MAYOR ADAMS CELEBRATES NYCHA’S HISTORIC YEAR WITH SELECTION OF TRUST IN FIRST RESIDENT VOTE, RECORD-BREAKING PROGRESS

 

First Resident Vote Certified as Nostrand Houses Chooses to Enter Public Housing Preservation Trust   

Record-Breaking Year for Converted PACT Units, Funding for PACT Repairs, Capital Investments, and Fundraising by Public Housing Community Fund  

 

Makes Historic Progress Boosting Sustainability Across Developments   

New York City Mayor Eric Adams, Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer, and New York City Housing Authority (NYCHA) CEO Lisa Bova-Hiatt today celebrated a transformational year for NYCHA that gave residents a say in the future of their homes, broke investment and fundraising records, and ushered in a new era for sustainability across the country’s largest public housing system. Today, with the certification of voting results, residents at Nostrand Houses made history and voted to enter the NYCHA Public Housing Preservation Trust. 

 

“Today we are celebrating a year of victories for the working people of NYCHA,” said Mayor Adams. “With the certification of voting results, residents at Nostrand Houses made history and voted to enter the Public Housing Preservation Trust — ensuring residents get their fair share. This vote builds on the transformational year we’ve had in breaking records, making historic investments, and improving sustainability for our critical public housing system.” 

 

“Our administration is firing on all cylinders to deliver real results for NYCHA residents, and the numbers are there to prove it. Over 20,000 homes have been converted through PACT since the start of the program, $1.8 billion was secured in financing for PACT developments in 2023, and the very first development presented with the opportunity to join the Preservation Trust voted for it with an overwhelming majority,” said Deputy Mayor of Housing, Economic Development, and Workforce Maria Torres-Springer. “While we are proud of these successes, we know we have to redouble our efforts to reverse decades of under-investment at NYCHA. As we look forward to 2024, we will continue to center the voices of NYCHA tenants in all that we do.” 

 

"The vote at Nostrand is an unprecedented and historic moment at NYCHA, but it also speaks to the progression of the Authority's overall transformation," said NYCHA CEO Bova-Hiatt. "In the last five years, we have worked tirelessly and in constant concert with residents to cultivate, evolve, and sharpen the strategies at our disposal to not only provide decent housing, but to facilitate a better standard of living for those who call NYCHA home. We have built and fine-tuned meaningful, sustainable pathways to a better quality of life for residents, such as the Preservation Trust and the PACT program, that are yielding tangible results for residents and the Authority alike. Now, as a critical part of today's NYCHA, and evidenced at Nostrand Houses and through the PACT program, residents are the ones guiding the future of their homes and the direction of the Authority more than ever. And, with that said, the work alongside our partners — the residents — continues." 

 

A third-party election administrator certified the results from NYCHA’s first resident vote. With Nostrand Houses selecting to enter the Public Housing Preservation Trust — created by the Adams administration and signed into law by New York Governor Kathy Hochul — the development will be eligible to tap into new federal funding streams for comprehensive repairs.  The historic vote at Nostrand Houses builds on a transformational year for NYCHA, which broke several records and made significant progress to bolster the sustainability of developments across the five boroughs. Highlights of the achievements include:  

•    Set a new record by converting more than 5,200 units to Section 8 through the Permanent Affordability Commitment Together (PACT) program, for a total of more than 20,000 converted units. 

•    Closed on financing for $1.8 billion for capital repairs at PACT developments — the largest capital financing in the program’s history.  
•    Continued to utilize a record $1 billion in funding for capital projects in 2023. 
•    Set new Public Housing Community Fund record with record $8 million haul.  
•    Made historic progress to bolster sustainability through clean energy initiatives and flood resiliency infrastructure improvements, among other efforts.  

