Two U.S. Navy Servicemembers Arrested for Transmitting Military Information to the People’s Republic of China

 

In two separate cases in the Southern and Central Districts of California, two U.S. Navy servicemembers were arrested for transmitting sensitive military information to the People’s Republic of China (PRC).

“These individuals stand accused of violating the commitments they made to protect the United States and betraying the public trust, to the benefit of the PRC government,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will continue to use every tool in our arsenal to counter threats from China and to deter those who aid them in breaking our laws and threatening our national security.”

“These arrests are a reminder of the relentless, aggressive efforts of the People’s Republic of China to undermine our democracy and threaten those who defend it,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “The PRC compromised enlisted personnel to secure sensitive military information that could seriously jeopardize U.S. national security. The FBI and our partners remain vigilant in our determination to combat espionage, and encourage past and present government officials to report any suspicious interactions with suspected foreign intelligence officers.”

United States v. Jinchao Wei, Southern District of California

A U.S. Navy sailor, Jinchao Wei, aka Patrick Wei, was arrested yesterday on espionage charges as he arrived for work at Naval Base San Diego, the homeport of the Pacific Fleet. He was indicted for conspiracy to send national defense information to an intelligence officer working for the People’s Republic of China.

The indictment, unsealed this morning, alleges that Wei, was an active-duty sailor on the amphibious assault ship the U.S.S. Essex stationed at Naval Base San Diego. In his role as a machinist’s mate, Wei held a U.S. security clearance and had access to sensitive national defense information about the ship’s weapons, propulsion and desalination systems. Amphibious assault ships like the Essex resemble small aircraft carriers and allow the U.S. military to project power and maintain presence by serving as the cornerstone of the U.S. Navy’s amphibious readiness and expeditionary strike capabilities.

According to the indictment, in February 2022, Wei began communicating with an intelligence officer from the PRC who requested that Wei provide information about the U.S.S. Essex and other Navy ships. Specifically, the Chinese intelligence officer tasked Wei with passing him photos, videos and documents concerning U.S. Navy ships and their systems. The two agreed to hide their communications by deleting records of their conversations and using encrypted methods of communication.

At the request of the intelligence officer, between March 2022 and the present, Wei sent photographs and videos of the Essex, disclosed the locations of various Navy ships and described defensive weapons of the Essex. In exchange for this information, the intelligence officer paid Wei thousands of dollars over the course of the conspiracy.

The indictment further alleges that in June 2022, Wei sent the intelligence officer approximately 30 technical and mechanical manuals. These manuals contained export control warnings and detailed the operations of multiple systems aboard the Essex and similar ships, including power, steering, aircraft and deck elevators, as well as damage and casualty controls. The intelligence officer confirmed with Wei that at least 10 of those manuals were useful to him. For passage of those materials, the indictment alleges that Wei was paid $5,000.

In June 2022, the intelligence officer requested that Wei provide information about the number and training of U.S. Marines during an upcoming international maritime warfare exercise. In response to this request, Wei sent multiple photographs of military equipment to the intelligence officer.

In August 2022, Wei sent an additional 26 technical and mechanical manuals related to the power structure and operation of the Essex and similar ships. The manuals contained warnings that this was technical data subject to export controls and that it was deemed “critical technology” by the U.S. Navy.

The indictment further alleges that in October 2022, Wei sent a technical manual to the intelligence officer describing the layout and location of certain departments, including berthing quarters and weapons systems. Specifically, Wei sent a weapons control systems manual for the Essex and similar ships. This manual contained export-controlled data that could not be exported without a license from the U.S. government. The indictment alleges that Wei knowingly violated the International Traffic in Arms Regulations by transmitting this manual to the Chinese intelligence officer without obtaining a required license. 

The intelligence officer continued to request information in 2023, including information about the overhaul and upgrades to the Essex. Specifically, he requested blueprints, especially those related to modifications to the flight deck. Wei provided information related to the repairs the Essex was undergoing, as well as other mechanical problems with similar vessels.

During the alleged conspiracy, the intelligence officer instructed Wei to gather U.S. military information that was not public and admonished him not to discuss their relationship and to destroy any evidence regarding the nature of their relationship and their activities.

“We have entrusted members of our military with tremendous responsibility and great faith,” said U.S. Attorney Randy Grossman for the Southern District of California. “Our nation’s safety and security are in their hands. When a soldier or sailor chooses cash over country, and hands over national defense information in an ultimate act of betrayal, the United States will aggressively investigate and prosecute.”

U.S. Attorney Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

The FBI and Naval Criminal Investigative Service (NCIS) investigated the case.

Assistant U.S. Attorneys John Parmley and Fred Sheppard for the Southern District of California and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

United States v. Wenheng Zhao, Central District of California

A U.S. Navy servicemember, Petty Officer Wenheng Zhao, aka Thomas Zhao, 26, of Monterey Park, California, was arrested following an indictment by a federal grand jury, charging him with receiving bribes in exchange for transmitting sensitive U.S. military information to an individual posing as a maritime economic researcher, but who was actually an intelligence officer from the PRC.

The indictment alleges that Zhao, who worked at Naval Base Ventura County in Port Hueneme and held a U.S. security clearance, received bribes from a Chinese intelligence officer in exchange for violating his official duties as a U.S. sailor by, among other actions, disclosing non-public sensitive U.S. military information.

