Wednesday, November 15, 2017

New York City Department of Investigation - Investigation into False Certification of NYCHA Lead Paint Inspections


New York City Department of Investigation 

Investigation into False Certification of NYCHA Lead Paint Inspections  

EXECUTIVE SUMMARY 
The New York City Department of Investigation (DOI) has conducted an investigation into mandated inspections for potential hazardous lead-based paint conditions in New York City Housing Authority (NYCHA) apartments. The investigation determined that NYCHA has violated city and federal laws by failing to conduct mandatory safety inspections for lead paint. Further, since 2013, NYCHA has falsely certified to the United States Department of Housing and Urban Development (HUD) that it was in compliance with the federal law.(1) By 2015, certain senior NYCHA officials were aware that NYCHA was violating city lead laws. By summer 2016, NYCHA’s Chair, Shola Olatoye, knew that NYCHA was out of compliance both with city and federal lead laws when she submitted a false certification to HUD. 

This investigation uncovered what, at a minimum, constituted a series of flawed decisions and a lack of due diligence by NYCHA, including by NYCHA executive leadership, that resulted in NYCHA submitting false lead certifications, from 2013 through 2016, with HUD. These certifications passed through NYCHA executive leadership without anyone performing basic due diligence checks to ensure that the information submitted to HUD – under penalty of perjury – was accurate. Indeed, by 2016, senior staff at NYCHA affirmatively knew that the forms were not accurate. 

The filing of this false information with the federal government demonstrated a significant breakdown in communication, poor judgement and a lack of public transparency on a significant health issue, the state of lead compliance at NYCHA. 

Notably, this Report constitutes the fourth time in two years that DOI investigations have determined that NYCHA has neglected safety rules and regulations. In December 2015 and March 2017, DOI issued reports regarding NYCHA’s failures to exclude dangerous criminal offenders from public housing. In March 2016, DOI found that NYCHA was not performing critical elevator inspections, and in October 2016, DOI found that NYCHA was failing to perform critical inspections inside of NYCHA apartments including testing smoke alarms and carbon monoxide detectors. As a result of this continued pattern of failing to conduct safety inspections, DOI is recommending, among other things, that a monitor be appointed to ensure future compliance with inspections for safety items identified by DOI, including lead paint hazards, smoke alarms, carbon monoxide detectors and possibly elevator safety. 
(1 Shola Olatoye became the Chair in 2014.) 

BACKGROUND 
States, but, according to NYCHA, is not known to be widely used at NYCHA. Based on improved medical understanding of the toxicity of lead products, New York City banned the use of lead-based paint in residential buildings in 1960, and a federal ban went into effect in 1978. However, some older buildings still contain lead, primarily in paint on components such as window casings, pipes, and baseboards.(2)  

NYC Local Law 1 of 2004, the New York City Childhood Lead Poisoning Prevention Act,(3) requires landlords – including NYCHA -- to conduct annual visual inspections of apartments built before 1960, or between 1960 and 1978 “where the owner has actual knowledge of the presence of lead-based paint,” but only for apartments where the tenant has reported the presence of a resident child under the age of six.(4) At NYCHA, there are, once pending exemption applications have been processed, approximately 4,200 units in which lead paint has not been ruled out and which indicate a resident child under 6.

Similarly, a HUD regulation known as the Lead Safe Housing Rule, 24 C.F.R. 35, requires public housing authorities to conduct annual visual assessments of apartments where the possibility of lead-based paint has not been ruled out, regardless of the age of the occupants.(5)  Conversely, if testing demonstrates that no lead-based paint is present, public housing authorities may obtain exemptions.6 At NYCHA, as of 2016, there were approximately 55,000 apartments must be visually assessed pursuant to 24 C.F.R. 35.

(2 A common cause of lead poisoning in children is the ingestion of paint chips or dust from peeling lead-based paint in residential buildings. A blood test is the only way to conclusively determine whether a child has been exposed to lead. New York State and City regulators, including the NYC Department of Health and Mental Hygiene (DOHMH), have long-standing protocols for screening young children for possible lead exposure, identifying children with elevated blood lead levels, and locating and testing residential and other sites that are associated with such children. Since 2010, 17 units out of approximately 178,000 NYCHA apartments have been associated to a child with an elevated blood lead level. DOI investigators reviewed these cases in detail and found that NYCHA appropriately and timely responded by abating, re-testing, and obtaining clearance approval from DOHMH.)
(3 Article 14, Lead Poisoning Prevention and Control, § 27-2056.1 et seq.) (4 § 27-2056.4(a).)  (5 24 C.F.R. 35.1355(a)(2).)  (6 24 C.F.R. 35.115) 

INVESTIGATIVE FINDINGS
As a Public Housing Agency (PHA) receiving federal funding from HUD, every fall NYCHA is required to file with HUD a PHA Annual Agency Plan (the “Annual Plan”) for the upcoming Fiscal Year, a document that contains information about NYCHA programs and initiatives ranging from physical needs assessments to technological innovations.  

The Annual Plan also requires the attachment of numerous documents, including the “PHA Certifications of Compliance with PHA Plans and Related Regulations” (the “HUD certification”), also known as HUD form 50077, and all documentation must be made available for public review. Concerning lead-based paint, NYCHA attests via the HUD certification that: 

The PHA will comply with the Lead-Based Paint Poisoning Prevention Act, the Residential Lead-Based Paint Hazard Reduction Act of 1992, and 24 CFR Part 35. 
and 
The PHA certifies that it is in compliance with all applicable Federal statutory and regulatory requirements. 

