MAYOR ADAMS, COMPTROLLER LANDER ANNOUNCE ISSUANCE OF NYC’S FIRST SOCIAL BONDS

 

Social Bond Proceeds Will Finance Over 3,000 Units of Affordable Housing in New York City

 

Meets Growing Investor Demand for Investments That Advance Socially Conscious Goals

New York City Mayor Eric Adams and New York City Comptroller Brad Lander today announced that the city will issue approximately $400 million of taxable general obligation social bonds in October 2022. Proceeds from the sale of these bonds will support more than 3,000 units of affordable housing in New York City and advance the goals of Mayor Adams’ “Housing Our Neighbors: A Blueprint for Housing and Homelessness” plan to provide New Yorkers the safe, high-quality, affordable homes they deserve.

 

This is the city’s first sale of social bonds, which are part of an emerging class of Environmental, Social, and Governance (ESG) bonds that support projects with positive social and environmental outcomes. S&P Global Ratings has provided an opinion that the bonds are aligned with the International Capital Market Association Social Bond Principles, which support projects that fund affordable housing and socioeconomic advancement and empowerment. The S&P opinion is one of the strongest they have issued to date for a social bond issue, assigning grades of “advanced” for use of proceeds and project selection and evaluation.

 

The social bonds are intended to broaden the appeal for the city’s bonds and deepen the investor base by appealing to the strong and growing demand among investors looking for investment opportunities aimed at addressing specific social objectives. As taxable bonds, they are also expected to appeal to pension funds, corporate bond buyers, and asset managers, which are not traditional purchasers of municipal bonds. The proceeds of the sale of these social bonds will be dedicated solely to reimburse city spending on affordable housing projects, prioritizing New Yorkers with the greatest needs.

 

“Building more affordable housing is critical to advancing the vision laid out in our ‘Housing Our Neighbors’ plan,” said Mayor Adams. “This groundbreaking sale of the city’s first social bonds will ensure we are tapping a rising source of investor demand to promote a stronger, more resilient city, while investing in projects that support the positive social and environmental changes we want to see in the world.”

 

“Increasing the supply of genuinely affordable housing is both a critical priority for the City of New York and an attractive investment for socially conscious investors,” said Comptroller Lander. “As demand for ESG investment opportunities grows, the City of New York aims to connect with new investors interested in putting their capital into municipal programs that support more sustainable communities.”

 

In 2021, investors bought approximately $50 billion in new issue municipal ESG bonds, up 79 percent from the previous year. Since 2018, approximately $36 billion of municipal bonds designated as social bonds have been issued, with more than 68 percent designated for affordable housing.

 

This bond offering will finance projects currently in development under the New York City Department of Housing Preservation and Development’s Extremely Low- and Low-Income Affordability (ELLA) program, Supportive Housing Loan Program (SHLP), and Senior Affordable Rental Apartments (SARA) program. The financed projects will provide an estimated 2,452 homes under the ELLA program, 682 homes under the SHLP program, and 153 homes under the SARA program. More than 70 percent of the units are for households making 60 percent or less of area median income ($72,060 for a family of three), and 909 of the homes will provide permanent housing for individuals and families formerly experiencing homelessness.

 

All of the projects financed are new construction and must comply with the Enterprise Green Communities Criteria (EGCC) or the New York City Overlay to the EGCC or pursue Leadership in Energy and Environmental Design (LEED) v4, gold or platinum certification. Subject to market conditions, the pricing for the $400 million of taxable fixed-rate bonds will take place on Tuesday, October 4, 2022, via negotiated sale led by Citigroup and Morgan Stanley as joint lead managers.

 

Concurrently with the taxable bonds, the city will sell $950 million of tax-exempt fixed-rate bonds. Subject to market conditions, pricing for the tax-exempt fixed-rate bonds will also take place on Tuesday, October 4, via negotiated sale through an underwriting syndicate led by book-running lead manager Citigroup, with BofA Securities, J.P. Morgan Securities, Jefferies, Loop Capital Markets, Ramirez & Co., RBC Capital Markets, Siebert Williams Shank, and Wells Fargo Securities serving as co-senior managers. Retail investors will have priority in placing orders for the tax-exempt bonds during a one-day retail period beginning on Monday, October 3, 2022.

 

The preliminary official statements for the tax-exempt and taxable fixed rate bonds are expected to be available by September 20, 2022, on MuniOS.com.

