Mark Peters, Commissioner of the Department of Investigation. Image credit: CityLand

The Department of Investigation threatened to initiate a lawsuit unless the Law Department opened access to previously withheld documents and computers. On July 26, 2016, the Department of Investigation issued a press release announcing the Law Department’s compliance in producing documents and computers relevant to DOI’s investigation into the sale of the Rivington House, a non-profit nursing home, to luxury condominium developers. The press release was issued less-than two weeks after DOI issued a report on how the City’s procedural failures in handling deed-modifications facilitated the sale of the Rivington House. For CityLand’s previous coverage on the DOI report, click here.

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The Rivington House. Image credit: Flickr/edenpictures

The Department of Investigation’s Report found that the City’s deed-modification procedure lacks safeguards required to ensure the removal of restrictions on formerly City-owned property is in the City’s best interest. On July 14, 2016, the Department of Investigation issued a Report finding that the actions and inactions of City officials, specifically within the Department of Citywide Administrative Services (DCAS), the Mayor’s Office of Contract Services (MOCS), the Law Department, and Mayor’s Office, facilitated the sale of the Rivington House, a non-profit nursing home located on the Lower East Side of Manhattan, to private condominium developers. The Report was issued less than one week after Mayor Bill de Blasio proposed several reformations to procedures used in modifying deeds of formerly City-owned property. For CityLand’s previous coverage on the proposed reformations, click here.

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New York City Public Advocate Letitia James. Image credit: The Office of the New York City Public Advocate

Investigation uncovers HPD’s 13 years of failing to enforce housing program requirements against developers and depriving the City of affordable housing and resources. On February 29, 2016, New York City Public Advocate Letitia James released a report on an investigation conducted by her office into 26 residential properties in Brooklyn. The 26 properties had been given to a nonprofit developer to be rehabilitated and resold, subject to affordable housing income restrictions, as part of the Department of Housing Preservation and Development’s Neighborhood Homes program. The report uncovers how HPD’s failure to adequately supervise the progression of these residential properties caused the City to lose over 40 units of affordable housing and waste a considerable amount of the City’s resources, and left prospective homebuyers waiting for apartments they placed deposits on for more than a decade.

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One of the buildings designated by the Department of Finance as a primarily residential Class 1 property. Image credit: Office of the New York City Comptroller

The audit report reveals that the misclassification of 140 properties has deprived the City of $1.7 million annually in lost property tax revenue. On February 18, 2016, the Office of the NYC Comptroller publicized the results from its audit of the New York City Department of Finance.  The audit sought to investigate whether the Department of Finance had implemented procedures that adequately safeguard against the misclassification of Brooklyn property sites. The Comptroller’s Office and DOF ultimately seem to differ on the definition of “adequate.”

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Mark Peters, Department of Investigations Commissioner.

On January 18, 2014, Mark Peters was appointed by Mayor Bill de Blasio as Commissioner of the New York City Department of Investigations. Prior to this appointment, Commissioner Peters was a partner at the law firm of Edwards Wildman, and had earlier served as Chief of the Public Integrity Unit from 2001-2004 and as Deputy Chief of the Civil Rights Bureau from 1999-2001 at the New York State Attorney General’s office under Eliot Spitzer. Commissioner Peters was born in Brooklyn, New York, and grew up in the West Side of Manhattan. He attended Horace Mann High School and received his undergraduate degree from Brown University and law degree from the University of Michigan Law School. At Brown, Peters wrote for the daily newspaper and majored in medieval history. (more…)