This investigation determined that NYCHA fell out of compliance with Local Law 1 and 24 C.F.R. 35 by the end of 2012. As a result, the HUD certifications submitted by NYCHA from 2013 through 2016 were false.(7) (7 Technically, only failure to comply with the federal rule makes the certification false. However, NYCHA’s failure to comply with City lead safety rules is also troubling.)

August 2012: NYCHA Stops Performing Annual Lead Inspections 
Historically, NYCHA performed the required visual assessments for lead-based paint hazards as part of HUD-mandated annual inspections to evaluate general apartment conditions. In 2012, HUD relaxed its rule so that apartment inspections were no longer required to be performed every year, in order to free up resources for apartment maintenance.(8)  This rule change did not eliminate the requirement to inspect for lead where relevant. Following that federal rule change, in approximately August 2012, NYCHA ceased conducting annual apartment inspections and did not create a separate protocol to continue lead inspections. As a result, NYCHA was no longer performing annual visual assessments for potential lead-based paint hazards as legally required. 
(8) 8 HUD Public and Indian Housing Information Resource Center, January 2012 HUD e-Newsletter: “Public Housing Unit Inspections . . . because there is no longer an annual unit inspection requirement, [public housing authorities] now have the latitude to schedule unit inspections in a manner that can satisfy the statute’s intent and simultaneously free up resources, especially those necessary to provide unit maintenance” including inspection of a representative sample of units, or establishment of a risk hierarchy based on historical records. 

October 2013: NYCHA Files a False Certification of Compliance with HUD 
In October 2013, NYCHA submitted to HUD its Fiscal Year 2014 Annual Plan with accompanying certifications, including HUD Form 50077, which NYCHA’s then-Chair signed on October 11, 2013. 

Because NYCHA had not conducted visual assessments for lead-based paint hazards every year beginning in 2012, NYCHA’s certification that it was compliant with federal lead-based paint laws was false.

October 2014: NYCHA Files a False Certification of Compliance with HUD
In October 2014, NYCHA submitted to HUD its Fiscal Year 2015 Annual Plan with accompanying certifications, including HUD Form 50077, which was signed by Chair Shola Olatoye on October 16, 2014.(9)  Because at that time NYCHA was still not conducting annual lead inspections, it continued to be noncompliant with Local Law 1 and 24 C.F.R. 35, thereby making the certification to HUD false. (9) For PHA Plan FY2015, which was submitted in 2014, the signature line for the HUD form 50077 is erroneously dated “10/16/15.” April 2015: 

Senior Officials at NYCHA Learned of Local Law 1 Violation 
A senior official at NYCHA reported that he believed in 2015 that there was “general knowledge at the executive level” that NYCHA had suspended apartment inspections, because the General Manager’s office was involved in the process of resuming inspections. By April 2015, certain senior officials had learned that NYCHA was not in compliance with Local Law 1.(10). 

During a DOI interview, the General Manager said that he did not know of the Local Law 1 violation until approximately a year later in April or May 2016. Chair Olatoye also said that she was not made aware that NYCHA was out of compliance with Local Law 1 until April or May 2016. 
(10)  On 5/7/15, in an email, a senior operations executive asked another NYCHA official to provide a list of apartments with children under 7 years old in reference to lead law compliance. Meeting minutes show that on 6/5/15, a group of NYCHA managers discussed apartment inspections including requirements for annual inspections. On 7/16/15, a group of NYCHA managers recommended that development maintenance workers be assigned approximately eight apartment inspections per day in order to meet various goals, including inspection of “all apartments that may contain lead and have children under the age of six (6) residing in them, every year.” Further, during a DOI interview, another senior operations executive stated that he first learned of the Local Law 1 violation in 2015 when he was working with a group on a plan to switch back to annual inspections, focusing first on apartments with children under six. 

October 2015: NYCHA Files a False Certification of Compliance with HUD 
In October 2015, NYCHA submitted to HUD its Fiscal Year 2016 Annual Plan with accompanying certifications, including HUD Form 50077, which Chair Olatoye signed on October 12, 2015. Again, this certification that NYCHA was compliant with federal lead-based paint laws was inaccurate. 

Although NYCHA’s Chair and General Manager stated they were not aware that HUD form 50077 was false at the time it was submitted in October 2015, DOI determined that in spring 2015, certain senior NYCHA officials, including operations executives, did know that NYCHA was out of compliance with Local Law 1 (and thus should have known of a potential violation of the corresponding federal rule), because they were working to remediate the legal violation. In fact, one operations executive told DOI that if asked, he would have answered that NYCHA was not in compliance with applicable lead laws – but he was never asked. Instead, DOI’s investigation determined that NYCHA failed to put in place a system to confirm the accuracy of federal forms before they were submitted. Simply put, NYCHA’s failure to confirm the accuracy of filings before they were made is an unacceptable gap in procedures.

After NYCHA’s Chair and General Manager became aware of Local Law 1 noncompliance in April or May 2016, NYCHA began a program to inspect and remediate any lead hazards in units where NYCHA had not ruled out lead paint and a child under six resided.

Summer 2016: NYCHA’s Chair and General Manager Learn of HUD Violation 
In summer 2016, a senior advisor at NYCHA researched federal law concerning lead,(11) and concluded that NYCHA was also in violation of the HUD regulations, 24 C.F.R. 35.(12) She convened a group of the relevant executives to conduct an urgent assessment of NYCHA’s lead based paint situation, and at the end of July 2016, Chair Olatoye was presented with a “lead workflow”/“game plan” to address NYCHA’s lead obligations. 