 

This is not an offer to sell or a solicitation of an offer to buy bonds. Bonds may only be purchased through a broker. Prospective investors are encouraged to carefully review the preliminary official statement, which describes the bonds.

Governor Hochul Announces MTA to Install Security Cameras in Every New York City Subway Car

New Funding Supplements Existing Cameras in Train Cars and Stations

Additional Installation of Cameras Results in Entire Subway Fleet Outfitted With Two Cameras in Each Train Car

Latest Measure by Governor Hochul to Deter Crime and Enhance Subway Safety 

 Governor Kathy Hochul today announced the Metropolitan Transportation Authority New York City Transit has received a $2 million award, through the Urban Area Security Initiative federal grant program, which will provide funding for the installation of cameras across the entire fleet of subway cars, enhancing security coverage, and, most importantly, increasing passenger confidence in mass transit safety. The Urban Area Security Initiative is a program under the U.S. Department of Homeland Security Preparedness Grants. The funding will enable the purchase of 5,400 cameras to be installed on 2,700 New York City Transit subway cars, two per car. Additionally, the program will fund approximately 3,800 cameras expanding coverage in approximately 130 subway stations.

"My number one priority as Governor is keeping New Yorkers safe," Governor Hochul said. "I am proud that we will be installing cameras on all Subway cars - expanding our security capabilities, deterring crime, and providing our law enforcement with support. As we continue welcoming riders back to the transit system, we will continue doing everything in our power to keep riders safe."

The funding will further strengthen NYC Transit's existing security network of more than 10,000 cameras across all 472 subway stations. The new funding covers the cost of camera installation on 6,355 cars, allowing the MTA to fully outfit every subway car with cameras -- supplementing an existing camera pilot program that includes 200 cameras in 100 subway cars. Additionally, funding from the Subway Action Plan totaling $3.5 million will enable the purchase of 7,310 cameras on 3,655 cars, two per car. The total funding to complete the installations equals $5.5 million. When installation begins an additional 200 train cars per month will have cameras installed until the entire subway car fleet is camera-equipped, which is anticipated to occur sometime in 2025. In addition, when new R211 subway cars are delivered starting in early 2023 they will already be camera-equipped.

This is the latest measure Governor Hochul has taken to deter crime and enhance the safety of New York City Subways. In June, Governor Hochul signed legislation to protect roughly 11,000 more transit workers against assault and harassment. The legislation extended criminal charges to individuals who assault station customer assistants, ticket or revenue collectors, maintenance workers, repairers, cleaners, and their supervisors, who were not protected under previous laws.

State Labor Department Releases Preliminary August 2022 Area Unemployment Rates

The New York State Department of Labor today released preliminary local area unemployment rates for August 2022. Rates are calculated using methods prescribed by the U.S. Bureau of Labor Statistics. The State’s area unemployment rates rely in part on the results of the Current Population Survey, which contacts approximately 3,100 households in New York State each month. To recap last week’s statewide press release, New York State’s seasonally adjusted unemployment rate increased from 4.3% in July to 4.7% in August 2022.

Local Area Unemployment Rates*(%)
August 2021 and August 2022
(Not seasonally adjusted)

The data in the preceding table are not seasonally adjusted, which means they reflect seasonal influences (e.g., holiday and summer hires). Therefore, the most valid comparisons with this type of data are year-to-year comparisons of the same month, for example, August 2021 versus August 2022. Labor force data for the current month are preliminary and subject to revision as more information becomes available the following month. Revised estimates for prior months are available at: https://dol.ny.gov/local-area-unemployment-statistics

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. These are the most up-to-date estimates of persons employed and unemployed by place of residence. Estimates are available for New York State, labor market regions, metropolitan areas, counties and municipalities with population of at least 25,000.

Unemployment Rates By County,
New York State,
August 2022

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.

The New York State Department of Labor is an Equal Opportunity Employer/Program.

Auxiliary aids and services are available upon request to individuals with disabilities. 

Former Disaster Relief Consultant And Retired NYPD Inspector Pleads Guilty To Conspiring To Commit Federal Program Fraud In Connection With New York City’s Hurricane Sandy Recovery Efforts

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced that WALTER MELNICK, a retired Inspector of the New York City Police Department and a disaster relief consultant, pled guilty to conspiring to commit federal program fraud in connection with his work for an Illinois-based consulting firm (“Company-1”) that provided Hurricane Sandy-related recovery services to the City of New York.  MELNICK surrendered today and pled guilty before U.S. Magistrate Judge Valerie Figueredo in federal court in Manhattan.  The case has been assigned to U.S. District Judge Victor Marrero.

