State Comptroller Thomas P. DiNapoli's Weekly News - NYC Finances Stabilizing

 

NYC Finances Stabilizing

New York City’s finances have stabilized amid declining costs for asylum seekers and strong revenue, largely from growth in business and property tax collections. But potential policy changes on the federal level creates uncertainty for the coming years which require fiscal preparation, according to a report by State Comptroller DiNapoli.

“A return to greater budget stability is good news for New Yorkers and should provide the City with an opportunity to focus on managing demand for City programs and boosting industry sectors that are still recovering from the pandemic,” DiNapoli said. “However, with the potential for policy changes at the federal and State levels, preparation and transparency remain paramount to navigating future uncertainty. Outlining plans to leverage resources and bolstering reserve levels would be fiscally prudent for the City.”

Read More

DiNapoli Issues Report on Transparency of Village Fiscal Activities

State Comptroller DiNapoli’s office released a report and series of audits reviewing compliance by villages with financial reporting and other requirements. While the share of villages filing their annual financial report on time improved from 30% to 46% since 2019, the number of villages that did not file at all grew from six in 2019 to 76 for fiscal year 2023, diminishing transparency. 

Read More

Local Sales Tax Collections Up 3% in November

Local sales tax collections in New York State increased by 3% in November compared to the same month in 2023, according to data released by State Comptroller DiNapoli. Overall, local collections totaled $1.86 billion for the month, up $53 million year over year, with New York City accounting for 61.5% of the increase.

Read More

DiNapoli Statement on Governor's Veto of Transparency Legislation

State Comptroller DiNapoli released a statement regarding Governor Kathy Hochul’s veto of legislation that would have increased transparency on State spending and was supported unanimously in both the State Senate and Assembly.

Read More

ALSO IN THE NEWS THIS WEEK

_{Note: Some news links may require a paid subscription.} 

• The Capitol Connection - New York State Comptroller Tom DiNapoli

• NYC Finances Stabilizing With Drop In Asylum Seekers’ Costs & Resilient Tax Revenue
  
  
• Hochul vetoes spending transparency bill for second year
  
  

• Local counties report mixed sales tax results

Post of the Week
Thomas P. DiNapoli

Attorney General James Secures $500,000 from Auto Insurance Company Over Data Breach

 

Noblr’s Poor Data Security Allowed Hackers to Steal New Yorkers’ Driver’s License Numbers and Fraudulently Obtain Unemployment Benefits 

AG James Has Secured $5.6 Million from Three Auto Insurance Companies for Failing to Protect Consumers’ Data

New York Attorney General Letitia James secured $500,000 from auto insurance company, Noblr, for failing to protect the personal information of more than 80,000 New Yorkers as part of a data breach. The data breach was part of an industry-wide campaign by scammers to steal consumers’ personal information, including driver’s license numbers and dates of birth, from online automobile insurance quoting applications. The scammers then used some of the stolen driver’s license information to file fraudulent unemployment claims at the height of the COVID-19 pandemic. In addition to Noblr, Attorney General James also held GEICO and Travelers accountable for failing to protect New Yorkers’ personal information, bringing the total amount secured from auto insurance companies for cybersecurity failures to $5.6 million.

“Auto insurance companies offer drivers protection during emergencies, but they must also protect their personal information from hackers and scammers,” said Attorney General James. “Noblr failed to secure its data systems making it easy for scammers to steal New Yorkers’ information and use some of the stolen information to fraudulently obtain unemployment benefits. We are holding Noblr accountable for being reckless with New Yorkers’ personal data and reminding all companies that they must prioritize cybersecurity.”

Noblr is an insurance company that allows consumers to obtain a price quote through an online insurance quoting tool. Noblr’s quoting tool exposed full, plaintext driver’s license numbers in a number of ways, including on the backend of its website and in PDFs generated when a purchase was made. Noblr also did not block users from entering the personal information of New York residents, even though Noblr does not offer insurance products in New York. 

