NYC PUBLIC ADVOCATE'S STATEMENT ON THE STATE BUDGET

 

"The second budget of this governor’s tenure is over a month late – a disregard for deadline that is disconnected from the needs of New Yorkers – like much of the budget it produced.

"It took a month to roll back bail reform yet again, ultimately imprisoning more Black and Brown New Yorkers pre-trial rather than doing the hard work to actually produce lasting public safety. 

"It took a month to remove all housing support from the budget – whether the production of deeply affordable housing in collaboration with communities, or the essential counterpart of tenant protections to keep New Yorkers in those homes, even as extreme rent hikes are still being considered.

"It took a month to convince the governor not to lift the cap on charter schools, which would pull vital funds from the traditional public school system, and even a month later, the governor insisted on reviving zombie charters.

"There are some positives in this budget, including climate and transportation investments. I’m grateful to the advocates and legislators who fought this past month and throughout the past year to try and not only protect the state’s progress but move forward. 

"At the same time, I fear that until our executives govern not simply by headline, as the governor admitted, or by donors, but by the need to invest in what working families truly need, we will remain stuck in a status quo that has never worked for most New Yorkers."

Statement from NYGOP Chair Ed Cox on the 2024 budget

 

NYGOP Chair Ed Cox this evening released the following statement following the latest agreed budget in 14 years:

“If we needed further proof that Kathy Hochul and Democrats in the legislature can’t be trusted to manage New York’s finances, here it is: this budget - negotiated behind closed doors - raises taxes and increases spending. New York’s budget, at over a quarter of a trillion dollars, remains larger than Texas’ and Florida’s combined – and spends 50% more per capita than California.

“Hochul and the Democrats are also raising property taxes on overtaxed homeowners with their Medicaid cost-shift. This policy gives taxpayers yet another reason to flee the Empire State. Failure to repeal the disastrous bail and discovery laws and the ludicrous ban on gas stoves mark Hochul’s complete capitulation to the radical left of her party.

“Democrats’ crushing taxation and regulatory regime will make New York less safe, less affordable and less free. Our population decline will continue, as businesses and citizens alike seek out friendlier, freer climates.”

Housing Lottery Launches For Casa Celina Senior At 1810 Watson Avenue In Soundview, The Bronx

 

The affordable housing lottery has launched for Casa Celina, 16-story senior housing development at 1001 Thieriot Avenue in Soundview, The Bronx. Designed by Magnusson Architecture and Planning and developed by Xenolith Partners, The Kretchmer Companies, Jewish Association Serving the Aging (JASA), ELH Mgmt. LLC, New York City Public Housing Authority (NYCHA), the NYC Department of Housing Preservation and Development (HPD), and the NYC Housing Development Corporation (HDC), the structure also addressed as 1810 Watson Avenue yields 205 residences. Available on NYC Housing Connect are 106 units for residents at 50 percent of the area median income (AMI), ranging in eligible income from $0 to $60,050

Amenities include a community center, gym, media room, elevator, package lockers, rooftop terrace, 24-hour attended lobby, and an on-site resident manager. Tenants pay 30 percent of their income and applicants will need to qualify for Section 8.

At 50 percent of the AMI, there are 80 studios with a monthly rent of $0 for incomes ranging from $0 to $53,400, and 26 one-bedrooms with a monthly rent of $0 for incomes ranging from $0 to $60,050.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than June 30, 2023.

MAYOR ADAMS’ STATEMENT ON RENT GUIDELINES BOARD PRELIMINARY VOTE

 

New York City Mayor Eric Adams tonight released the following statement after the Rent Guidelines Board took a preliminary vote presenting a range for rent-stabilized lease adjustments of two to five percent for one-year leases and four to seven percent for two-year leases:

 

“While we are reviewing the preliminary ranges put forward by the Rent Guidelines Board this evening, I want to be clear that a seven-percent rent increase is clearly beyond what renters can afford and what I feel is appropriate this year. I recognize that property owners face growing challenges maintaining their buildings and accessing financing to make repairs; at the same time, we simply cannot put tenants in a position where they can’t afford to make rent. Members of the RGB are tasked with making independent decisions based on all available data. However, I hope they will look at options below the top of these preliminary ranges to strike the right balance to keep New Yorkers in their homes while providing building owners with the resources they need to provide safe, high-quality homes.”

