NYC PUBLIC ADVOCATE'S STATEMENT ON PUBLIC SAFETY SPENDING IN THE CITY BUDGET

 

"This administration constantly declares public safety to be its priority. In my State of the People Address, I made the case that a budget which cuts, rather than expands, city services, one that prioritizes spending on policing above all other efforts, would be a threat to public safety. That budget was just adopted. 

"Constant talk of cuts throughout this budget process obscured the fact that the NYPD has been more insulated than other agencies. In the same cycle, while Crisis Management System funding increased, a long-stalled youth mentorship program to prevent gun violence remains unimplemented, a gun violence plan promised for over a year remains unseen, and restorative services on Rikers remain underfunded. Even beyond that conception of what public safety is, lack of adequate investment in other areas will contribute to a long-term lack of sustainable safety in our streets. 

"The budget may be finalized, but the work is far from done – and I hope the administration will commit to supporting systems of true public safety moving forward."

MAYOR ADAMS’ STATEMENT ON PASSAGE OF FY24 ADOPTED BUDGET

 

New York City Mayor Eric Adams today released the following statement after the New York City Council voted to pass the Fiscal Year 2024 budget:

 

“We are proud to have reached a budget that makes strategic investments to keep our city safe and clean, and ensures working families have the services they need, while simultaneously maintaining strong reserves that will allow our city to be prepared for the future. Despite myriad challenges and unexpected crises we have faced, I am proud to say we have successfully navigated these cross currents to arrive at a strong and fiscally responsible budget that will continue to ‘Get Stuff Done’ for New Yorkers. I thank OMB Director Jiha, Council Speaker Adams, Finance Chair Brannan, and the entire Council for their efforts on behalf of our city.”

 

Speaker Adrienne Adams, Finance Committee Chair Justin Brannan, and Council Members Announce Agreement with Mayor Eric Adams on Fiscal Year 2024 Budget

 

The on-time $107 billion budget ensures investments in essential City services, health and safety, education, and quality of life

Speaker Adrienne Adams, Finance Committee Chair Justin Brannan, and Council Members joined Mayor Eric Adams to announce an agreement on a $107 billion budget for Fiscal Year (FY) 2024. The FY 2024 budget outlines the Council’s commitment to protect New Yorkers from many interruptions and cuts to essential services needed to keep the City safe, healthy, and successful. Despite multiple crises facing the City, the Council and the Administration were able to deliver an on-time budget that preserves many critical programs and makes some key investments.

“The Council’s focus in this budget has been to protect the essential services that the people of this city rely on to be healthy, safe, and successful,” said Speaker Adrienne Adams. “We took seriously our task to negotiate the best possible outcomes and deliver results for the people of our city. Through difficult negotiations, the Council worked to bridge the distance between us and the Administration, fighting to restore investments in essential services and funding many programs that we know our families, communities, and city need. Though we have come to a budget agreement today, the Council knows we must continue to push forward in our year-long budgetary, legislative, and oversight efforts to secure the investments that New Yorkers deserve.”

“The Council entered into budget negotiations this year with eyes wide open to the challenges on the horizon and at our doorstep,” said Council Member Justin Brannan, Chair of the Council’s Committee on Finance. “We have never doubted the durability of our city’s economy but we also recognize that resilience doesn’t happen on its own – it requires thoughtful, targeted investments. When money is tight, decisions must be made. Our negotiations were no different from the often tough conversations working families have around their dining room table as they try to make ends meet for another month in the most expensive city in the world. But even with an uncertain fiscal future and a migrant influx everyone agrees New York City cannot handle on our own, with a nearly $107 billion budget, we knew there was still no reason for cuts with a scythe. Instead, we fought for thoughtful, surgical investments and focused our priorities where they mattered most.

