Attorney General James Sues Owners and Operators of Four Nursing Homes for Financial Fraud and Resident Neglect

 

Centers Health Care Allegedly Deprived the Nursing Homes of More Than $83 Million in Taxpayer Funding, Resulting in Resident Neglect, Suffering, Humiliation, and Even Death

Lawsuit is Fourth Filed by AG James to Stop Financial Fraud in Nursing Homes and Protect Vulnerable New Yorker

New York Attorney General Letitia James today filed a lawsuit against the owners, operators, and landlords of four nursing homes for years of repeated and persistent fraud and illegally misusing more than $83 million in taxpayer money that resulted in significant resident neglect, harm, and humiliation. The nursing homes, owned and operated by Centers for Care LLC, doing business as Centers Health Care, include Beth Abraham Center for Rehabilitation and Nursing (Beth Abraham Center) in Bronx County, Buffalo Center for Rehabilitation and Nursing (Buffalo Center) in Erie County, Holliswood Center for Rehabilitation and Healthcare (Holliswood Center) in Queens County, and Martine Center for Rehabilitation and Nursing (Martine Center) in Westchester County. Residents at these facilities were forced to sit for hours in their own urine and feces, suffered from severe dehydration, malnutrition, and increased risk of death, developed infections and sepsis from untreated bed sores and inconsistent wound care, sustained life-changing injuries from falls, and died.

Following an investigation by the Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU), the lawsuit alleges that the nursing homes’ owners and operators converted more than $83 million in Medicaid and Medicare funds to enrich themselves, their families, and business associates through an elaborate network of related companies and collusive, fraudulent transactions, rather than use the funds for their intended purposes of providing sufficient staffing and required resident care. To stop further harm and suffering, Attorney General James is seeking to prohibit the nursing homes from admitting new residents until staffing meets appropriate standards, to implement a financial monitor and a healthcare monitor, and to disgorge any and all wrongfully received government funds.

“Nursing homes are meant to be safe spaces where the most vulnerable members of our community receive the care and dignity they deserve. Instead, the owners of Centers Health Care allegedly used these four nursing homes — and the vulnerable New Yorkers who lived there — to extract millions of dollars for their personal use, leading to elderly residents and those with disabilities suffering unconscionable pain, neglect, degradation, and even death,” said Attorney General James. “Rather than honor their legal duty to residents to provide the highest possible quality of life, Centers leadership and their associates seized every opportunity to put personal profit over resident care. My office will always protect and defend nursing home residents statewide, and I encourage anyone who has witnessed disturbing conditions, neglect, or abuse at a New York nursing home to contact my office.”

Under New York law, owners of nursing homes have a “special obligation” to ensure the highest possible quality of life for residents, and to sufficiently staff the facility to provide adequate care to all residents. The lawsuit alleges that the owners, operators, and landlords of the nursing homes and related companies wove a complicated web of fraudulent financial schemes to siphon money from the nursing homes, while they ignored and violated numerous laws designed to protect nursing home residents, resulting in preventable neglect and harm of vulnerable New Yorkers.

Nursing Homes and Owners

The nursing homes are allegedly all controlled and managed by Centers for Care LLC doing business as Centers Health Care (Centers Health Care), a multistate network of nursing, rehabilitation, and senior care services and facilities. Beth Abraham Center is a 448-bed facility in the Bronx; Buffalo Center is a 200-bed facility in Buffalo; Holliswood Center is a 314-bed facility in Queens; and Martine Center is a 200-bed facility in White Plains. Centers Health Care is co-owned by Kenneth Rozenberg and Daryl Hagler.

The companies named in the lawsuit are Abraham Operations Associates LLC, Delaware Operations Associates LLC, Hollis Operating Co. LLC, and Schnur Operations Associates LLC, doing business as Beth Abraham Center, Buffalo Center, Holliswood Center, and Martine Center, respectively. These companies are owned by Rozenberg. Also named are Light Property Holdings Associates LLC (Light Property), Delaware Real Property Associates LLC (Delaware Property), Hollis Real Estate Co. LLC (Hollis Real Estate), and Light Property Holdings II Associates LLC (Light Property II), which own the real property on which the nursing homes are located. These property companies are owned by Hagler.

Also named in the lawsuit are: Light Operational Holdings Associates LLC (Light Operational), an entity that owns 98 percent of Beth Abraham Center and 65 percent of Martine Center; CFSC Downstate LLC (CFSC); BIS Funding Capital LLC (BIS Funding); and Skilled Staffing LLC (Skilled Staffing) — all companies owned by Rozenberg, Hagler, their family members, and business associates that received payments from the nursing homes for purportedly providing services.

Rozenberg and Hagler are named in their individual capacities, as are several of their family members and business partners.

Resident Abuse and Neglect

The lawsuit alleges a pattern of residents not receiving adequate care and suffering neglect, mistreatment, and humiliation as a result of the owners, operators, and landlords depriving the nursing homes of over $83 million intended for resident care. Due to insufficient staffing, staff members were often unable to assist residents with basic activities of daily living, such as help using the bathroom, getting in and out of bed, eating, and maintaining personal hygiene. Call bells were routinely ignored or unanswered, residents were forced to sit in their own urine and feces for hours, meals were not provided in a timely manner, and personal belongings were lost or stolen, including hearing aids, dentures, clothing, and even an electronic piano. Residents, family members, and staff reported unsanitary conditions, including neglected food trays, vermin, flies, and persistent smells of human waste.