U.S. Attorney Damian Williams said:  “As New York City worked to recover from the devastation of Hurricane Sandy, Walter Melnick conspired to misuse funds that were allocated to heal the city in the wake of this disaster, instead attempting to use the funds for his own benefit.  I commend the Department of Investigation and this Office for holding to account those who conspire to defraud invaluable federal programs.”

DOI Commissioner Jocelyn Strauber said:  “This defendant was hired to help New York City with Hurricane Sandy relief efforts; instead, he conspired to defraud the City’s Office of Management and Budget of almost three hundred and ninety thousand dollars in federal disaster recovery funds.  Today, he plead guilty to that conduct, and agreed to pay back those funds to the City.  DOI thanks the Office of Management and Budget for its assistance.  We will continue to work with our local and federal law enforcement partners to hold accountable those who would seek to defraud the public and to ensure that public funds are used for their intended purpose.” 

According to the allegations in the Information, court filings, and statements made in court:[1]

Beginning in or about 2013, in the aftermath of Hurricane Sandy, the City of New York received billions of dollars in federal money to fund Hurricane Sandy-related recovery efforts.  The City used certain of these funds to hire Company-1 to assist with Hurricane Sandy relief (the “Sandy Project”).  Company-1 hired MELNICK as an independent contractor to work on the Sandy Project.

Between in or about 2013 and in or about 2019, while working on the Sandy Project for Company-1, MELNICK participated in two schemes to defraud the New York City Office of Management and Budget (“NYC-OMB”).  First, between in or about January 2013 and in or about October 2017, MELNICK conspired with at least one other individual (“CC-1”) and submitted fraudulent documentation to NYC-OMB via Company-1, falsely claiming that he was renting and living in an apartment in New York in order to obtain lodging and travel reimbursements.  Upon learning that this first fraudulent scheme was under investigation, MELNICK told CC-1 to lie to law enforcement.  Second, between in or about 2017 and in or about 2019, while working on the Sandy Project, MELNICK conspired with at least two individuals, including another employee of Company-1 (“CC-2”) and a family member (“CC-3”), to purchase a property that CC-2 used to submit fraudulent reimbursement requests to NYC-OMB via Company-1 for lodging expenses to which CC-2 was not entitled.  CC-2 transferred the proceeds from this fraudulent scheme to CC-3, who used part of the proceeds to pay the mortgage and maintenance for the property and retained the rest.  In or about March 2022, MELNICK made false statements to the Government in connection with this second fraudulent scheme.

WALTER MELNICK, 77, of Treasure Island, Florida, pled guilty to one count of conspiring to commit federal program fraud, which carries a maximum sentence of five years in prison.  Under the terms of his plea agreement, MELNICK agreed to forfeit $387,749 and to pay restitution to NYC-OMB in the amount of $387,749.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.  MELNICK is scheduled to be sentenced by Judge Marrero on January 20, 2023, at 10 a.m.

Mr. Williams praised the outstanding investigative work of DOI. 

[1] As the introductory phrase signifies, the entirety of the text of the Information constitutes only allegations, and every fact described herein should be treated as an allegation.

Attorney General James Helps Secure New Federal Energy Standards for American Families

 

New Standards Will Save Billions of Dollars for Families Nationwide and Help Protect the Planet

New York Attorney General Letitia James today announced an agreement with the U.S. Department of Energy (DOE) committing DOE to a new timetable for updating energy efficiency standards for 20 categories of common consumer products and commercial equipment. The impacted products and equipment range from residential furnaces to laundry machines to electric motors. According to experts’ estimates, updated standards for these products could provide more than $600 billion in total utility bill savings to American families by 2050 and avoid more than 90 million metric tons of carbon dioxide emissions annually by 2040.

Attorney General James is leading a coalition of 17 states, the District of Columbia, and the City of New York in today’s agreement, which resolves a complaint the coalition filed against DOE in 2020. The complaint alleged DOE failed to comply with deadlines for updating energy efficiency standards for a range of product categories set by the Energy Policy and Conservation Act of 1975 (EPCA).

