New York City Council
Committee on Oversight and Investigations
Dec 17, 2024
·
10:00 AM
3 hr 22 min
Summary
A hearing on the administration's oversight of city-funded homeless shelter providers and proposed legislation (Intro 979) related to reporting on shelter food consumption.
Discussions focused on:
- Inadequate oversight
- Accountability issues
- Executive compensation concerns
- Challenges with timely payments to providers
- Food quality problems
- The concentration of contracts among a small number of large providers
Features testimony from the Department of Social Services (DSS), Department of Homeless Services (DHS), Mayor's Office of Contract Services (MOCS), and the public.
Meeting chapters
Read summaries and watch videos for short segments that matter to you.
Council Member Gale A. Brewer's opening remarks on oversight of homeless shelter providers
Council Member Gale A. Brewer opens the joint committee hearing on oversight of city-funded homeless shelter providers and introduces Intro 979. She provides context on the city's homeless shelter system, …
0:00:34
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3 min
Deputy Speaker Diana Ayala's opening remarks on shelter system oversight and legislation
Deputy Speaker Diana Ayala, chair of the General Welfare Committee, introduces the joint hearing on oversight of city-funded homeless shelter providers and proposed legislation. She emphasizes the importance of efficient …
0:04:23
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105 sec
Council Member Brannan's opening remarks on oversight of homeless shelter providers
Council Member Justin L. Brannan delivers opening remarks at a hearing addressing the Department of Investigations report on compliance issues in homeless shelter providers. He expresses concern over the misuse …
0:06:10
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136 sec
Council Member Julie Won addresses contracting and procurement challenges in shelter oversight
Council Member Julie Won, chair of the committee on contracts, addresses critical issues in the city's oversight of shelter providers, focusing on contracting and procurement challenges identified in the DOI's …
0:08:27
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172 sec
Introduction and overview of DSS and DHS roles in NYC's social services
Commissioner Molly Wasow Park introduces herself and provides an overview of the Department of Social Services (DSS) and Department of Homeless Services (DHS) roles in New York City. She explains …
0:11:59
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92 sec
Shelter provider selection and oversight process
Commissioner Park explains the process of selecting and overseeing city-funded homeless shelter providers. She emphasizes the rigorous vetting process and ongoing engagement to ensure compliance and quality of services. - …
0:13:32
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33 sec
DSS approach to provider compliance and accountability
Commissioner Park outlines DSS's approach to ensuring compliance and accountability among shelter providers. She emphasizes the importance of supporting providers while maintaining high standards. - DSS recognizes the complexity of …
0:14:06
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77 sec
Creation and role of Corrective Action Planning Office (CAPO)
Commissioner Park introduces the Corrective Action Planning Office (CAPO) and explains its role in monitoring and evaluating corrective actions for shelter providers. She also outlines remediation strategies and future plans …
0:15:24
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58 sec
Response to Department of Investigation (DOI) report on shelter providers
Commissioner Park addresses the Department of Investigation's report on the DHS provider contract process. She highlights DSS's cooperation with the investigation and expresses concerns about certain aspects of the report. …
0:16:23
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67 sec
Context of nonprofit executive compensation in shelter providers
Commissioner Park provides context for nonprofit executive compensation in relation to the DOI report, explaining the limitations and complexities involved in overseeing these salaries. - DSS does not directly pay …
0:17:30
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37 sec
DSS actions against problematic shelter providers
Commissioner Park outlines the actions taken by DSS against problematic shelter providers, emphasizing the agency's proactive approach to addressing issues and ensuring compliance. - DSS had already taken steps to …
0:18:08
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72 sec
DSS's proactive role in vendor oversight and accountability
Commissioner Park emphasizes DSS's proactive role in detecting, investigating, and holding vendors accountable. She highlights the agency's multifaceted approach to ensuring compliance and fostering a culture of ethics. - DSS …
0:19:21
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73 sec
Discussion of proposed legislation Intro 979 on shelter food consumption
Commissioner Park addresses the proposed legislation Intro 979, which would require annual reporting on shelter food consumption. She expresses concerns about the bill's implementation and suggests potential modifications. - Intro …
0:20:35
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69 sec
Conclusion: DSS commitment to provider compliance and accountability
Commissioner Park concludes her testimony by reaffirming DSS's commitment to provider compliance, accountability, and ethical conduct in serving homeless New Yorkers. - DSS aims for providers to comply with all …
0:21:45
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19 sec