Noblr discovered scammers exploiting the prefill vulnerability in January 2021. Noblr did not monitor its site traffic in real time causing delays in detecting the attack. This failure to monitor site traffic also made it difficult to distinguish malicious activity from legitimate consumer inquiries. The attack on Noblr’s auto-quoting tool exposed the data of approximately 80,000 New York residents. 

The Office of the Attorney General’s investigation determined that the insurance company failed to adopt reasonable safeguards to protect private information. In addition to paying $500,000 in penalties, Noblr is required to enhance its data security, including by:

• Enhancing its web application defenses;
• Maintaining a comprehensive information security program designed to protect the security, confidentiality, and integrity of private information;
• Developing and maintaining a data inventory of private information and ensuring such information is protected by reasonable safeguards;
• Maintaining reasonable authentication procedures for access to private information; and
• Maintaining a logging and monitoring system to alert on suspicious activity within their systems.

Jordanian National Pleads Guilty to Explosives Threats and Attack on Energy Facility

 

Hashem Younis Hashem Hnaihen, 44, of Orlando, pleaded guilty to four counts of threatening to use explosives and one count of destruction of an energy facility.

“With this plea, we are holding this defendant accountable for his threats to carry out hate-fueled mass violence in our country, motivated in part by his desire to ‘warn’ businesses because of their perceived support of Israel,” said Attorney General Merrick B. Garland. “The Justice Department will fiercely protect the right of every person to peacefully express their opinions, beliefs, and ideas, but we have no tolerance for acts and threats of hate-fueled violence that create lasting fear.”

“The defendant is admitting he attacked a solar power facility, damaged a number of Florida businesses, and left a series of threatening messages about perceived support for Israel,” said Director Christopher Wray of the FBI. “Violence, destruction of property, and threats are simply unacceptable. The FBI will work with our partners to pursue and hold accountable those who commit illegal and destructive acts and cause our citizens to fear for their safety and livelihoods.”

According to court documents, beginning around June, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind "Warning Letters."

In his letters, which were addressed to the U.S. government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.”

Hnaihen's attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen's attacks caused nearly $500,000 in damage.

Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, shortly after another “warning letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

Hnaihen faces a maximum penalty of 10 years in prison for each threat offense and a maximum penalty of 20 years in prison for the destruction of an energy facility offense. Hnaihen has also agreed to make full restitution to the victims of the offenses. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

DEC Seeks Public Comment on Proposed Ambient Water Quality Guidance Values for Phosphorus

 

Guidance Delivers on Governor Hochul’s 2024 State of the State Directive to Advance Comprehensive Efforts to Reduce the Frequency of Harmful Algal Blooms

New York State Department of Environmental Conservation (DEC) Interim Commissioner Sean Mahar announced the release of draft water quality guidance values to regulate phosphorus in New York State surface waters. Excess phosphorus can contribute to harmful algal blooms (HABs), lower dissolved oxygen levels, increased turbidity, and excessive growth of algae and aquatic plants. The draft guidance values, available for public comment until Feb. 24, 2025, support Governor Kathy Hochul’s 2024 State of the State initiative to issue phosphorus guidance values that are protective of drinking water and fishing best uses in State waters.

 

“Through Governor Hochul’s leadership, DEC is working with municipalities across the state to advance generational infrastructure investments and projects to protect New York’s waters,” Interim Commissioner Mahar said. “Addressing the nutrients that fuel harmful algal blooms is a critical component of New York State’s comprehensive actions to reduce the frequency of HABs and their potential impacts on drinking water quality, recreation, and overall quality of life, and I encourage New Yorkers to review and comment on this important proposal.”

Phosphorus is naturally present and essential to aquatic ecosystem functions and as a result is difficult to regulate to a single concentration across all waters. The proposed phosphorus guidance released today and available on DEC’s website varies depending on the region of the state and type of waterbody (ponded vs. flowing) and is paired to an environmental response variable representing ecosystem health. The response variables allow confirmation of phosphorus impacts to the waterbodies human health or aquatic life uses.