The horrors endured by the nursing homes’ residents began well before the COVID-19 pandemic and resulted from Rozenberg and Hagler repeatedly operating the facilities with insufficient staffing in order to increase their own profits. Allegations of mistreatment, neglect, and humiliation at the nursing homes detailed in the lawsuit include:

• A resident at Beth Abraham Center experienced multiple falls while trying to take herself to the bathroom when her call bell went unanswered. Following a fall in October 2020, the facility’s staff informed the woman’s daughter that she had not been injured. Three days later, the resident complained of pain and was sent to the hospital, where the emergency room doctor discovered she had a dislocated hip that required emergency hip replacement surgery. Doctors at the hospital also found that the resident was suffering from a severe diaper rash covering the majority of her lower torso, indicating a lack of proper care. The resident has since left Beth Abraham.

• A man was a new resident in the dementia unit at Buffalo Center. When the resident’s son was on his way to visit his father, he passed someone who “looked like a zombie or a ghost,” wandering down the street. When the son arrived at Buffalo Center, he was asked to wait to see his father. When staff finally brought his father out, the son realized the person he had seen wandering the streets earlier was his father, and that he had managed to leave the facility without staff noticing. His father was sent to the hospital that same day, where he was diagnosed with severe dehydration. Upon his release from the hospital, his son moved him to a different nursing home. He was a resident at Buffalo Center for just three weeks.

• A woman fell from her bed at Holliswood Center and was returned to bed without a medical examination or treatment. No notice was sent to her family. When her daughter was unable to get in touch with her, she visited Holliswood Center but was turned away by staff and told she could not visit her mother. Her daughter called the police, and then watched as her unconscious mother was wheeled out by paramedics. Staff at the nursing home would not provide an explanation for her mother’s condition, and a CT scan at the hospital showed her mother suffered a brain bleed caused by traumatic impact requiring emergency surgery. The woman no longer resides at Holliswood but continues to suffer from speech defects and emotional extremes as a result of the injury.

• A woman at Martine Center appeared to be in pain while she was visited by her daughter. When the daughter pulled her mother’s hand out from under her blanket, it was covered in feces. The daughter found that her mother, who used a colostomy bag, was wrapped in a towel filled with feces and without a colostomy bag. When she unwrapped the towel, she saw her mother’s exposed intestines and the surrounding area covered in feces. While staff attempted to clean her mother, she complained that the area burned, and when they were done, there was still visible feces smeared around the wound.

• A resident at Martine Center did not receive adequate care for his bed sores. When his wife visited in October 2021, she was shocked to find that his wounds had progressed to Stage III and Stage IV ulcers, one of which was eating away most of his buttocks. His wife began the process of having her husband removed from Martine Center to be cared for at home. Before she got the chance to bring him home, he developed sepsis, was hospitalized, and died.

Financial Fraud

The owners of Centers Health Care engaged in multiple fraudulent schemes to divert more than $83 million in government funds from the nursing homes, including collusive real estate arrangements, unnecessary and exorbitant loans with inflated interest rates, phony fees paid to companies they and their family members own, and paying themselves inflated salaries for work that was not performed.

Rozenberg and Hagler controlled the nursing homes using a partnership model that turned nursing homes into money-making machines. Hagler, as landlord, charged the nursing homes, which were owned by Rozenberg, inflated rents that well exceeded necessary mortgage expenses. They concealed this scheme by submitting much lower proposed rents to the New York State Department of Health (DOH) when applying to become the nursing homes’ licensed operators. After becoming licensed operators, the Rozenberg-owned and controlled operating companies imposed much higher rent payments on the nursing homes so Rozenberg and Hagler could take the excess funds for themselves. For example, in September 2015, Buffalo Center reported to DOH that the facility would have an annual rent of $600,000. A few months later, when Buffalo Center closed on its purchase of the facility, Rozenberg, as Buffalo Center’s owner, and Hagler, as Buffalo Center’s landlord, signed a new lease obligating the facility to pay an annual rent of $2 million — 233 percent greater than the rent reported to DOH.  

Rozenberg and Hagler also caused the nursing homes to transfer money through loans to other facilities affiliated with or controlled by Centers Health Care, at no benefit to the nursing homes, staff, or residents. These loans, contrary to the mortgage and property loans, were often made without interest and were seldom repaid. In 2018 and 2019, the owners transferred nearly $5 million from Buffalo Center — money intended for New York Medicaid beneficiaries — to Centers Health Care facilities in other states. The loan was offered without interest, and $3.6 million of that debt remains outstanding, to the detriment of Buffalo Center.

The nursing homes regularly paid invoices from companies that were also controlled by Rozenberg, Hagler, and their families for services that either were not necessary or were not provided at all. BIS Funding, which is owned by Hagler and his son, received approximately $17.2 million from Centers Health Care-affiliated facilities from 2019 through 2021, including more than $3.3 million from these four nursing homes. There are no contracts detailing the scope of services provided to the facilities in exchange for the funds, and the services BIS Funding purportedly provided appear to overlap with work performed for the nursing homes by Centers Health Care’s other contractors, and thus, were duplicative and unnecessary, and also included baseless management fees.