 

The final, certified results at Nostrand Houses yielded a total of 808 resident votes, including 573 heads of household. By the election administrator’s count, the residents of Nostrand Houses have selected the Preservation Trust as the future of their homes with a total of 464 votes, while 172 residents voted to remain as Section 9 housing, and 163 voted to enter the PACT program. NYCHA and the Trust will now convert the development to Project-Based Section 8 and unlock millions of dollars in much-needed funding for capital renovations to the 1,150 apartments in 16 buildings on Nostrand’s campus. 

 

The residents of Bronx River Addition will vote next, following 100 days of engagement. Over the past year, NYCHA has also worked in tandem with resident leadership to select partner teams and deliver record-breaking capital improvements and renovations to campuses around the city through the PACT program. A record $1.81 billion in financing for capital repairs was closed through PACT this year across four PACT deals, with the program now having surpassed a record 20,000 units converted to Section 8 Project-Based Housing, allowing a development to tap into additional funding. PACT-unlocked funding goes toward fully renovating apartments and buildings, improvements to campus grounds, infrastructure upgrades, HUD pillar compliance, increased safety and security, and access to important social services.  Together, the Trust and PACT represent two key strategies to drive investment into NYCHA properties following decades of federal disinvestment, as NYCHA and the administration work to improve and preserve this critical housing for future generations of New Yorkers.  NYCHA is also on track to utilize $1 billion in funding for capital projects in 2023 — the most NYCHA has spent in a single year in its history. NYCHA’s major capital programs are focused on renovating heating systems, elevators, roofs, facades, plumbing, waste management equipment, safety and security systems, flood infrastructure, and community centers and playgrounds.

 

Supplementing NYCHA’s day-to-day efforts to improve conditions and quality of life for residents, the Public Housing Community Fund engages people and partners to invest in programs that enhance the lives of NYCHA residents, and this year raised a record-breaking $8 million-plus.  Throughout 2023, NYCHA continued its work alongside city, state, and private partners to address the climate crisis while solving quality of life issues for residents through innovative sustainability initiatives and programs and capital investments in areas such as resiliency infrastructure. NYCHA expanded the Clean Heat for All challenge, an initiative to develop a new heating and cooling product to hasten the transition to fossil-free heating sources, with the installation of 72 window heat pumps from two manufacturers in 24 apartments at Woodside Houses that are being closely monitored for performance throughout the current winter heating season. A request for proposal was issued for the Induction Stove Challenge, which invites appliance manufacturers to design and produce energy-efficient, electric-cooking systems to replace existing fossil fuel stoves while avoiding costly electrical upgrades in NYCHA buildings. In September, the NYCHA celebrated the graduation of the first cohort of the NYCHA Clean Energy Academy, which prepares residents for careers in the rapidly growing clean energy sector.  

 

"We are immensely honored and grateful for the faith placed in the New York City Public Housing Preservation Trust by the residents of Nostrand Houses,” said New York City Public Housing Preservation Trust President Vlada Kenniff. "This victory is a testament to the power of community collaboration and the collective determination to secure a brighter future for all residents. We are fully committed to working hand-in-hand with the community to preserve and enhance the quality of life at Nostrand Houses." 

 

“PACT continues to reshape the perception of what public housing looks like and what it can be,” said NYCHA Executive Vice President of Real Estate Development Jonathan Gouveia. “Residents at NYCHA developments across the city are seeing these possibilities unfold firsthand. This year, we surpassed 20,000 units converted. Those are the homes of families and individuals who continue to have an affordable place to call home in buildings and apartments that have been preserved for future generations. We extend our most sincere appreciation to our PACT partner teams, and of course, the residents for their partnership and guidance throughout the evolution of this remarkable program.” 

 

“With this vote, residents at the Nostrand Houses have taken a bold step toward strengthening public housing in New York by joining the New York City Housing Preservation Trust,” said Governor Hochul. “This vote will not only improve living conditions for the hundreds of residents at the Nostrand Houses – it paves the way for major improvements at more than 25,000 apartments across the NYCHA system. My administration brought stakeholders to the table to establish our first-in-the-nation Trust, and after meeting with residents, tenant leaders, members of the Legislature, and others, I was proud to sign landmark legislation to fund the critical repairs that residents have demanded for years. The Nostrand Houses’ historic vote reflects years of partnership between my office, the Mayor, NYCHA, and the tenant community, and I look forward to continuing to work with them as we start this new chapter for public housing in New York.” 

