In 1998, then City Comptroller Alan Hevesi audited the emergency hotel payments by the Department of Homeless Services and the Human Resources Administration.

In both cases, he said the city was breaking the law by not having contracts. The city disagreed.

The comptroller said the legal cases the city was using to justify its stance did not apply in this case.

And the comptroller said not being able to predict exact need was no excuse for not having a contract. Since Hevesi’s audits, the emergency housing business has increased fivefold, to $180 million a year.