 

Governor Hochul’s 2024 State of the State introduced a suite of actions to safeguard clean water, including initiatives to protect water quality, root out emerging contaminants, protect against climate change, ensure affordability, and prioritize disadvantaged communities. In particular, Governor Hochul directed DEC to issue guidance values for phosphorus to drive comprehensive efforts to reduce the frequency of HABs that have the potential to negatively impact drinking water quality and access to swimming and recreation in New York’s waters. 

 

The guidance values are supplemented by draft updates to DEC’s phosphorus permitting strategy and establish a process for prioritizing and reducing phosphorus loads from wastewater treatment plants. The draft guidance values and permitting strategy are included in amended Technical and Operational Guidance Series (TOGS) 1.1.1 - Ambient Water Quality Standards and Guidance Values and Groundwater Effluent Limitations. Revisions to TOGS 1.3.6 - Phosphorus Removal for Wastewater Discharges updates the State Pollutant Discharge Elimination System (SPDES) permitting strategy for achieving phosphorus reductions in watersheds across New York State. The revised draft expands the applicability from new and expanding facilities discharging to ponded waters to include flowing waters and existing facilities identified as discharging to waterbodies exceeding, or at risk of exceeding, the proposed phosphorus guidance values. Updating TOGS 1.3.6 is necessary to implement phosphorus reductions more broadly and ensure phosphorus reductions are achieved in an environmentally meaningful and economically feasible way. 

 

DEC encourages public comment on the draft guidance. Written statements may be submitted to NYSDEC, 625 Broadway, 4th Floor, Albany, NY 12233-3500, ATTN: Gwendolyn Temple or by email to AWQVinformation@dec.ny.gov. Comments must be submitted by Feb. 24, 2025. The draft TOGS documents and additional information are available on the DEC website or by contacting DEC by mail: NYSDEC, 625 Broadway, Albany NY 12233-3500, ATTN: Gwendolyn Temple, phone by calling (518) 402-8194, or e-mail at AWQVinformation@dec.ny.gov. 

New York's Ongoing Commitment to Water Quality

The announcement is the latest step DEC is taking to improve the health of New York’s waterways, including recent funding made available through the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022, the State’s Environmental Protection Fund (EPF), and the Clean Water Infrastructure Act (CWIA).  

 

The Water Quality Improvement Project Program (WQIP) supports municipal wastewater treatment upgrades, polluted runoff abatement and control, land acquisition projects for drinking water protection, salt storage construction, aquatic connectivity restoration, and marine habitat restoration. These projects support the DEC's ongoing efforts to reduce nutrient pollution statewide, and complement this initiative to develop guidance values for phosphorus and support the reduction of HABs that negatively impact drinking water quality and access to swimming and recreation in New York’s waters. More information on this program is available on the DEC WQIP website. 

 

Among the numerous water quality investments made in 2024, Governor Hochul recently announced $42 million for the eastern Finger Lakes region and $1.2 million in funding for the Eastern Finger Lakes Coalition, helping fulfill the Governor’s 2024 State of the State commitment to develop on-the-ground actions necessary to address the root causes of HABs and reduce these potentially harmful blooms while supporting projects that help prevent runoff into lakes and improve climate resiliency. New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from the Environmental Facilities Corporation (EFC) for local water infrastructure projects in State Fiscal Year 2024 alone. With $500 million allocated for clean water infrastructure in the 2024-2025 enacted State Budget announced by Governor Hochul, New York will have invested a total of $5.5 billion in water infrastructure between 2017 and this year. In addition, the $4.2 billion Environmental Bond Act is helping State agencies, local governments, and partners access funding to protect water quality, help communities adapt to climate change, improve resiliency, and create green jobs. Bond Act funding will support new and expanded projects across the state to safeguard drinking water sources, reduce pollution, and protect communities and natural resources from climate change.