 

Joint Statement from Speaker Adrienne Adams and Housing & Buildings Chair Pierina Sanchez on the Upcoming Rent Guidelines Board Vote

 

“Tonight’s Rent Guidelines Board vote on a preliminary range of rent increases takes place against the backdrop of a citywide housing and affordability crisis, where median rents have skyrocketed to their highest levels. Just last week, a report found that over three quarters of renting households cannot meet the true cost of living, underscoring the urgency and severity of this crisis. We urge the board to account for these economic realities, avoiding proposed increases that are counterproductive to New Yorkers persevering beyond our housing challenges.

“Our city’s nearly one million rent-stabilized units are a significant part of New York City’s housing stock and must be preserved as affordable. Continuing to erode their affordability will only exacerbate our housing crisis and disproportionately harm working people and families in communities of color. This would undermine our goals of keeping New Yorkers safely in their homes to improve the health and safety of our neighborhoods. Our path out of this crisis requires a multi-pronged approach from all levels of government, including prudent decisions from the Rent Guidelines Board, to support stability for tenants and homeowners. For New Yorkers to succeed, we must ensure our city keeps New Yorkers in their homes and provides sufficient access to affordable and sustainable housing.”

Head Of Telemarketing Operation Sentenced To 78 Months In Prison For $19 Million Credit Card Laundering Scheme

 

Defendant Used Phony Merchant Accounts to Obtain Credit Card Processing for His Fraud Scheme

 Damian Williams, the United States Attorney for the Southern District of New York, announced that STEVEN SHORT, the former head of Florida-based E.M. Systems & Services LLC and affiliated companies (collectively, “E.M. Systems”), was sentenced today to 78 months in prison for conspiracy to commit wire fraud and bank fraud in connection with his participation in a fraudulent scheme to obtain credit card processing services for his deceptive Florida-based telemarketing operation through a California-based company called CardReady LLC (“CardReady”).  SHORT previously pled guilty to the conspiracy charge and was sentenced today before United States District Judge Loretta A. Preska. 

U.S. Attorney Damian Williams said: “Over a two-year period, Steven Short and his co-conspirators used shell companies to deceive credit card payment processors into processing more than $19 million obtained from more than 19,000 victims nationwide.  Short preyed on vulnerable people in credit card debt, charging fees up to $1,495 in exchange for guaranteeing to reduce their debt and lower their interest rates, but instead generally sent them cookie-cutter booklets with ordinary budgeting advice.”

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

SHORT controlled E.M. Systems.  From approximately 2012 through 2015, SHORT and E.M. Systems carried out a telemarketing fraud scheme in which they used telemarketers to cold-call consumers, targeting consumers with outstanding credit card debt.  In exchange for fees up to $1,495, the cold-callers offered the customers services, including debt consolidation and interest-rate reduction on their debts, which were prohibited by the applicable guidelines from a bank used by SHORT (“Bank-1”) and associated processing entities (the “Guidelines”), and which — as SHORT knew — would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines.  SHORT and E.M. Systems generated over $19 million in fraud proceeds from more than 19,000 customers through this scheme, resulting in thousands of complaints by customers of fraud and deceptive tactics and requests for millions of dollars in refunds and chargebacks.

In order to charge for E.M. Systems’ purported services via credit cards, SHORT sought access to the credit card processing market through CardReady, a Los Angeles-based company acting as a sales agent in the credit card processing industry.  As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, such as SHORT, and submitted merchant applications on behalf of those merchants to a Manhattan-based Independent Sales Organization (the “New York ISO”).  The New York ISO then evaluated the merchant applications and referred acceptable merchant accounts up the chain to a payment processor (“Payment Processor-1”) and Bank-1.  Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards.  Under E.M. Systems’ deal with CardReady, CardReady kept approximately one-third of the credit card sale transactions of SHORT and E.M. Systems in exchange for providing them access to the credit card processing network.  

