Progress Report on the Rehabilitation of NYC’s Department of Homeless Services
A significant challenge that required attention was the contractors and service providers facing issues related to their organizational structure, fiscal compliance, and other compliance matters.
During a joint oversight hearing held by the Committees on Oversight and Investigation, General Welfare, Finance, and Contracts on Dec. 17, Commissioner of the Department of Social Services (DSS) Molly Wasow Parker, DSS Chief Accountability Officer Bedros Boodanian, and Special Counsel at the Mayor’s Office of Contract Services Charles Diamond addressed questions regarding the adoption of 23 policies that the city’s Department of Investigation (DOI) recommended in 2020.
A significant hurdle that was identified was the contractors and service providers who had shortcomings in their organizational structure, fiscal compliance, or other related compliance issues.
“Well before the report came out, or in some cases, before the investigation even started, DHS had entirely stopped working with certain providers,” Parker remarked, referring to the Department of Homeless Services, which operates under the DSS.
Some additional providers have been put on “closely monitored corrective action plans,” Parker noted.
Parker characterized these corrective action plans as initiatives designed to address the specific issues faced by the vendors. She informed the council that monitored vendors are obligated to submit quarterly reports to the DSS detailing improvements in the areas outlined in their plans.
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In some cases, providers required significant assistance, Parker mentioned. She referenced the Bronx Parent case as an example of how the DSS is addressing contractor issues.
“Even though they changed their name, they continue to operate, but with an entirely new leadership structure, which was something we mandated,” she explained.
Nepotism also emerged as a significant concern on the DSS’s path to recovery, as highlighted in the report. Parker stated they have introduced a new anti-nepotism policy. She defended the Department of Homeless Services, asserting that the allegations of nepotism in the report might have been overstated.
“Nepotism carries a very negative connotation. In reality, it can manifest in various ways. We’ve observed situations where two siblings are driven by a genuine desire to support their communities and have established an organization together. Such collaboration isn’t inherently problematic,” she stated.
Parker acknowledged instances where parents provided their children with no-show jobs.
The council expressed interest in initiatives to reduce excessive executive compensation, noting that five nonprofit executives contracted by DSS earned over $700,000 annually, while another eight took home more than half a million each year.
Parker clarified that the DSS cannot address this problem alone.
“We are not the ones directly paying, so executive compensation figures are not directly approved by us. Instead, we pay a net cost rate that nonprofits utilize to cover a variety of overhead expenses, including executive salaries. In short, we do not approve those amounts,” she commented.
She expressed her readiness to collaborate with other agencies to devise a solution to this issue.
