NYCHA Admits to Misleading HUD. Will Pay $1.2 Billion In Next 5 Years to Fix Conditions In Affordable Housing

The U.S. Department of Housing and Urban Development (HUD)  reached an agreement with New York City to fix hazardous conditions in buildings under the control of the New York City Housing Authority (NYCHA).  The federal complaint which you can read here and filed on January 11, 2018 alleges that NYCHA violated basic health and safety regulations that protect children from lead based paint.  NYCHA also failed to provide safe and sanitary housing.  HUD and NYC have reached a settlement in the matter which a consent decree was filed.  The decree can be read in its entirety here orders NYC to provide $1.2 billion in additional capital funding over the next five years and $200 million every year thereafter until the problems are fixed.  A federal monitor will be set up in order for NYCHA to meet their goals under the decree.

According to the consent decree NYCHA's certifications to HUD contained untrue representations that they were complying with HUD’s federal lead paint safety regulations.  The complaint also alleges that NYCHA disguised the conditions of the properties in order to receive billions in federal funding.  Also of note are the following admissions:

• NYCHA’s data admits that there were more than 260,000 work orders for roaches between 2013 and 2016.  Between the same period there were 90,000 mouse work orders and 36,000 rat work orders.
• In more than half of NYCHA’s developments, NYCHA’s inspections, including statistical sampling, have confirmed the presence of lead paint somewhere on the premises, and in at least 92 developments, the inspections, including statistical sampling, have confirmed the presence of lead paint inside apartment units.
• Since at least 2010, NYCHA has not performed most of the biennial lead paint risk assessment reevaluations required by regulation for developments containing lead paint.
• Currently, after NYCHA has removed mold from apartments, the mold returns at least 30% of the time.
• In the winter 2017-2018, more than 320,000 residents or 80% of the public housing population lost heat.

The consent decree will allow NYCHA  resume spending from its existing public housing capital funding without seeking prior HUD approval.  HUD maintained an existing zero threshold for NYCHA which prevented them from using funds.  In a press conference today Mayor deBlasio requested that the state legislature release $550 million dollars that have been held for NYCHA since 2011.  He also requested from Governor Cuomo design-build authority which would allow the City to award a single contract for engineering and construction.

Ben Carson, HUD Secretary stated “This historic agreement marks a new era for New York City’s public housing, one that puts families and their children first. New York City and New York State are making an unprecedented commitment to put NYCHA on a new path. The cooperation of federal, state and city officials will vastly improve the living conditions for hundreds of thousands of New Yorkers who call NYCHA home.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nycha-admits-to-misleading-hud-will-pay-1-2-billion-in-next-5-years-to-fix-conditions-in-affordable-housing/