In securing credit card processing for E.M. Systems to process the fees paid by its customers, SHORT and CardReady concealed that E.M. Systems was the true underlying merchant.  Instead, SHORT and his co-conspirators, over a period of more than 20 months, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”).  The 26 signers for the 26 Sham Merchants typically had no business of their own and knew little or nothing about E.M. Systems’ business.  In return for signing paperwork, the signers were paid a nominal fee by CardReady.  These false merchant applications also concealed the Sham Merchant’s true association with E.M. Systems.

By steering E.M. System’s payment processing through these Sham Merchant Accounts, SHORT and CardReady accomplished a number of fraudulent purposes.  First, the use of these Sham Merchant Accounts made it possible for E.M. Systems to conceal its identity from Payment Processor-1 and Bank-1 and to maintain payment card processing.  This was particularly relevant as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services.  SHORT and CardReady then quickly replaced the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of high-risk merchants.  Second, the fraudulent processing scheme enabled E.M. Systems to spread out its charges, refunds, and chargebacks across multiple Sham Merchant Accounts.  SHORT and CardReady thus enabled E.M. Systems to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.

SHORT, 46, of Tampa, Florida, pled guilty on August 16, 2022, to one count of conspiracy to commit wire fraud and bank fraud.  In addition to the prison sentence, SHORT was sentenced to three years of supervised release and ordered to pay restitution of $1,912,090.05 and forfeiture of $8,833,889.69.

Also charged in this case is Brandon Becker, 51, of Los Angeles, California, whose trial is scheduled to begin on December 4, 2023, before Judge Preska.  Becker is presumed innocent unless and until proven guilty.

Mr. Williams praised the work of the Federal Bureau of Investigation and thanked the Federal Trade Commission for its assistance.

Attorney General James Secures Agreement with Insulin Manufacturers to Cap Insulin Prices for Uninsured New Yorkers

 

Eli Lilly and Sanofi-Aventis U.S. LLC Agree to Cap Insulin Prices at $35 Per Monthly Prescription for Uninsured New Yorkers for Five Years

New York Attorney General Letitia James today secured agreements from the nation’s largest insulin manufacturers, Eli Lilly and Company (Lilly), and Sanofi-Aventis U.S. LLC (Sanofi), to cap the price of insulin at $35 per monthly prescription for uninsured New Yorkers for five years. An investigation by the Office of the Attorney General (OAG) found that the list prices set by insulin manufacturers for patients resulted in significant out-of-pocket costs for certain insulin users, causing some to ration their insulin or forgo it altogether. Under today’s agreements, any uninsured New Yorker who uses Lilly or Sanofi insulin products will not be charged more than $35 for a monthly supply of insulin for the next five years, and both companies also committed to offering free insulin for the neediest patients.

“Lifesaving medication should be affordable and accessible for all New Yorkers regardless of their income or insurance status,” said Attorney General James. “Today, uninsured New Yorkers who rely on insulin to manage their diabetes can breathe a sigh of relief that they no longer have to choose between their health or putting food on the table. I will always use the powers of my office to protect vulnerable New Yorkers, and to ensure no company takes advantage of them.” 

Over the past two decades, the list prices for insulin have increased dramatically. From 2002 to 2013, the average list prices for insulin products from all manufacturers nearly tripled. For a person with Type 1 diabetes, annual spending on insulin averaged $2,864 in 2012, and that spending increased to an average of $5,705 in 2016. These dramatic cost increases were not driven by insulin manufacturing costs, which by one estimate would be no more than $133 per person per year. 

More than 10 percent of New Yorkers have diabetes, and it is estimated that 464,000 of them rely on insulin every day. New Yorkers who live in the state’s poorest neighborhoods are 70 percent more likely to have diabetes. In fact, more than 16 percent of New York adults with diabetes have an annual household income of less than $25,000, while only six percent have an annual household income of more than $50,000. 