Beginning in August 2021 and continuing through at least May 2023, at the Chinese intelligence officer’s direction, Zhao allegedly violated his official duties to protect sensitive military information by surreptitiously recording, and then transmitting to the intelligence officer, U.S. military information, photographs and videos. According to the indictment, the Chinese intelligence officer told Zhao that the intelligence officer was a maritime economic researcher seeking the information for investment decisions.

In exchange for bribes, Zhao allegedly sent the Chinese military officer non-public and controlled operational plans for a large-scale U.S. military exercise in the Indo-Pacific Region, which detailed the specific location and timing of Naval force movements, amphibious landings, maritime operations and logistics support.

The indictment further alleges that in exchange for bribes, Zhao also photographed electrical diagrams and blueprints for a radar system stationed on a U.S. military base in Okinawa, Japan.

The intelligence officer allegedly directed Zhao to conceal their relationship and to destroy evidence of the unlawful and corrupt scheme.

In exchange for the sensitive information Zhao provided – information Zhao accessed as a result of his position within the U.S. Navy – the Chinese intelligence officer paid Zhao approximately $14,866, the indictment alleges.

“By sending this sensitive military information to an intelligence officer employed by a hostile foreign state, the defendant betrayed his sacred oath to protect our country and uphold the Constitution,” said U.S. Attorney Martin Estrada for the Central District of California. “Unlike the vast majority of U.S. Navy personnel who serve the nation with honor, distinction and courage, Mr. Zhao chose to corruptly sell out his colleagues and his country.”

If convicted, Zhao faces a maximum penalty of 20 years in prison. 

The FBI Los Angeles Field Office’s Counterintelligence and Cyber Division and NCIS investigated the case. IRS Criminal Investigation provided substantial assistance. 

Assistant U.S. Attorneys Annamartine Salick, Sarah Gerdes, Christine Ro and Kathrynne Seiden of the Terrorism and Export Crimes Section for the Central District of California are prosecuting this case. Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section is providing substantial assistance.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Former NBA Player Terrence Williams Sentenced To 10 Years In Prison For Defrauding The NBA Players’ Health And Welfare Benefit Plan

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that TERRENCE WILLIAMS was sentenced today by U.S. District Judge Valerie E. Caproni to 10 years in prison for leading a sprawling scheme to defraud the National Basketball Association’s (“NBA”) health and welfare benefit plan out of more than $5 million.  WILLIAMS previously pled guilty to conspiracy to commit health care and wire fraud and aggravated identity theft.

U.S. Attorney Damian Williams said: “Williams led a wide-ranging scheme to steal millions of dollars from the NBA Players’ Health and Welfare Benefit Plan.  Williams recruited medical professionals and others to expand his criminal conspiracy and maximize his ill-gotten gains.  Williams not only lined his pockets through fraud and deceit, but he also stole the identities of others and threatened a witness to further his criminal endeavors.  For his brazen criminal acts, Williams now faces years in prison.”   

According to the Indictment, public court filings, and statements made in court:

The NBA Players’ Health and Welfare Benefit Plan is a health care plan providing benefits to eligible active and former players of the NBA and their family members.  From at least 2017 through at least 2021, TERRENCE WILLIAMS and more than a dozen others engaged in a widespread scheme to defraud the Plan by submitting and causing to be submitted fraudulent claims for reimbursement of medical and dental services that were not actually rendered.  Over the course of the scheme, the defendants submitted and caused to be submitted to the Plan false claims totaling at least approximately $5 million.

WILLIAMS orchestrated the scheme to defraud the Plan.  WILLIAMS recruited other Plan participants to defraud the Plan by offering to provide them with false invoices to support their fraudulent claims.  WILLIAMS’s co-defendants, including a dentist in California and doctors in California and Washington State, provided WILLIAMS with fraudulent invoices that WILLIAMS sent to other co-conspirators.  WILLIAMS also recruited non-medical professionals to copy invoices made by medical offices, which WILLIAMS provided to co-conspirators, and which were used to defraud the Plan.  WILLIAMS conspired with others to submit fraudulent claims to the Plan in exchange for kickback payments to WILLIAMS of at least $300,000.

To verify that certain services were medically necessary, the Plan sometimes requires participants to provide a letter of medical necessity from medical providers, establishing that necessity of the provided services.  WILLIAMS fraudulently created and transferred letters of medical necessity for three co-conspirators.

WILLIAMS also impersonated others in furtherance of the scheme.  WILLIAMS pretended to be employees of the Plan’s administrative manager.  In one instance, WILLIAMS created an email account designed to appear to be an email account used by the Plan’s administrative manager.  WILLIAMS used that account to attempt to frighten a co-defendant so that the co-defendant would re-engage with WILLIAMS and would pay kickbacks to WILLIAMS.

On other occasions, WILLIAMS used another email account he created to threaten another co-defendant — a doctor who created fraudulent invoices for WILLIAMS.  WILLIAMS used this email account to pretend to be employees of the Plan’s administrative manager and demand that this co-defendant pay WILLIAMS a “fine” or the “employees” would tell the authorities about the submission of fraudulent invoices.  Through these threats and deception, WILLIAMS obtained approximately $346,000 from this particular co-defendant.