“Increasing energy efficiency is widely recognized as one of the best ways we can cut pollution, fight climate change, and cut costs for families,” said Attorney General James. “Given today’s increasing energy prices and the impacts of the climate crisis, we must prioritize common-sense actions that will help hardworking Americans save money and reduce harmful emissions. My office will always fight to protect the people and the planet.”

The DOE’s energy efficiency standards currently cover more than 60 product categories. Nationwide, these products together use about 90 percent of the total amount of energy used in homes, 60 percent of the total amount energy used in commercial buildings, and 30 percent of the total amount of energy used in industrial facilities.

The EPCA requires DOE to periodically review and revise these efficiency standards to ensure they are set at the maximum, technically feasible and cost-effective efficiency level in order to save energy and reduce consumer and business utility costs. In 2020, Attorney General James and the coalition filed a complaint in the U.S. District Court for the Southern District of New York claiming DOE had missed EPCA deadlines for review and revision of efficiency standards for multiple product categories. In the filing, Attorney General James and the coalition alleged that in failing to meet deadlines, DOE deprived American families of the benefits of lower energy bills, a more reliable electricity grid, and reduced emissions of dangerous air pollutants that contribute to climate change and harm public health.

Joining Attorney General James in today’s agreement are the attorneys general of California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Pennsylvania, Vermont, Washington, and the District of Columbia, as well as the City of New York.

“This settlement is a triumph for consumers and the environment,” said Joe Vukovich, energy efficiency advocate, Natural Resources Defense Council. “It will jumpstart DOE review of efficiency standards poised to save $650 billion in utility bills and avoid the release of, at least, nearly a billion metric tons of climate-warming carbon pollution by 2050.” 

“The technology exists to make consumer products and commercial equipment incredibly energy efficient, and it is the responsibility of DOE to hold manufacturers accountable to meeting the highest possible standards,” said Jessica Tritsch, building electrification campaign director, Sierra Club. “This settlement will help us meet climate goals but also help American families save money on their energy bills and create sustainable manufacturing jobs for the future. The strongest possible energy efficiency standards will also ensure Americans keep their lights on and their heat or air conditioning on when the weather turns extreme by not overtaxing our electrical system. After all, heat waves and strong storms are only getting more common in the face of climate change — a crisis we must do everything we can to address with all the tools we have at our disposal.” 

“This agreement is essential for catching up on missed deadlines as quickly as possible in order for the incredible consumer, economic, public health, and environmental benefits of updated standards to be realized,” said Richard Eckman, energy advocate, Consumer Federation of America. “Now more than ever, consumers can use the additional pocketbook savings that updated efficiency standards will provide in the billions annually thanks to the increased energy efficiency of common household appliances. The agreement is also crucial in order to prevent millions of metric tons of greenhouse gas emissions that contribute to climate change from being emitted. We’re looking forward to working with DOE in moving forward with updates to appliance efficiency standards.”

“This agreement will conserve energy and save consumers money when they use everyday appliances,” said Howard Crystal, legal director, Center for Biological Diversity’s Energy Justice Program. “Energy efficiency is critical to addressing the climate emergency and ensuring a livable planet, even if it doesn’t get as much attention as other efforts. We’re pleased the department will finally move forward with these commonsense standards.”

Governor Hochul Announces Support Following Devastating Flooding Caused by Hurricane Fiona

 

100 New York State Troopers Will Be Sent to Puerto Rico To Support Relief Efforts

State Agencies, New York's Building Trades, Private Sector Businesses and Community-Based Organizations Ready to Assist as Puerto Rico Experiences Tropical Storm Conditions and One Million Residents are Without Power

Potential for Life-Threatening and Catastrophic Flooding Continues in Southern and Eastern Parts of the Island in Worst Storm To Impact Puerto Rico since Hurricane Maria in 2017

Governor Hochul Remains in Contact with Puerto Rico Governor, Dominican Republic President, and Offers Full Support of State Agencies with Emergency Response Assets

 Governor Kathy Hochul today announced New York State actions to support Puerto Rico in the wake of devastating flooding and winds caused by Hurricane Fiona, the worst storm to hit the island since Hurricane Maria in 2017. Following a call with Puerto Rico Governor Pedro Pierluisi, Governor Hochul directed the New York State Police to send 50 Troopers to assist with keeping residents safe, and 50 additional Troopers will be deployed in the coming weeks. The Governor also announced that the state has been working with Delta, JetBlue, Coca-Cola, New York State's Building Trades, the Greater New York Hospital Association, and SOMOS Community Care, who have all pledged their support for response and recovery efforts. Additionally, teams from the New York Power Authority are ready to deploy and assist in restoring power to the island.