BRONX MAN SENTENCED TO 16 YEARS IN PRISON FOR KILLING GIRLFRIEND’S ONE-YEAR-OLD SON

 

Defendant Pleaded Guilty to First-degree Manslaughter

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 16 years in prison and 5 years post release supervision for fatally beating a baby.

 District Attorney Clark said, “Legacy Beauford suffered an atrocious death. This one-yearold boy was beaten until he was no longer breathing, because he was crying. The defendant is now going to prison for his monstrous acts.”

 District Attorney Clark said the defendant, Keishawn Gordon, 26, of 420 East 169th Street was sentenced today to 16 years in prison and 5 years post release supervision by Bronx Supreme Court Justice Seth Steed. He pleaded guilty to first-degree Manslaughter on October 12, 2023.

 According to the investigation, between September 8 and September 9, 2021, the defendant was in the home he shared with his girlfriend and was babysitting her son, Legacy Beauford, 1, while the child’s mother was not home. The defendant violently squeezed the baby and threw him up in the air and hit him in the face because the child would not stop crying. The Office of the Chief Medical Examiner determined the baby sustained multiple blunt force trauma injuries to the torso, which led to a lacerated liver and internal bleeding. The defendant also violated the child with a toothbrush.

 District Attorney Clark thanked NYPD Detectives Michael Best of the 42nd Precinct Squad and Robert Cintron of Bronx Homicide Task Force for their work in the investigation.

Governor Hochul Urges New Yorkers to Prepare for Heavy Rain and Potential Flooding Starting Sunday

 Areas in Mid-Hudson, Capital District and Long Island Regions Could Receive Three Inches or More of Rain Through Tuesday Morning

Flooding Expected in Areas Previously Impacted by Recent Multiple Rain Events

Strong Winds Up to 50 MPH in New York City and on Long Island Could Cause Power Outages

New Yorkers Should Monitor Weather and Ensure Households are Prepared

Governor Kathy Hochul today urged New Yorkers to prepare for a weather system this weekend that is poised to produce up to three inches of rain and cause flooding in parts of the Mid-Hudson Valley, including the eastern Catskills, southern Capital Region, and potentially parts of Long Island. The system is expected to produce up to three inches of rain in these locations with isolated higher amounts possible beginning Sunday and potentially continuing into Tuesday morning. Some flooding is expected during this event, especially in areas which have already experienced multiple rain events over the past week, and locations along the Hudson River which could reach flood stage this weekend. In addition, strong winds up to 50 mph in New York City and Long Island could cause local power outages. Governor Hochul urged New Yorkers to monitor updated weather forecasts and act now to prepare for heavy rain and possible flooding.

“We are closely tracking a weather system that is bringing high winds and rain to regions across the State, posing a risk of flooding and power outages for New Yorkers,” Governor Hochul said. “I have directed state agencies to monitor the weather system as it develops, and I urge all New Yorkers to take safety precautions and to check the forecast throughout the weekend and into early next week.”

For a complete listing of weather alerts and forecasts, visit the National Weather Service website at https://alerts.weather.gov. New Yorkers are encouraged to sign up for emergency alerts by subscribing to NY Alert at https://alert.ny.gov, a free service providing critical emergency information to your cell phone or computer.

State Agency Preparations

New York State Division of Homeland Security and Emergency Services

The Division is actively monitoring the weather forecast and coordinating the State's response to the weather event. Office of Emergency Management staff are in contact with local counterparts and are prepared to facilitate requests for assistance.

