DiNapoli audit: NYS agency 'failed to do its job' on housing discrimination

ALBANY — The state agency charged with investigating discrimination in housing, including actions by landlords and real estate agents, lost complaints, didn’t investigate others and generally "often failed to do its job," according to an audit by state Comptroller Thomas DiNapoli.

The audit into the state Division of Human Rights said some complaints were filed in a cabinet workers called the "Twilight Zone." The cabinet held cases labeled defective or needing more information, yet weren’t investigated further.

The Division of Human Rights is the agency charged with enforcing state laws against housing discrimination. It also investigates cases referred by the federal Housing and Urban Development Department involving public housing and cases referred by nonprofit agencies that provide housing to lower-income residents.

"New Yorkers who face housing discrimination are told they can report it to the state Division of Human Rights and that it will be investigated, but the agency often failed to do its job," DiNapoli said. "It lost cases due to carelessness and failed to properly or quickly investigate others."

"Tenants whose complaints were mishandled may have been left to face continued discrimination or forced to move," according to the state comptroller.

Some of the cases cited in the audit were the types of discrimination found in Newsday’s 2019 investigation "Long Island Divided" The articles found evidence of widespread separate and unequal treatment of homebuyers and renters in racial minorities on Long Island. 

Auditors did a spot check of cases from April 2019 to October 2023 and found 2,263 complaints of discrimination. Of those, 1,095 were based in New York City. Suffolk County had the fourth-most discrimination complaints with 130 and Nassau was sixth with 116 complaints.

“Housing discrimination cases we reviewed included instances of alleged discrimination by Realtors  or agents showing homes or rentals on Long Island and across the state," said Tina Kim, deputy comptroller for state government accountability. "These included prices being changed or unequal treatment due to race or ethnicity."

The Division of Human Rights couldn’t account for 68% of complaints received during that period. After being notified of the fact by auditors, it still couldn’t account for half of them, the audit stated. The complaints were lost, unprocessed or mislabeled, according to auditors. who blamed the division’s "complicated and poorly managed intake system."

The agency had told auditors during the review in August that the problems revealed by the audit are "unacceptable" and improvements to their system have been underway for months.

"DHR did not wait for the release of today's report to take decisive action in order to address and rectify these issues," the agency said in a written statement. Denise Miranda, Gov. Kathy Hochul’s new acting commissioner, is making "wide-ranging and transformative changes, not just within the Housing Investigations Unit but across the entire agency."

"It is encouraging that the agency is taking steps to address the issues raised by this audit," DiNapoli said Thursday.

The agency also has created an "internal audit unit" to modernize, expand and to quickly act on complaints.

"It's devastating," said Linda Rosenthal, chairwoman of the state Assembly housing committee. "Imagine all the people who came forward because they were discriminated against. These people came to government for help and government failed them."

The Manhattan Democrat said the state should provide more funding and the agency needs to redouble its efforts.

“It explains a lot. I’m not surprised,” said Ian Wilder, executive director of Long Island Housing Services, a nonprofit advocate for fair housing. “We’ve had problems with cases going forward.”

But Wilder notes much of the problem may be a lack of staffing and funding.

“Not to excuse it, but my question is how much of this is bad policy and how much of this was underfunding,” Wilder said. “You can’t do all of this without people.”

But he said he’s already seen a greater financial commitment to rooting out housing discrimination.

The agency's Housing Investigation Unit investigates, prosecutes and adjudicates housing discrimination cases by sellers, owners, landlords, real estate brokers and agents. Discrimination includes refusing to sell or rent apartments and houses to people based on age, race, income, national origin, gender identity, sexual orientation, marital status and disability.

In a spot check of 175 complaints, auditors said officials either didn’t begin an investigation or failed to notify the person accused of discrimination within 30 days in 47% of the cases, as required by law. In one case, officials took nearly two years before they served the complaint on a person accused of discrimination.

The audit also cites an unidentified investigator who said the Division of Human Rights instructed staff to prioritize cases involving federally subsidized housing "because of federal reimbursement," the comptroller’s office stated.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.