As part of these agreements, Lilly and Sanofi have committed to offering affordable programs that ensure that no patient walks away from a pharmacy empty-handed because they could not afford their insulin. Both Lilly and Sanofi have agreed to implement a streamlined process at the pharmacy counter that would allow pharmacies to automatically advise cash-paying consumers of their ability to fill their monthly prescription for $35, before leaving the pharmacy counter.  

In addition to the $35 monthly cap for any uninsured New Yorker, Lilly has also agreed to continue working with national relief agencies to identify high-need geographical locations throughout New York and to offer insulin products free of charge, through national relief agencies, to more eligible non-profit clinics in those locations. Those clinics can then offer insulin products for free in those areas that are the most in need. Sanofi has also agreed to offer free insulin to the neediest consumers who meet income thresholds tied to the federal poverty line.  

MAYOR ADAMS, MTA ANNOUNCE NEW INVESTMENTS IN PUBLIC SPACE, GOOD JOBS, AFFORDABLE HOUSING AROUND BROADWAY JUNCTION SUBWAY STATION

 

NYCEDC and MTA to Oversee Nearly $500 Million in Public Realm Improvements, Station Complex Improvements, and Accessibility Upgrades

 

Public and Private Investments to Generate $11.6 Billion in Economic Impact and Over 2,300 Jobs, With City and State Prioritizing Local Hiring

New York City Mayor Eric Adams today announced a major public investment in the area around the Broadway Junction subway station in Brooklyn that will deliver vibrant public space, improve quality of life, create family-sustaining jobs, and unlock inclusive economic growth throughout East New York. Driving the plan is a $500 million public investment in the community, including $400 million from the Metropolitan Transportation Authority (MTA) for accessibility upgrades at the Broadway Junction station complex, part of ongoing efforts to make the station a true regional transit center. The remainder is a $95 million city investment to activate underutilized public spaces around the subway complex; improve street safety for pedestrians, cyclists, and all road users; and create approximately one acre of new open space.

 

These investments build on a series of steps the city and state have taken to bring economic opportunities, services, and amenities to this long-underserved community. With these new public commitments and planned private investments around the Broadway Junction complex, the city is expected to see over $11.6 billion in economic impact over the next 30 years, including opportunities for local businesses, nonprofits, and minority- and women-owned business enterprises (M/WBEs). These new public realm investments alone are expected to generate over 2,300 construction jobs citywide and will add to more than 2,000 new homes, including hundreds of affordable homes, that are recently completed, in construction, permitted, or projected in the neighborhood.

 

“I fought to bring investments to this community when I was Brooklyn borough president, and as mayor, I am proud to say that we are getting it done,” said Mayor Adams. “This $500 million public investment will create more than 2,300 construction jobs, two new public plazas, and safer streets in this community, along with more than $11 billion in economic impact for the city. This process has been led by the people who live here, and our administration is completely committed to keeping the community front and center and delivering the quality of life the residents deserve.”

 

“This holistic investment in Broadway Junction and the East New York community is emblematic of how our administration approaches neighborhood planning to ensure that public investment spurs more affordable housing and connects local residents to new jobs,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “Broadway Junction has long been one of the busiest transit hubs in the city, and with these investments, it is positioned to be a vibrant jobs center that brings real opportunities to the surrounding community.”

 

“Brooklyn’s Broadway Junction is a major nexus for numerous subway lines, bus routes, and the Long Island Railroad, and I am thrilled that city and state agencies are working together to add new public space, streetscape and safety improvements, and new opportunities for local businesses at such an important transportation hub,” said Deputy Mayor for Operations Meera Joshi. “In a city as dense as New York City, one additional acre of open space is a major win for the residents of East New York and for commuters and visitors who travel through Broadway Junction.”

