City reaches $2B agreement with feds over NYCHA problems

Federal monitor will oversee the beleaguered public housing agency

TRD New York /
Jun.June 11, 2018 08:35 AM

Mayor Bill de Blasio, US Attorney Geoffrey Berman and Queensbridge Houses in Queens (Credit: Wikipedia)

New York City agreed to spend more than $2 billion over a decade to settle a federal investigation into health and safety issues at the New York City Housing Authority.

The city will spend an additional $1 billion over the first four years on top of what it’s already pledged to NYCHA, as well as $200 million annually for each of the following years over the 10-year term, the Wall Street Journal reported.

City officials have been in negotiations with federal prosecutors from the Southern District of New York, which several years ago began looking into lead paint and other issues at NYCHA, the country’s largest public-housing authority.

The city will also sign a consent decree, and during the terms of the agreement NYCHA will be overseen by a federal monitor.

The public housing system oversees 176,000 apartment units across the five boroughs, but the agency has suffered over the years as federal dollars have failed to keep up with the pace of repairs and politicians have pushed back on opening the system to more private investment.

NYCHA needs an estimated $25 billion in repairs, up from $6 billion in 2005, according to the Journal.

A report from the city’s Department of Investigation late last year found that NYCHA had failed to lead-paint inspections for years that were required by federal rules and city laws.

The report said former NYCHA chief executive Shola Olatoye had submitted documents to federal officials showing the agency had complied with the federal rules for lead paint. That wasn’t the case – Olatoye said she verbally told officials about lead-paint lapses. She resigned in April. [WSJ] – Rich Bockmann


Related Articles

Alexandria Ocasio-Cortez, Bernie Sanders and Elizabeth Warren

By the numbers: Breaking down national housing agendas from the far left

Nuveen CEO Vijay Advani, Blackstone President & COO Jonathan Gray and one of the Texas properties

Blackstone just sold off a 29M sf national industrial portfolio

The purge continues: WeWork’s head of real estate is leaving

Judith and Rudy Giuliani Rudolph and Judith Giuliani are divorcing after 16 years. (Credit: Getty Images, Trulia, Highrises)

Luxury properties at play in Rudy Giuliani’s ugly divorce

Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore

43-20 49th Avenue in Long Island City and Andrew Chung of Innovo Property Group (Credit: Google Maps)

Andrew Chung tees up Queens’ biggest deal of 2019

Congresswoman Alexandria Ocasio-Cortez Holds Public Housing Town Hall In The Bronx (Credit: Getty Images)

Rep. Alexandria Ocasio-Cortez wants to put rent regulation, mortgage fraud in the national spotlight

Elevated risk: Malfunction at NYCHA is putting public housing residents at greater risk of being injured in its elevators