Council Member Brannan continued, “This Council fought and won critical investments and restorations for our community schools, our libraries, and our seniors. We reversed cuts to NYCHA, secured funds for expanded 3K programs, and bolstered citywide mental health initiatives. We fought to safeguard funding for our cultural institutions and expanded Fair Fares so less New Yorkers will need to choose between a meal and a MetroCard. We secured funding for arts and music education in our public schools and more trash pick-ups to keep our streets clean. I say it often: a budget is more than just an itemized list of expenditures. It is a values document. You can tell me what you care about but prove it to me by showing me what you spend your money on especially when times are tough and money is tight. It all comes down to priorities and from the start of these negotiations this Council was laser focused on protecting what New Yorkers need to recover, succeed, and be healthy and safe. New Yorkers don’t run and hide, we stand and fight. This city’s best days are ahead of us – I would never bet against New York City.”

The $107 billion FY 24 budget agreement includes a full restoration of the proposed cuts to the City’s library systems and restores funding for education programs for New Yorkers of all ages, from early childhood education to higher education. It also includes expanded access to the Fair Fares program, increased baseline funding for legal services to prevent New Yorkers from eviction and other challenges, restoration of meal programs for older adults, baselined funding toward wage increases for contracted human service employees, additional investments in violence prevention programs, and restoration of funding litter baskets in neighborhoods.

The Council and Administration were also able to secure a balanced FY 24 budget through a strong economy and higher revenue projections as outlined in the Council’s Executive Budget forecast. With more challenging years ahead and slow economic growth expected, the Council emphasized they will remain focused on ensuring government services continue while also maintaining fiscal responsibility.

Highlights of the FY 24 budget include:

Ensuring Delivery of Essential Services

• Completely Restoring Funds for the Three Library Systems: $36.2 million.
• Restored Funding Additional Litter Basket Collection: $22 million.
• Increasing Support to Legal Service Providers, including Right-to-Counsel: New Baselined $30 million as part of a total increase of $46 million.
• Fully Restoring Cuts to Cultural Institutions: $40 million.
• Continuing to Serve Seniors with Nutritious Meals: $7 million restoration of older adult meals, with $2.5 million for senior center meals and $4.5 million baselined for home delivered meals.
• Funding Groceries to Go Program: $5.6 million secured for this program that helps address food insecurity by providing eligible New Yorkers with monthly credits for groceries and a 50% discount on purchases of fresh fruits and vegetables. 
• Supporting Low Wage Workers: $1.9 million.
• Restoring Urban Park Rangers: $4.1 million.
• Restoring Green Thumb Funding: $2.6 million.
• Restoring Funding for Tree Stump Removal: $2 million.

Building Stronger Neighborhoods and Opportunities

• Providing Wage Adjustments for Non-Profit Human Services Sector:: Baselined total of $100 million in FY 24 due to an additional $40 million, plus an additional $50 million baselined in FY 25 for a continuing total of $150 million.
• Expanding Fair Fares to More Low-Income New Yorkers: $20 million baselined on top of FY 23 $75 million for a total of $95 million.
• Reversing Cuts to New York City Housing Authority (NYCHA)’s Vacant Unit Readiness Program to expedite the availability of vacant apartments online: $32.9 million.
• Sustaining the Commission on Human Rights’ Source of Income Discrimination Unit: $1.3 million.

Safeguarding Education and Learning Opportunities

• Providing Funding for Supportive Programs for K-12 Students: $30.3 million includes the Mental Health Continuum ($5 million), Community Schools ($14 million), Immigrant Family Engagement ($4 million), Arts Education ($4 million baselined), Shelter-Based Coordinators ($3.3 million).
• Supports Early Childhood Education for working families: PromiseNYC ($16 million) and converting of 1,800 school day, school year seats to extended day, extended year seats ($15 million baselined).
• Helping Young New Yorkers Be Career Ready: $22.5 million for the Work, Learn and Grow Program.
• Restoring Funds for CUNY Programs: $32.4 million (Includes funding for Accelerate, Complete, and Engage (ACE): $9.1 million; Accelerated Study in Associate Programs (ASAP): $5 million; CUNY Reconnect: $5.8 million; Academic Advisors: $5.9 million).
• Funding Adult Literacy Programs: $6.7 million.