 

“This is a generational investment in East Brooklyn that will bring long-overdue improvements to transit infrastructure and the public realm and significantly enhance the quality of life for residents and businesses while catalyzing future private investment in housing as well as commercial and industrial development,” said New York City Economic Development Corporation (NYCEDC) President and CEO Andrew Kimball. “In the ‘New’ New York action plan, Mayor Adams called for greater investment in outer-borough residential and commercial hubs with strong access to transit, and Broadway Junction is a perfect example of this need. NYCEDC looks forward to working alongside the community to execute this plan, while bringing more jobs, housing, and services to East New York.”

 

“Broadway Junction is the heart of the MTA,” said Jamie Torres-Springer, president, construction and development, MTA. “Through accessibility upgrades and other critical projects in the area, we're making investments that reflect that. We’re proud to partner with the city on making East New York a priority for the future.”

Illustrative rendering of new Broadway Junction Plaza; view from west Van Sinderen Avenue and Fulton Street. Credit: New York City Economic Development Corporation

A map of the investments coming to the area around the Broadway Junction station complex. Credit: New York City Economic Development Corporation

Public realm improvements surrounding Broadway Junction were a key initiative in Mayor Adams’ and New York Governor Kathy Hochul’s “New” New York action plan, “Making New York Work for Everyone,” which identified the area as an emerging jobs hub.

 

Within a 10-minute walk of the Broadway Junction station, more than 433 homes have recently been completed or are in construction, with more than 1,700 additional homes projected or permitted. Nearly all of the 433 homes are affordable to families earning less than 80 percent of area median income, and nearly 60 percent will be affordable for families earning less than 50 percent of area median income. All of the anticipated housing construction will have to meet affordability requirements under Mandatory Inclusionary Housing or are currently engaging with the New York City Department of Housing Preservation and Development (HPD) to provide even greater affordability.

 

As part of the plan, NYCEDC will create two new public plazas on either side of Van Sinderen Avenue and Fulton Street, creating a new gateway entrance to the Broadway Junction station with new lighting, art, vending space, seating, and plantings. The project will also deliver streetscape improvements with new pedestrian safety measures, bike infrastructure, signage, and street furniture on Van Sinderen Avenue between Fulton Street and Atlantic Avenue. Planning and design will kick off this summer with community workshops with groundbreaking anticipated in 2027 and completion by 2030. 

 

The MTA’s improvements will bring ADA accessibility to the entire Broadway Junction station, including transfers between the Fulton line A/C, Jamaica line J/Z, and Canarsie line L stations. The project also includes state-of-good-repair investments, including escalator replacements, and will create a new entrance with direct access to the L train on the east side of Van Sinderen Avenue. The project is part of the more than $5 billion in funding dedicated to ADA upgrades across the subway system in the MTA’s current capital program. The MTA will award a design-build contract later this year and expects construction to take five years.

 

With these new investments and connected projects, the city will create opportunities designated for local businesses. The city will set aside a minimum of 35 percent of design and construction contracts for of the public space around the Broadway Junction for M/WBE businesses, with an emphasis on targeting and certifying local minority, women, and other disadvantaged businesses in the community to become M/WBE-certified. The city will then prioritize these businesses for admission into the spring 2024 cohort of NYCEDC’s ConstructNYC program, which will help small and mid-sized firms become prequalified to work on these and other city construction projects.

 

At the same time, the city will reduce barriers for the local workforce to access training and new job opportunities coming out of this investment. The New York City Department of Small Business Services (SBS) will partner with NYCEDC, the MTA, and other employers to do targeted outreach and marketing of upcoming training and recruitment events at the East New York Workforce 1 Center and across the Workforce1 system to meet hiring goals. Additionally, the MTA has set a goal that at least 20 percent of the New York state workforce come from neighborhoods surrounding the project, including it in its newly created Local Hiring pilot.