During DOI interviews, both the General Manager and Chair Olatoye told DOI that they were first advised that NYCHA was also in violation of the HUD regulations in summer 2016.
(11) In October 2015, NYCHA received notice of a federal inquiry concerning a range of issues including lead paint.
(12) In July 2016, a senior advisor circulated a draft chart detailing NYCHA’s obligations under Local Law 1 and 24 C.F.R. 35, including a notation that the HUD regulation required visual assessments “at unit turnover and every 12 months.”

September 2016: NYCHA Reportedly Disclosed Noncompliance to HUD 
NYCHA advised DOI that on September 13, 2016, during a routine quarterly oversight meeting attended by NYCHA’s Chair, General Manager, and other top NYCHA executives at HUD’s central office in Washington, D.C., NYCHA executives delivered a PowerPoint presentation about various operations issues to numerous HUD officials, including the Assistant Secretary of Public and Indian Housing.(13) During a slide concerning “Accountability: Lead-Based Paint,” NYCHA’s talking points read:
(13) NYCHA senior officials told DOI that shortly before this September 2016 meeting, NYCHA told HUD’s local and regional New York offices of NYCHA’s noncompliance in a telephone call.

NYCHA has approximately 55,000 units where we have not yet ruled out lead-based paint. Approximately 4,200 of these 55,000 units have a child under 6 years old living there. We just completed inspections of these 4,200 units. . . . I want to talk a little more about inspections. Earlier, when we spoke about service levels, it was mentioned that a mistake of the previous administration was putting too much focus on work order numbers and there were some consequences. In a recent review of how this approach affected other areas of operations, it came to our attention that, starting in 2012, the previous administration made the decision to cease apartment inspections for a two year period. It was through these annual apartment inspections that lead-based paint apartments also received their annual visual  assessments, so this also ceased for these two years. Completing the recent inspections of the 4,231 units where a child under 6 years old focused our resources on where the risk of exposure to lead hazards is the greatest but it was just the first step in correcting for this. We are also creating a new operations plan that will also address the annual required inspections for the remaining 50,000 lead-based paint units which don’t have a child under 6 years old, bringing us back on track. 

DOI has, to date, been unable to corroborate NYCHA’s reported self-disclosure. At any rate, this disclosure, if it occurred, constituted a private statement to certain HUD officials and did not expressly reference either the certification or specific regulation

October 2016: NYCHA Files a False Certification of Compliance with HUD 
One month after the aforementioned meeting with HUD, on October 18, 2016, NYCHA submitted to HUD its Fiscal Year 2017 Annual Plan, with HUD Form 50077 signed by Chair Olatoye wherein NYCHA falsely certified that it was in compliance with federal lead-based paint regulations.

During a DOI interview, Chair Olatoye stated that in October 2016 when this certification was submitted, she was aware that NYCHA was not in compliance with the HUD regulations, which she considered “obviously a management failure,” and thus that the certification was not accurate. However, she stated that in August and September 2016, NYCHA had already disclosed that information to HUD both in a briefing document and orally. However, as noted above, at most these were private briefings for senior HUD officials. The forms by contrast are certifications to the overall agency that are publicly available including to NYCHA tenants and other interested parties.

The General Manager, who reviewed the HUD certification in August/September 2016 before it went to a Board vote, also told DOI that although he was aware at the time that NYCHA was not in compliance with federal regulations, “we felt that this was something that… HUD knew about, and we were submitting the report to HUD so . . . the disclosure was the important part.”  

This investigation revealed that although Chair Olatoye, the General Manager and other senior executives were aware that NYCHA was out of compliance with federal lead-based paint regulations, NYCHA nonetheless submitted a false certification in October 2016, and had no reasonable explanation why this was acceptable.

July 2017: NYCHA Publicly Discloses Its Noncompliance in a New HUD Certification 
On July 26, 2017, several months after DOI commenced its investigation, NYCHA’s Board considered and approved a Significant Amendment to the Fiscal Year 2017 Annual PHA Plan, which concerned various non-lead-related real estate operations matters. With the Significant Amendment, NYCHA submitted HUD Form 50077 with the following additional asterisked language, qualifying its certifications of compliance with lead-based paint laws: 

*As previously discussed with the U.S. Attorney’s Office for the Southern District of New York (“SDNY”) and HUD, NYCHA has not complied with certain requirements related to lead-based paint but is working to ensure full compliance. NYCHA is cooperating with an investigation by the SDNY regarding conditions in NYCHA housing. We will continue to engage with both the SDNY and HUD regarding our remedial efforts. 

Chair Olatoye told DOI that during preparations to file the Significant Amendment to the Fiscal Year 2017 Annual PHA Plan, NYCHA raised with HUD the certification, and a HUD attorney suggested that asterisked language be added to clarify that NYCHA was not in compliance but was working towards full compliance. NYCHA also released a fact sheet and letter to residents on lead-based paint programs in July 2017. These documents also acknowledged NYCHA’s noncompliance with lead regulations. In working towards full compliance, NYCHA is developing a phased corrective action plan, which includes the integration of its lead-based paint data into its work order tracking system, and has already procured a vendor to conduct visual assessments of units for which lead paint has not been ruled out. DOI will monitor NYCHA’s performance of this program initiative. 