In or about April 2022, after WILLIAMS was charged and arrested in this case and while on pretrial release, WILLIAMS texted threats to a witness, including that the witness was “talking way to[o] f[---]ing much,” to “shut the f[--]k up,” and “me spitting in your face is exactly what you’ll see.”  Following a motion by the Government on May 6, 2022, as a result of this obstructive conduct, Judge Caproni remanded WILLIAMS.

In addition to his prison term, WILLIAMS, 36, of Seattle, Washington, was sentenced to three years of supervised release and ordered to forfeit $653,672.55 and to pay restitution in the amount of $2,500,000. 

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

Attorney General James, DEC Commissioner Seggos Secure $2.8 Million from New York Company for Air and Water Pollution in Delaware County

 

Joint Settlement with the Federal Government Will Require FrieslandCampina to Drastically Cut Air and Water Pollution in Delaware County

New York Attorney General Letitia James and New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today announced a settlement with FrieslandCampina Ingredients North America, Inc. (Friesland) over numerous violations of state and federal environmental laws at its facility in Delhi, New York. For years, Friesland’s manufacturing facility was emitting dangerous air and water pollution into the surrounding community, putting public health at risk. The proposed consent decree, reached with the U.S. Environmental Protection Agency, the U.S. Department of Justice, and the state of New York, requires Friesland to come into full compliance with environmental protection laws and pay a penalty of $2.88 million. New York will receive $1.44 million to fund projects that benefit public health and the environment in the Delhi area.

“Every New Yorker has a fundamental right to clean air and water, and companies have a fundamental obligation to protect public health and the environment wherever they operate,” said Attorney General James. “For years, FrieslandCampina ignored their obligation and the law, and as a result, put New Yorkers at substantial risk. This settlement reflects my office’s continuing commitment to protecting the environment and holding those who break our environmental and public health laws fully accountable. I want to thank the Department of Justice and the New York Department of Environmental Conservation for their continued partnership in this effort.”

“DEC is committed to ensuring the safety of New York’s air and water for all and will continue to work hand-in-hand with our state and federal partners to hold those who violate our strict environmental laws accountable,” said Commissioner Seggos. “Thanks to the partnership with Attorney General James, U.S. Environmental Protection Agency, and the U.S. Department of Justice, this joint enforcement action and substantial penalty will require FrieslandCampina to improve its operations, protect Delhi residents, and fund projects that will benefit the environment in the surrounding community.”

Despite being a major emitter of toluene — a toxic chemical listed as a hazardous air pollutant under the federal Clean Air Act — Friesland violated both the Clean Air Act and state laws by, among other things, failing to accurately report these emissions, failing to obtain the proper air permits for them, and failing to install necessary technologies to limit the air releases of toluene. Exposure to toluene can damage the nervous system and harm kidney, liver, and immune function. Toluene emissions also contribute to the formation of ground-level ozone, or “smog,” and are harmful to public health and the environment. 

Friesland’s water discharges also routinely violated the federal Clean Water Act by containing pollutants at levels that threatened drinking water supplies and the local aquatic environment. On multiple occasions, the facility discharged cooling water at temperatures that exceeded limits in its New York-issued permit and introduced untreated pollutants into the Village of Delhi’s wastewater treatment plant in quantities that can pass through or interfere with treatment. All these discharges were released, either directly or indirectly, to the West Branch of the Delaware River — a world-class wild trout fishery and part of the New York City water supply system. 

As a result of state and federal governments’ enforcement action, Friesland has already completed approximately $6 million of work to come into compliance with its requirements under state and federal environmental law. This includes installing equipment to reduce toluene emissions by 95 percent and upgrading treatment of its process wastewaters. In today’s settlement, Friesland committed to spend an additional roughly $1.44 million to help reduce the company’s discharges of heated water into the West Branch of the Delaware River by 85 percent.

Attorney General James and Commissioner Seggos thank the U.S. Environmental Protection Agency and Department of Justice for their collaboration and partnership on this matter.

Attorney General James has been a leader in fighting to protect New Yorkers' access to clean water and a clean environment. She recently joined a bipartisan, multistate coalition opposing a proposed settlement with 3M for contaminating drinking water supplies. This past February, Attorney General James obtained a preliminary injunction against an aggregate manufacturing and hazardous waste incineration facility requiring the facility to install a dust control system to prevent harmful air emissions of microscopic particles and crystalline silica. This past March, Attorney General James led a lawsuit with DEC Commissioner Seggos against 29 New York companies for illegally dumping waste. In May 2022, Attorney General James brought a lawsuit against three New York City bus companies for violating city and state bus idling laws and causing significant air pollution. In May 2020, Attorney General James led a coalition of nine attorneys general to sue the Trump administration for limiting enforcement of environmental protection laws.

Statement from Governor Hochul in Response to Long Island Rail Road Derailment

 

"I have been briefed on the train derailment on the Long Island Rail Road near Jamaica Station this morning. State personnel, including MTA officials, are currently at the scene assisting with emergency response and responding to injuries. Our top priority is ensuring all passengers and railroad workers are safe and that train service resumes as quickly as possible."

