State’s Development agency must improve transparency on real estate sales, audit finds

August 21, 2024 Brooklyn Eagle Staff

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STATEWIDE — NEW YORK’S EMPIRE STATE DEVELOPMENT AGENCY MUST INCREASE THE TRANSPARENCY of its real estate holdings and sales of properties below fair market value, a new audit from State Comptroller Thomas P. DiNapoli shows. The audit reveals that ESD has not met statutory requirements to provide accurate, annual reports of its real estate holdings, and has sold several for as little as $1 with insufficient information on the transactions. ESD is a state public authority empowered to promote economic development, business investment and job creation in New York. The Public Authorities Law requires it to publish, at least annually, a report listing all real property it holds and full descriptions of properties that were disposed of — and to dispose of such properties for fair market value, with exceptions. Below-market property transfers must include a description of the property as well as appraisal of fair market value, purpose of transfer, and expected benefit to the public resulting from the sale.

DiNapoli’s audit found that ESD published a detailed report only after the audit was begun in 2022, and that the report contained several inaccuracies.

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