes while saying it has invested millions in capital work. Auditors and local officials say those kinds of oversight and financing gaps help explain why repairs can stall even after funding is pledged.
Financing and the bigger picture
The audit notes that some delayed projects were tangled up with refinancing and capital plans, work that was supposed to be paid for with recent deals, but auditors say financing alone has not closed the maintenance gap. Coverage in The Real Deal places the findings in the broader context of aging Mitchell‑Lama housing and tighter budgets, warning that oversight lapses can let problems fester even when money is on the table. Housing advocates say the report underscores a recurring question for the city: how to keep apartments affordable while still delivering basic safety and upkeep.
What officials recommend
The state audit lays out a series of concrete steps, from requiring prompt individual unit inspections and immediate corrective action for hazardous violations to stricter review of large vendor contracts and clearer rules around bonuses and gratuities, and it asks HPD to report back within 180 days on how it is putting those measures in place, according to the Comptroller's report. HPD told auditors it agrees with many of the recommendations and has already deployed financing and added staff to help, while the Mamdani administration has signaled it will use public rental hearings and other tools to push for fixes, as CBS News New York reported. For tenants dealing with mold, malfunctioning smoke detectors or broken fire doors, auditors say the immediate priority is enforcing repairs that protect health and safety.