Similarly, Skilled Staffing, which is owned by Rozenberg’s daughter, earned approximately $38.5 million from 2017 to 2021, 90 percent of which came from Centers Health Care-affiliated nursing homes. No contracts exist for the work, and the extent of services provided is not clear. Holliswood Center never hired any staff from Skilled Staffing, but nonetheless paid the company more than $170,000 over a period of one and half years. Skilled Staffing also paid $5 million to Rozenberg’s wife between 2019 and 2021 and transferred another $3 million to various Centers Health Care executives.

COVID-19 Pandemic

The COVID-19 pandemic exposed and exacerbated the deficient resident care and poor working conditions that resulted from Rozenberg and Hagler’s decisions. Under the added stress of the pandemic, the nursing homes’ already-tenuous management model snapped, leading to devastating consequences.

In addition to operating with insufficient staffing, the nursing homes failed to ensure proper infection control, such as quarantining sick residents, providing adequate and reliable health screenings, and equipping staff with personal protective equipment. Residents’ family members reported seeing staff without medical gowns, gloves, or face masks while on video calls with their loved ones.

As COVID-19 spread throughout the nursing homes, insufficient staffing was further reduced to skeleton crews, and the facilities were unable to adequately care for residents. Just two months into the pandemic, 70 residents — nearly a quarter of Holliswood Center’s population — had died from COVID-19. More than 400 residents died across all four nursing homes in 2020.

At Martine Center, the Assistant Director of Nursing (ADON) continued to report to work after exhibiting symptoms of COVID-19 in early April 2020, telling her colleagues that she did not want to abandon them while they were so understaffed. On April 17, 2020, she punched out of work at Martine Center for the last time. By April 21, 2020, she was hospitalized and tested positive for COVID-19. She died in the hospital a few weeks later.

Throughout the pandemic, while both residents and staff died, suffered, and were otherwise neglected, Rozenberg and Hagler denied the nursing homes’ administrators’ requests for more staffing, fewer resident admissions, and salary increases for overburdened staff.

Individual Respondents

The individual respondents named in the petition are Kenneth Rozenberg, who owns half of Centers Health Care, majority stakes in the four nursing homes and Light Operational, and part of CFSC; Daryl Hagler, who owns half of Centers Health Care, majority stakes in the property companies, BIS Funding, and part of CFSC; and their family members: Rozenberg’s wife Beth Rozenberg, a former 50 percent shareholder of Centers Health Care and minority owner of Martine Center, and who, until recently, co-owned Beth Abraham Center with her husband; and Hagler’s adult son Jonathan Hagler, who owns a percentage of each of the property companies, BIS Funding, and CSFC.

Also named are Jeffrey Sicklick, Director of Operations at Centers Health Care who owns minority stakes in Buffalo Center, Holliswood Center, and several other Centers Health Care-affiliated facilities; Amir Abramchik, Chief Operating Officer at Centers Health Care who owns a percentage of Martine Center and stakes in several other Centers Health Care facilities; Elliot Kahan, Chief Marketing Officer at Centers Health Care and part-owner of Martine Center; David Greenberg, who has served as Administrator at other Centers Health Care facilities and is part-owner of Martine Center; Sol Blumenfeld, who has served as Administrator at other Centers Health Care-affiliated facilities and is part-owner of Martine Center; Aron Gittleson, who is a Director of Finance at Centers Health Care and was a part-owner of Martine Center until 2022; Aharon Lantzitsky, who was a Division President at Centers Health Care and part-owner of Martine Center until 2022; Leo Lerner, who owns a minority stake in Holliswood Center; Reuven Kaufman, who was a 10 percent owner of Holliswood Center until September 30, 2021; and Mordechai Hellman, who owns a 10 percent stake in Hollis Real Estate.

Remedies

In the lawsuit filed today, Attorney General James seeks a preliminary injunction requiring the nursing homes to obtain and pay for a financial monitor and a healthcare monitor to oversee the facilities’ operations, and a permanent order from the court that would, among other measures:

• Prohibit the nursing homes from admitting any new residents unless and until staffing meets appropriate standards for sufficient care;

• Require the nursing homes to engage and pay for a financial monitor to oversee the nursing homes’ financial operations;

• Require the nursing homes to engage and pay for a healthcare monitor to oversee the nursing homes’ healthcare operations and ensure residents’ outcomes improve;

• Direct all respondents to fully disgorge the more than $83 million wrongfully received as part of the scheme and return the money to Medicaid; and

• Direct all respondents, corporate, and individual, with the exception of the nursing homes, to pay statutory costs and reimburse the state for the cost of the investigation.

Investigations into other nursing homes and facilities throughout New York state are ongoing.

Attorney General James has been investigating nursing homes throughout New York state based on concerns of resident neglect and other conduct that may have jeopardized the health and safety of residents and employees, both before and during the COVID-19 pandemic. In January 2021, Attorney General James released a report revealing that many nursing homes were ill-equipped and ill-prepared to deal with the pandemic crisis because of poor staffing and a lack of compliance with infection control protocols.