Improving Community Health and Safety

• Prioritizing Crisis Management System (CMS) and Violence Prevention Programs: $86 million.
• Reducing Recidivism and Strengthening Reentry: $121.2 million for Alternatives to Incarceration and Detention Programming.
• Preventing Overdoses and Treating Addiction: $14.6 million.
• Preserving Health Care Access through NYC Care: $100 million.
• Sustaining the City’s First Trauma Recovery Centers: $2.4 million.

Nigerian Man Pleads Guilty In Manhattan Federal Court To Participating In Business Email Compromise Scams

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that CHIBUNDU JOSEPH ANUEBUNWA, a citizen of Nigeria who was previously extradited from the United Kingdom, pled guilty before U.S. District Judge Paul A. Crotty to wire fraud conspiracy in connection with his participation in fraudulent business email compromise scams that targeted thousands of victims around the world, including in the United States.  In connection with the same conspiracy as ANUEBUNWA, co-defendant DAVID CHUKWUNEKE ADINDU was previously sentenced to 41 months in prison, and co-defendant ONYEKACHI EMMANUEL OPARA was previously extradited from South Africa and sentenced to 60 months in prison.

According to publicly filed court documents and statements made at public court proceedings:

Between 2014 and 2016, ANUEBUNWA, OPARA, and ADINDU participated in business email compromise scams (“BEC scams”) targeting thousands of victims around the world, including in the United States.  As part of the BEC scams, emails were sent to employees of various companies directing that funds be transferred to specified bank accounts.  The emails purported to be from supervisors at those companies or third-party vendors that did business with those companies.  The emails, however, were not legitimate.  Rather, they were either from email accounts with a domain name that was very similar to a legitimate domain name, or the metadata in the emails had been modified so that the emails appeared as if they were from legitimate email addresses.  After victims complied with the fraudulent wiring instructions, the transferred funds were quickly withdrawn or moved into different bank accounts.  In total, the BEC scams attempted to defraud the victims of millions of dollars.

ANUEBUNWA and others carried out BEC scams by exchanging information regarding: (i) bank accounts used for receiving funds from victims; (ii) email accounts used for communicating with victims; (iii) scripts for requesting wire transfers from victims; and (iv) lists of names and email addresses for contacting and impersonating potential victims.

ANUEBUNWA, 40, a citizen of Nigeria, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison.  ANUEBUNWA is scheduled to be sentenced by Judge Crotty on October 2, 2023, at 3:30 p.m.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the investigative work of the Federal Bureau of Investigation.  Mr. Williams also thanked United Kingdom authorities and the Yahoo E-Crime Investigations Team for their assistance in the investigation.  The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from the United Kingdom.

Attorney General James Announces Felony Guilty Plea of Former NYPD Detective for Fraudulently Obtaining Disability Benefits

 

Andrew Albate Fraudulently Collected Disability Payments for Years While Managing a Motorsports Business

New York Attorney General Letitia James announced the guilty plea of former New York City Police Department (NYPD) detective Andrew Albate, 53, of Holbrook, Suffolk County, for fraudulently collecting more than $156,000 in disability benefits from the Social Security Administration (SSA). The Office of the Attorney General (OAG) charged that from 2019 to 2022, Albate falsely represented to the New York State Office of Temporary and Disability Assistance (OTDA) that he was unable to work and perform daily activities because of injuries sustained in 2003 while he was working for the NYPD. However, while he was collecting disability benefits and purportedly disabled, Albate worked as the general manager of Formula One Motorsports, a motorcycle dealership in Oakdale, New York. 

“Disability benefits are a critical lifeline and source of independence for New Yorkers who cannot otherwise earn a living wage,” said Attorney General James. “Andrew Albate falsely claimed a debilitating injury to cheat the system and steal from taxpayers and those who actually need financial support. His fraudulent scheme is an insult to those living with disabilities, and I am grateful to our partners at SSA for working with us to bring him to justice.” 