The Division is prepared to deploy the following assets and shelter supplies from the State's stockpiles, if necessary:

• 1,526 generators
• 536 chainsaws
• 954 portable heaters
• 48,636 MREs
• 345,432 bottles & cans of water
• 7,877 cots
• 8,149 blankets
• 11,220 pillows

New York State Department of Transportation

The State Department of Transportation is prepared to respond to the weather event with over 3,600 operators and supervisors available statewide.

Statewide equipment numbers are as follows:

• 1,588 large dump trucks
• 340 large loaders
• 92 chippers
• 14 vacuum trucks with sewer jets
• 98 water pumps

For real-time travel information, motorists should call 511 or visit https://www.511ny.org or the mobile site at m.511ny.org, New York State's official traffic and travel information source.

Thruway Authority

Thruway Authority staff is closely monitoring the weather forecast and is proactively inspecting storm drains and rock slopes, and ensuring equipment is ready to deploy to any wind, flood or weather-related issues. The Thruway Authority is ready to respond with 688 operators and supervisors available. Statewide equipment numbers and resources are listed below:

• 353 large and medium duty plow trucks
• 11 tow plows
• 64 loaders
• More than 128,000 tons of salt on hand

Variable Message Signs and social media are utilized to alert motorists of winter weather conditions on the Thruway.

The Thruway Authority encourages motorists to download its mobile app which is available for free on iPhone and Android devices. The app provides motorists direct access to real-time traffic information, live traffic cameras, and navigation assistance while on the go. Motorists can also sign up for TRANSalert e-mails and follow @ThruwayTraffic on X for the latest traffic conditions along the Thruway.

Severe Weather Safety Tips
Disaster Supplies
Have disaster supplies on hand, including:

• Flashlight and extra batteries
• Battery-operated radio and extra batteries
• First aid kit and manual
• Emergency food and water
• Non-electric can opener
• Essential medicines
• Checkbook, cash, credit cards, ATM cards

Flash Flooding

• Never attempt to drive on a flooded road. Turn around and go another way.
• If water begins to rise rapidly around you in your car, abandon the vehicle immediately.
• Do not underestimate the power of fast-moving water. Two feet of fast-moving flood water will float your car, and water moving at two miles per hour can sweep cars off a road or bridge.

Power Outages

• Check with your utility to determine area repair schedules.
• Turn off or unplug lights and appliances to prevent a circuit overload when service is restored; leave one light on to indicate when power has been restored.
• If heat goes out during a winter storm, keep warm by closing off rooms you do not need.
• To Report an Electric Outage, Call:
  • Central Hudson: 800-527-2714
  • Con Edison: 800-752-6633
  • National Grid: 800-867-5222
  • NYSEG: 800-572-1131
  • O&R: 877-434-4100
  • PSEG-LI: 800-490-0075
  • RG&E: 800-743-1701

For more safety tips, go to https://www.dhses.ny.gov/safety.

About the State Division of Homeland Security and Emergency Services

The Division of Homeland Security and Emergency Services (DHSES) provides leadership, coordination, and support to prevent, protect against, prepare for, respond to, recover from, and mitigate disasters and other emergencies. For more information, follow @NYSDHSES on Facebook, Instagram, and X (formerly known as Twitter) or visit dhses.ny.gov.

Justice Department Announces Crackdown on Networks That Steal Money from Consumer Accounts and Use Fraudulent “Microtransactions” to Hide the Activity from Banks

The Justice Department announced today a collection of cases against fraud networks that steal money from consumers and use deceptive tactics to conceal illicit activity from financial institutions, thereby allowing that illicit activity to continue. The cases include two civil actions unsealed in the past week seeking temporary restraining orders and the appointment of receivers to stop defendants from dissipating assets.

The civil cases announced today form part of a larger crackdown by the department’s Consumer Protection Branch designed to halt networks of fraudsters that use misrepresentations or unauthorized charges to steal money from consumers’ financial accounts. Fraudsters and their accomplices often hide these unauthorized charges using so-called “microtransactions” or “microdebits,” which group the unauthorized charges with a large number of low-value, straw transactions to lower the fraudster’s chargeback rate. A chargeback is a transaction that is refused or reversed by an account holder’s bank. Because a high chargeback rate can lead to account scrutiny or closure, using microtransactions to artificially reduce the chargeback rate masks the underlying fraud scheme.