This is the fourth lawsuit Attorney General James has filed against nursing home owners and operators in New York in the past year. In April, Attorney General James co-led a coalition of attorneys general in calling for increased transparency of nursing home ownership. In February, Attorney General James and United States Attorney for the Northern District of New York Carla Freedman secured more than $7.1 million from the Saratoga Center for Rehabilitation and Skilled Nursing Care, a former nursing home in Ballston Spa, and its owners, unlicensed operator, and landlord for years of fraud and resident neglect. In December 2022, Attorney General James sued Cold Spring Hills Center for Nursing and Rehabilitation and Fulton Commons Care Center, two nursing homes on Long Island, for diverting millions in government funding from resident care, causing widespread resident neglect and abuse. In November 2022, Attorney General James filed a lawsuit against The Villages of Orleans Health and Rehabilitation Center, a nursing home in Albion, New York, for years of financial fraud that resulted in significant resident neglect and harm. These lawsuits are a direct result of OAG’s nursing home investigations, which are ongoing.

Attorney General James encourages anyone with information or concerns about alarming nursing home conditions, or resident abuse or neglect to file a confidential complaint online or call the MFCU hotline at (833) 249-8499.

Attorney General James thanks the New York State Department of Health and Commissioner James V. McDonald, M.D., M.P.H., the New York City Department of Health and Mental Hygiene and Commissioner Ashwin Vasan, M.D., Ph.D., and the United States Department of Health and Human Services, Office of the Inspector General, Assistant Special Agent-in-Charge Naomi Gruchacz.

The MFCU’s total funding for federal fiscal year (FY) 2023 is $65,717,936. Of that total, 75 percent, or $49,288,452, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $16,429,484 for FY 2023, is funded by New York state. Through MFCU’s recoveries in law enforcement actions, it regularly returns more to the state than it receives in state funding.

MAYOR ADAMS, SANITATION COMMISSIONER TISCH ANNOUNCE NEXT STEPS IN WAR ON RATS: RULES REQURING MORE BUSINESSES CONTAINERIZE THEIR WASTE

 

As part of the Adams administration’s ongoing commitment to “Get Stuff Clean” and continue the city’s war on rats, New York City Mayor Eric Adams and New York City Department of Sanitation (DSNY) Commissioner Jessica Tisch today announced the launch of the next two phases in getting bags of trash off of city sidewalks. First, the Adams administration is publishing a final rule mandating that all food-related businesses put their trash in secure containers. Second, the administration is starting the rulemaking process on a new proposal to expand the containerization requirements to all chain businesses with five or more locations in New York City. When both rules are implemented, they will cover 25 percent of businesses across the five boroughs and require approximately 4 million pounds of waste produced each day to be placed in secure containers — making New York City’s streets cleaner and more welcoming to all.

 

“New York City used to be known for our mean streets, but, going forward, we’re going to be known for our clean streets,” said Mayor Adams. “Today, we take giant steps towards that goal by announcing new rules to containerize trash in our city that, once finalized, will cover 25 percent of businesses and result in 4 million pounds of trash getting disposed of in secure bins each day. These two simple proposals will have a transformative effect on our city and will eliminate the mountains of food waste piled up on bags on our sidewalks — making our streets cleaner for New Yorkers and less appetizing for the rats.”

 

“Today’s rules take us another step forward towards the end of trash bag mountains and the start of a containerized city,” said Deputy Mayor for Operations Meera Joshi. “I’m thankful to Mayor Adams, the Department of Sanitation, and our partners in the restaurant and food industry for helping us give New Yorkers back their sidewalks and cut the rats off from their all-you-can-eat buffet.”

 

“New York is the home of the best restaurants in the world. I know it, you know it — and the rats know it, too,” said DSNY Commissioner Tisch. “When you leave food behind, they’re ready for a gourmet meal, with the black bags outside food-related businesses basically serving as a to-go box for the rats. That ends now.”

 

This spring, DSNY published an approximately 100-page report, “The Future of Trash,” providing the first-ever detailed, block-by-block analysis of what it would take to get the black bags of trash — the all-you-can-eat buffet for rats — off the sidewalks. once and for all. While the bulk of the report focused on the 24 million pounds of residential waste that DSNY collects each day, it also explored solutions for dealing with commercial waste, which can be up to eight times the volume of residential waste in certain business districts.

 

In May, DSNY proposed a rule requiring all food-related businesses — including restaurants, caterers, grocery stores, delis, and bodegas, among others — to put trash and compostable material into secure containers rather than directly on the street. There are approximately 40,000 food-related businesses in the five boroughs — 20 percent of all businesses in the city — and these business types were selected first because they produce an outsized amount of waste, especially waste that attracts rats. Later this week, that rule will be published in the City Record, and it will go into effect on July 30, 2023.

 

The Adams administration is also building on its commitment to an aggressive, phased approach towards containerization by announcing a plan to expand the container requirement to all chain stores with five or more locations.