“Mr. Albate’s felony guilty plea and agreement to pay full restitution to SSA resulted from the combined work of SSA and the Office of the Inspector General’s Cooperative Disability Investigations (CDI) Unit and partners,” said Gail S. Ennis, Inspector General, Social Security Administration. “The CDI program saves taxpayers’ funds by ensuring that only those who are eligible for Social Security disability benefits receive them. I thank our law enforcement partners for working with us to investigate this fraud and the New York Office of the Attorney General for prosecuting this case.” 

Albate pled guilty yesterday before Judge Steven Pilewski in Suffolk County Supreme Court to one count of Offering a False Instrument for Filing in the First Degree, a class E felony, in violation of Penal Law §175.35(1). Albate will pay $156,000 in restitution to the SSA. If he fails to complete his restitution on the sentencing date, he faces one year of incarceration. 

According to OAG’s filings and statements made by prosecutors, Albate applied for disability benefits in 2004 due to an on-the-job injury and began receiving disability payments in 2007. Extensive investigative evidence shows that, beginning in 2019, Albate began working full-time as the general manager at a motorcycle dealership. Despite claiming in numerous statements to OTDA and SSA that he was not working and was physically unable to work, Albate did in fact work at Formula One Motorsports five days a week and was paid for his work in cash. As general manager, Albate operated the finance office, managed employees, and handled payroll, all while collecting disability payments based on his alleged inability to work. 

The OAG thanks CDI for their assistance and partnership in this matter, as well as Special Agent in Charge of SSA-OIG Eastern CDI Division Conor Washington and Special Agent Raysa Reynoso. 

The case was investigated for OAG by Detectives Brian Metz and Joseph Buffolino, under the direction of Detective Supervisor Mike Leahy of the Major Investigations Unit. The Investigations Bureau is led by Chief Investigator Oliver Pu-Folkes. Deputy Chief Auditor Sandy Bizzaro oversaw the forensic analysis during this investigation. 

NYC Comptroller Statement on the Fiscal Year 2024 City Budget Agreement

 

New York City Comptroller Brad Lander released a statement on the Fiscal Year 2024 budget agreement:

“The Mayor and City Council shook hands on a Fiscal Year 2024 budget agreement, which, buoyed by strong tax receipts, were cut in the Executive Budget – but leaves many critical long-term challenges unaddressed.

“This agreement rightfully restores funding to our public libraries and increases funding for Fair Fares and for Promise NYC, a program that removes barriers to care no matter a child’s immigration status. Yet other short-sighted cuts like restorative justice programs at Rikers will undermine the City’s public safety goals. And while the State provided significant increases to SUNY this year, this City budget cuts CUNY, our best vehicle for upward economic mobility at a time when career pathways are already under strain.

“The Administration wields the high cost of providing shelter for asylum seekers as a rationale for belt tightening, yet did not provide significant funding for urgent legal assistance that would significantly reduce the City’s long-term costs. City Hall announced a plan to connect asylum seekers with pro bono legal support to apply for status and work authorization, but this budget does not allocate meaningful dollars to scale up legal services that will help people gain employment, exit the shelter system, and contribute to our local economy. This is a shortsighted approach to a pressing budget and human issue.

“While this year’s tax revenues came in well-above expectations, the City still faces wide budget gaps in the outyears of the financial plan. Investing in the programs and services that sustain a thriving city requires thoughtful approaches to savings and more effective management. Using City staffing vacancies as a kind of budget reserve without regard for whether critical services – affordable housing deals, child welfare, or cybersecurity – are affected is penny-wise but pound-foolish. Instead, we should implement a four-year plan for phasing out some non-mission critical programs and operations. The $4 billion in capital funding for affordable housing must also come with a dedicated effort to ensure that the Department of Housing Preservation and Development is adequately staffed to turn that funding into homes for New Yorkers.