Overview of DSS shelter providers and budget allocation
Council Member Brewer inquires about the number of shelter providers funded by the Department of Social Services (DSS) and the budget allocated for shelter services. Commissioner Molly Wasow Park provides …
0:22:26
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56 sec
DSS contract management structure and oversight processes
Commissioner Park explains the contract management structure within DSS, detailing the various units and processes involved in overseeing shelter providers. - Three main categories of contract monitoring and engagement - …
0:23:23
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3 min
Potential use of AI in contract oversight and management
Council Member Brewer suggests the use of AI in contract oversight, prompting a discussion on its potential applications and challenges in city contracting. - DSS has not specifically looked at …
0:26:26
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170 sec
Contract terms and models for shelter providers
Commissioner Park explains the various contract terms and models used for shelter providers, highlighting the benefits of longer-term contracts. - Typical human service contracts are 5 years with a 4-year …
0:29:17
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138 sec
Duration and scope of provider audits
DSS officials explain the varying durations and scopes of audits conducted on shelter providers. - Audit duration varies depending on the scope and size of the provider being audited - …
0:31:36
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81 sec
Process for correcting errors and payment challenges for providers
Commissioner Park and Council Member Brewer discuss the process for correcting errors in expense reports and the financial challenges faced by providers due to payment delays. - Different payment processes …
0:32:58
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5 min
DHS compliance requirements for providers
Council Member Diana I. Ayala inquires about how DHS ensures provider compliance with requirements such as record retention, conflicts of interest, and nepotism. This sets the stage for a detailed …
0:38:30
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11 sec
Nepotism policy implementation and challenges
Commissioner Molly Wasow Park discusses the implementation and challenges of DHS's nepotism policy. She explains the nuances of nepotism in practice and the process for reviewing potential nepotism cases. - …
0:38:44
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93 sec
Citywide anti-nepotism policy and vendor integrity initiatives
Charles Diamond, Special Counsel from the Mayor's Office of Contract Services (MOCS), explains the citywide anti-nepotism policy and vendor integrity initiatives. He discusses the development of these policies and their …
0:40:18
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4 min
Implementation of DOI recommendations from 2021 report
Council Member Diana I. Ayala inquires about the implementation of recommendations from a 2021 DOI report on oversight for nonprofit human service contracts. Charles Diamond from MOCS responds, detailing the …
0:44:27
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5 min
Conflicts of interest disclosure system reforms and executive compensation guidance
Commissioner Molly Wasow Park discusses reforms to the conflicts of interest disclosure system for providers and addresses questions about executive compensation guidance. She explains the current processes and ongoing efforts …
0:49:29
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146 sec
Debate on capping executive compensation for shelter providers
Council Member Diana I. Ayala and city officials engage in a debate about the possibility and challenges of capping executive compensation for shelter providers. The discussion highlights the complexities of …
0:51:55
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4 min
DHS policies for reviewing provider expenditures
Commissioner Molly Wasow Park explains DHS policies for reviewing expenditures submitted by providers. She details the different levels of review and the processes in place to ensure compliance with requirements. …
0:56:10
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4 min
DHS field staff oversight of shelter providers
Commissioner Molly Wasow Park discusses the role of DHS field staff in overseeing shelter providers. She explains the structure of shelter operations and the frequency of site visits and inspections. …
1:00:47
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3 min
Executive compensation disclosure requirements for shelter providers
Council Member Justin L. Brannan questions Commissioner Molly Wasow Park about DHS's implementation of executive compensation disclosure requirements for shelter providers. The discussion focuses on strengthening disclosure practices and storing …
1:04:00
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71 sec
Use of city funds for executive compensation and indirect rates
Council Member Brannan inquires about the use of city funds for executive compensation at shelter providers, leading to a discussion on indirect rates and financial flexibility for providers. Commissioner Park …
1:05:11
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3 min
Implementation of DOI recommendation on contract oversight division
Council Member Brannan inquires about DHS's progress in implementing the DOI recommendation to divide contract oversight responsibilities between fiscal and program management specialists. Commissioner Park discusses the challenges and ongoing …
1:08:22
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129 sec
Budgets for oversight offices and accountability measures