 

Under these two rules, businesses will have substantial flexibility on the type and location of containers, provided they have a lid and secure sides that keep the rats out. Containers may be stored either inside or within three feet of the property line.

 

“Getting trash off our sidewalks will help keep our streets squeaky clean and rat out some of the city’s most persistent pests,” said U.S. Senator Kirsten Gillibrand. “I applaud Mayor Adams for taking this rat-ical action to send New York’s whiskered menaces scurrying away for good, and I look forward to continuing to work together to bring about the tail end of New York’s plague of rodents.”

Governor Hochul Announces First-in-Nation Congestion Pricing Will Move Forward, Improving Air Quality and Reducing Traffic

 

Congestion Pricing Plan, Including Mitigation Measures for At-Risk Communities, Wins Federal Approval After Comprehensive Environmental Review

Toll Rate Structure Will Be Recommended by The Traffic Mobility Review Board After Comprehensive Study of Traffic Patterns and Other Key Factors

Governor Kathy Hochul today announced that the Federal Highway Administration has completed the environmental review of the State’s nation-leading congestion pricing program – Manhattan Central Business District Tolling – following a 30-day public availability period of the Final Environmental Assessment. The federal agency today issued a Finding of No Significant Impact, confirming the conclusion of the Final Environmental Assessment, which includes mitigation measures to be undertaken by the program, that the program will have no significant environmental impacts.

“Congestion pricing will reduce traffic in our crowded downtown, improve air quality and provide critical resources to the MTA.” Governor Hochul said. “I am proud of the thorough Environmental Assessment process we conducted, including responding to thousands of comments from community members from across the region. With the green light from the federal government, we look forward to moving ahead with the implementation of this program.”  

The Environmental Assessment (EA), prepared by the Triborough Bridge and Tunnel Authority (TBTA), an affiliate agency of the Metropolitan Transportation Authority (MTA), New York State Department of Transportation (NYS DOT), and New York City Department of Transportation (NYC DOT) in consultation with the Federal Highway Administration (FHWA), found the program is expected to meet its objectives by reducing congestion and overall vehicle miles traveled, with related regional air quality benefits, while providing financial support to capital upgrades for the MTA’s public transportation system. 

Before a tolling rate structure can be set, the Traffic Mobility Review Board (TMRB), a body required by the April 2019 State Legislation that established the Central Business District Tolling Program, will develop a recommended toll structure after considering factors such as traffic patterns, traffic mitigation measures, operating costs, public impact, public safety, vehicle types, discounts, peak and off-peak rates, air quality and emissions trends. The TMRB will provide a report explaining its recommendations, including the underlying review and analysis, to the Board of TBTA, which is coterminous with the MTA Board. The TBTA Board will adopt and establish the tolling structure. 

If a tolling structure is adopted on a timeline as expected, toll collection could begin as early as May 2024, which gives contractors a contractually obligated 310 days to finish designing, developing, testing, and installing the tolling system and equipment.

MTA Chair and CEO Janno Lieber said, “Now the real work begins. The MTA Board, in its capacity as the TBTA Board, must adopt a tolling structure, and contractors need to set up tolling equipment throughout the tolling area. The result will be reduced traffic congestion and the establishment of one of the funding pillars for the MTA’s historic 2020-2024 Capital Program, a historic level of investment to make upgrades that will bring the network to a State of Good Repair, enhance accessibility, accelerate climate resiliency and eliminate transit deserts.”

New York State Department of Transportation Commissioner Marie Therese Dominguez said, “Advancing this first-in-the-nation congestion pricing program is important for a multitude of reasons: cleaner air, decreased congestion on our roads, and smart and targeted investments in more equitable and accessible public transportation for the City of New York and those who live, visit and work here."  

New York City Mayor Eric Adams said, “Congestion pricing has been given the green light, and we’re ready to get it done right. This is about more than just reducing traffic; this will lead to more resources for public transit, cleaner air, and safer streets. Getting congestion pricing right also means ensuring that historically disadvantaged communities are not further burdened, and we are pleased to see that the environmental assessment now includes $155 million in investments to reduce truck pollution, improve asthma care, and expand parks. We look forward to continued discussions with the MTA, our state partners, and the Traffic Mobility Review Board as implementation proceeds.”

New York City Department of Transportation Commissioner Ydanis Rodriguez said, “We are leading the nation in developing a congestion pricing program that will deliver a safer, healthier, and more equitable city. Central Business District Tolling will reduce congestion on our streets while also raising critical revenue for mass transit. We thank Mayor Adams, Governor Hochul, and our state and federal partners as we work to deliver this critical program.” 

Program Benefits

The assessment finds that across the 28-county area studied in the environmental review, of those who commute to work in Manhattan's Central Business District (CBD), only 11% drive and 85% use public transportation. By reducing congestion and creating revenue for public transportation, the program will benefit millions of people every day. Through a package of mitigation measures, the program will also improve air quality in environmental justice communities.

Less traffic congestion: New York is the most congested city in the United States. Congested streets slow down buses, delay emergency vehicles and delivery services, raise the cost of doing business, and degrade our quality of life.  The Final Environmental Assessment estimates a roughly 15-20% reduction in the number of vehicles entering the Central Business District, or about 110,000 to 143,000 fewer vehicles daily, about as many as enter Manhattan on the Brooklyn Bridge today.

