MAYOR ADAMS ANNOUNCES $110 MILLION FEDERAL GRANT FOR HUNTS POINT TERMINAL PRODUCE MARKET

 

USDOT Grant Will Help Fund Significant Redevelopment of Produce Market, Protect Jobs, and Improve Community’s Air Quality

 

Funding Builds on Mayor Adams’ “Rebuild, Renew, Reinvent: A Blueprint for New York City’s Economic Recovery” and “Hunts Point Forward” Plans to Make Significant Investments in Produce Market and Local Community Priorities

New York City Mayor Eric Adams today announced that the Hunts Point Produce Market has been selected for a $110 million federal grant to upgrade and improve its facilities. The funding comes from a U.S. Department of Transportation (USDOT) Infrastructure for Rebuilding America (INFRA) grant and will be used to strengthen critical freight movement and improve the environment, public health, and quality of life for the Hunts Point community.

 

“Just two months into my administration, I committed to help kickstart the redevelopment of this critical local and national asset, and, with $110 million, I know this funding will help us take a significant step forward,” said Mayor Adams. “I am grateful to USDOT and all our partners, in and out of government, for fighting for this funding, for our city’s economic comeback, and for the Hunts Point community. I look forward to continuing to work with them to deliver the rest of the funding we need to get this critical project done.”

 

“The Hunts Point Produce Market plays an essential role in the city and the region’s food supply chain and serves as an economic anchor to the neighborhood. The funding from the USDOT is critical in helping us build a modernized market that supports both our economic development and environmental goals for the Hunts Point community,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “I am grateful to the USDOT and to the broad coalition of community and government partners who have now brought us one step closer to realizing the full potential of this project.”

 

“Thank you to the Biden administration and the U.S. Department of Transportation for this historic investment as part of the INFRA grant program, which will allow New York City to strengthen a critical freight and food supply chain,” said Deputy Mayor for Operations Meera Joshi. “This funding will help create a world-class facility that will take into account the needs of the community by reducing emissions and increasing resiliency.”

 

The new produce market will be an approximately 1 million-square-foot, state-of-the-art intermodal freight facility with more than 800,000 square feet of refrigerated warehouse space and 200,00 square feet of ancillary space. The new facility will be compliant with the U.S. Food and Drug Administration’s new Food Safety Modernization Act and will expand much-needed refrigerated warehouse space and pallet capacity — eliminating 1,000 diesel-powered refrigerated trailer units currently idling onsite as additional storage and significantly reducing emissions in the surrounding community. The redevelopment will also improve site circulation and coordination of inbound and outbound traffic, and it will facilitate increased rail usage.

 

The grant application was prepared by the New York City Economic Development Corporation (NYCEDC), the New York City Department of Transportation (NYCDOT), and the New York City Department of Small Business Services (SBS).

 

“By removing 1,000 diesel-powered refrigerated trailer units currently idling on site, this generous grant will significantly reduce pollution and improve air quality in the South Bronx,” said New York City Chief Climate Officer Rohit T. Aggarwala. “Further improvements to truck circulation within the facility and improving access to rail will also result in healthier air for those who live and work in this already overburdened community.”

 

“This critical funding is going to catapult our efforts to transform the produce market into a state-of-the-art environmentally sustainable facility that its 2,000 workers, local businesses, and community neighbors deserve,” said NYCEDC President and CEO Andrew Kimball. “We want to thank Mayor Eric Adams, Senator Schumer, Congressman Ritchie Torres, the Hunts Point Terminal Produce Market Cooperative and its businesses, Teamsters Local 202, and the more than 30 elected officials and organizations who advocated for the produce market to receive this grant.”

 

“This redevelopment plan will include the largest electric truck charging hub in the city — a huge step forward in helping small- and medium-sized businesses at the market to go electric and reducing emissions and improving air quality in the South Bronx,” said NYCDOT Commissioner Ydanis Rodriguez. “We thank Mayor Adams and our sister agencies in securing this federal funding and for putting together this vision to address historic inequity in Hunts Point.”

 

“The redevelopment of the Hunts Point Produce Market is a major boost for the city’s food infrastructure that fortifies the supply chain relied on by thousands of businesses and workers across the five boroughs,” said SBS Commissioner Kevin D. Kim. “This critical investment will support our economy and the local community for years to come, and SBS is proud to help bring this new project to life.”

