Audit: NYC loan program for landlords not adequately monitored

State auditors report that New York City's low-interest loan program meant to prompt landlords to rehabilitate housing for low-income tenants was not properly managed or monitored.

According to the audit, the Department of Housing Preservation and Development let landlords forgo promised repairs.

The program provides loans up to $35,000 per unit to owners of certain rent-regulated buildings who agree to correct substandard or unsanitary conditions.

The audit of loans at 34 buildings whose owners borrowed $19.8 million in 2011 and 2012 early this year this had 415 uncorrected violations, including 93 deemed "immediately hazardous" like peeling lead paint and inadequate heat or hot water.

The department says it adopted better inspection procedures last year.