New York City buses serve a greater share of low-income and minority households compared to other modes of transportation, including subways. Local bus speeds have declined 28% in the Central Business District since 2010 and Select Bus Service in Manhattan is 19% slower than Select Bus Service in other boroughs. While ongoing MTA initiatives such as the bus network redesigns have shown improvement in speeds, congestion pricing would not only improve travel times for bus service, but also paratransit service.

A more equitable, accessible transit system: The program will generate net revenues sufficient to leverage $15 billion for the MTA's 2020-2024 Capital Program, which includes transformational projects. The MTA's transit system, and particularly the bus network, promotes equity by serving low-income and minority populations. The funding will allow the MTA to progress on its aggressive timeline of completing accessibility improvements, along with performing necessary state-of-good repair work to the more-than-a-century old transit system.

A healthier, more sustainable future: Congestion pricing will improve overall regional air quality with one of the most comprehensive plans the region has implemented to support a greener future. The Final Environmental Assessment found in all tolling scenarios an overall decrease in vehicle-miles traveled in the Central Business District and region overall, and that the program would encourage some commuters to shift from their vehicles to transit. 

Outreach and Community Engagement Unprecedented in Scope 

Over the course of the environmental review process, MTA and its project partners held 19 early outreach sessions, of which nine were focused on environmental justice communities, 10 meetings with Environmental Justice Technical Advisory and Stakeholder Working Groups, and six public hearings after the release of the draft Environmental Assessment in August 2022. Nearly 950 speakers participated in early outreach sessions and public hearings, combined. Additional meetings were held separately for elected officials, community boards, transit and environmental advocates, and other interested parties. TBTA and the State and City departments of transportation received and responded to more than 22,000 individual comments and more than 55,000 form submissions during the formal comment period. 

The Environmental Assessment's Study Area 

In consideration of public input, the Final Environmental Assessment analyzes the potential impacts of Central Business District Tolling on traffic congestion, transit, air quality and numerous other environmental indicators in 28 counties across New York, New Jersey and Connecticut. The Study Area contains 22 million people, including 12.3 million residents residing in environmental justice communities, and five Tribal Nations.

The Final Environmental Assessment assesses impacts to traffic and public transportation for a regional transportation network with 28.8 million journeys per average weekday, 61,000 highway linkage points, 4,600 traffic analysis zones, 44,267 bus stops or transit stations, 4,170 transit routes, and more than a dozen public transportation providers in addition to the MTA, including NJ TRANSIT, PATH, ferries, and regional bus systems including Westchester County Bee-Line, NICE, and Suffolk County Transit.  

Background on the Central Business District Tolling Program

The Central Business District Tolling Program was mandated by the State in April 2019 and modeled on urban congestion pricing programs around the world to reduce traffic congestion and raise needed revenue to improve public transportation. The program will charge vehicles a toll for traveling in Manhattan south of and inclusive of 60th Street, excluding through-traffic on the Franklin D. Roosevelt Drive, West Side Highway, Battery Park Underpass, and roadway portions of the Hugh L. Carey Tunnel connecting to West Street.

Representative Jerrold Nadler said, “The FWHA’s announcement of a Finding of No Significant Impact in their environmental review is a victory for New Yorkers in our fight for cleaner air, safer streets, and improved mass transit. I have fought for congestion pricing from its inception because it is the best way to get cars off our overly crowded roads and allow us to reimagine our streets to create green space for parks, protected bike lanes, and dedicated bus lanes to make commute times faster and more efficient. Now that this program has the green light from the federal government, I look forward to my continued partnership with the MTA and community leaders to finally implement congestion pricing without delay.”

Representative Nydia M. Velázquez said, “This review showing no significant environmental impact of our congestion pricing program is an important step toward our goal of achieving less pollution, reduced traffic, improved public transit, and a greener New York City. New York City’s congestion pricing plan can serve as a national model for how cities can improve air quality with limited impact on residents. We are now one step closer to making this vision a reality, and I look forward to working with my colleagues to get this done.”

Representative Ritchie Torres said, “Today, with the Finding of No Significant Impact and conclusion of the Final Environmental Assessment, we take an important step forward in implementing a first-in-the-nation congestion pricing plan that achieves multiple objectives I’ve long championed – improving air quality, stabilizing the MTA, and reducing congestion. This is the result of tireless collaboration among federal, state, local, and community partners who acted intentionally in listening to the concerns of my constituents and prioritized the unique health and environmental needs of the Bronx. Together, having secured $155 million in new investments to significantly reduce pollution and greenhouse gas emissions, we can move forward with a congestion pricing plan that at its core prioritizes the principles of environmental justice for a community like mine that for too long has been overlooked.”

Representative Dan Goldman said, “We are now one more step closer to implementing congestion pricing in New York City and paving the way for vital improvements in our air quality and public transportation system. Congestion pricing will help curb the untenable levels of car traffic on our streets, strengthen our public transit systems, and uplift our vulnerable communities who bear the brunt of the negative impacts of air pollution. I’m excited to take the next step in building a greener, safer, more efficient city with congestion pricing.”