 

These new investments also build on steps the Adams administration is taking in partnership with New York City Councilmember Sandy Nurse to foster inclusive growth around Broadway Junction with support for local businesses, nonprofits, and minority- and women-owned businesses to participate, including:

• Phase one of the administration’s “City Agencies Revitalizing the Economy” (CARE) strategy, which will bring the area’s largest-ever commercial building, with the New York City Department of Social Services occupying space.
• The $21.6 million reconstruction of the Callahan-Kelly Playground, which is located next to Broadway Junction station and scheduled to reopen this spring — completely overhauling the three-acre park with new play equipment, upgraded sports courts, and a brand-new skate park.
• A request for proposals that NYCEDC will release in 2024 to activate a 20,000-square-foot lot on Sackman Street in the East New York industrial business zone to provide opportunities for local businesses and jobs.
• The launch of an opportunity to lease up to 10,000 square feet in the newly renovated East New York Industrial Building at 181 Powell Street later this year.
• An opportunity to lease a city-owned, 3,600-square-foot vacant lot on East New York Avenue.

In addition to the accessibility project, the MTA has other investments planned for Broadway Junction and East New York. Starting next year, electric buses will be located in East New York as part of phase one of the MTA’s zero-emission bus transition plan. The proposed Interborough Express, a new transit line from Brooklyn to Queens, is also slated to include a connecting station at Atlantic Avenue.

 

“New Yorkers deserve safe, affordable housing in a neighborhood they love — and a neighborhood that works well for them. By pairing affordable housing with investments in transit, public space, and other amenities, we’re making housing equity a reality for Broadway Triangle residents,” said HPD Commissioner Adolfo Carrión Jr. “HPD has delivered more than 1,000 affordable homes to East New York since the rezoning, and we look forward to bringing even more affordable homes to Broadway Junction.”

 

“East New York is primed for an investment in the public realm, and this expansion of open space will benefit the residents surrounding Broadway Junction in the decades to come,” said New York City Department of Parks & Recreation Commissioner Sue Donoghue. “With the soon-to-be-completed renovation of Callahan-Kelly Playground — an over $20 million investment from the mayor’s office — this space will continue to be a prime destination to live, work, and play.”

 

“This groundbreaking investment exemplifies the equitable recovery that Mayor Adams has been leading from day one, and SBS is proud to help bring these developments to life,” said SBS Commissioner Kevin D. Kim. “From certifying local M/WBE businesses in the area to connecting local residents to training and job opportunities through our Workforce1 Center, SBS is committed to ensuring that the transformation of Broadway Junction opens the door to prosperity for all.”

 

“This is an area of the city supremely well connected to transit, which is why we need to do more to improve the public experience, enhance the health and safety of the local community, and spur growth and opportunity,” said New York City Department of City Planning Director and City Planning Commission Chair Dan Garodnick. “These public investments are incredibly exciting and will deliver a huge lift to Broadway Junction.”

 

“At one of Brooklyn’s busiest transit hubs, commuters deserve a fully accessible Broadway Junction complex that is surrounded by welcoming, attractive public spaces and safe infrastructure,” said New York City Department of Transportation (DOT) Commissioner Ydanis Rodriguez. “We’re working closely with the EDC and MTA to support their vision for the neighborhood and look forward to building on the street safety work DOT has done in the area. We thank Mayor Adams, our sister agencies, and the MTA for advancing these much-needed mobility, public safety, and quality-of-life improvements.”

 

“At DCAS, our mission is to make city government work for all New Yorkers, and the mayor’s plans to revitalize this area serve as a masterclass in fulfilling this goal,” said New York City Department of Citywide Administrative Services (DCAS) Commissioner Dawn M. Pinnock. “Through collaboration and investment, this neighborhood is poised for its very own renaissance. The community in East New York deserves world-class parks, affordable housing, jobs that can provide a living wage, and so much more, and we are proud to support this administration as we work to help change lives.”

 

“These incredible new investments exemplify this administration’s commitment to supporting and revitalizing underserved communities across the city,” said New York City Department of Social Services Commissioner Molly Wasow Park. “By helping to bring a slew of new and high-quality jobs, public spaces, and affordable housing units to East New York, this plan prioritizes the long-term growth and development of this oft-overlooked area. We thank the administration and our partners for their continued efforts to make New York City more inclusive and equitable, and we look forward to playing our part by bringing critical social services directly to New Yorkers in need in this community.”