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City Agrees to Federal Monitor and Cash Infusion for NYCHA


Mayor Bill de Blasio Presser

(Photo: Michael Appleton/Mayoral Photography Office)


New York City government will funnel $2.2 billion in new funding over several years for repairs at the New York City Housing Authority (NYCHA) and submit to a federal monitor for the struggling agency under the terms of a settlement between Mayor Bill de Blasio’s administration and federal prosecutors.

The disastrous living conditions at the public housing authority, which is home to more than 400,000 New Yorkers, had been the subject of a federal investigation dating back to 2016. In a civil complaint filed in Manhattan on Monday, U.S. Attorney for the Southern District of New York Geoff Berman charged NYCHA with widespread failure to comply with federal housing and environmental regulations.

“Children have been harmed as a result of NYCHA’s failures,” the complaint states, asserting that NYCHA workers failed to inspect or remediate lead paint hazards in public housing for years, dating back to the administration of Mayor Michael Bloomberg. “Between 2010 and 2016, at least 19 lead-poisoned children were found to have been exposed to deteriorated lead paint in their NYCHA apartments, and thousands more were put at risk.”

The complaint excoriated other subpar living conditions in public housing developments, from issues related to mold and inadequate heat during the winter to rodent infestations and faulty elevators.

The 80-page complaint, accompanied by a consent decree in which NYCHA agreed to the conditions of the settlement, also noted that NYCHA officials had repeatedly deceived inspectors from the federal Department of Housing and Urban Development and made misleading statements to the public about the scope of problems and efforts to fix them.

“These violations will no longer be tolerated,” U.S. Attorney Berman said at a news conference on Monday afternoon. “As is so often the case, where there are violations, there is a coverup.”

Under the consent decree, which will still have to be approved by a federal judge, NYCHA agreed to a federal monitor who will oversee repairs, procurement and, where necessary, managerial and structural reforms. The de Blasio administration also agreed to have the city provide $1.2 billion in capital funding to the agency over the next five years and conceded to payments of another $200 million annually after that until the conditions of the consent decree are fully met. De Blasio will be termed out of office at the end of 2021.

While NYCHA is a public authority with its own board, a creation of federal and state law, the mayor appoints its leadership and is broadly seen as responsible for its management. NYCHA funding has historically come mostly from the federal government, with some city and state monies, and the authority relies on rent payments and other resident fees. While the federal government has been disinvesting from NYCHA for decades and de Blasio has provided more funds and attention to NYCHA than his predecessors, he has also overseen major crises at the housing authority, which were laid bare in the federal complaint.

At a news conference on Monday at City Hall, as he has done in the past, de Blasio largely deflected blame for NYCHA’s troubles, which he pegged to decades of federal, state and city disinvestment and institutional failures by past administrations. He repeatedly credited his administration for turning around the agency’s operational finances, reducing crime and repair backlogs, and funding the agency to the tune of billions though the city is not required to do so, even as he accepted partial responsibility for missteps in the last few years.  “[W]e can’t hold ourselves blameless either,” he said. “This administration also has made mistakes. There are too many times that things happened on our watch that we didn’t know about, but that’s still our responsibility.”

At times appearing defensive in response to questions from reporters, de Blasio pointedly refused to concede the many allegations highlighted in the federal complaint, saying they were being reviewed. “When I saw the federal complaint it made me angry as all hell to know that there were some people in NYCHA who withheld information to to try to deceive the federal government and NYCHA’s own leadership. It disgusted me, it’s unacceptable,” de Blasio said although, promising “serious consequences” for those in NYCHA leadership who might be guilty of misconduct.

Though they did not speak, de Blasio was flanked by recently installed leadership at NYCHA, including temporary chair Stan Brezenoff and general manager Vito Mustaciuolo. Shola Olatoye was de Blasio’s first and only NYCHA chair and CEO until she resigned in April.

The mayor made it a point to rebut any notion that he was forced into the consent decree, saying he chose to collaborate with federal authorities on a mutually agreed upon path to fix NYCHA, because, he repeatedly said, he believed it is “the right thing to do.” He noted that federal authorities agreed not to strip any funding from the agency, which already has capital needs estimated at more than $25 billion, and speculated that the agreement will also lead to some regulatory relief and the release of hundreds of millions in funds budgeted for NYCHA by the state.      

“The way forward involves recognizing the extent of the problems and being resolute in acting upon them,” he said.

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by Samar Khurshid, senior reporter, Gotham Gazette
     

Read more by this writer.

Note - this article has been updated.

De Blasio and City Council Agree on $89.2 Billion Budget, Funding Key Council Priorities


de Blasio Corey Johnson budget City Hall

De Blasio & Johnson shake on it (photo: William Alatriste)


Mayor Bill de Blasio and City Council Speaker Corey Johnson on Monday announced an agreement on an $89.15 billion budget for the 2019 fiscal year that includes key Council priorities that the mayor had been hesitant to fund for months.