 

“For far too long, historically overburdened neighborhoods, like Hunts Point, have suffered the impacts of polluting infrastructure,” said New York City Mayor’s Office of Climate and Environmental Justice Executive Director Kizzy Charles-Guzman. “This historic investment in the Hunts Point Produce Market will improve the facility’s energy efficiency and remove carbon, soot, and fossil fuel pollution from our air. Investments like this are crucial to improving health and developing and supporting a green economy in New York City.”

 

“Hunts Point is a critical part of New York City’s food system, and this redevelopment will ensure it remains a vital resource for years to come,” said New York City Mayor’s Office of Food Policy Executive Director Kate Mackenzie. “We thank the federal government and our congressional delegation for working to advance economic development, environmental justice, and food equity through this generous grant.”

 

The produce market distributes over 2.5 billion pounds of produce a year to New York City and the New York metropolitan region. The market employs thousands of New Yorkers and supplies 25 percent of the city’s fresh produce.

 

The produce market is one of the key areas of redevelopment that was outlined in Mayor Adams’ “Rebuild, Renew, Reinvent: A Blueprint for New York City’s Economic Recovery” and his “Hunts Point Forward” plan announced earlier this year. Redeveloping the produce market will:

• Protect and strengthen the food supply chain on the city, regional, and national levels;
• Keep and grow the 2,000 quality jobs at the produce market;
• Reduce emissions on city-owned land in Hunts Point, where residents face a disproportionate burden of environmental hazards relative to the rest of New York City;
• Support market business growth and use the produce market space more efficiently; and
• Create a global model for 21^st-century urban food distribution.

 

“Revitalizing the Hunts Point Produce Market will have a direct economic and environmental impact — not only nationally but especially locally right here in the Bronx,” said Phillip Grant, CEO, Hunts Point Produce Market. “Thank you to our tireless advocate Senate Majority Leader Charles Schumer, our local congressional champion Ritchie Torres, and the Biden administration for recognizing how pivotal, impactful, and essential it is to revitalize our public market. We are hopeful that with the outstanding support we have received from our federal and city leadership that we will be able to secure the additional public support needed to truly revitalize our market and, as a result, significantly improve our regions food infrastructure for generations to come.”

 

NYC PUBLIC ADVOCATE'S STATEMENT ON NYCHA CEO GREG RUSS STEPPING DOWN

 

"Accountability for the most recent crises of management at NYCHA is critical – and as our report showed, there is a lot to account for. At the same time, the truth is that NYCHA’s failures have persisted across chairs, mayors, and governors, and decline has persisted across decades.

"It will not matter who heads NYCHA unless they are willing to face accountability and reality, and implement deep structural changes to recover from the bankruptcy of tenant trust– compounded with the real need for increases in funding across all levels of government. Taking ownership of NYCHA’s past and present failures, rather than passing the buck, is essential to improving its future and the dangerous conditions for hundreds of thousands of New Yorkers paying to live there."

Governor Hochul Signs Legislation to Expand Public Servants' Access to Student Loan Forgiveness

 

Legislation (S.8389-C/A.9523-B) Removes Barriers to Accessing Federal Public Service Loan Forgiveness Program by Clarifying Key Terms, Allowing Employers to Certify Employment

Announces Statewide Outreach Effort to Help Eligible New Yorkers Take Advantage of Federal Time-Limited Public Service Loan Forgiveness Waiver

 Governor Kathy Hochul today signed legislation to expand and simplify access to the federal Public Service Loan Forgiveness program statewide. The new legislation establishes uniformity around what qualifies as full-time employment for the purposes of accessing PSLF and allows public service employers to certify employment on behalf of workers, eliminating substantial barriers to applying for and accessing PSLF.

"If you spend your days working for the people of New York, you shouldn't spend your nights worrying about how to pay us back. This legislation acknowledges the significant contributions of our public servants, first responders, educators and more, by helping unlock federal loan forgiveness for countless members of New York's workforce," Governor Hochul said. "From the workers who ushered us through the pandemic to the everyday heroes who keep New York moving, public-sector and not-for-profit workers deserve to make the most of this benefit - but without headaches, delays, or confusion. I'm proud to sign this legislation that ensures public servants have the clarity and the support they need to access federal loan forgiveness, and I thank my partners in the Legislature for their thoughtfulness on this bill."