MAYOR ADAMS ANNOUNCES RECORD-BREAKING YEAR FOR CREATING AND CONNECTING NEW YORKERS TO AFFORDABLE HOUSING

 

Adams Administration Produced More New Supportive Homes and Homes for Formerly Homeless New Yorkers in Fiscal Year 2023 Than Any Year in City’s History

With Shelter Population at Record High Resulting From Massive Influx of Asylum Seekers, Mayor Adams Eliminated 90-Day Rule and Administration Connected More New Yorkers to Permanent Homes With CityFHEPS Than Any Year Since Program’s Creation

Nearly 27,000 Affordable Homes Created and Preserved Includes Second Highest Number of New Affordable Homes Created in One Year

Even With Most Funding for Affordable Housing in City’s History, Lapse of Key Affordable Housing Incentive Threatens to Halt Progress Without Action in Albany

New York City Mayor Eric Adams today announced landmark progress in his efforts to tackle the city’s affordable housing crisis and connect New Yorkers to safe, high-quality, affordable homes. In Fiscal Year 2023 (FY23), the administration produced 26,682 affordable homes through new construction and preservation deals closed by the New York City Department of Housing Preservation and Development (HPD), the New York City Housing Authority (NYCHA), and the New York City Housing Development Corporation (HDC) — a 22 percent increase over the prior year. That total includes 12,278 homes that will be newly constructed, the second-highest number of new affordable homes funded in one year since tracking began in 1976. HPD alone increased their affordable housing production by 45 percent over FY22.

The Adams administration also broke several records in its efforts to create and connect the most vulnerable New Yorkers to permanent affordable housing. HPD financed the highest number of supportive homes in city history, as well as the highest number of homes for New Yorkers who formerly experienced homelessness in a fiscal year since tracking began in 2014. As Mayor Adams advanced a package of reforms to the City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) housing voucher program and eliminated the 90-day length-of-stay requirement for New Yorkers in shelter to be eligible for the vouchers, DSS connected more New Yorkers to permanent housing using CityFHEPS vouchers than in any other year in the program’s history.

“Our city declared a housing emergency five decades ago, and five decades later, the problem is worse than ever. That’s why my administration is doing everything to flip the script — speeding the production of affordable housing, preserving the housing stock we already have, and slashing red tape to get New Yorkers out of shelters and into permanent homes — and today, the data shows that we are succeeding,” said Mayor Adams. “In the last fiscal year, we built more new supportive homes and homes for those New Yorkers formerly experiencing homelessness than any year in New York City history, connected more New Yorkers to permanent housing using CityFHEPS vouchers than any year in program history, and created and preserved 45 percent more homes than in the previous year. But without action from our partners in Albany, our historic progress will stall. A new and improved 421-a is crucial to getting new housing built, and this year, we’ve seen the way it makes a difference.”

“Since the start of this administration, we knew that addressing the housing crisis required two separate but interconnected strategies: improving how we connect New Yorkers to permanent housing and building a lot more housing,” said First Deputy Mayor Sheena Wright. “I’m so proud of the records we’re setting, thanks to the hard work of HPD, HDC, NYCHA, and DSS. Our work is far from done — and we’ll continue pushing to ensure we’re using every tool we can to create new housing. New Yorkers cannot wait any longer.”

“The 26,682 homes financed last year represent a sign of New York City’s strong recovery and our administration’s commitment to New Yorkers in need of affordable housing,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “Mayor Adams, HPD, HDC, NYCHA, and DSS, along with former Chief Housing Officer Jessica Katz, broke administrative barriers to provide landmark support to tenants, those experiencing homelessness, and those who once did. From the increase in Housing Connect approvals and therefore housing placements to the most homeless and supportive homes produced in a fiscal year, to efforts to move more people with a CityFHEPS voucher into permanent housing, this city said no to old practices that kept people out of homes and yes to action that will make New York City more affordable and stronger after the challenges of the COVID crisis, high interest rates, and more.”

“Today’s announcement demonstrates the city’s dual commitment to streamlining access to safe, stable housing and increasing the availability of affordable housing in the city,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Thank you to our partners across government who have made these milestones possible and for working tirelessly to meet our shared goal of finding every New Yorker a permanent home.”

“Behind all the numbers is a New Yorker who will have a home they deserve, in a neighborhood of their choice — that’s what we’re fighting for and will continue to deliver for the city we love,” said HPD Commissioner Adolfo Carrión, Jr. “This is a year of many ‘mosts’ for HPD — the most supportive units, most homeless units, most 421-a units, and nearly the most new construction units. I’m extremely proud of our team at HPD for overcoming obstacles, putting in the work, and creating and preserving far more housing than anyone thought possible.”

“NYCHA’s public housing portfolio is a critical component of New York City’s affordable housing stock, and we remain committed to using every available tool to preserve it for future generations of New Yorkers,” said NYCHA CEO Lisa Bova-Hiatt. “The successes of the PACT program are tried and true — enabling us to bring investment into our properties and enhance the conditions of our aging buildings to the direct benefit of the residents who live there.”

“Since day one, the Adams administration has taken important steps and implemented robust reforms to eliminate barriers to permanent housing while expanding access to city-funded rental assistance for vulnerable New Yorkers. And the numbers speak for themselves — our efforts are clearly headed in the right direction,” said DSS Commissioner Molly Wasow Park. “In FY23, we connected a record number of New Yorkers to permanent housing using CityFHEPS vouchers while significantly increasing placements from shelter, and we’re increasing overall placements to supportive housing by more than 40 percent. DSS is also implementing bold solutions to create housing opportunities for New Yorkers in need, including the innovative use of social service contracts to increase affordable housing options, piloting a housing-first model, and partnering with HPD on projects to create more deeply affordable housing. We look forward to building on this progress as we collaboratively work to address homelessness and housing insecurity in New York City.”