POLICY AND PROCEDURE RECOMMENDATIONS
This investigation showed that NYCHA violated city and federal laws by failing to conduct mandatory lead paint inspections at NYCHA apartments and that they falsely certified lead compliance to the federal government during a four year period. These failures were, in part, the result of poor communication, failure to exercise due diligence and resulted in a lack of public transparency. As a result of these failures, DOI makes the following Policy and Procedure Recommendations to NYCHA:  

1) NYCHA must ensure that it is fully compliant with city and federal lead-based paint laws, including by conducting annual visual assessments for lead-based paint hazards in certain apartments as required by law, and by performing biannual quality assurance reevaluations every two years.

2) NYCHA should complete the integration of its lead-based paint data into its computerized apartment work tracking system so that development management and other involved NYCHA departments can access historical information, including building construction date, notifications from DOHMH or tenants of potential lead-based paint issues, apartment components that have tested positive for lead, prior abatement, apartment exemptions, and annual inspection history. 

3) NYCHA should evaluate the feasibility of systematically abating the remaining public housing apartments that are known or presumed to contain lead-based paint, beginning with apartments known to house a child under six. 

4) NYCHA, for all future filings and certifications, must implement a system to collect written sign off of the accuracy of all statements. 

5) NYCHA should ensure compliance with safety laws and rules by: a) hiring a third-party integrity monitor to review lead-based paint inspections by conducting field spot-checks to ensure that annual apartment inspections are done, needed abatement is completed, and quality assurance reevaluations are duly performed in accordance with Local Law 1 and 24 C.F.R. 35; b) engaging the integrity monitor to conduct field visits to ensure that critical apartment safety checks of smoke alarms, carbon monoxide detectors and window guards, are duly performed in accordance with NYCHA policy; and c) potentially ensuring full compliance with elevator safety measures put in place by NYCHA following DOI’s March 2016 report about a fatal elevator accident.(14)
(14) The proposed monitor is intended to emphasize issues regarding NYCHA operations. As the issue referenced above regarding exclusion of criminal offenders is not considered an operational function of NYCHA, oversight of NYCHA’s performance on this issue shall not be the focus of the proposed monitor.

Salamanca Requests Action is Taken by NYCHA Following DOI Report



  Following a DOI investigation and report outlining that NYCHA falsified reports surrounding compliance of federal and city laws on lead paint inspections and abatement, Council Member Salamanca has called for immediate action to be taken to address the agency's negligence. 

"The findings in this report are truly unacceptable, and leaves me deeply concerned for my constituents in public housing," said Council Member Salamanca. "I have visited apartments far too many times where paint is peeling, notably in units with small children." 

"I want to be able to honestly tell them that their homes do not leave their children susceptible to lead poisoning - something clearly I’m not confident I can do currently."

Salamanca is requesting the following actions be taken immediately:

- Immediately conducting visual assessments for lead-based paint hazards in a sufficient sampling of units in all NYCHA developments in Council District 17, and in all units known to house children under the age of 6 years of age.

- Immediate abatement of all units that are known to contain samples of lead paint, starting with units housing children in all NYCHA developments in Council District 17.

- As suggested in the DOI report, hiring a third-party monitor to ensure compliance with safety laws and rules concerning lead-based paint inspections. The independent integrity monitor should conduct field spot-checks to ensure that annual apartment inspections are done, needed abatement is completed, and quality assurance re-inspections are duly performed in accordance with Local Law 1 of 2004 and 24 C.F.R. 35.

- Delivering to my office all data surrounding mandatory safety inspections for lead paint in the NYCHA developments located in Council District 17, including PHA Certifications of Compliance with PHA Plans and Related Regulations (HUD Form 50077); visual inspection data pertinent to my district; data that demonstrates compliance with Local Law 1 of 2004 and 24 C.F.R. 35; and all other documentation demonstrating compliance with local lead laws.
In addition to the requests outlined, Salamanca also is planning to introduce a resolution urging for NYCHA to hire a third-party monitor in order to better ensure compliance. 

"It's my hope that we can turn the tide on bringing real accountability to NYCHA on these issues, because anything less is unacceptable," said Salamanca. "I intend to keep the pressure high until we see meaningful change in their processes." 


EDITOR'S NOTE:

The DOI report can be found in the previous posting on this blog. 

DOI INVESTIGATION REVEALS NYCHA FAILED TO CONDUCT MANDATORY LEAD PAINT SAFETY INSPECTIONS FOR FOUR YEARS


--NYCHA submitted documents to federal government falsely certifying compliance-- 

  Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), announced today the results of an investigation into mandated inspections for potential hazardous leadbased paint conditions at New York City Housing Authority (“NYCHA”) apartments. DOI’s investigation determined that NYCHA failed to conduct mandatory safety inspections for lead paint over a four-year period beginning in 2013, but submitted false documentation to the United States Department of Housing and Urban Development (“HUD”) stating that the Authority was in compliance with federal laws that require these inspections to be performed. In its Report, DOI shows that despite its senior staff being made aware that NYCHA was out of compliance with City lead laws in 2015, and its Chair, Shola Olatoye, being told in 2016 of non-compliance with both City and Federal rules, certifications were still submitted to the federal government. As a result of this investigation, and three additional DOI investigations that revealed other serious safety hazards and breakdowns over the past two years, DOI is recommending that a monitor, reporting to DOI, be appointed to ensure future compliance with inspections in areas including lead paint, smoke alarms and carbon monoxide detectors. A copy of DOI’s Report can be found at the following link: http://www1.nyc.gov/site/doi/newsroom/public-reports.page

  Commissioner Mark G. Peters said, “DOI’s investigation found that NYCHA failed to do critical lead safety inspections and then falsely certified that they were meeting these legal requirements. This is the fourth time in two years that DOI has found NYCHA to be careless when it comes to tenant safety. NYCHA has an obligation both to protect tenants and to be honest with the public. Today's report should be an important step in ensuring that NYCHA meets these obligations. ” 