PSLF is a federal program that rewards and incentivizes public service work by cancelling a portion of borrowers' federal student loans. The program requires borrowers to be full-time employees of an eligible public service employer and make 120 qualifying payments towards their student loan, after which the remainder of their federal student loan debt is forgiven. Any student loan debt that is forgiven under this program will not be subject to tax under New York State tax law.

Currently, approximately 2.7 million people in New York work in the public or nonprofit sectors. Since 2007, the transformative PSLF program has helped eligible public service workers receive an average of $61,402 in debt relief - providing public servants the opportunity to spend on a mortgage, monthly payments for a car, basic necessities like groceries and gas.

Legislation (S.8389-C/A.9523-B) addresses several well-documented barriers to accessing PSLF by:

• Clarifying the legal definitions of key terms such as, "certifying employment," "employee," "full-time," "public service employer," "public service loan forgiveness form," and "Public service loan forgiveness program;"
• Setting a standard hourly threshold for full-time employment at thirty (30) hours per week for the purposes of accessing PSLF and clarifying standardized prep time to be included in such calculation for faculty and teachers; and
• Allowing public service employers to certify employment on behalf of individuals or groups of employees directly with the U.S. Department of Education.

On October 6, 2021, the Department of Education announced time-limited changes to the PSLF program to make it easier for eligible borrowers to have their federal loans forgiven ("PSLF Waiver"). The PSLF Waiver allows borrowers to count payments made on all federal loan programs or repayment plans toward forgiveness, including loan types and payment plans that were not previously eligible. New Yorkers working in public service - in government or at a not-for-profit - with outstanding student loans may be eligible for forgiveness under the PSLF Waiver even if they were previously denied. Borrowers only have until October 31, 2022, to take advantage of the PSLF Waiver.

Governor Hochul also announced a statewide effort to inform New Yorkers of the PSLF Waiver and encourage eligible workers to apply for loan forgiveness before the end of the PSLF Waiver period. The Department of Financial Services (DFS) has secured commitments from organizations representing more than 8,500 public and not-for-profit employers to distribute information to their workforces in the coming weeks and assist them in applying to the PSLF program before the Waiver expires. Groups joining this outreach pledge include the United Federation of Teachers, Human Services Council, Nonprofit New York, New York Council of Nonprofits, New York Conference of Mayors, and NYS Association of Counties. DFS will also be offering PSLF workshops across the state in the coming weeks. These efforts build on New York's commitment to supporting student loan borrowers.

In August, based on trends identified in DFS examinations of student loan servicers, the Department issued first-in-the-nation guidance outlining expectations for informing borrowers about the PSLF program and best practices to follow. New Yorkers can visit dfs.ny.gov to learn more.

Queens Man Sentenced to Prison and to Pay $842,000 Restitution for Foreign Exchange Fraud and Money Laundering

 

Defendants’ Schemes Targeted the Korean American Community in Queens

 Earlier today, in federal court in Brooklyn, John Won was sentenced by United States District Judge Raymond J. Dearie to a year and a day in prison following his November 2021 conviction at trial on all counts, including securities fraud, wire fraud and money laundering conspiracy, as well as substantive securities fraud.  Won was also ordered to pay $842,076.81 in restitution to the victims of his crimes.  Won’s do-defendant Tae Hung (Kevin) Kang pleaded guilty to securities fraud conspiracy and was sentenced to two years’ imprisonment in December 2021. 

Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict. 

“John Won and Kevin Kang shamelessly defrauded members of the Korean-American community in our district out of their nest eggs and life savings,” said United States Attorney Peace.  “This sentence shows what fraudsters and con men should expect when they target innocent victims—they will be caught, punished and ordered to return their ill-gotten gains.” 

Mr. Peace thanked the United States Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.

Between October 2010 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower.  In furtherance of this scheme, the conspirators issued advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market that guaranteed investors 10% monthly returns at no risk of loss.  In reality, ForexNPower had no successful trading method and their customer accounts suffered substantial losses.

The conspirators also induced investors to purchase stock issued by ForexNPower, by falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to trade foreign currencies.  In truth, the defendant and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements described above. 

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft. 

New York State Economy Added 27,600 Private Sector Jobs in August 2022

The Number of Private Sector Jobs in New York State Grew by 0.3% in August, Rising Faster Than the Nation 

  According to preliminary seasonally adjusted figures released today by the New York State Department of Labor, the number of private sector jobs in New York State increased over the month by 27,600, or 0.3%, to 8,054,900 in August 2022. The number of private sector jobs in the U.S. increased by 0.2% in August 2022.