“These cases mark an important step in the department’s efforts to halt schemes that prey upon individuals and small businesses across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to using all of the tools at its disposal to prevent fraudsters from reaching into victims’ bank accounts and stealing their hard-earned savings.”

“The great work by postal inspectors in these investigations uncovered far-reaching fraud schemes, and millions of dollars in loss to victims across the country,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to protecting American consumers and small businesses from falling victim to these types of fraud schemes.”

United States v. Altitude Processing, Inc., et al.

In a case unsealed by the U.S. District Court for the Southern District of Florida on Dec. 11, the Justice Department alleges that a network of fraudsters, including defendants Farhan Khan of Quebec, Canada, Jeremy Todd Briley of Tallulah, Louisiana, Christopher Foufas of Key Biscayne, Florida, Brandon Hahn of Saint Cloud, Florida, and Melinda Petit-Homme of Margate, Florida, stole millions of dollars from consumers and small businesses by making recurring unauthorized charges against their bank accounts. The fraudsters used sham companies, including Altitude Processing Inc., which does business as Clear Marketing Agency, to cover their tracks and make the unauthorized charges appear legitimate.

The defendants allegedly took elaborate steps to portray the sham companies as legitimate businesses that provided online marketing services, creating bogus websites for the sham companies, fake customer authorizations for the charges and a “customer service” call center to field complaints and offer refunds. In reality, victims of the scheme never signed up for – or received – any services from the fraudsters. The complaint further alleges that some of the defendants used numerous sham microtransactions so that banks would not detect large numbers of chargebacks for unauthorized debits. After the government filed its case, the court entered a temporary restraining order enjoining the defendants from making unauthorized debits from consumers’ bank accounts. The government also successfully petitioned for the appointment of a receiver to stop defendants from dissipating assets obtained through the fraud scheme.

United States v. CB Surety, LLC, et al.

In a case unsealed by the U.S. District Court for the Eastern District of California on Dec. 12, the Justice Department alleges that a network of fraudsters, including defendants Thomas Eide of South Lake Tahoe, California, Travis Smith of Dallas, Aric Gastwirth of Las Vegas, Stephen Christopher of Poway, California, and Bryan Bass, a resident of India, through various business entities that they owned and operated, processed payments for clients that made unauthorized charges to consumers’ accounts and engaged in a variety of other illegal activities, including technical support scams.

“This case marks a significant step in halting fraud schemes that reap financial gain by scamming consumers and making misrepresentations to financial institutions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “It also sends a clear signal that we have used, and will continue to use, all means at our disposal to protect citizens from such schemes to defraud.”

According to the allegations in the complaint, the defendants gained access to the banking system by creating sham entities to disguise the true activities of their clients and create the appearance that they were engaged in lawful businesses like selling handbags or electric scooters. The defendants allegedly recruited straw owners for the sham entities and outfitted them with phony addresses, websites and customer service lines. The defendants also used sham microtransactions to reduce the number of chargebacks and evade scrutiny from banks. After the government filed its case, the court entered a temporary restraining order enjoining the defendants from continuing to operate the scheme. The government also successfully petitioned for the appointment of a receiver to stop defendants from dissipating assets obtained through the fraud scheme.

The Consumer Protection Branch’s crackdown on cases involving unauthorized charges and microtransactions also includes several criminal cases recently announced. In a case announced two weeks ago, a California businessman was charged with access device fraud and aggravated identity theft for running thousands of unauthorized charges on the credit cards of his former customers. In another case, 14 defendants were charged in a RICO conspiracy indictment in the Central District of California alleging that defendants and associates debited consumers’ bank accounts without authorization and used shell entities and microtransactions to conceal the activity from banks. A co-conspirator pled guilty to bank fraud conspiracy in Las Vegas and was sentenced to 42 months in prison. In a related civil case, the department secured injunctive relief against and settlements totaling nearly $5 million with various persons, including several who are charged in the criminal indictment.

