Criteria - As stated in the November 2025 Compliance Supplement, Public Housing must be decent, safe, sanitary, and in good repair. Public Housing Authorities (PHAs) must maintain such housing in a manner that meets the physical condition standards set forth in 24 CFR section 5.703 in order to be considered decent, safe, sanitary, and in good repair. Those standards address the major areas of the public housing: the site; the building exterior; the building systems; the dwelling units; the common areas; and health and safety considerations. Health and safety considerations require that all areas and components of the housing must be free of health and safety hazards. These areas include, but are not limited to, air quality, electrical hazards, elevators, emergency/fire exits, flammable materials, garbage and debris, handrail hazards, infestation, and lead-based paint. The housing must have no evidence of infestation by rats, mice, or other vermin, or of garbage and debris. The housing must have no evidence of electrical hazards, natural hazards, or fire hazards. The dwelling units and common areas must have proper ventilation and be free of mold, odor (e.g., propane, natural gas, methane gas), or other indoor air hazards such as radon. The housing must comply with all requirements related to the evaluation and reduction of lead-based paint hazards and have available proper certifications of such (see 24 CFR Part 35). For the period under audit, the PHA is required to test for and remediate environmental contaminants including but not limited to lead-based paint, radon gas, and mold to ensure that public housing met the physical condition standards for health and safety considerations set forth in 24 CFR section 5.703. Condition - The New York City Housing Authority (the “Authority”) performs environmental contaminants testing and remediation including but not limited to Lead-based paint, Mold, Pest Control, Elevators, Heating and Annual Apartment Inspections. To track compliance with the Agreement executed on January 31, 2019 by and among the Authority, the U.S. Department of Housing and Urban Development (“HUD”) and the U.S. Attorney’s Office for the Southern District of New York (SDNY) and The City Of New York (the “HUD Agreement”), the Authority maintains monthly inspection reports for the various inspections performed and provides that information to HUD, the SDNY and the Federal Monitor appointed under the HUD Agreement. Deloitte obtained inspections for asbestos, lead, mold, pests, heat and hot water, air quality, water quality, and fire safety performed throughout 1/1/2025 – 12/31/2025. During our audit, we noted that the Authority did not complete all corrective actions in the 2025 audit period and is in the process of addressing these issues. Cause - Some environmental contaminants were not remediated in the 2025 audit period. Effect - The U.S. Department of Housing and Urban Development (HUD) may consider the Authority non- compliant with the HUD Grant Agreement and withhold or reduce future Federal funding. Notably, HUD has signed a settlement agreement due to environmental health and safety issues on NYCHA properties and NYCHA is in the process of implementing the terms of the settlement agreement. Questioned Costs – Not applicable Repeat Finding - Yes Recommendation- We recommend that the Authority continue to ensure that all environmental contaminants are properly remediated during the audit period through the HUD Agreement. View of Responsible Official – See Corrective Action Plan