“This budget is profoundly responsible, it is balanced, it is progressive and it is early,” de Blasio said at the ceremonial budget handshake with Johnson and other Council members at City Hall on Monday evening, about three weeks before the July 1 deadline that is the start of next fiscal year.

The latest spending plan is a slight uptick from the mayor’s $89.06 billion executive budget proposal released in April, and a total $480 million increase from the $88.67 billion preliminary proposal put forward by the administration in February. Overall, it reflects a $16.45 billion increase from the $72.7 billion budget that de Blasio inherited when he took office in 2014. Asked about that significant growth, de Blasio said on Monday, “It’s an investment model, it’s a strategic investment concept,” insisting that much of the city’s prosperity over the last few years stemmed from his administration’s responsible spending and fiscal management.

The money has certainly been there to spend, even as the budget has grown so large, the city has put record sums in reserves, though watchdogs do warn of long-term fiscal impacts of the large growth in public sector headcount de Blasio has overseen.

It was Johnson’s first budget as speaker and he notched a massive victory, convincing an initially reluctant de Blasio to provide $106 million to partially fund the ‘Fair Fares’ program that will provide half-priced MetroCards to New Yorkers that live below the federal poverty line. The Council members in attendance struck an especially celebratory tone.

“I believe that Speaker Johnson said the words ‘Fair Fares’ to me an unfair number of times,” de Blasio mused of Johnson’s almost single-minded focus on the issue in the lead up to the budget deal. The speaker headed a concerted campaign for the program, using digital and social media and grassroots advocacy. All but three members of the City Council had expressed their support for it by this week; it was clearly the speaker’s top priority in negotiations with the mayor.

De Blasio said Monday that the program will launch in January 2019 and run through the rest of the fiscal year, and will be implemented by the city rather than the MTA, in a similar fashion to the Human Resource Administration’s cash assistance and food stamp programs. Following the six-month rollout, the city will evaluate participation and cost to decide on future funding, Johnson later said as he insisted that both he and the mayor will continue to push for an additional millionaires tax approved in Albany to fully fund the program.

The mayor also added $225 million in funding to reserves, conceding nearly half of the Council’s $500 million demand for more rainy day funds. About $125 million was added to the general reserve, bringing it to $1.25 billion each year, and $100 million to the Retiree Health Benefits Trust Fund, increasing it to $4.35 billion, while the capital stabilization reserve remained static at $250 million.

De Blasio also touted other top items that had been outlined in earlier iterations of the budget, namely $125 million in increased fair school funding, added resources for the New York City Housing Authority (NYCHA), an expansion of 3-K for all, and funding for police body cameras.

“This spending plan will strengthen our social safety net and do more for New Yorkers who are struggling to get by on less,” Johnson said as he thanked the mayor for “good faith” negotiations over the last few months.

“We are taking a sharp-eyed, sober approach to the future,” he added, detailing a few of the initiatives funded in the budget, including $150 million in additional capital funding over three years to improve accessibility for the disabled at city schools and an expansion of of the summer youth employment program from 70,000 to 75,000 slots.

Johnson also highlighted the hundreds of millions of dollars that the city previously committed to the MTA Subway Action Plan, as Johnson had wanted it to but de Blasio did not, after the state budget forced the city's hand. He also stressed additional investment in supportive housing, to accelerate the pace of units opening.

The deal, according to a press release from the mayor's office, also increases and baselines funding for the Emergency Food Assistance Program "to $20 million annually" and adds $3.5 million "for additional litter basket pickup" to avoid trash can overflow on street corners.

The final budget does not include a $400 property tax rebate for thousands of homeowners -- another key Council priority -- since the administration and Council announced late last month that they would convene a property tax commission to review the system and propose reforms. The commission is expected to begin its work with the July 1 start of the new fiscal year and will hold ten hearings to seek public input.

The budget agreement announcement came hours after another, more tense news conference at City Hall where de Blasio addressed the city’s agreement, announced Monday morning, with federal prosecutors to accept a federal monitor for NYCHA. The deal also requires the city to provide billions more in funding for the ailing housing authority over the several years, and that funding will be reflected in the capital budget when it passes the City Council later this month, de Blasio said.

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by Samar Khurshid, senior reporter, Gotham Gazette
     

Read more by this writer.

Johnson Makes Series of City Council Changes, But Sidelines Formal Rules Reforms


cojo cm team

Speaker Johnson, middle, and Council members (photo: John McCarten/City Council)


In December, several City Council members jostling to become the powerful next speaker of the 51-member legislative body signed on to a broad platform of reforms to the Council’s rules and procedures, which can have a significant impact on city law-making and funding for communities. Both returning and newly-elected Council members, 33 of them in total, backed the proposals, which would make legislative drafting procedures more transparent, bolster staffing for prominent divisions such as land use, and tweak the Council’s internal culture in significant ways, among other more minor adjustments.

