In a letter to Comptroller Tom DiNapoli, Assembly and Senate Minority have requested a comprehensive audit of the Emergency Rental Assistance Program (ERAP), which is managed by the Office of Temporary and Disability Assistance (OTDA). The program originated in 2021 during the COVID-19 pandemic to provide economic relief to low-and-moderate-income New York tenants and to help landlords receive rent due.

Last month, the Department of Justice reached an $11.3 million settlement agreement with two out-of-state consulting firms for failing to meet cybersecurity requirements to protect ERAP data. Those firms are Guidehouse Inc. and its subcontractor Nan McKay. Guidehouse began managing the program in May of 2021 after winning a no-bid contract under Gov. Andrew Cuomo.

ERAP provided a substantial $3.49 billion in rental payments for more than 405,000 applicants. In January of 2022, the chief executive of Guidehouse told employees the company made “38 percent margins” on its contract with New York, which state officials deemed “beyond troubling.” The exorbitant profit margins, along with the firm’s failure to protect private information, are a serious cause for concern.

“The fact that Guidehouse and one of its subcontractors failed to meet an important contractual obligation should be reason enough to commence an immediate audit. The Guidehouse contract is with New York State, not the federal government, so there may be potential damages that result from a breach of contract with New York. Without an audit, the ability to determine any failings is highly unlikely,” said Assembly Minority Leader Will Barclay and Senate Minority Leader Rob Ortt.

Additionally, there are gaps in ERAP data pertaining to approximately 99,000 unpaid applications, the availability of funds, and unpaid utility payments. A comprehensive audit of ERAP is needed to study the program’s effectiveness. This is the second letter the Minority Conferences have sent to the Comptroller’s Office requesting an audit. The last letter was sent in January of 2023, to which the Assembly and Senate Minority were told the audit management team was reviewing the request.