“Today’s announcement reflects the city’s significant progress in expanding the supply of affordable housing, improving the quality of our public housing stock, and responding to the needs of those experiencing or at risk of homelessness,” said HDC President Eric Enderlin. “HDC is proud to join our partners across the administration and our many public and private partners in providing our fellow New Yorkers with the housing opportunities and supportive services they need to thrive amidst ongoing economic challenges. As we aim to deliver even more affordable housing in the years ahead, we call on our partners at every level of government to help us secure the resources needed to ensure that all New Yorkers have a stable, affordable, and decent place to call home.”

“Every new home created or financed is a step toward a more affordable New York City. The Department of City Planning is working every day to support new affordable housing in every neighborhood of the city, in conjunction with smart infrastructure and environmental investments,” said New York City Department of City Planning Director and City Planning Commission Chair Dan Garodnick. “Together, we can ‘Get Stuff Built’ and ‘House Our Neighbors.’”

“Over the last several years, PACT has proven to be an important and effective solution for renovating public housing developments following decades of federal disinvestment,” said NYCHA Executive Vice President for Real Estate Development Jonathan Gouveia. “As the largest public housing authority in the U.S., NYCHA will continue to lead the way with this innovative program that delivers tangible results for residents across the five boroughs.” 

The Adams administration has committed $24 billion for affordable housing — the most in New York City’s history. This is just part of the administration’s work under Mayor Adams’ “Housing Our Neighbors” and “Get Stuff Built” plans and progress towards the city’s “moonshot” goal of meeting the need for 500,000 new homes over the next decade. In the coming months, Mayor Adams will take steps to advance his “City of Yes for Housing Opportunity” proposal with changes to zoning citywide to unlock potential for more new housing in every corner of the city.

Amid a crisis that has brought more than 95,000 asylum seekers to New York City and more than doubled the city’s shelter population in approximately a year to more than 107,000, the Adams administration took extraordinary steps that proved successful in connecting New Yorkers in the shelter system to permanent affordable housing and created more housing to serve the most vulnerable. In FY23, DSS helped 15,000 households move out of shelters and into permanent housing — 18 percent higher than the prior fiscal year. Through a series of policy changes and process improvements, DSS also increased placements in supportive housing by 43 percent, year over year. HPD and HDC approved 9,003 households for new, affordable homes through Housing Connect lotteries — a 37 percent increase over the prior year — while connecting 2,531 households who formerly experienced homelessness to HPD-financed homes, an increase of 15 percent.

Despite rising housing costs due to increasing interest rates, inflation, construction costs, and insurance rates, HPD additionally financed the most homes for New Yorkers who formerly experienced homelessness since tracking began in 2014 with 3,574 homes now in progress. That figure represents 15 percent of the agency’s overall housing production — the highest share of total production since tracking began in 2014. HPD also produced more supportive housing than any year on record with 1,923 units now in progress, representing 8 percent of total production — also the highest share of total production since tracking began in 2014.

Nearly one-quarter (23 percent) of all homes that HPD financed last year will serve extremely low-income households, those earning between 0 percent and 30 percent of area median income. This figure represents the highest share of total production dedicated to this set of New Yorkers on record since 2014. At the same time, projects that rely on the 421-a affordable housing incentive program made up fully half of the new construction units financed last year.

Through the Street to Housing pilot program that Mayor Adams introduced in November 2022, DSS connected 80 New Yorkers experiencing unsheltered homelessness to supportive housing units. Today, 40 of those individuals have already signed their leases, and their supportive housing units are now their permanent home. The elimination of the 90-day length-of-stay requirement for CityFHEPS made over 500 households — that would have otherwise been required to wait 90 days for a housing voucher — immediately eligible for this powerful tool.

In line with Mayor Adams’ commitment to use every tool available to connect New Yorkers to affordable homes, the city continued to lead the nation in utilizing federal Emergency Housing Vouchers for households in need — distributing all 7,788 allocated from the federal government since 2021 with 90 percent already being utilized to access permanent housing, despite the extreme scarcity of available apartments.

The Adams administration is the first mayoral administration in New York City history to include public housing in its housing plan, and Mayor Adams’ commitment to NYCHA is evident in his groundbreaking efforts to create the Public Housing Preservation Trust. Earlier this week, Mayor Adams visited Nostrand Houses in Brooklyn to inform residents about their opportunity to be the first development to opt into the Trust.

At the same time, through the Permanent Affordability Commitment Together (PACT) initiative, NYCHA has deployed a proven national program to protect aging homes for tens of thousands of public housing residents, while preserving affordability and maintaining strong tenant rights and protections. NYCHA plans to convert a total of 62,000 apartments through this program, which is subsidized by the U.S. Department of Housing and Urban Development and allows the Authority to continue to own the land and buildings.

In FY23, NYCHA converted 2,592 apartments to the Project-Based Section 8 program through the PACT program, representing $922 million in capital repairs for nearly 6,000 residents. To date, NYCHA has used the PACT program to convert 18,018 apartments at 62 developments, representing over $4.3 billion in capital repairs across the city. Another 19,691 apartments at 76 developments are in active planning and are slated for comprehensive repairs and upgrades.

