Administrative Agreement Requires NYCHA to Remedy Living Conditions under Supervision of a Federal Monitor and Obligates New York City to Provide $1.2 Billion in New Capital Funding over the Next Five Years as Well as Other Monies
Geoffrey S. Berman, the United States Attorney for the Southern District of New York (“SDNY”), Ben Carson, Secretary of the U.S. Department of Housing and Urban Development (“HUD”), and Andrew Wheeler, Acting Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today the signing of an administrative agreement (“Agreement”) with the NEW YORK CITY HOUSING AUTHORITY (“NYCHA”) and the CITY OF NEW YORK (the “City”) requiring NYCHA, under the supervision of a federal monitor, to fundamentally reform its operations and remedy living conditions for its residents, including lead paint hazards, mold growth, pest infestations, lack of heat, and inadequate elevator service. The Agreement, which went into effect immediately and does not require court approval, resolves the United States’ claims against NYCHA detailed in the Complaint filed in United States District Court on June 11, 2018 (the “Complaint”), which will be dismissed without prejudice. The Complaint alleged that for years NYCHA had violated and was continuing to violate basic federal health and safety regulations, including regulations requiring NYCHA to protect children from lead paint and otherwise provide decent, safe, and sanitary housing. The Complaint further alleged that NYCHA repeatedly made false statements to HUD and the public regarding its lead paint compliance, and intentionally deceived HUD inspectors.