Q&A
Council member inquiries about vetting developers for homeless shelter contracts
2:02:31
·
3 min
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 (DSS) contracts with not-for-profit organizations rather than directly with developers or landlords.
- DSS reviews leases between not-for-profits and property owners to ensure compliance with city policies
- Physical conditions of sites are inspected by DSS, HPD, and other agencies
- DSS does not conduct responsibility determinations on landlords due to the indirect contractual relationship
Susan Zhuang
2:02:31
I want to know, do you check the record of developers regarding poor compliance rec records, building, developing development violations, unpaid fines on prior building projects before entering into agreement to build more homeless shelters.
Molly Wasow Park
2:02:52
Thank you, council member.
2:02:53
So we there are as there are 2 versions of of our shelter contracts.
2:03:00
In one of them, we are contracting the the not for profit is developing the site directly.
2:03:05
Our contracts sorry.
2:03:06
Let me take a step back.
2:03:08
It's been a long morning already.
2:03:11
Our contracts are always with not for profit organizations.
2:03:14
We we do not contract directly with developers except in the instance where the not for profit is both the shelter or, operator and the developer.
2:03:24
That being, in in instances where the not for profit is not doing the development themselves, they are leasing the site from from a for profit, typically for profit owner.
2:03:36
In that instance, we are looking at the lease between the not for profit and the and the developer, making sure that the lease is in accordance with all of our city policies, that, that we know all of the entities that are involved in the lease.
2:03:50
This is, an issue that was identified in the DOI report that there were sometimes, some fairly complicated ownership structures in those leases.
2:03:59
That's this is a place where we've really been been focusing to make sure that we are getting clear documentation and transparency on the the property ownership structure.
2:04:10
We wanna make sure that we know who all the parties are and that the, critical costs that belong with the landlord.
2:04:17
So for example, liability, insurance, those, maintenance, capital major capital repairs, that those are all landlord responsibilities that can't be passed on to either the not for profit or the city.
2:04:29
So we're looking at all the lease documentation.
2:04:32
Once the site is is up and running, we, absolutely look at the physical conditions of the site and the, we look at administrative records, making sure that that, there aren't violations on the site.
2:04:48
But beyond that, we're we're actually going out and in tandem with, HPD and other physical inspection units to make sure that that we have a clear sight line into the physical conditions of the building and that, that we are, that the building is is being operated in accordance with ours not only our standards, but the technical agencies and the state office of temporary and disability assistance, which is our oversight agency.
2:05:17
But a short answer to your question, we're not doing responsibility determination on landlords because we do not contract directly with the landlords.
2:05:25
We we contract directly with the providers.
Susan Zhuang
2:05:27
But then you contract with developer.
2:05:29
Is that correct?
Molly Wasow Park
2:05:31
No.
2:05:31
We contract with a not for profit shelter provider who in turn leases the building from, from an owner.
2:05:39
So we are looking at the terms of the lease, and we are looking at the physical condition of the building itself.
2:05:44
We are not doing a responsibility determination on the landlord.