  According to DOI’s investigation, NYCHA fell out of compliance with City Local Law 1 of 2004 and Federal Lead Safe Housing Rule 24 C.F.R. 35 in 2013. These laws require public housing authorities, like NYCHA, to conduct annual visual assessments of apartments that meet certain criteria and where the possibility of lead-based paint has not been ruled out. NYCHA has approximately 55,000 apartments that must be visually assessed each year to satisfy the federal rule. NYCHA is required to file with HUD, certifying that it has complied with “all applicable Federal statutory and regulatory requirements,” related to lead-based paint. DOI’s investigation revealed that in 2013, after HUD relaxed its rules on apartment inspections, NYCHA ceased conducting annual apartment inspections and did not create a separate protocol, resulting in NYCHA failing to perform annual visual assessments for potential lead-paint hazards as legally required. 

  DOI’s investigation showed that in 2013, 2014 and 2015, NYCHA submitted documentation to HUD certifying that it was in compliance with lead-based paint regulations, despite not having conducted the required visual assessments. 

  DOI was also told by NYCHA that in September 2016, NYCHA reportedly self-disclosed its noncompliance privately to certain HUD officials during a routine quarterly oversight meeting in Washington, D.C. DOI has been working to corroborate this disclosure. The following month, according to the investigation, NYCHA submitted another certification. It wasn’t until July 2017, when NYCHA submitted an amended 2017 plan to HUD, that it also submitted a new form qualifying its certification stating, “NYCHA has not complied with certain requirements related to lead-based paint but is working to ensure full compliance.” 

  This investigation revealed that although senior executives, including the Chair, were aware that in 2016 NYCHA was out of compliance with federal regulations, NYCHA nonetheless submitted a certification stating otherwise. DOI has previously issued three other reports focused on additional safety failures at NYCHA, specifically a failure to properly inspect smoke and carbon monoxide detectors, and a failure to comply with building codes regarding elevator safety. DOI also issued a Report and follow-up investigation on NYCHA’s failure to enforce its Permanent Exclusion policies for serious criminal offenders. 

  As a result of these multiple failures, DOI has issued a series of recommendations related to lead and to the need to hire a monitor that reports to DOI to ensure NYCHA’s compliance with safety laws: 

   NYCHA must ensure that it is fully compliant with City and federal lead-based paint laws, including by conducting annual visual assessments for lead-based paint hazards in certain apartments as required by law, and by performing biannual quality assurance reevaluations every two years. 

 NYCHA should evaluate the feasibility of systematically abating the remaining public housing apartments that are known or presumed to contain lead-based paint, beginning with apartments known to house a child under six. 

  NYCHA, for all future filings and certifications, must implement a system to collect written sign off of the accuracy of all statements. 

  NYCHA should hire a third-party monitor to ensure compliance with safety laws and rules by performing the following services: a) concerning lead-based paint inspections, the independent integrity monitor should conduct field spot-checks to ensure that annual apartment inspections are done, needed abatement is completed, and quality assurance re-inspections are duly performed in accordance with Local Law 1 of 2004 and 24 C.F.R. 35; b) conduct field visits to ensure that critical apartment safety checks of smoke alarms, carbon monoxide detectors and window guards, are duly performed in accordance with NYCHA policy; and c) potentially ensuring full compliance with elevator safety measures put in place by NYCHA following DOI’s March 2016 report about a fatal elevator accident. 

  DOI Commissioner Peters thanked NYCHA for its cooperation in this investigation

  DOI is one of the oldest law-enforcement agencies in the country and New York City’s corruption watchdog. Investigations may involve any agency, officer, elected official or employee of the City, as well as those who do business with or receive benefits from the City. DOI’s strategy attacks corruption comprehensively through systemic investigations that lead to high-impact arrests, preventive internal controls and operational reforms that improve the way the City runs. 

Bribery and Corruption are a Trap. Don’t Get Caught Up. Report It at 212-3-NYC-DOI.  

Brooklyn Construction Company, Long Beach Owner with Public Contracts To Forfeit $2.5 Million After Pleading Guilty to Underpaying Workers


Defendants Allegedly Paid Less than the Prevailing Wage; Five Victims to Receive Over $700,000  

  Acting Brooklyn District Attorney Eric Gonzalez, together with New York City Department of Investigation Commissioner Mark G. Peters, today announced that a Brooklyn based construction company and its owner have pleaded guilty to grand larceny for stealing over $700,000 from workers by failing to pay the prevailing wage on public works projects. The projects were financed by the New York City School Construction Authority and other government agencies.

  Acting District Attorney Gonzalez said, “These defendants got lucrative public works contracts and then shamefully stole money from their own employees. In Brooklyn, we will not allow hard-earned wages to be stolen from hardworking employees. This decision to steal wages turned out to be a very costly theft for these defendants and should serve as notice to others considering cheating employees that they will be prosecuted.”

  Commissioner Peters said, “This Brooklyn company and its owner won public contracts but their criminal conduct makes them no better than common swindlers stealing wages from their workers. These guilty pleas will mean this company and its owner are disqualified from doing school construction business. It is an important message to the entire construction industry: Cheat your employees of their proper wages and there will be serious consequences including arrest and loss of business. We will continue to work side-by-side with the Brooklyn District Attorney to stop prevailing wage fraud and recover workers’ stolen wages.”