"New York knows full well the devastating impact that Mother Nature can bring, and that is why we stand ready to help the people of Puerto Rico recover and rebuild from this terrible storm," Governor Hochul said. "Our brothers and sisters in Puerto Rico are incredibly resilient but, in times like this, New York will be there to help in any way we can, including sending personnel and resources to help the island and its residents recover."

The Dominican Republic is also being impacted by Hurricane Fiona, and Governor Hochul remains in contact with the President of the Dominican Republic, Luis Abinader, to support the country's relief efforts. Governor Hochul reiterated that the storm is not yet over, as its general motion northwest is expected to continue through this evening, before making a turn to the northeast later this week.

On Sunday, President Biden declared Hurricane Fiona an emergency, authorizing FEMA to coordinate disaster relief efforts. New York will work to support any requests coordinated by FEMA in the coming days to assist the residents of Puerto Rico. Delta and JetBlue will both donate cargo space and transport emergency personnel; the Greater New York Hospital Association will provide medical supplies; and Coca-Cola has committed water and additional supplies. Habitat for Humanity of New York City and Westchester County and the State's Building Trades also have committed their support as needs are identified.

Puerto Rico has seen rainfall from the storm totaling 12 to 20 inches, and up to 30 inches in some localized areas. These rainfall amounts are capable of producing life-threatening and catastrophic flooding. More than one million Puerto Ricans are currently without power as critical infrastructure systems have been damaged, and tropical storm conditions continue to impact the island.

MAYOR ADAMS’ STATEMENT ON HURRICANE FIONA DESTRUCTION IN PUERTO RICO

 

New York City Mayor Eric Adams today released the following statement after Hurricane Fiona ripped through Puerto Rico:

 

“We call Puerto Rico our sixth borough, and as Hurricane Fiona leaves behind a path of destruction, our administration stands ready to provide all of the support and aid our brothers and sisters need. An initial team of New York City emergency management specialists is being deployed today to assess the damage and determine how we can best help. Based on initial reports, we are also looking at possibly readying a larger multi-agency team to deploy in the coming days. We are in constant contact with those on the ground and are determining how we can be most helpful in the days and weeks ahead.”

NYGOP Chairman Langworthy Calls on Kickback Kathy to Donate Dirty Campaign Cash

NYGOP CHAIRMAN NICK LANGWORTHY CALLS ON "KICKBACK KATHY" TO DONATE $300,000 IN DIRTY CAMPAIGN CASH 

“It’s the very least she owes taxpayers to give this ill-gotten campaign cash to a charity instead of using it to run her nasty, dishonest attack ads.” 

New York Republican Chairman Nick Langworthy today called on “Kickback Kathy” Hochul to donate the $300,000 in campaign donations she received as a result of a massive pay-to-play scheme that cost taxpayers $637 million for a no-bid contract to a top donor. 

Hochul has been under fire for a kickback scheme whereby the governor abused her emergency powers to give a $637 million dollar no-bid contract to a company that charged the state double the value of covid tests. In exchange, Hochul received $300,000 from the family members of the company. Just recently it was revealed that California paid 45% less for the same tests. Langworthy has called for criminal investigations into the matter. This is just one of several examples of Hochul engaging in pay-to-play, following in the footsteps of her mentor, Andrew Cuomo. 

When the first expose on the deal was published, Chairman Langworthy submitted Freedom of Information Law requests to obtain all communications between the Hochul Administration and the company, Digital Gadgets. The Administration stonewalled and denied the request and the Party’s subsequent appeal is being ignored. 

“This crooked deal stunk on its face, but the more we learn about it, the more we see just how seriously corrupt it was,” said NYGOP Chairman Nick Langworthy. “This was a brazenly illegal kickback scheme that defrauded taxpayers to the tune of hundreds of millions of dollars. It needs to be criminally investigated, but the very least she must do is to give away this ill-gotten campaign cash. It should be donated to a charity to help the taxpayers who footed the bill for this corrupt deal, instead of using it to fund her nasty, dishonest attack ads.”