“With economic uncertainty still on the horizon, we continue to urge the Mayor and the City Council to adopt a formula and a goal to guide deposits into long-term reserves. This budget fails to add to rainy day funds and they remain far from our recommended 16% of tax revenues that can weather the length of an average recession without major service disruptions. The umbrella we need to protect essential services during the next fiscal storm cannot be left to buckle under political winds.

“Finally, in the coming years, we need new investments to address the most pressing challenges facing the city from housing affordability, child care, transit, to climate resilience. Those investments will require new revenues. My office put forth specific proposals to ask the top 1% of New Yorkers to contribute a little more that will enable us to secure a thriving, inclusive, and sustainable future for our city. With the FY 2024 budget agreed to, let us start that conversation now.

“My team and I will be digging in on the details of how this budget serves New Yorkers in the coming weeks.”

Governor Hochul Announces $150 Million Investment in the Cannabis Social Equity Investment Fund

 

Commitment Secures Up To $200 Million For Fund to Support Individuals Harmed by Disproportionate Enforcement of Cannabis Laws

Public-Private Partnership Supports Development of Dispensaries for Justice-Impacted Entrepreneurs 

 Governor Kathy Hochul today announced that Chicago Atlantic Admin, LLC ("Chicago Atlantic") is investing up to $150 million senior secured capital in the New York State Cannabis Social Equity Investment Fund (the "Fund"). The legislation that allowed for the Fund's creation provided for a $200 million cap of combined investments into it. With Chicago Atlantic's investment, the Fund will receive support to reach its funding goal of up to $200 million, which Governor Hochul and the Legislature sought when it adopted legislation to create this first-of-its-kind support for individuals affected by the unequal enforcement of cannabis prohibition.

"New York has always strived to lead the nation in providing opportunities for those who have been unjustly denied privileges and opportunities," Governor Hochul said. "Today's announcement reinforces New York's commitment to building partnerships that benefit New Yorkers and setting right the wrongs of the past. I welcome Chicago Atlantic's participation in this program and applaud their recognition of the value that New York's cannabis program will provide to so many."

Together with the State's $50 million investment, which will be funded from state cannabis industry revenues, Chicago Atlantic's contribution will enable justice-impacted individuals who have received Conditional Adult Use Cannabis Dispensary (CAURD) licenses from the New York State Office of Cannabis Management and Cannabis Control Board to receive turnkey dispensaries to start their businesses. The funds will be used to secure, lease, design, construct and furnish the CAURD dispensaries, which will be subleased to eligible CAURD licensees. The licenses will be issued low interest loans to repay set-up costs associated with the Fund program.

Chicago Atlantic, which has over 50 employees and has deployed over $1.8 billion across more than 50 investments, manages a diversified portfolio of credit investments with extensive experience in the cannabis industry. Led by a management team with expertise in real estate credit, direct lending, and risk management, Chicago Atlantic has created a leading cannabis lending platform. Chicago Atlantic's flagship investment vehicle, Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) is a mortgage real estate investment trust utilizing significant real estate, credit and cannabis expertise to originate senior secured loans primarily to state-licensed cannabis operators in limited-license jurisdictions in the United States.

Chicago Atlantic Founding Partner John Mazarakis and Managing Director Peter Sack said, "We are proud to support the Governor's initiative as well as New York's CAURD licensees, the Cannabis Social Equity Investment Fund, the Dormitory Authority, the Cannabis Control Board and the Office of Cannabis Management in this transformational initiative. Social equity is the cornerstone of New York's cannabis industry, and here we aim to pair progressive licensing with progressive and innovative capital solutions. The success of New York's social equity initiatives and its CAURD licensees will benefit all industry participants and further support the development of the legal cannabis industry nation-wide."

The Social Equity Servicing Corporation (SESC), a subsidiary of the Dormitory Authority of the State of New York (DASNY) is executing the work to develop dispensaries as an agent for the Cannabis Social Equity Investment Fund.