  New York State Comptroller Thomas P. DiNapoli said, “MSR inflated its contract costs and submitted phony bills in an attempt to defraud the public. Thanks to my office’s investigation and partnership with Kings County District Attorney Gonzalez, this fraud was exposed and the taxpayers’ money recovered. I will continue to partner with the Kings County District Attorney and law enforcement statewide to expose corruption and protect taxpayer resources at all levels of government.”

  New York State Department of Financial Services Superintendent Maria T. Vullo said, “This defendant’s alleged actions and deceit deprived the State Insurance Fund of significant payments, impacting both employers and the injured workers who rely on the fund. Insurance fraud is not a victimless crime. It drives up workers’ compensation costs and the cost of doing business in New York State. Everyone pays. DFS is proud to have assisted the Kings County DA in this investigation.”

  The Acting District Attorney identified the defendants as Michael Riglietti, 50, of Long Beach, New York, and his company MSR Electrical Construction Company, previously located at 31 Bay Street in Red Hook, Brooklyn. Both pleaded guilty today to second-degree grand larceny and to violating the prevailing wage requirements of the New York State Labor Law before Brooklyn Supreme Court Justice Danny Chun. Riglietti will be sentenced to five years’ probation and the company will receive a conditional discharge. Both will be debarred from public works contracts for five years and agreed to forfeit $2.5 million. Of that amount, over $700,000 will be distributed to five workers; $500,000, including penalties, will go to the state agencies that were defrauded by misrepresentations made to the New York State Insurance Fund and to the New York State Workers’ Compensation Board; $28,000 will go to the New York City School Construction Authority for the cost of its investigation; $45,739 will go to the Office of the New York State Comptroller for the cost of its investigation; and the remainder will be forfeited to the District Attorney’s Office. The defendants will be sentenced on March 28, 2018.

  The Acting District Attorney said that, according to the investigation, the defendants were granted 15 public works contracts from three government agencies between December 2012 and December 2015. In particular, the defendants were contracted by the NYC SCA to complete electrical work in 13 public schools including four Brooklyn schools: P.S. 164 and P.S. 767 in Borough Park, and P.S. 297 and I.S. 49 in Williamsburg. The defendants were also contracted by the New York State Office of General Services to perform work at Creedmoor Psychiatric Center in Queens, and as subcontractors by the Metropolitan Transportation Authority for services at five locations in Manhattan and Queens.

  In total, the defendants stole over $700,000 in contract revenue they should have paid to employees on these projects.

  Labor Law and the public works contracts required the defendants to pay prevailing wages and benefits to all employees who worked on these projects. The defendants listed variously the names of the five electricians on the certified payroll reports submitted to NYC SCA, the MTA and OGS, which asserted that the defendants had paid all workers the required prevailing wage of $54 per hour, plus benefits of $40.16-$51.86. Instead, the defendants paid their employees on average between $13.50-$25 per hour, without overtime or required benefits, pocketing over $700,000 in public funds that rightfully belonged to the five employees.

  Following an initial investigation by the NYC SCA Office of the Inspector General, the case was referred to the Labor Frauds Unit of the District Attorney’s Frauds Bureau.

  The Acting District Attorney thanked the New York City School Construction Authority, the New York State Office of General Services and the Metropolitan Transportation Authority for their assistance and cooperation.

  The Acting District Attorney additionally thanked the New York State Comptroller’s Division of Investigations and the New York State Department of Financial Services.

Public Advocate Letitia James - NYC's 100 Worst Landlords




Friends,

No New Yorker should be subjected to live in a 
hazardous home, yet bad landlords in our City are 
forcing too many tenants to live in dangerous 
and indecent conditions.

Today, we released the 2017 Worst Landlords 
landlords in New York City.

The Watchlist is a powerful, information-sharing 
tool that helps to empower tenants and advocates 
and hold unscrupulous landlords accountable. 

You can access the Worst Landlord 
Watchlist here: www.landlordwatchlist.com

If you are experiencing issues with your landlord 
or building, resources are available here. As always, 
you can reach out to my office anytime. 

Housing is a basic human right, and we will continue 
to identify the worst abusers of tenants so that every 
New Yorker has the chance to live in safe and 
decent home.

Sincerely,
Letitia James
New York City Public Advocate

Monday, November 13, 2017

A.G. Schneiderman Announces Compensation For New Yorkers Affected By Western Union Wire Transfer Scams


