Feds investigate NYCHA over $10M report

July 11, 2012 11:30AM

U.S. Housing and Urban Development officials have opened an investigation into a $10 million report generated by the New York City Housing Authority, the New York Daily News reported. The NYCHA report was authored by the Boston Consulting Group, a business strategy advisor that previously employed embattled NYCHA chairman John Rhea.

The report, which is not available to the public, has generated concern at HUD over “the procurement procedures NYCHA followed in contracting with BCG,” Adam Glantz, a spokesman for HUD, told the News.

HUD officials have also demanded to see portions of the report and invoices for the work Boston Consulting did. The agency declined to comment on the state of the investigation, however.

Rhea has been praised for securing federal stimulus money for NYCHA in sums upward of $65 million a year, but has also been criticized for allegedly sparking an exodus of well-qualified officials. These officials left in the wake of troubles, such as last year’s botched payment of rent subsidies by NYCHA, which was blamed on computer glitches. [NYDN]