Year in Review: Department of City Planning Enacts Historic City of Yes Initiatives, Advances Ambitious Neighborhood Plans, and More in 2024

2024 Saw the Approval of City of Yes for Housing Opportunity and Economic Opportunity, Most Significant Update to City’s Zoning Since 1961

Neighborhood Plans Throughout New York City Moved Forward, Including the Adoption of the Bronx Metro-North Station Area Plan, Bringing Homes and Jobs to the East Bronx

Department of City Planning (DCP) Director Dan Garodnick released a list of momentous wins and milestones achieved over the past 12 months that will improve the lives of New Yorkers for years to come. In 2024, DCP enacted the most significant update to the city’s Zoning Resolution in over 60 years, through City of Yes for Economic Opportunity and City of Yes for Housing Opportunity. These historic citywide initiatives will generate economic success across the five boroughs, and alleviate New York City’s housing crisis by allowing for a little more housing in every neighborhood.

As City of Yes moved through public review, DCP also implemented the Bronx Metro-North Station Area plan to encourage housing and economic growth around new rail stations, and advanced neighborhood plans to bring much-needed homes, jobs, and infrastructure improvements to communities in Brooklyn, Manhattan, and Queens.

“From day one, our administration has focused on creating a safer, more affordable New York City. In 2024, we continued to deliver on that vision and ‘Get Stuff Done’ for working-class New Yorkers,” said New York City Mayor Eric Adams. “Thanks to our extraordinary public servants, America’s safest big city got even safer this year, with overall crime down and thousands of illegal guns, mopeds, and ghost cars taken off city streets. We passed historic legislation to turn New York into a ‘City of Yes,’ shattered affordable housing records once again, and put billions of dollars back into New Yorkers’ pockets. We broke records for the most jobs and small businesses in city history and moved millions of trash bags off our sidewalks and into containers. But we know that there is even more we can do to continue to uplift working-class families. As we look to the future, our administration remains committed to keeping New Yorkers safe and making our city more affordable for the millions of New Yorkers who call our city home.”

“Thanks to City of Yes and other bold planning initiatives, future New Yorkers will look back at this year as the moment that we turned the tide on housing and set our city on a more affordable, prosperous, and sustainable path," said Department of City Planning Director Dan Garodnick.

Highlights from the third year of the Adams administration include:

Passing the most significant pro-housing reform in New York City history: The City Council’s approval of City of Yes for Housing Opportunity will allow for a little more housing in every neighborhood through a suite of historic zoning updates. These include legalizing small accessory dwelling units (ADU), permitting three-, four-, and five-story apartment buildings near transit and along commercial corridors, encouraging more income-restricted affordable housing citywide, rolling back parking mandates, and more. The initiative, as adopted, is expected to enable 82,000 new homes over the next 15 years and comes with $5 billion for critical infrastructure and housing.

Updating zoning to help small businesses open and thrive: DCP celebrated the City Council’s approval of City of Yes for Economic Opportunity, a series of changes to update zoning for a modern economy that will bolster the city’s industrial sector, revitalize commercial corridors, foster vibrant streetscapes, and boost growing industries, such as life sciences, nightlife, amusements, and urban agriculture.

Leveraging new Metro-North stations to create thousands of new homes and jobs: Adopted in August, the once-in-a-lifetime Bronx Metro-North Station Area Plan will complement new Metro-North stations coming to the Bronx with approximately 7,000 homes, including permanently income-restricted affordable homes, as well as 10,000 permanent jobs, improved public spaces, and enhanced transit access to the surrounding neighborhoods.

Kicking off public review on the Atlantic Avenue Mixed-Use Plan: This community-led proposal aims to bring around 4,600 new homes and income-restricted homes, 2,800 permanent new jobs, and community investments to a 21-block stretch of Atlantic Avenue, including neighboring blocks in Crown Heights and Bedford-Stuyvesant, where restrictive zoning has prevented residential development and job growth. This plan is moving through public review, and has received conditional favorable recommendations from Brooklyn Community Boards 3 and 8.