New York Victims Of Fraud May Now Seek Compensation From $586M National Fund
A.G. Schneiderman Offers Tips To Protect New Yorkers From Scams
  Attorney General Eric T. Schneiderman informed New Yorkers today that they may now apply for compensation from a $586 million national fund if they were deceived into sending payments to scammers using Western Union’s wire transfer services. Administered by the Department of Justice's Victim Asset Recovery Program, this fund was created as a result of a multi-state settlement reached by Attorney General Schneiderman, 49 other states, and the District of Columbia with Western Union in January 2017.
New Yorkers may be eligible to receive compensation if they were a victim of a fraud-induced transfer using Western Union between January 1, 2004 and January 19, 2017. Over 30,000 New Yorkers were affected by such transfer scams and lost approximately $35 million as a result.
“I’m pleased that this fund will allow thousands of New York fraud victims to receive the compensation they deserve,” said Attorney General Schneiderman. “I encourage New Yorkers to remain vigilant when receiving solicitations and report potential fraud to my office. We will continue to work with companies to improve their anti-fraud efforts and protect consumers from scam artists.”
New Yorkers who reported to Western Union or to the Attorney General's Office that they had been the victim of a scam using Western Union may receive a claim form in the mail. The claim form will be sent from the settlement administrator in the next two weeks and will contain instructions explaining how consumers may file their claim to receive compensation.
If you do not receive a claim form in the mail but believe you may have an eligible claim, please may visit http://www.westernunionremission.com or call 1-844-319-2124 for more information on how to file a claim. All completed claims forms must be mailed back to the settlement administrator by February 12, 2018.
The Attorney General encourages New Yorkers to reach out to his office’s consumer hotline if they have questions or concerns at 1-800-771-7755.
Consumers should be aware of common scams, including:
  • Lottery and contest scams in which consumers are told they have won a large sum of money, but must first wire money to pay required taxes or fees before receiving their winnings;
  • Grandparent scams in which a consumer is led to believe his or her loved one is in immediate danger and needs money right away;
  • Romance scams in which someone poses as a love interest and then soon begins asking consumers to send money for various reasons, such as medical emergencies, car accidents, muggings, or emergency travel;
  • Tax scams, including when the caller poses as an official from a government agency, such as the Internal Revenue Service, often times using an official looking phone number. The scammer will claim that a past due tax balance is owed, and tell the victim that unless the debt is paid immediately, a team of officers will come to the victim’s home that day to arrest the victim. New Yorkers should remember the IRS and legitimate government agencies never demand payment by phone;
  • Telemarketing scams involving solicitations such as advance fee loans, work-at-home opportunities, magazine sales, credit card offers, business opportunities or travel deals.
Consumers who receive these types of solicitations from strangers should toss those letters in the trash, delete the e-mail, or hang up the phone. Consumers who meet someone online should also be cautious about wiring money, particularly if a meeting in person has never taken place. 
If you think you have been the victim of a scam, report it to our Consumer Frauds Bureau here.

Federal Funding Available Beginning November 13 for Seniors, Working Families and Low-and Moderate-Income Residents




Governor Andrew M. Cuomo today announced that applications for home heating assistance will be accepted beginning Monday, November 13 throughout New York State. The Home Energy Assistance Program is making $327 million in federal funding available to eligible older New Yorkers and low- and moderate-income New Yorkers to help cover heating costs.

"As cold winter nights begin to set in, this funding will ensure New Yorkers receive the assistance they need to heat their homes and keep their families safe," Governor Cuomo said. "By securing this federal funding, residents across the state will no longer be forced to choose between buying food for their loved ones or paying their heating bill. I encourage all eligible New Yorkers to apply for this assistance in order to stay warm this winter season."

Households that are eligible can receive assistance of up to $726, depending on income, household size, and how the home is heated. A family of four can earn up to $53,482 per year and still qualify for help.

The program is overseen by the New York State Office of Temporary and Disability Assistance. Applications are accepted at local departments of social services, which can be found by county here.

Anyone living outside of New York City can apply for a regular Home Energy Assistance benefit online at myBenefits.ny.gov, and New York City residents are encouraged to download the application and mail it in.

Additionally, households may qualify for an emergency benefit if they are at risk of getting their heat shut off or running out of fuel. Applications for emergency benefits will be accepted beginning Tuesday, January 2, 2018. Anyone in need of emergency assistance should contact their local department of social services.

Last year, nearly 1.5 million households received assistance through HEAP. A breakdown of the number of households that received assistance last winter, by region, is below:

Region
Households Served 2016-17
Capital Region
66,000
Central New York
60,134
Finger Lakes
90,863
Long Island
66,565
Mid-Hudson Valley
102,531
Mohawk Valley
46,213
New York City
824,843
North Country
35,839
Southern Tier
52,230
Western New York
134,585
Total
1,479,803

MAYOR DE BLASIO ANNOUNCES ARRIVAL OF LONGEST SELECT BUS SERVICE ROUTE ALONG WOODHAVEN AND CROSS BAY BOULEVARDS IN QUEENS



Starting this week, changes will provide over 40,000 daily riders on the route with faster, more reliable connections to subways, the Long Island Rail Road, and over 20 bus routes on one of the borough’s major north-south corridors; Launch marks the fifteenth SBS route – and builds on Mayor’s commitment to SBS expansion across the five boroughs, while adding transformational safety features to one of New York City’s highest-crash streets

  Mayor Bill de Blasio today announced that the New York City Department of Transportation (NYC DOT), together with the Metropolitan Transportation Authority (MTA), has this week launched the operation of Select Bus Service (SBS) along Woodhaven and Cross Bay Boulevards in Queens. The Q52/Q53 SBS marks the fifteenth SBS route and at more than 14 miles in length, the longest corridor with the service.  The project also brings transformational Vision Zero safety improvements to one of the widest and highest-crash streets in New York City.

“Woodhaven and Cross Bay Boulevard are critical roads in Queens -- and from the Rockaways to Elmhurst, residents deserve this first-class service,” said Mayor de Blasio. “We are committed to expanding Select Bus Service even further, as we know it not only brings increased reliability and reduced travel time for bus riders, the dramatic street improvements of SBS will also make our streets safer for pedestrians and motorists. Here in Queens, along a street that has been a Vision Zero Priority Corridor with far too many tragic crashes, we expect these changes to make a big difference.”  

“I am happy to announce the arrival of Woodhaven/Cross Bay SBS, which we know will bring faster, more convenient and more reliable bus service to so many Queens communities, most of them without subways” said DOT Commissioner Polly Trottenberg. “The new service follows a three-year process of community engagement, and we made many adjustments to our plans along the way. From planners and engineers to roadway crews and traffic signal installers, so many different DOT divisions deserve praise for their hard work here, the end result of which will not only be better bus service but significant safety benefits on one of New York City's widest and most crash-prone roadways.” 