But a deadline set in that platform for convening a public hearing on the proposals came and went as new Council Speaker Corey Johnson, who was among the signatories, has chosen instead to implement administrative changes in lieu of more formal reforms through the Council’s Committee on Rules, Elections and Privileges. Several Council members who spoke with Gotham Gazette largely praised those measures but others expressed concern that important promises have been left unfulfilled.

In a process somewhat similar to four years prior when Council members proposed changes ahead of the election of a new speaker, the document signed by the Council members in December of last year laid out broad areas where the Council could improve its functions, including in bill drafting, the role and operations of the 40-plus issue committees, the body’s oversight and investigations capacity, its budget negotiation process, its land use powers, and the quality of working life for members and their staff.

“A hearing should be held in the Rules Committee on these reforms – as well as any others proposed by good government groups or members of the public – in the first quarter of 2018,” states the letter, signed by both Speaker Johnson and Council Member Karen Koslowitz, whom he appointed as chair of the rules committee. “The reforms should then be converted into a Rules Resolution, and adopted by the Council by March 2018, but no later than June 2018.”

By this time in 2014, then-Speaker Melissa Mark-Viverito had ushered in transformative rules changes that made the body more democratic, diluting some of the traditional powers of the speaker and empowering individual members. The changes were spearheaded along with Council Member Brad Lander, who she appointed to chair the rules committee and was instrumental in drafting the reforms.

Discretionary funding -- also known as “member items” that are usually awarded by Council members to local nonprofits in their districts -- was equalized across Council districts, with additional resources allocated to poorer districts, and could no longer be a tool to punish members who might oppose the speaker, as Mark-Viverito’s predecessors had used it. A new bill drafting unit was created to aid Council members and speed up the legislative process, and other changes were made to how bills are introduced and heard in committees.

Johnson has taken a different tack, making significant administrative changes that cover large parts of the rules reform package and were key pledges he made as he ran for speaker.

The Council voted to significantly increase its own annual budget to $81.3 million, up from $64 million, with the new funds pegged for staffing increases in the land use, legislative, and finance divisions. A dedicated 15-member oversight and investigations unit was created to conduct systemic analyses of city agencies and their functioning. According to a Council spokesperson, the central staff has also internally overseen improvements in bill drafting, no longer allowing indefinite delays on bill introductions and impressing on members to move their bills or release them for others. Members can now also electronically access the status of their bills in real time and there is a timely process for staff to express legal concerns with bill language. Members are provided legal memos on their bills on request, which is apparently rare. All moves meant to address major areas of frustration for some members, though key pieces of proposed changes to bill-drafting have not been implemented.

In the wake of the #MeToo movement, the Council also moved rapidly to change its rules to mandate anti-sexual harassment trainings.

“I am proud to have taken important steps on necessary reforms in my first months as speaker, including the creation of the new Oversight and Investigations Unit that will strengthen our capacity for monitoring city agencies as mandated by the charter,” Johnson said in a statement to Gotham Gazette. “I will continue to discuss with members what reforms should be made in the future to help better serve the people of New York.”

photobyemilyWhen asked for comment, a spokesperson for Council Member Koslowitz (pictured), chair of the rules committee, initially said the Council member was unfamiliar with the rules reform package that she had signed. When presented with the full list of proposals, the spokesperson declined to comment.

By and large, Council members are appreciative of the steps Johnson has taken. Several members said their bills are moving faster and, without making any comparisons with Mark-Viverito, that Johnson is openly seeking member input on the budget and larger strategy.  

“The rules reform this time around, there were a lot of legitimate questions about whether or not these reforms needed to be put into the Council’s rules or they could just be effected,” said Council Member Rory Lancman, a member of the rules committee. “A lot of them had to do with resource allocation. So I don’t know if once Corey’s done with putting his administrative imprint on the body, how much of the rules reforms still need to get done. Maybe that’ll be something to assess once we get through the city budget.”

At the same time, some members declined to comment, taking a wait-and-see approach before they evaluate Johnson’s commitment to rules reform. Others only agreed to speak anonymously, fearing what they say is increased scrutiny of public comments by the speaker’s office.

Those members pointed out, for instance, that though there have been changes to bill drafting, the process still falls largely to the discretion of the speaker’s central staff. Under a long-standing process, Council members who made “first-in-time” legislative services requests -- Council speak for when a member asks for a bill to be drafted -- were given priority even if other members may have similar bill requests. Having a “first-in-time” request meant that members could sit on bills indefinitely, which the rules reforms would have amended with an official time-bound process.