Revealing details on the Midtown South Mixed-Use Plan: DCP’s draft plan for Midtown South would map new high-density residential districts to generate around 9,700 homes, up to 2,800 of them permanently income-restricted, across 42 blocks where housing today is not permitted. By expanding housing, bolstering economic activity, and enlivening the public realm, this plan will help to foster vibrant, 24/7 mixed-use neighborhoods in this part of Manhattan. This plan is currently finalizing environmental review and will certify to begin public review in early 2025.

Moving full-steam ahead on the Jamaica Neighborhood Plan: Developed through sustained community engagement, DCP’s draft zoning proposal for the Jamaica Neighborhood Plan would bring thousands of new homes and income-restricted homes as well as considerable commercial and industrial space to this vital Queens neighborhood. The plan also includes infrastructure investments, improved transit access and open space, job training, and more. This plan is currently in environmental review and will complete public review in 2025.

Advancing the Long Island City Neighborhood Plan towards public review: Building on extensive public outreach, DCP’s draft proposal for the Long Island City Neighborhood Plan would facilitate the creation of around 14,000 new homes, including at least 4,000 income-restricted affordable homes, allow for more than three million square feet of new commercial space, and improve waterfront access and the public realm. This plan is currently in environmental review and will complete public review in 2025.

Implementing ‘Green Fast Track’: Now in effect, the ‘Green Fast Track for Housing’ is a streamlined environmental review process for small- and medium-sized housing projects that use all-electric heating. The changes will cut up to two years and $100,000 of red tape for these projects, getting more homes built faster and helping to address our housing and climate crises.

Launching the New York City Industrial Plan: This comprehensive framework looks to support the development of a modern, sustainable industrial economy that provides good-paying jobs for New Yorkers. After garnering feedback from New Yorkers and industrial businesses, the city will prepare a final version of the plan by the end of 2025.

Naming a new leadership team for DCP’s Queens office: DCP announced the appointment of Lin Zeng and Kathi Ko to respectively serve as Director and Deputy Director of the agency’s Queens Office, whose work program includes advancing the Long Island City and Jamaica Neighborhood Plans.

Publishing the Principles of Good Urban Design: With the release of this award-winning guidebook, New Yorkers from all walks of life will be better able to put the Principles of Good Urban Design into action in their own communities, whether they’re planners, developers, civic leaders, or any New Yorker who wants to help shape the future of their neighborhood.

Updating Population Factfinder with 2020 census race and ethnicity data: Further enhancing DCP’s renowned Population Factfinder tool, this detailed race and ethnicity data for all groups was published by the U.S. Census Bureau for the first time and more extensively reveals the breadth of New York City’s diversity.

Releasing groundbreaking new data on small business growth: This analysis from DCP shows a notable reduction in storefront vacancies across the city, with roughly one in three storefront businesses opening since 2020. Policies like public realm improvements, support for local nonprofits, and less red tape for entrepreneurs have helped bolster the city’s economic recovery.

Congratulating this year’s youth engagement curriculum graduates: DCP applauded the 45 high school seniors from The Laboratory School of Finance and Technology in Mott Haven, the Bronx, who graduated from our youth engagement curriculum course, which teaches young people about planning concepts to help them become civic leaders and advocates in their communities.

Debuting new online platform to help Community Boards share funding priorities: This new tool makes it easier than ever for Community Boards to submit their budget requests through the Community District Needs process, which helps ensure responsive neighborhood and infrastructure planning and equitable and efficient delivery of services to communities.

Department of City Planning

The Department of City Planning (DCP) plans for the strategic growth and development of the City through ground-up planning with communities, the development of land use policies and zoning regulations applicable citywide, and its contribution to the preparation of the City’s 10-year Capital Strategy. DCP promotes housing production and affordability, fosters economic development and coordinated investments in infrastructure and services, and supports resilient, sustainable communities across the five boroughs for a more equitable New York City.

In addition, DCP supports the City Planning Commission in its annual review of approximately 450 land use applications for a variety of discretionary approvals. The Department also assists both government agencies and the public by advising on strategic and capital planning and providing policy analysis, technical assistance and data relating to housing, transportation, community facilities, demography, zoning, urban design, waterfront areas and public open space.