In other cases charging similar schemes, two individuals were charged in the Northern District of Illinois for allegedly deceiving banks, including through the use of microtransactions, in order to open and maintain bank accounts and to allow for the processing of tens of millions of dollars of checks that were purportedly authorized by consumers, but in fact were not. A Nevada man has also pleaded guilty to partnering with foreign telemarketers to use fraudulent checks to steal money from victims’ bank accounts.

USPIS is conducting the investigations, along with (for some matters) the Federal Deposit Insurance Corporation Office of Inspector General.

In the Altitude Processing case, the government is represented by Trial Attorneys Carolyn Rice and Meredith Reiter and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle for the Southern District of Florida. In the CB Surety case, the government is represented by Trial Attorneys Andrew Crawford and Francisco Unger and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Tara Amin for the Eastern District of California.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.

CITY SUSPENDS INSPECTION AUTHORITY FOR ENGINEER DUE TO CONDUCT AT BRONX BUILDING COLLAPSE SITE

 

Professional Engineer Misdiagnosed Structural Column as Decorative in June 2023 Filing  

 

Adams Administration, DOI, and Bronx DA Collaborating on Investigation  

As the investigation into this week’s catastrophic partial collapse at 1915 Billingsley Terrace in the Morris Heights section of the Bronx continues, New York City Mayor Eric Adams and New York City Department of Buildings (DOB) Commissioner James Oddo announced that the city has suspended the associated engineer’s authority to inspect exterior walls of buildings to assess their condition while seeking to permanently revoke that authority through the Office of Administrative Trials and Hearings. In plans filed with DOB in June 2023, the New York State licensed professional engineer misdiagnosed a load-bearing column in the partially-collapsed building as decorative. The city is also working collaboratively with the New York City Department of Investigation and the Office of Bronx District Attorney Darcel Clark, which are investigating. 

 

“There are over a million buildings across our city, and it is crucial that New Yorkers are safe in every one of those buildings. But when those who are entrusted to keep us safe cut corners and make catastrophic mistakes, we’re going to take swift action and hold them accountable,” said Mayor Adams. “The licensing and certification process for professional engineers is crucial to ensuring New Yorkers can continue to be and feel safe as they enter any building across the city. Our initial investigation into this collapse has made clear that the engineer involved has no business assessing the exterior walls of buildings in New York City, and we’re taking action to suspend his ability to do so. We‘re working with both the DOI and Bronx DA Clark as their investigation continues. We’ll continue to work with everyone impacted by this collapse to help them get back on their feet as quickly as possible.” 

 

“While we continue our investigation alongside the Department of Investigation and the Bronx District Attorney’s Office, it is our moral and civic duty to immediately suspend this engineer’s designation. The engineer failed to recognize a clearly structural column as such, and he can no longer be out there making assessments of the structural integrity of exterior walls of New York’s buildings,” said DOB Commissioner Oddo. “As part of the investigation, we are reviewing all of his filings in New York City — a total of 368 Façade Inspection and Safety Program filings in the most recent cycle — and will continue that process until it is complete. We got lucky that no one was killed in this collapse; we will not take that risk again.” 

 

DOB is in the process of expeditiously auditing all of this engineer’s 368 recent Local Law 11 Façade Inspection and Safety Program reports to ensure their accuracy. There are more than 1.1 million buildings in New York City, and over 540 building inspectors. The city relies on registered design professionals who are licensed by New York state to inspect structural and façade conditions and work throughout the five boroughs. Those professionals are required by law to file paperwork with the DOB attesting to the conditions of such structures in order to keep New Yorkers safe. DOB will simultaneously inform the appropriate state oversight body of this action.