Overall, over 37,000 apartments across 138 developments are in pre-development, under construction, or have completed renovations through the PACT program. This effort represents nearly $8 billion in building upgrades for public housing.

Today’s event took place at 311 11^th Avenue, a new, mixed-income housing project funded in part by the 421-a program with 235 homes affordable to New Yorkers with incomes as low $26,229 for a family of two, or up to 40 percent of area median income. With 938 total units, the Douglaston Development project has been dubbed the largest multifamily rental building in Manhattan and will deliver a new Fire Department of the City of New York Emergency Medical Services Station, which will help reduce emergency response times on the west side of Manhattan.

The expiration of the 421-a affordable housing incentive — the city’s main incentive program for building new affordable housing — has begun to undercut affordable housing production and threatens to derail the administration’s efforts to continue building the housing New Yorkers need — unless Albany acts to replace it. Mayor Adams earlier this year laid out a clear agenda for investments and policy changes needed at the state level to give New York City the tools to create the housing New Yorkers need. Building on important wins in Albany this year — including emergency rent relief for NYCHA residents; a replacement for the J-51 affordable housing preservation program; and the Housing Affordability, Resiliency, and Energy Efficiency Investment Act — Mayor Adams will continue advocating for the state to provide these additional critical tools in 2024.

“Like many New Yorkers, 32BJ members face no greater expense that affects their lives than the skyrocketing cost of rent and housing,” said Manny Pastreich, president, 32BJ. “These days, even a good-paying job does not guarantee you can afford to live in NYC. Thankfully, Mayor Adams has stepped up and used the power of City Hall to uplift the voices of the 8.5 million New York City residents. His voice for the millions of working New Yorkers who need affordable housing is obviously the most important voice our state leaders need to hear. We proudly add 32BJ’s voice to the mayor’s in pushing for proven and effective programs like 421-a.”

“3Eleven is a shining example of how 421-a allows us to deliver 235 vitally needed, deeply affordable residences to the West Chelsea community,” said Jeffrey E. Levine, founder and chairman, Douglaston Development. “Creating housing of this quality for low-income New Yorkers in high-opportunity neighborhoods is crucial to promoting housing equity citywide, and we could not do it without the powerful combination of both Mandatory Inclusionary Housing and 421-a.”

“As a person with the lived experience of being homeless as a child, a single parent, and most recently a single adult, I’m glad to be in the right place at the right time working with the right mayor, who is clearly providing the right solution to homelessness: real affordable housing,” said Shams DaBaron aka “Da Homeless Hero.” “The numbers don’t lie, and from the numbers we’re seeing, a historic amount of affordable housing has been developed, more people are exiting shelter and entering housing quicker, and the administration is proving that by thinking out of the box they can find effective ways to address the lack of affordable housing crisis that has plagued our city. As I consistently have said, the city is moving in the right direction, and I’m confident that at some point, we will be able to reverse the negative impact of previous administrations that talked the talk but didn’t walk the walk when it comes to producing real affordable housing for those of us who need and qualify for it.”

“Older New Yorkers consistently cite the cost of housing as one of their top concerns. So AARP New York congratulates the mayor and his team for financing over 27,000 new units of affordable housing, surpassing their already ambitious goal by more than 30 percent,” said Beth Finkel, New York state director, AARP. “We are particularly pleased that nearly 1,700 of these units will be designated for senior housing, because older adults represent the city’s fastest growing demographic. The 65-plus age group grew 36 percent in the decade from 2011 to 2021, while the under-65 population shrank. Providing sufficient affordable housing for older New Yorkers is critical.”

“We are proud to partner with the city to help solve New York’s housing crisis,” said Thomas Yu, executive director, Asian Americans for Equality (AAFE). “In Manhattan, Queens, and Brooklyn, AAFE is working in close collaboration with the administration to build a range of housing options in support of unstably housed families, low-income seniors, and first-time homeowners. We are encouraged by these new housing production numbers and appreciative of the administration’s efforts to expedite affordable housing construction across the city.”

“These are the kind of results we need if we’re going to overcome this housing crisis,” said Steven Rubenstein, chairman, Association for a Better New York. “Every affordable apartment protected or financed takes years of hard work to achieve, and to deliver nearly 27,000 in a single fiscal year is a major accomplishment. We congratulate Mayor Adams and his entire team, and we thank them for ensuring tens of thousands more New Yorkers will have safe, decent, and affordable apartments to call home.”

“There’s a lot riding on New York’s ability to build new housing, from the city’s future economic competitiveness to solving the homeless crisis and expanding economic mobility,” said Jonathan Bowles, executive director, Center for an Urban Future. “With so much at stake, it’s hugely important that Mayor Adams has championed and supported housing construction at every turn.”

“The city’s housing agencies should be commended for achieving an historic increase in desperately needed new units to help ease the dual affordable housing and homelessness crises,” said Jolie Milstein, president and CEO, New York Association for Affordable Housing. “These numbers demonstrate what can be achieved by the partnership between the affordable housing industry and government housing agencies. Furthermore, this historic production validates what can be achieved through smart zoning financed by sound tax policy. We strongly hope that such policies are extended and expanded in the coming year, because while this progress is encouraging, we must redouble our efforts to tackle this housing crisis." 