Council Member Brannan inquires about the budgets for the Office of Agency Chief Contracting Officer and the Office of Accountability. Commissioner Park is unable to provide specific figures during the …
1:10:32
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35 sec
Handling of migrant shelter contracts and procurement processes
Council Member Brannan inquires about the handling of migrant shelter contracts, particularly the Cherokee Nation Management and Consulting contract. Commissioner Park explains DHS's approach to emergency contracting for migrant shelters. …
1:11:09
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109 sec
DSS procurement policies and independence from City Hall interference
Commissioner Park explains DSS procurement policies and emphasizes the agency's independence from City Hall interference in contracting decisions. She outlines the process for shelter procurement and contract approval. - DSS …
1:13:02
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3 min
OMB approval process for shelter budgets and contracts
Council Member Brannan inquires about the OMB approval process for shelter budgets and contracts. Commissioner Park explains the process and factors affecting approval timelines. - OMB reviews initial budgets for …
1:16:05
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75 sec
Comparison of payment speed between DHS and HPD for contractors
Council Member Brannan raises concerns about developers choosing shelter contracts over housing development due to faster payments from DHS compared to HPD. Commissioner Park explains the differences in financing structures …
1:17:21
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116 sec
DHS budget for new shelter development
Council Member Brannan inquires about the DHS budget for new shelter development. Commissioner Park provides information on the overall DHS budget but explains why specific allocation for new shelter development …
1:19:17
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55 sec
Debate over building shelters vs. affordable housing and long-term planning
Council Member Brannan and Commissioner Park engage in a debate over the decision to build shelters instead of affordable housing, touching on payment speed, long-term planning, and the use of …
1:20:12
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4 min
Council member inquires about executive compensation and conflict of interest in shelter providers
Council Member Julie Won initiates a discussion on executive compensation and conflicts of interest in shelter providers. She highlights the case of Victor Rivera, former CEO of Bronx Parent Housing …
1:24:22
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71 sec
DSS response to Bronx Parent Housing Network case and subsequent oversight improvements
Commissioner Molly Wasow Park discusses the Department of Social Services' (DSS) response to the Bronx Parent Housing Network case and subsequent improvements in oversight of shelter providers. - Park describes …
1:25:32
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114 sec
Changes to subcontract approval process and related party transaction reviews
Commissioner Molly Wasow Park elaborates on changes made to the subcontract approval process and related party transaction reviews within the Department of Social Services (DSS). - DSS now conducts thorough …
1:27:27
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115 sec
Discussion of Sevco's related party transaction with its security company
Council Member Julie Won brings up the case of Sevco, a shelter provider, and its related party transaction with a security company it wholly owns. - Sevco, with approximately $35 …
1:29:26
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57 sec
MOCS explanation of vendor responsibility determinations and related party transaction policies
Charles Diamond from the Mayor's Office of Contract Services (MOCS) explains vendor responsibility determinations and policies regarding related party transactions. - Vendor responsibility is determined on a case-by-case basis for …
1:30:23
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139 sec
Measures to prevent double dipping and improve vetting of subcontractors
Council Member Julie Won inquires about measures to prevent double dipping and improve vetting of subcontractors, using the example of Century Security receiving $11.6 million over four years from Sevco. …
1:32:44
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115 sec
City-wide efforts to improve vendor vetting and responsibility determinations
Charles Diamond from MOCS explains the city-wide efforts to improve vendor vetting and responsibility determinations. - Agencies are required to conduct thorough responsibility determinations before awarding contracts - This includes …
1:34:40
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116 sec
Concerns about contract concentration and DSS strategies for provider diversification
Council Member Julie Won raises concerns about the concentration of contracts among a small number of large providers and asks about DSS strategies for diversification and support for smaller providers. …
1:36:37
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3 min
Criteria and processes for terminating city contracts with problematic providers
Council Member Julie Won inquires about the criteria and processes for terminating city contracts with problematic providers. Commissioner Molly Wasow Park explains DSS's approach to handling issues with contracted organizations. …
1:40:19
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108 sec
Council member Julie Won questions executive compensation practices of shelter providers