    New York State's private sector jobs (not seasonally adjusted) increased by 411,800, or 5.4%, over the year in August 2022, which exceeded the 4.4% increase in the number of private sector jobs in the U.S.

    New York State's seasonally adjusted unemployment rate increased from 4.3% in July to 4.7% in August 2022. From August 2021 to August 2022, the unemployment rate (not seasonally adjusted) fell from 6.7% to 4.9%.

    From July to August 2022, New York State's labor force (seasonally adjusted) increased by 32,500. At the same time, the labor force participation rate went up from 60.3% in July 2022 to 60.5% in August 2022, its highest rate since March 2020.

    The number of private sector jobs in New York State is based on a payroll survey of New York businesses conducted by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). Monthly payroll employment estimates are preliminary and subject to revision as more complete data become available the following month. The BLS calculates New York State’s unemployment rate based partly upon the results of the monthly Current Population Survey (CPS) of approximately 3,100 households in the State.

Note: Seasonally adjusted data are used to provide the most valid month-to-month comparison. Non-seasonally adjusted data are valuable in year-to-year comparisons of the same month – for example, August 2021 versus August 2022.

Statewide Industry Employment

August 2022 – Seasonally Adjusted

• On a net basis, the total number of nonfarm jobs in the state increased by 25,600 over the month, while private sector jobs rose by 27,600, in August 2022.

• At the same time, the total number of nonfarm jobs in the nation increased by 315,000, while private sector jobs increased by 308,000.

NYS Job Growth Exceeded the Nation's

Over-the-Month % Change in Total Nonfarm & Private Sector Jobs, July – August 2022  

Total Nonfarm and Private Sector Jobs Increased in August 2022 Total Nonfarm and Private Sector Jobs (in 1000s), August 1990 – August 2022 Statewide Unemployment August 2022 – Seasonally Adjusted In August 2022, the statewide unemployment rate increased from 4.3% to 4.7%. New York City’s unemployment rate increased from 6.0% to 6.6%. Outside of New York City, the unemployment rate increased from 3.1% to 3.2%. The number of unemployed New Yorkers increased over the month by 33,600, from 413,400 in July to 447,000 in August 2022. NYS Unemployment increased in August 2022 Labor Force Statistics,  August 2021, July - August 2022 The Labor Force and Number of Unemployed Increased in August Total Labor Force & Number of Unemployed, August 2010 - August 2022 NYS and US Unemployment Rate Increased Unemployment Rate, NYS & US, August 2010 - August 2022 Unemployment Rate Increased in NYC and Balance of State Unemployment Rate, NYC & BOS, August 2010 - August 2022 Substate and Industry Employment  August 2022 – Not Seasonally Adjusted New York State Exceeded Nation in Job Growth Over-the-Year Change in Total Nonfarm & Private Sector Jobs, August 2021 – August 2022 Note: The sum of sub-state area job estimates will usually differ from the New York State total. This is because the State total is calculated separately from the sub-state areas and is estimated based on an independent sample. The Number of Leisure & Hospitality Jobs Increased by 11.7% Over the Year Over-the-Year Change in Jobs by Major Industry Sector, August 2021 – August 2022 *Educational and health services are in the private sector. Government includes public education and public health services. Note: The responsibility for the production of monthly estimates of state and metro area nonfarm employment by industry moved from the NYS Department of Labor’s Division of Research and Statistics to the U.S. Bureau of Labor Statistics (BLS), starting with the March 2011 estimates. More detailed information on the change is available on the BLS web site. Many economic data series have a seasonal pattern, which means they tend to occur at the same time each year (e.g., retail jobs usually increase in