“As a leading advocate for affordable housing, the New York City Housing Partnership is proud to play a role in the creation and preservation of affordable housing for New Yorkers,” said Jamie A. Smarr, president and CEO, New York City Housing Partnership. “We will continue to work collaboratively with HPD to streamline the affordable housing creation process, and we congratulate the mayor and his team for this impressive accomplishment.”

“This announcement demonstrates the important role the city government plays in affordable housing production and preservation and should be a reminder that state legislation is urgently needed to further accelerate the city’s efforts to address our housing shortage,” said Kathryn Wylde, president and CEO, Partnership for New York City.

“Given the unprecedented need for supportive housing across the five boroughs, the historic number of units in the pipeline thanks to the city’s financing efforts over the past year is encouraging,” said Pascale Leone, executive director, Supportive Housing Network of New York. “We commend HPD for achieving this important milestone while faced with significant challenges — including the acute staffing shortage that supportive housing providers are also experiencing, which is putting both staff and tenants at risk. While this is a meaningful step forward, we recognize that much more remains to be done, and we hope this forward momentum continues apace.”

“Ending homelessness in New York City will not be easy, but it starts with connecting New Yorkers with housing that they can afford — and that’s exactly what we are celebrating today,” said Christine C. Quinn, president and CEO, Win. “Creating and preserving tens of thousands of units of affordable housing and using vouchers to get a record number of New Yorkers out of shelter are great accomplishments. I look forward to continuing this work with Mayor Adams and our colleagues at DSS and HPD.”

Permits Filed For In Van Nest, The Bronx

 

Permits have been filed to build a five-story healthcare treatment facility at 2003 Cruger Avenue in Van Nest, The Bronx. Located between Sagamore Street and Bronxdale Avenue, the lot is near the Bronx Park East subway station, serviced by the 2 and 5 trains. Michael Perretta under the Cruger LLC is listed as the owner behind the applications.

The proposed 55-foot-tall development will yield 24,744 square feet designated for commercial space. The steel-based structure will also have a 30-foot-long rear yard and 45 enclosed parking spaces.

Adnan Engineering is listed as the architect of record.

Demolition permits will likely not be needed as the lot is vacant. An estimated completion date has not been announced.

Bronx Logistics Center In Hunts Point Achieves LEED-Platinum Certification

 

The Bronx Logistics Center in Hunts Point has officially achieved a LEED v4 Platinum rating, the highest LEED certification granted by the U.S. Green Building Council. Designed by ARCO and developed by Turnbridge Equities and Dune Real Estate Partners, the 1.3-million-square-foot facility is on track to open this year and will be among a small group of LEED Platinum-rated distribution buildings in the country.

The building is located on a 14.2-acre site along East 149th Street near the East River, where construction broke ground in 2021 and topped out in December 2022. The building features 32-foot ceiling spans, 585,000 square feet of warehouse space, and dedicated entrances for flatbed trucks.

There are also over 1,500 covered and surface-level parking spaces.

“We wanted to approach the design and development of Bronx Logistics Center mindfully with respect to sustainability, which can be quite impactful for a project of this scale,” said Turnbridge managing principal Ryan Nelson. “We were already thrilled to be introducing a state-of-the-art, Class A industrial product to New York City, but we’re incredibly proud to be able to couple that with industry-leading sustainability for both the city and the country.”

To improve the building’s overall efficiency, the project team installed an on-site Con Edison electrical substation that will provide power to all 500 electric vehicle charging stations for standard passenger cars and tractor trailers. There is also a 2.9-megawatt solar array on the building’s rooftop, making it one of New York City’s largest private sources of renewable energy.

Additional green-design features include smart water meters, high-efficiency light fixtures, and MERV-13 indoor air filters. To encourage the use of bicycles to and from the logistics center, there is also a designated area for bike storage.

JLL was retained as the exclusive leasing agent for the property.

DEPUTY MAYOR FOR HEALTH AND HUMAN SERVICES ANNE WILLIAMS-ISOM HOLDS BRIEFING ON ASYLUM SEEKER RESPONSE

 

Deputy Mayor Anne Williams-Isom, Health and Human Services: Good afternoon. I'm Anne Williams-Isom, and I'm the deputy mayor for Health and Human Services. We're here today for our weekly asylum seeker briefing. Thank you for joining us. Asylum seekers arriving to our country are seeking to build the American dream. Here in New York City, we are working to give them a shot at that. We continue to respond to the asylum seekers who arrive here with humanity and compassion, even as our city is stretched to its breaking point. More than 95,000 asylum seekers have arrived here since last spring. These are human beings, someone's brother, someone's mother, someone's grandchild.

 

In the absence of a national strategy, our administration has stepped up. We have given them a place to sleep. Yesterday when I was at the Roosevelt, I saw a Pack 'n Play with a little one in there, just desperately trying to get some rest from their journey. We have given them food and blankets and clothing and medicine and legal help. We have enrolled over 18,000 children in our schools and so much more. New York City continues to do more than any other city in this nation, and I'm proud to announce today that in little over a month since we announced our Asylum Seeker Application Health Center, we have assisted migrants in submitting 1,300 asylum applications.