A Council spokesperson said that practice has ended and that members have offered positive feedback for the changes that have been made. Members are no longer allowed to sit on bills, and lose them to other members, the spokesperson said, without providing the details of how the new protocols work.

Alex Camarda, senior policy advisor at Reinvent Albany, a government reform group, said that is perhaps the most significant item in the rules reform package. “There’s no known criteria by which they’re making that decision and that needs to change,” he said in a phone interview. “At the very least, the speaker’s office ought to declare the criteria by which they decide which bills are moved.”

Council members who spoke to Gotham Gazette seemed to be in the dark about whether rules reforms were even being discussed. The overarching platform hasn’t been discussed in hearings though some of the issues have been raised in the Democratic conference meetings, said one member who would only speak on the condition of anonymity.  

“The first-in-time issues have not been changed,” the member said. “They did update the database -- truthfully, this was mostly done last term -- you can find out more quickly whether you’re first-in-time or not, but the process itself is still exactly as it was. And the legal concerns issue,” about getting legal opinions on bills in a timely manner, “is still as it was...And some of the disability and accessibility investments [for Council hearings] still need to be advanced.”

Though the Council allocated more money for pay raises for staffers, it hasn’t implemented pay parity with other city agencies where benefits are better and salaries are higher, despite that being a priority outlined in the draft of reforms. “Yeah, I would add that to the list,” the Council member said. Nor is childcare provided to members or staffers, as called for in the reform proposal.

The Council spokesperson noted that audio induction loops for those with hearing impairments were added last year and that language accessibility can be requested. The spokesperson also said that pay parity has been discussed with members when the Council was deciding its own budget, and ultimately members get to decide how they will use the increased funds budgeted for their offices and staff. The spokesperson also acknowledged that the Council does not currently provide childcare options but insisted that the Council is always looking at ways to expand it for all New Yorkers.

Council Member Mark Levine, one of Johnson’s chief rivals for the speakership, said the Council has made major improvements. “[The Speaker] has made progress on a lot of fronts,” he said, pointing to the uptick in the budget, the staffing increases, and more transparency and faster timelines on bill introductions. “It helps tremendously in managing your LS [legislative service] requests to have real-time access to that information. They’ve also staffed up pretty dramatically in the bill-drafting unit,” he said. “And it’s more equitable now. Everybody gets to identify 10 priority LSs which we want staff to work on and that evens it out a little bit more.”

Echoing Lancman, Levine said a formal hearing wasn’t absolutely necessary. “These changes have been possible through a combination of changing internal procedure, through allocation of resources, and that really is a very big deal,” he said.  

Some members are waiting until after budget negotiations have concluded with the administration to see more changes go into effect, particularly with new funding at the Council’s disposal.

“To date, the specifics of the rules reform stuff that we signed on to hasn’t been evidenced,” said Council Member Robert Cornegy, another current rules committee member and speaker candidate of last year. “There has been some efforts, especially in bill drafting, to make sure that bills move faster. But we’re so deep in the budget and I’m on the budget negotiation team, I can’t really see anything. I almost don’t know what’s going on around me as it relates to the legislation or the rules reform because we’re so deep in the budget.”

Cornegy said he wants to see “a bit more latitude” for members in the drafting process so bills can move more quickly.

Council Member Adrienne Adams, also a rules committee member, said very briefly before a Council hearing, “We’re still waiting. It’s been a while. We’re still waiting. I really don’t have anything to add right now.”

Among other items that remain unfinished are changes to the functioning of the Council committees, which hear bills and hold oversight hearings.

Despite being included in the proposed agenda, there’s still no protocol for committee hearing scheduling; there isn’t a standard process for members who want to switch committees midway through the term; hearings are not automatically triggered for bills with popular support; and committee staff aren’t publishing recaps of hearings that summarize testimony, requests made by members and promises made by the administration (though the full testimony from hearings continues to be readily available online.)

It’s likely once the budget is decided, which could be as soon as the coming week, that the Council will ramp up some of the changes put in motion by Johnson and get to other delayed reforms. Yet, Council members and government reform groups say that needs to happen in a public, transparent way. “If the speaker and 32 members made a commitment to pass rules reforms,” said Camarda of Reinvent Albany, “they should honor that commitment and hold public hearings to solicit input and pass meaningful rules changes.”

Camarda also pointed to a New York Post report from May that highlighted Johnson’s partial reversal on a promise to regularly publish his full public schedule and details of his contact with lobbyists. “We hope this isn’t the beginning of a trend that the speaker’s promises on good government issues go unfulfilled,” Camarda said.

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by Samar Khurshid, senior reporter, Gotham Gazette
     

Read more by this writer.

Inset Koslowitz photo by Emil Cohen



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