The new SBS route covers 14.7 miles, the longest ever for the service, and the corridor serves over 30,000 daily bus riders, with connections to eight subway lines and over 20 additional bus routes in the Queens communities of Elmhurst, Rego Park, Middle Village, Woodhaven, Ozone Park, Howard Beach, Broad Channel, Rockaway Park, and Arverne.  The Q52 and Q53 have combined daily ridership of 20,000 riders, but altogether, over 45,000 daily riders of Queens bus routes, including express bus passengers, will benefit from improvements along Woodhaven and Cross Bay.  Across New York City, SBS has delivered 10-30% increases in bus speeds and resulted in a 10% increase in ridership along these lines.  The project launched this week will be followed by NYC Department of Design & Construction capital construction along the corridor.

Safety Improvements:  Between 2011 and 2015, Woodhaven and Cross Bay Boulevards  saw over 3,000 traffic-related injuries and 24 fatalities.  DOT and the MTA began outreach for Woodhaven/Cross Bay SBS in 2014, developing the design concept to address myriad concerns identified by both riders and community residents: unreliable and slow bus service; long pedestrian crossings across as many as ten lanes of traffic; varying road widths and configurations along the corridor; congestion; and the need for transit improvements for customers. The two agencies participated in over 50 community meetings, including sit-downs with stakeholders, elected officials, and the six different community boards that the route serves. DOT also conducted on-street outreach along the route, and collected feedback via online portals.

The corridor contains eight Vision Zero Priority intersections, including at Woodhaven/Union Turnpike, which were all redesigned as part of the arrival of SBS.  Altogether, more than 30 intersections are being upgraded and improved for pedestrian safety and/or traffic flow as part of DOT’s largest safety project in 2017.The Q52/53 SBS service along Woodhaven/Cross Bay brings new red-paved bus lanes, real-time bus information, improved pedestrian safety elements and other enhancements, including new median bus stops along 1.3 miles of the boulevards now with service roads. A portion of the corridor was resurfaced this past year in advance of the improvements.

Bus –Lane Enforcement: Woodhaven/Cross Bay SBS joins 11 other bus routes where automated camera enforcement will be in effect, and motorists driving in the new red bus lanes along the Q52/Q53 route will be issued mailed warnings starting next Sunday November 19, 2017.  The warning period extends 60 days, after which violations replace warnings. Bus lanes will be in effect curbside in residential areas from 7 A.M. to 7 P.M. Monday-Friday, and curbside along Cross Bay Boulevard from 7-10 A.M. and 4-7 P.M. Monday-Saturday. Bus lanes offset from parking lane or in the main road will be in effect 24 hours, 7 days a week, and curbside parking will be preserved.

Where they are permitted, bus-lane camera enforcement has proven to be a critical tool to deliver increases in speed and reliability of MTA bus service.  New signage along each bus route indicates the hours when bus lanes are operable, and during which the lanes are camera-enforced. Under state law, the 60-day warning period ensures that regular drivers along the route learn that cameras are in operation.  Once in full effect in January, bus-lane violations will result in a Notice of Liability, which includes a photo of the violation and a fine of $115 – $150, mailed directly to the vehicle registrant’s address.   Since violations are issued against the vehicle, not the driver, points are not deducted from motorists’ licenses.   

Transit Signal Priority: The new Woodhaven/Cross Bay SBS also includes Transit Signal Priority.  Earlier this year, DOT released a report, Green Means Go, on Transit Signal Priority (TSP; report can be viewed here).  The technology is used to speed buses, hold green lights for buses and more quickly turn red lights green.  Currently active along five other SBS bus routes, TSP has reduced bus travel times by an average of 18 percent.  With MTA moving forward with its TSP procurement, DOT announced it would quadruple its installation rate, covering over 1,000 intersections total by 2020  -- including along the Q52/Q53 SBS.

Select Bus Service began on the Bx12 route along Fordham Road in the Bronx in 2008, bringing bus rapid transit to New York City for the first time.  Select Bus Service features, such as dedicated bus lanes, signal priority, off-board fare collection, and all-door boarding have led to faster bus speeds, increased ridership, more reliable service, and safer streets.  SBS Routes are currently along the following corridors: 
·  Fordham Road/Pelham Parkway (Bx12)
·  First/Second Avenues (M15)
·  34th Street (M34/M34A)
·  Hylan Boulevard (S79)
·  Webster Avenue (Bx41)
·  Nostrand Avenue (B44)
·  125th Street-LGA (M60)
·  86th Street (M86)
·  Bronx-Flushing-Jamaica (Q44)
·  Woodside-Jackson Heights Airport Connector, 
   LaGuardia Link (Q70)
·  Utica Avenue (B46)
·  23rd Street (M23)
·  79th Street (M79)
·  Crosstown South Bronx (Bx6)

The launch of the Q52/Q53 SBS route is the latest step toward Mayor Bill de Blasio’s commitment to expand Select Bus Service, route creation of which has more than doubled in the last four years.  In October, Mayor de Blasio announced that New York City would dramatically expand Select Bus Service (SBS), pursuing upgrades on more than 21 new routes over the next ten years, reaching a half-million more bus riders each day.  He also announced that the City and the Metropolitan Transportation Authority (MTA) will also expand bus-priority improvements to make buses faster on key non-SBS corridors in all five boroughs.

For more information about Select Bus Service, please visit www.nyc.gov/brt