 

This innovative model is the first in the nation to combine government, private law firms and nonprofits to provide asylum application at this scale. Applying for asylum is a critical step to towards work authorization, which is the north star for our administration. Asylum seekers want to work, I can't say that enough. We hear it every day. As the mayor says, often there is nothing more anti-American than not letting people work. We want to thank the more than 30 private law firms that have been working pro bono to help us with these applications under the supervision of experienced immigration lawyers and alongside application assistance and interpreters.

 

Throughout this crisis New Yorkers have stepped up to help their fellow brothers and sisters in need, and they are continuing to do so. Today we are announcing that the city's leading universities have committed to providing undergraduate and graduate student application assistance throughout the fall. This includes four universities of New York schools: Baruch College of City University of New York Schools, Baruch College, City College, Hunter College, and Queens College. Along with Columbia University, New York Law and New York University, all of which will sponsor at least three full days at the clinic this fall giving their students the chance to volunteer as application assistants.

 

These universities are providing the students with an ability to earn credit for their time helping at the center. That's real world learning experience. Both my husband and I, when we attended law school, did clinics in that work and it really helped us to provide for our real life experience as we were young lawyers, coming together from all corners of New York City to help our newest New Yorkers get their applications in so that they can work and begin their quest towards the American dream.

 

But we cannot continue to absorb tens of thousands of newcomers on our own without more help from the state and the federal government. Last week, along with Leader Schumer, Leader Jeffries, Dean Nadler, and members of the New York Congressional Delegation, Mayor Adams met with Homeland Security Secretary Mayorkas to discuss our city's needs related to the asylum seeker crisis. We made it clear that New York City cannot continue to carry the weight of a national problem on our own. This is an all-hands-on-deck moment. We need others to step up and play their role as New York City is doing. This is a humanitarian issue about real people and real lives. Asylum seekers are coming here to seek the American dream. It is time for the rest of the nation to step up.

 

Before I pass it over to Georgina, I want to thank our other partners who have joined us today. The progress we've been able to make has been due to our whole-of-city approach alongside our legal partners and now including a number of our city's academic institutions. With us today, we have Liliana Vaamonde from Columbia Law School, Matt Gewolb from New York Law, Melissa Begg from Columbia School of Social Work, Nathalia Holtzman from Queens College, Tony Liss from City College, Linda Essig from Baruch College, and Mary Cavanaugh from Hunter College.

 

Again, I want to extend the administration's gratitude to each and every law firm, nonprofit, academic institution and fellow New Yorkers from each of the organizations involved in this. When I was at the Harlem Children's Zone, Geoffrey Canada would tell me all the time that despair is contagious, but so is hope. You are giving New Yorkers hope today. We hope that that is contagious and we are able to give the asylum seekers what they need so that they can continue on their journey. This humanitarian crisis has required a whole-of-city response, and each of you are making that possible. Let me now turn the mic over to NYU Provost Georgina Dopico, to say a few words on behalf of all the academic institutions working with us.

 

Georgina Dopico, Interim Provost, NYU: Thank you, Deputy Mayor Williams-Isom, for all that you, Mayor Adams, and your teams have done over the past year and a half to welcome new arrivals to New York. Speaking as someone who came to this country seeking asylum as a child, and who has benefited immensely from programs like this one, I'm especially proud that NYU is joining the city and our fellow institutions of higher education in this important effort to support the newest New Yorkers to build a home here in this city that has long welcomed immigrants and celebrated their many contributions to our vibrant urban life.

 

Since its founding nearly 200 years ago, NYU has been an institution in and of the city. As both the city itself and our university community, communities have grown more diverse, more complex, and more global, NYU has become increasingly, like our partner institutions, institutions in and of the world. In that spirit, we welcome this opportunity to participate in this initiative alongside many of New York's great colleges and universities, and in concert with partners from the public and private sectors to assist the newest members of our community to apply for asylum at the city's Asylum Application Help Center. 

 

We're looking forward to working alongside Columbia School of Social Work, Columbia Law, New York Law School, Baruch College, Hunter College Silberman School of Social Work, Queens College and City College. Together, we and our peer institutions are making a multifaceted commitment. Starting this fall, we'll send cohorts of volunteers, students, faculty and staff to help those seeking asylum complete their applications. We will offer credit bearing courses for students to contribute to this effort that will include actual coursework as well as internships, externships and fellowships.

 

We're honored to be able to contribute what's, perhaps, our most valuable resource, the time and talent of our students, our faculty and our staff to this critical work. Deputy Mayor Williams-Isom, New York City's colleges and universities are ready to help, grateful for the opportunity to collaborate with you and with such wonderful partners and eager to help make asylum possible for our new neighbors. Thank you.

 

Deputy Mayor Williams-Isom: Thank you so much, Georgina. You remind me that we all have a story about how we got here and how we came here. The question we have to ask ourselves is what is history going to say about what we did? What did each of us do in this moment and how do we want history to remember us? Thank you all.

 

Before we open it up for questions, I'd like to go over some of the numbers for this week. As of July 30th, we have 107,900 people in our care, including 56,600 asylum seekers. Over 95,600 people have come through our system since last spring. We have opened 194 sites, including 13 humanitarian relief centers. Last week alone, from July 24th to July 30th, more than 2,300 asylum seekers entered our system.

 

As you all can see, the situation is not letting up and there does not seem to be any end in sight. We call again to our federal government to do more, including naming the asylum seeker crisis a federal emergency, to speed up work authorizations and to enact a national decompression strategy.