State Senator Brad Hoylman-Sigal said, “It’s a great day for the environment, improved subway service, safer streets and faster commutes with the green light from the Federal Highway Administration that congestion pricing can proceed. I’m grateful to Governor Hochul for shepherding the Manhattan Central Business Tolling program to fruition and look forward to working with the Traffic Mobility Review Board and local stakeholders to ensure that my constituent concerns are addressed before the program is finalized.”

New York City Comptroller Brad Lander said, “The greenlighting of MTA’s Environmental Assessment marks a major transportation milestone that will keep New York City’s streets and subways moving for years to come. I look forward to working with our state partners to swiftly implement a successful congestion pricing program in lower Manhattan that reduces pollution, speeds up commutes, and funds essential signal improvements and accessibility upgrades to our transit system.”

Manhattan Borough President Mark Levine said, “Manhattan has some of the lowest rates of car ownership in the country, but some of the worst traffic. Congestion pricing will help reduce the number of vehicles on city streets, while also providing the public transit system with funding it desperately needs. The finding of no significant impact is a major step forward and reflects the important commitments the MTA is making to ensure that this program will be successful. There are still details that need to be worked out, so I encourage New Yorkers to participate in the public hearing process. Now is the time to ensure that this program is set up for success.”

Regional Plan Association President & CEO Tom Wright said, “To truly grapple with the New York region’s historic congestion problem, we must have a long-term plan to address air pollution and traffic, improve transit options, and encourage shared economic prosperity. Congratulations to Governor Hochul and MTA CEO Janno Lieber for their leadership and for receiving the Finding Of No Significant Impact (FONSI) from US DOT for congestion pricing. Now begins the hard part for the MTA and the Traffic Review Mobility Board: developing a program that limits exemptions and offers appropriate credits so everyone pays a similar price to drive into Manhattan’s core. With the right credits, congestion pricing program can be implemented in a way that eliminates toll shopping and benefits both New York and New Jersey.”

New York City Council Member Gale A. Brewer said, “I have voted for congestion pricing twice, and I know that the MTA needs the funding it will generate for its capital projects. Addressing congestion, emissions, and funding needs for the public transportation system are critical to New York City’s long-term wellbeing. To meet the outlined goals, a durable and comprehensive congestion pricing program is needed. I also represent an area – including the W. 60th Street demarcation line – where congestion pricing will have the most significant impact. To show good faith to the customers of the subways and the buses, the MTA must run a faster, cleaner, and safer system before implementing congestion pricing to demonstrate what the billions in revenue will buy.”

Permanent Citizens Advisory Committee to the MTA (PCAC) Executive Director Lisa Daglian said, “This is a banner day for riders! It marks a significant step forward for our region’s health and the well-being of our transit system. Congestion Pricing will mean less traffic, better air quality and reap billions of dollars to improve the MTA’s signals and stations, improve accessibility, buy new rolling stock, and build big things like the next phase of the Second Avenue Subway and bring Metro-North into Penn Station. In addition to transit riders, millions of other people will benefit from Congestion Pricing, including drivers in midtown and our neighbors in New Jersey. We applaud USDOT, Governor Hochul, the MTA and its partners, NYS DOT and NYC DOT, for being so diligent in their efforts to ensure that mitigation efforts are being put in place to address the concerns that were raised during the review process. Where New York leads, others will follow.”

New York Building Congress President & CEO Carlo A. Scissura, Esq. said, “It’s been a long time coming, but federal approval for congestion pricing will provide a seismic shift in our ability to better fund mass transit and shift New Yorkers from their cars into an improved regional transportation network. The $15 billion we will see invested in MTA capital programs will help us avoid a predicted ‘death spiral,’ and instead see New York finally build out the world-class, resilient, and accessible-to-all transit system we’ve long deserved.”

New York League of Conservation Voters President Julie Tighe said, “We cannot drive our way out of the climate crisis.  This first-in-the-nation program will not only reduce traffic in Manhattan, it will improve air quality and public health throughout the New York metropolitan region. Congestion pricing will also provide much-needed funding for the MTA to expand and improve service, which will help get commuters off the road and onto public transit. We commend Governor Hochul, the MTA, and Mayor Adams for their bold environmental leadership and for never wavering on this issue, and we look forward to the implementation of this program so our entire region can reap the benefits as soon as possible."

Lime Senior Director of Government Relations Phil Jones said, "We applaud Kathy Hochul and the MTA for moving forward a first-in-the-nation policy that puts people and public transit over cars. At Lime, our mission is to build a future where transportation is shared, affordable and carbon free, and policies like congestion pricing are vital to achieving this vision. Congestion pricing will bring new investment in public transit to communities long left off the map, while reducing New Yorkers' reliance on driving and making our streets safer for pedestrians, cyclists and scooter riders. With congestion pricing, New York takes an unequivocal stand for a greener future and will immediately become a national model for how to fund public transit upgrades."

Tri-State Transportation Campaign Executive Director Renae Reynolds said, “Today’s announcement of final federal approval of congestion pricing is a win for our state, region, nation, and planet. Climate change is a crisis of enormous proportions; 40% of greenhouse gases in our country comes from transportation. Reducing emissions from cars and trucks and improving transit so that it is a viable and reliable choice for our mobility needs, is critical for reaching our climate goals. Governor Hochul is a national leader by overseeing congestion pricing implementation and we hope to see other cities and states follow suit.”

