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Thompson questions Rock. Beach apts’ finances

City Comptroller William Thompson urged the city Department of Housing Preservation and Development to look into allegations of mismanagement of a Rockaway Beach apartment complex whose shareholders claim the managing agent owes more than $1 million in water bills.

In a June 9 letter to HPD Commissioner Shaun Donovan, Thompson said his office has received complaints that Phipps Housing Services — the management company for Dayton Beach Apartments — is responsible for "management and accounting irregularities" at the complex.

"Shareholders have indicated that both the managing agent and HPD failed to recognize these issues and as a result, residents now face potentially dire consequences," the comptroller said. "Indeed, it is my understanding that the housing complex owes more than $1 million in water charges alone."

Thompson also said residents claimed Phipps did not "properly oversee building operations" and did not clear Dayton Beach's debts.

"I am deeply troubled by these allegations and respectfully ask that your staff advise my office of the results of your examination of this issue," he wrote to Donovan.

Reach reporter Howard Koplowitz by e-mail at or by phone at 718-229-0300, Ext. 173.

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