Council Member Julie Won initiates a discussion on executive compensation in nonprofit shelter providers, citing examples of high salaries from a DOI report. She questions DSS Commissioner Molly Wasow Park …
1:42:08
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4 min
Clarification on MOCS and DSS review processes for nonprofit executive salaries
Council Member Julie Won seeks clarification on MOCS and DSS review processes for nonprofit executive salaries. Both agencies confirm they do not directly review or approve these salaries. - MOCS …
1:46:30
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130 sec
DOI report recommendations on executive compensation guidance
Council Member Julie Won concludes by referencing the DOI report's recommendations on executive compensation guidance for city agencies. - The DOI report recommends DHS develop more specific guidance on executive …
1:48:40
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15 sec
Council member inquires about accountability reforms for shelter contracts
Council Member Selvena N. Brooks-Powers asks about specific reforms being implemented to ensure greater accountability in shelter contracts, particularly addressing excessive executive salaries and conflicts of interest. She also inquires …
1:49:20
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85 sec
Commissioner explains DSS policies on conflict of interest and nepotism
Commissioner Molly Wasow Park outlines the actions taken by DSS to address conflict of interest and nepotism concerns in shelter contracts. She explains the implementation of disclosure forms, vendor checks, …
1:50:47
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5 min
Council member presses for clear strategies on shelter spending optimization
Council Member Brooks-Powers expresses concern about the lack of clear strategies for optimizing the projected $10 billion expenditure on sheltering over the next three years. She emphasizes the need for …
1:56:30
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37 sec
Commissioner explains transition from emergency operations to non-profit providers
Commissioner Park describes the rapid growth in shelter clients and the transition from emergency operations to more structured shelter management. She emphasizes the shift to non-profit providers and ongoing efforts …
1:57:07
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116 sec
Council member inquires about plans to phase out specific shelters
Council Member Brooks-Powers asks about the administration's plans to scale back shelters, specifically inquiring about the timeline for phasing out shelters in Beach 21st and Edgemere. She also questions if …
1:59:04
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66 sec
Commissioner discusses plans for migrant housing and reducing reliance on hotels
Commissioner Park addresses plans to connect migrants to permanent housing and transition them out of the shelter system. She also discusses the intention to reduce reliance on hotels as shelters …
2:00:12
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129 sec
Council member inquiries about vetting developers for homeless shelter contracts
Council Member Susan Zhuang asks about the process of checking developers' records before entering agreements to build homeless shelters. Commissioner Molly Wasow Park explains that the Department of Social Services …
2:02:31
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3 min
Council member raises concerns about the Sandhu Group's building violations
Council Member Susan Zhuang presents information about numerous building violations and fines associated with the Sandhu Group, a developer involved in building homeless shelters. Commissioner Molly Wasow Park responds by …
2:05:48
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171 sec
Clarification on city's relationship with developers and not-for-profit providers
Council Member Susan Zhuang seeks clarification on the city's relationship with the Sandhu Group and the vetting process for developers. Commissioner Molly Wasow Park reiterates that the Department of Social …
2:08:39
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123 sec
Council Member Restler's remarks on DOI report and problematic shelter providers
Council Member Lincoln Restler opens by acknowledging the DOI report's findings and the actions taken against problematic shelter providers. He notes that some findings may be outdated due to the …
2:10:43
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94 sec
Discussion on corrective action plans and oversight of large shelter providers
Commissioner Molly Wasow Park and Council Member Lincoln Restler engage in a discussion about corrective action plans (CAPs) and the oversight of large shelter providers in the DHS system. - …
2:12:19
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156 sec
Council Member Restler raises concerns about subcontracting practices in shelters
Council Member Lincoln Restler expresses concerns about subcontracting practices in the shelter system, particularly focusing on potentially unethical arrangements. - Restler highlights issues with for-profit subcontracting entities providing services like …
2:14:55
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110 sec
DSS efforts to prevent unethical subcontracting practices in shelter system
Commissioner Molly Wasow Park details DSS efforts to prevent unethical subcontracting practices in the shelter system, responding to Council Member Lincoln Restler's concerns. - Park affirms that the described subcontracting …
2:16:45
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3 min
Questions on shelter distribution and closure plans
Council Member Julie Won inquires about the distribution of shelters across NYC and plans for closures, expressing concerns about the concentration of shelters in high-poverty, predominantly Black and Brown neighborhoods. …
