The Real Deal New York

NYCHA to hire outside law firm to deal with federal inquiry

Justice Department looking into agency’s handling of mold, lead paint at public housing buildings

May 25, 2016 11:17AM

From left: NYCHA Chairwoman Shola Olatoye and Manhattan U.S. Attorney Preet Bharara

From left: Shola Olatoye and Preet Bharara

The New York City Housing Authority is lawyering up as it faces a Justice Department probe into its practices.

NYCHA chair Shola Olatoye said this week that the beleaguered public housing agency will seek proposals from a number of outside law firms to represent it during an extensive federal investigation into its handling of toxic mold and lead paint at public housing buildings.

While in-house lawyers were handling the inquiry for NYCHA up to this point, the agency is now looking for outside help, according to the New York Daily News. The investigation is said to involve tens of thousands of records, with Manhattan U.S. Attorney Preet Bharara subpoenaing documents since December.

The de Blasio administration recently announced that three private developers that will construct nearly 500 units of affordable and senior housing on three NYCHA properties across Brooklyn and the South Bronx. [NYDN]Rey Mashayekhi

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