December). Seasonal adjustment is the process of removing seasonal effects from a data series. This is done to simplify the data so that they may be more easily interpreted and help to reveal true underlying trends. Seasonal adjustment permits comparisons of data from one month to data from any other month. In New York State, payroll jobs data by industry come from a monthly survey of 18,000 business establishments conducted by the U.S. Bureau of Labor Statistics. Data are preliminary and subject to revision. Jobs data by industry do not include agricultural workers, the self-employed, unpaid family workers or domestic workers in private households. Labor force statistics, including the unemployment rate, for New York and every other state are based on statistical regression models specified by the U. S. Bureau of Labor Statistics. The state’s unemployment rate is based partly upon the results of the Current Population Survey, which contacts approximately 3,100 households in New York each month.  Jobs and Unemployment Fact Sheet This fact sheet conveys important technical information that will contribute to a better understanding of labor force data (“household survey”), including resident employment/unemployment rates, and jobs by industry data (“business survey”), which are presented in the New York State Department of Labor’s monthly press release. State Unemployment Rates Based on Regression Model Beginning with data for January 1996, unemployment rates for New York State and all other states (as well as New York City and the City of Los Angeles) have been estimated using time-series regression statistical models developed by the U.S. Bureau of Labor Statistics (BLS). Advantage of Regression Model Use of a time-series regression model reduces the month-to-month variation in unemployment rates and resident employment by reducing variation caused by sampling errors and other components of statistical noise (irregularities). Benchmarking of Estimates Once each year, labor force estimates, such as civilian labor force and the unemployment rate, are revised to reflect updated input data including new Census Bureau populations controls, newly revised establishment jobs data and new state-level annual average data from the Current Population Survey (CPS). As part of this procedure, all state figures are reviewed, revised as necessary and then re-estimated. This process is commonly referred to as “benchmarking.” Changes in Methodology Labor force estimates are now produced with an improved time-series regression model, which utilizes “real-time” benchmarking. “Real-time” benchmarking reduces end-of-year revisions, which also means that major economic events will be reflected in a more timely manner in state labor force estimates. In addition, the new methodology includes an updated way of estimating for sub-state areas (e.g. counties, metro areas) the number of unemployed who are new entrants or re-entrants into the labor force. This change in methodology will result in lower unemployment rates in some areas and increased rates in others. Unemployed and UI Beneficiaries The estimate of the number of unemployed includes all persons who had no employment during the reference week (the week including the 12th of the month), were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week. Unemployment insurance (UI) beneficiaries include those who apply for and qualify for UI benefits. Consequently, the estimate of the number of unemployed and the number of UI beneficiaries do not necessarily move in tandem. Jobs Data Jobs data are obtained from a separate joint federal-state survey of business establishments. The survey, called the Current Employment Statistics of Establishments, has a sample size of 18,000 establishments in New York State. It excludes self-employed workers, agricultural workers, unpaid family workers and domestic workers employed by private households. This data represents a count of jobs by place of work. Data for each month is revised the following month as more complete information becomes available.