2:20:15
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3 min
Follow-up on DHS sites and future distribution plans
Council Member Julie Won seeks clarification on the status of DHS sites and future plans for equal distribution of shelters. Commissioner Molly Wasow Park provides additional information on the administration's …
2:23:41
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58 sec
Centralizing oversight and compliance within MOCS's Vendor Integrity Unit
Council Member Julie Won inquires about centralizing oversight and compliance within MOCS's Vendor Integrity Unit (VIU) and the steps taken through the Vendor Compliance Cabinet (VCC). Charles Diamond from MOCS …
2:24:39
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3 min
Confidence in centralizing oversight under VIU
Council Member Julie Won asks about the confidence in centralizing oversight for compliance under the Vendor Integrity Unit (VIU). Charles Diamond from MOCS responds, explaining the current state and future …
2:27:55
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72 sec
Inter-agency communication mechanisms
Council Member Julie Won inquires about mechanisms for inter-agency communication, particularly among Agency Chief Contracting Officers (ACCOs). Charles Diamond from MOCS explains the various communication channels in place. - Diamond …
2:29:08
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59 sec
MOCS's response to DOI recommendations on systems and data management
Council Member Julie Won asks about MOCS's rejection of several DOI recommendations regarding systems and data management. The exchange is brief, with Charles Diamond requesting more specifics about the recommendations …
2:30:07
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27 sec
Discussion on contract evaluation and provider capacity
Council Member Stevens inquires about the evaluation process for new contracts, particularly for shelters, and how the city assesses nonprofit capacity. Commissioner Park explains the criteria used in reviewing proposals, …
2:30:57
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104 sec
Challenges for new providers in obtaining contracts
Council Member Stevens expresses concerns about new providers being excluded from the contracting process due to lack of experience. Commissioner Park explains how the department tries to broaden the definition …
2:32:41
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44 sec
Impact of reimbursement policy on providers
Council Member Stevens highlights the challenges posed by the city's reimbursement policy, particularly for smaller organizations. Commissioner Park acknowledges these difficulties and outlines efforts to bring in new providers. - …
2:33:25
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78 sec
Concerns about contract concentration and executive salaries
Council Member Stevens expresses concerns about the concentration of city contracts among a small group of organizations and the high executive salaries at these organizations. - Some organizations hold multiple …
2:34:43
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62 sec
Shelter site selection process and provider responsibilities
Council Member Stevens inquires about the process of selecting sites for shelters, specifically asking about the responsibilities of providers versus DHS. Commissioner Park explains the site control requirements for providers …
2:35:45
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73 sec
Addressing shelter saturation in certain areas
Council Member Stevens raises concerns about the concentration of shelters in certain areas and inquires about DHS's approach to this issue. Commissioner Park confirms that shelter saturation is a factor …
2:36:58
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58 sec
Inquiry about shelter openings and closures in the 42nd council district
Council Member Chris Banks inquires about plans for new shelter openings and closures in the 42nd council district. Commissioner Molly Wasow Park does not have immediate information but agrees to …
2:37:56
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24 sec
Concerns about services provided by shelter operators
Council Member Chris Banks expresses concerns about the lack of visible social services provided by shelter operators in his district, particularly mentioning Samaritan Village and SUS. - Banks questions the …
2:38:20
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94 sec
Clarification on shelter day closure policy
Commissioner Molly Wasow Park clarifies a misconception about shelter day closure policies. - Park states that shelters have not required residents to leave during the day for 10-15 years - …
2:39:54
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24 sec
Explanation of wrap-around services in shelters
Commissioner Molly Wasow Park provides a detailed explanation of the wrap-around services available in NYC shelters in response to Council Member Chris Banks' questions. - Every shelter has some form …
2:40:18
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85 sec
Concerns about services at Samaritan Village shelters
Council Member Chris Banks raises specific concerns about the lack of services at Samaritan Village shelters in his district, particularly a 200-bed women's shelter and a men's shelter. - Banks …
2:41:44
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69 sec
Explanation of referral networks and mental health services
Commissioner Molly Wasow Park explains the referral networks and mental health services available to shelter residents in response to Council Member Banks' concerns. - Park emphasizes the importance of having …
2:42:53
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85 sec