Cannabis Social Equity Investment Fund Principal Chris Webber said, "We are honored by Chicago Atlantic's recognition of the Fund's role in fostering social equity within the NYS cannabis industry. With our dedicated partners, we are committed to breaking down barriers and creating a more inclusive landscape. This transformative collaboration marks a significant milestone in our collective journey towards a future where every individual has equal access to opportunity and funding therefore empowering communities and driving positive change. Thank you to Governor Hochul for honoring us with the challenge to do things differently in New York for a groundbreaking result."

The Cannabis Social Equity Investment Fund, which was authorized as part of the FY 2023 Enacted Budget, is a public-private limited partnership formed to position social equity entrepreneurs to succeed in New York's newly created adult use cannabis industry. It will allow the state to invest in a private fund to finance the leasing and equipping of conditional adult-use retail dispensaries in New York State to be operated by individuals who have been impacted by the inequitable enforcement of cannabis laws. It is the first of its kind in the nation.

The Fund will help those who have a CAURD license meet the costs of establishing adult-use cannabis retail dispensaries, including the identification and leasing of suitable retail locations and design, construction, and fit-out of the spaces. It is supported by up to $50 million in licensing fees and revenue from the adult-use cannabis industry and up to $150 million from the private sector.

Last year, Governor Hochul proposed, and the Legislature enacted, the Public-Private-Partnership to provide support to individuals who were disproportionally impacted by the Rockefeller Drug Laws and who met OCM licensing requirements. The Governor leveraged DASNY's finance, procurement, design, and construction expertise to help manage the process. In the months following enactment of the Fund, DASNY created the SESC as a DASNY subsidiary to execute work on behalf and as agent to the Fund; engaged in a competitive procurement process to secure a Fund Manager, Point of Sale system, and design-build firms; identified and evaluated 10,000 commercial retail properties statewide for dispensaries; and engaged with property owners statewide and executed leases for locations that will be subleased to CAURD licensees.

The Fund, Impact Ventures, is a joint venture between Webber Willis Ventures LLC, led by Basketball Hall of Famer Chris Webber and entrepreneur Lavetta Willis, and a firm affiliated with Siebert, Williams Shank ("SWS"), one of the nation's leading minority- and women-owned investment banking firms. It is led by SWS CEO Suzanne Shank and SWS Chief Administrative Officer William Thompson, the former New York City Comptroller, along with the SESC.

Housing Lottery Launches For Marion Creston Apartments In Bedford Park, The Bronx

 

The affordable housing lottery has launched for Marion Creston Apartments, two new residential buildings at 2997 Marion Avenue and 2861 Creston Avenue in Bedford Park, The Bronx. Palette Architecture designed the seven-story structure at 2861 Creston Avenue and David Cunningham Architecture is responsible for 2997 Marion Avenue, and both are developed by John V. Waters of NFW Group. Available on NYC Housing Connect are 25 units for residents at 30 to 80 percent of the area median income (AMI), ranging in eligible income from $18,515 to $122,000

Building features include elevators, security cameras, residential courtyard, bicycle storage room, and on-site laundry. Tenants are responsible for electricity.

At 30 percent of the AMI, there are three studios with a monthly rent of $454 for incomes ranging from $18,515 to $33,900; one one-bedroom with a monthly rent of $577 for incomes ranging from $23,143 to $38,130; and one two-bedroom with a monthly rent of $680 for incomes ranging from $27,738 to $45,750.

At 60 percent of the AMI, there is one studio with a monthly rent of $1,055 for incomes ranging from $39,120 to $67,800; one one-bedroom with a monthly rent of $1,328 for incomes ranging from $48,892 to $76,260; and one two-bedroom with a monthly rent of $1,581 for incomes ranging from $58,629 to $91,500.

At 80 percent of the AMI, there are ten studios with a monthly rent of $1,455 for incomes ranging from $52,835 to $90,400; four one-bedrooms with a monthly rent of $1,742 for incomes ranging from $63,086 to $101,680; and three two-bedrooms with a monthly rent of $2,181 for incomes ranging from $79,200 to $122,000.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than August 1, 2023.