NYC PUBLIC ADVOCATE RELEASES REPORT ON COMBATING ROOT CAUSES OF GUN VIOLENCE

 

Today, the same week as the 1994 Crime Bill was passed twenty-eight years ago, New York City Public Advocate Jumaane D. Williams has released a new report, Reimagining Gun Violence Prevention and Public Safety for New York City, examining the root causes of gun violence in zip codes across the city, factors that compound that violence, and solutions which address the problem holistically, focusing on underlying factors rather than simply law enforcement. The report presents compelling visual evidence that areas of New York City with increased housing and food insecurity, lack of economic or educational opportunity, and limited access to mental and physical healthcare are the same areas which experience the trauma of elevated levels of gun violence. These underlying factors, it argues, create an environment for increased devastation and loss, whether from the COVID-19 pandemic or the epidemic of gun violence that it exacerbated. The Public Advocate will detail the report's findings at 12:00 PM today in a virtual press conference with municipal leaders from across the country.  New data analysis by the Office of the Public Advocate in the report depicts in stark relief the disparities and compounding issues in neighborhoods with more gun violence incidents, and charts propose remedies on the local, state, and federal level. Concretizing and publicizing these correlations is vital to reimagine public safety in the public consciousness, to confront the harm that ignoring these factors has caused, and to push leaders to commit to solutions that have actual positive impact, rather than perpetuating patterns of the past. Chief among these solutions is providing equitable resources across these quality-of-life issue areas to combat decades of disinvestment and reverse the damage done. “As our report demonstrates with striking clarity, the blocks across our city that are traumatized with the most violence in this moment are the same neighborhoods dealing with the highest risk and death from COVID, highest unemployment, highest mental distress calls, highest cost of housing, the highest school absences,” said Public Advocate Jumaane D. Williams of the report’s findings. “All of those things together encompass a problem that’s actually fixable if we want to invest political and financial capital to solve it.”  As discussed in the report, in 2019, New York City was the safest it had been in decades. The City invested in proven solutions like Crisis Management Systems and the Summer Youth Employment Program. These and other programs had an impact in undoing the harm and disparities of disinvestment in certain communities. When the pandemic drained city revenues, critical public safety and service programs were limited, and violence began to rise. In areas which were already disproportionately disadvantaged, this spike was greater and pain deeper. The report comes amid a troubling anniversary. This week in 1994, President Bill Clinton signed the Violent Crime Control and Law Enforcement Act of 1994 into law. Instead of addressing systemic inequities or supporting communities with rising crime, the bill’s emphasis on lengthy and punitive prison sentences trapped unprecedented numbers of Americans in more jails for longer, tearing apart families and communities. The “tough on crime” legislation fueled and grew a prison industrial complex, and its impacts continue to reverberate and build on themselves as new generations are ensnared by an ever growing carceral state.  “The truth is that many of us have been making the argument for years that underlying factors are at the root of both creating an environment for and leading the work against crime and violence. We were largely ignored, and the results speak for themselves,” continued Public Advocate Williams. “We’re locking up the kids of the parents we locked up thirty years ago, and if we continue to ignore the evidence that this report puts forth, in favor of overpolicing, we will see the same results, the same harm, for decades to come.” On the local level, the report recommends:   Supporting the Summer Youth Employment Program   Expanding access to affordable, fresh, and nutritious food, especially in food deserts and for New Yorkers on food stamps   Greening vacant lots, planting trees, cleaning up parks, expanding community gardens, and building a more environmentally resilient city   Building and protecting deeply affordable housing    Hiring additional HPD and DOB inspectors to investigate housing violations   Investing in Crisis Management Systems    Developing and elevating an alternative non-police response to mental-health related calls   Passing legislation to: 1) establish a commission to study and make recommendations regarding the root causes of violence in the City, 2) create an interagency task force to be charged with studying the obstacles faced by children of incarcerated parents, from arrest to reunification, 3) establish an emergency student food plan, 4) establish a domestic violence survivor housing stability program, and more On the state level, the report supports:   Passing Good Cause Eviction protections   Investing one billion dollars in gun violence prevention, victims’ services, and youth programming   Passing legislation to: 1) address the school-to-prison pipeline, 2) establish a center for firearm violence research in New York State, 3) ensure that New Yorkers with substance use disorders, mental health concerns, and other disabilities have an off-ramp from the criminal legal system to obtain treatment and support in their communities, and more On the federal level, the report proposes:   Expanding law enforcement and interagency cooperation to stop gun trafficking    Passing legislation to: 1) establish new background check requirements for firearm transfers between private parties, 2) establish federal grant programs and related entities to support violence intervention initiatives, 3) establish the Advisory Council to Support Victims of Gun Violence, 4) establish a framework to regulate handguns as consumer products, and more  Read the full report on Read the full report on Reimagining Gun Violence Prevention and Public Safety for New York City here.

New York-Presbyterian/Queens Hospital Settles Allegations of Federal Health Care Fraud for Over $2.5 Million

 

Hospital Resolves Claims that a Former Physician Performed Unnecessary Replacements of Batteries in Implanted Heart Rhythm Devices

 Breon Peace, United States Attorney for the Eastern District of New York, announced a settlement agreement with New York-Presbyterian/Queens Hospital. The settlement agreement, which requires a payment of over $2.5 million, addresses allegations that a former physician at New York-Presbyterian/Queens performed services that were not medically necessary and then billed federal health care programs for those services. The services involved the replacement of implantable cardioverter defibrillator (ICD) pulse generator batteries.

“This more than $2.5 million settlement rectifies that New York-Presbyterian/Queens was paid by the federal government for unnecessary procedures,” stated United States Attorney Peace. “This Office is committed to combatting fraud and abuse of our federal health care programs, especially when such conduct potentially puts patients at risk.”

Procedure Overview

An ICD is akin to a pacemaker. It is placed under a patient’s skin and is designed to ensure that the patient’s heart beats on a regular rhythm. ICDs run on batteries. Like all batteries, ICD batteries will eventually fail, which could lead to disastrous consequences, even death. But replacing an ICD battery involves a surgical procedure, which carries risk. Physicians closely monitor the functioning of ICD batteries so that they replace the batteries when they are nearing the end of their lives, but no earlier. That way, physicians can balance the risks associated with a failing ICD battery against the risk of the procedure needed to replace that battery. Put in more technical terms, the standard of care is to replace an ICD battery only when it reaches what is called the elective replacement interval (ERI) as determined by device interrogation conducted by specially equipped computerized monitors.