Debate on the effectiveness of current shelter services
Council Member Chris Banks and Commissioner Molly Wasow Park engage in a debate about the effectiveness of current shelter services and oversight measures. - Park acknowledges that DHS is not …
2:44:18
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59 sec
Invitation for commissioner to tour district shelters
Council Member Chris Banks invites Commissioner Molly Wasow Park to tour shelters in his district and speak directly with residents. - Banks expresses skepticism about the commissioner's statements, suggesting a …
2:45:17
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16 sec
Council Member Brewer questions Commissioner Park about $8 million funding cut for homeless outreach
Council Member Gale A. Brewer inquires about a proposed $8 million funding cut for homeless outreach workers by the Department of Homeless Services (DHS). Commissioner Molly Wasow Park responds, emphasizing …
2:45:33
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75 sec
Council member Julie Won questions Commissioner Park about halal food certification and quality in shelters
Council Member Julie Won questions Commissioner Molly Wasow Park about the oversight of halal food certification and general food quality in migrant shelters. The discussion covers issues with fraudulent halal …
2:46:49
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4 min
Testimony by Graham Horn, Staff Attorney at New York Legal Assistance Group (NYLAG), on Shelter Oversight and Conditions
Graham Horn from NYLAG testifies about the inadequate oversight of NYC's shelter system, highlighting poor conditions, hostile staff behavior, and lack of accountability. He emphasizes the need for stronger oversight …
2:53:04
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150 sec
Testimony by Kristin Miller, Executive Director of Homeless Services United
Kristin Miller, Executive Director of Homeless Services United, testified about the challenges faced by nonprofit shelter providers, including financial strain due to delayed payments from the city and difficulties in …
2:55:39
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3 min
Testimony by Timothy Pena, Founder of Veterans Justice Project, on Homeless Shelter Conditions for Veterans
Timothy Pena, founder of Veterans Justice Project, testified about poor conditions at Borden Avenue, a federally funded shelter for veterans. He highlighted issues with food quality, budget constraints, and safety …
2:59:00
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137 sec
Testimony by Reverend Dr. Terry Troia, President of Project Hospitality, on Reimbursement Issues for Homeless Services Providers
Reverend Dr. Terry Troia, President of Project Hospitality, testified about the severe financial challenges faced by her organization due to delayed reimbursements from the Department of Homeless Services (DHS). She …
3:01:27
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150 sec
Testimony by Barbara Hughes, Executive Director of City Beet Kitchens at Project Renewal
Barbara Hughes, Executive Director of City Beet Kitchens at Project Renewal, testified about their social enterprise catering company and its role in providing meals to homeless shelters while also offering …
3:04:32
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172 sec
Testimony by Pat O'Connell on Private Equity Involvement in Homeless Shelters
Pat O'Connell, a resident of the Upper West Side, testified about the concerning involvement of private equity firms in the homeless shelter system. He highlighted how these firms are making …
3:07:28
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129 sec
Testimony by Elena Ristovski, Director of Operations and Programs at Marlow Bistro
Elena Ristovski from Marlow Bistro testifies in support of Intro 979, which aims to improve shelter food contracts and explore collaborations between the city, non-profits, and small businesses to deliver …
3:10:26
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120 sec
Testimony by Sharon Brown Jeter from Rose of Sharon Enterprises
Sharon Brown Jeter from Rose of Sharon Enterprises advocates for a shift from building shelters to providing permanent housing solutions for homeless individuals. She argues that the current shelter system …
3:12:33
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129 sec
Testimony by Mount Lacey, Disabled Veteran
Mount Lacey, a disabled veteran, provided passionate testimony criticizing the NYC shelter system and the city's handling of homelessness. He shared personal experiences of mistreatment in veterans' shelters and accused …
3:14:50
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126 sec
Testimony by Matt Jozwiak, Founder of Rethink Food
Matt Jozwiak, Founder of Rethink Food, testifies about food waste in the NYC shelter system, emphasizing its fiscal impact and proposing solutions. He supports the proposed legislation for measuring food …
3:17:00
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105 sec
Council Member Brewer inquires about Rethink Food's financial model
Council Member Gale A. Brewer asks Matt Jozwiak from Rethink Food how they make their numbers work despite low funding. Jozwiak explains their cost-effective approach to meal provision in shelters. …
3:18:46
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42 sec
Testimony by Imam Mansoor Rafiq Umar, President and CEO of Halal Watch World, on Halal Food Integrity in NYC Shelters
Imam Mansoor Rafiq Umar, President and CEO of Halal Watch World, testified about the importance of ensuring halal food integrity in NYC shelters. He highlighted his organization's expertise in halal …
3:20:13
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125 sec