Transportation Alternatives Deputy Executive Director for Public Affairs Elizabeth Adams said, "This is a great day for New Yorkers and we applaud the Governor Hochul and the MTA for this announcement. Now that congestion pricing has cleared its final federal hurdle, it's time to take steps to ensure this transformational policy is implemented as effectively and equitably as possible. In anticipation of fewer cars in the central business district, we have the ability to redesign our streets for people, invest in transit-oriented alternatives that reduce congestion, and build pedestrian-first infrastructure. Congestion pricing’s success demands large scale investments in better walking, biking, and public transit in every corner of our city."

Riders Alliance Senior Organizer Danna Dennis said, "Public transit riders are thrilled that Washington has finally approved congestion pricing so New York can fix the subway network we all depend on. We look forward to working with Governor Hochul and transit officials to ensure a successful implementation so the MTA can make essential upgrades and deliver the modern, reliable, accessible subway that New Yorkers, commuters, and visitors need and deserve." 

Harlem Independent Living Center Executive Director Eman Rimawi-Doster said, “Congestion Pricing is a game changer for those of us with disabilities who use the paratransit service Access-A-Ride in NYC. Many of us are in traffic jams for hours. But congestion pricing has the ability to speed up our trips and get disabled New Yorkers to their destinations. 175,000 Access-A-Ride customers thank you all those who supported this. This will make a huge difference to our lives.”

Brooklyn Center for Independence of the Disabled Executive Director Joe Rappaport said, "Gov. Hochul and the MTA made a legally binding commitment in 2022 to make nearly every one of the system's 472 subway stations accessible to people with mobility impairments -- and the funds raised by congestion pricing will help them keep their word. Like everyone else, disabled New Yorkers also will benefit from the less crowded streets and cleaner air that congestion pricing promises.

MAYOR ADAMS ANNOUNCES PLACEMENT OF NEW HUMANITARIAN EMERGENCY RESPONSE AND RELIEF CENTER

 

New York City Mayor Eric Adams today announced the city will open a 12^th Humanitarian Emergency Response and Relief Center as thousands of asylum seekers continue to arrive weekly in New York City. Soon, 1760 Third Avenue in Manhattan will open as a humanitarian relief center to serve more than 500 families with children seeking asylum, providing a range of services, in addition to ensuring they can reach their desired destination, if not New York City.

 

“With over 50,000 asylum seekers currently in our care and a total of over 81,200 asking us for care since last spring, New York City continues to do more than any other city or level of government to address this national crisis,” said Mayor Adams. “We continue to meet the needs of people arriving in New York, but as the number of asylum seekers continues to grow, we are in serious need of support from the federal government. This 12^th Humanitarian Emergency Response and Relief Center will provide over 500 households with a place to stay, access support, and get to their final destination.”

 

“This new Humanitarian Emergency Response and Relief Center — which will serve hundreds of families with children — demonstrates the city’s commitment to meeting our obligations and doing so with care, compassion, and dignity for every person,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “However, our city cannot continue to shoulder a disproportionate responsibility for what we know is a national issue. The federal government needs to provide additional assistance and a coordinated decompression strategy to relieve the pressure being felt by many major cities across the country, particularly New York City.”

 

“We have families arriving here with nothing who are in desperate need of temporary support,” said Deputy Mayor for Public Safety Philip Banks III. “We will continue to ensure to the best of our ability that they are safe and have access to critical services as they begin to rebuild new lives here for themselves and their children.”

 

“We continue to respond to the national humanitarian crisis with New York City knowhow — providing the tools for asylum seekers to complete their journey and establishing a model for how to effectively support the country’s newest arrivals,” said Ted Long, MD, MHS, senior vice president, Ambulatory Care and Population Health, NYC Health + Hospitals. “Our latest humanitarian relief center builds upon the success of our other humanitarian relief centers for families with children, which have helped provide over 12,000 vaccinations to kids. I am proud to be a part of the Adams administration’s efforts as we work to make a better life possible for families who turned to us for help.”

 

“Since the beginning of this humanitarian crisis, New York City has answered the call by providing asylum seekers with critical resources they need to rebuild their lives,” said New York City Emergency Management Commissioner Zach Iscol. “This additional Humanitarian Response and Relief Center opening in Manhattan will provide migrants with shelter and access to various services as we continue our work to identify and build out locations to shelter and assist those looking for a better life.”

 

Since this humanitarian crisis began, the city has taken fast and urgent action — opening approximately 175 emergency shelters, including 11 other large-scale humanitarian relief centers already; standing up navigation centers to connect asylum seekers with critical resources; enrolling thousands of children in public schools through Project Open Arms; launching the Asylum Application Help Center to help migrants with their asylum applications; and more. Earlier this spring, the city released “The Road Forward: A Blueprint to Address New York City’s Response to the Asylum Seeker Crisis,” detailing how the city will continue to manage the influx of asylum seekers and advocate for support from federal and state partners.