Settlement

A physician who was formerly affiliated with New York-Presbyterian/Queens repeatedly replaced ICD batteries earlier than was necessary. That is, he repeatedly replaced ICD batteries before they reached the ERI. Such batteries were functioning normally. He therefore subjected his patients to unneeded and risky surgical procedures. New York-Presbyterian/Queens then submitted claims for payments to federal health care programs for these procedures.

As a result of an internal investigation, New York-Presbyterian/Queens learned of the physician’s conduct. It voluntarily self-disclosed that conduct to the United States Department of Health and Human Services, Office of Inspector General. The settlement here, which requires New York-Presbyterian/Queens to pay $2,588,882.50 to the United States, resolves claims that the conduct violated the federal False Claims Act.

MAYOR ADAMS ANNOUNCES NEW NYCHA LEADERSHIP STRUCTURE, ADVANCING TRANSFORMATION PLAN

 

Chair and CEO Roles Will Be Split, With National Search Underway for Permanent CEO

 

Current NYCHA General Counsel Lisa Bova-Hiatt Will Serve as Interim CEO

New York City Mayor Eric Adams today announced a new leadership structure at the New York City Housing Authority (NYCHA), splitting the roles of NYCHA chair and chief executive officer. Mayor Adams, the U.S. Department of Housing and Urban Development (HUD), and the Office of the U.S. Attorney for the Southern District of New York (SDNY) have begun a national search for a new permanent CEO, and, beginning September 19, 2022, current NYCHA Executive Vice President of Legal Affairs and General Counsel Lisa Bova-Hiatt will serve as interim CEO. Mayor Adams, HUD, and SDNY will continue working together on improving NYCHA and on further reforms under the 2019 federal agreement.

 

The restructuring represents a step forward in the next phase of NYCHA’s Transformation Plan and is consistent with the amendment to NYCHA’s bylaws adopted on June 15, 2022. The separation of these roles establishes a new and more effective leadership structure — aligning NYCHA with the operating structure of public housing authorities nationwide and the leadership structure laid out in NYCHA’s Transformation Plan.

 

“We cannot wait any longer to make transformational changes so NYCHA can provide safe, high-quality homes for New Yorkers,” said Mayor Adams. “I am determined to work with my partners in government to identify the right leaders and the right structure for NYCHA to deliver on our promises to public housing residents. I want to thank Lisa Bova-Hiatt for her dedicated service to our city and for stepping up at this critical time to put NYCHA on the right path.”

 

“Lisa is the right person to guide the NYCHA team, serve the residents, and advance the work that is underway,” said Chief Housing Officer Jessica Katz. “For too long, NYCHA has been underserved and the residents have been forgotten. That will not happen under this administration, and we will work closely with the interim CEO and eventual permanent CEO to ensure that we finally deliver the services and quality of life that NYCHA residents deserve.”

 

“I am honored to take on this role as interim CEO. NYCHA is New York City’s most vital affordable housing, and the hundreds of thousands of New Yorkers who live here deserve consistent leadership,” said incoming NYCHA Interim CEO Lisa Bova-Hiatt. “I look forward to moving the Authority forward through its many reforms and initiatives during these groundbreaking times and to maintain the momentum of NYCHA’s transformation.”

 

“Knowing the residents and NYCHA staff will be led by Lisa in the interim is an important move to continue strengthening NYCHA. As I step back into the role of chair of NYCHA’s Board of Directors, I will remain a resource and partner to Lisa, the NYCHA team, NYCHA residents, and the city,” said NYCHA Chair Gregory Russ. “My commitment to NYCHA remains as strong as ever, and as we strengthen the authority and deliver the Public Housing Preservation Trust together, I feel confident in the future of NYCHA.”

 

About Lisa Bova-Hiatt

 

With more than 25 years of government experience, Lisa Bova-Hiatt has served as NYCHA’s general counsel since February 2020, leading the Authority’s law department and helping to advance the transformation of NYCHA’s organizational structure, operations, management, and policies.

 

Bova-Hiatt was previously the general counsel of the City University Construction Fund and executive university counsel for The City University of New York. Before that, she served as executive director of the New York Governor’s Office of Storm Recovery, where she played an integral role in helping New York state carry out the reconstruction of more than 12,000 homes and hundreds of infrastructure projects in the aftermath of Superstorm Sandy, Hurricane Irene, and Tropical Storm Lee. She also held various roles at the New York City Department of Law, including deputy chief of the tax and bankruptcy litigation division.