Thursday, November 16, 2017

News From Congressman Eliot L. Engel


Engel: GOP Tax Plan a Scam, Disastrous for New Yorkers

  Congressman Eliot L. Engel issued the following statement on the House’s passage of H.R. 1, the Republican overhaul of the tax code:

“This morning, I took to the House floor to once again raise my strong objection to the disastrous tax reform package the GOP has been pushing. In my remarks, I mentioned how someone near and dear to me once said the Republican Party is the party of rich men and women, and the Democratic Party is the party of working men and women. Nothing proves that more than this tax bill scam today.

“The tax bill the GOP just passed, without a single Democratic vote, is one of the worst bills I have ever seen brought to the floor of the House. It raises taxes on millions of middle-class families, eliminates key deductions for state and local income and sales tax, and adds trillions to the debt. All this to give tax cuts to America’s wealthiest families and corporations. This bill will also decimate Medicaid and Medicare, which in turn will create new deficits for these programs, leading to more calls from the right for their privatization.

“New York already sends more money to Washington than it gets back. Residents in New York rely heavily on state and local income and sales tax deductions to level the playing field and provide extra tax relief. These deductions don’t just help the wealthy—they allow folks in the middle class to reduce their tax burden, own homes, and increase their purchasing power. But, if this tax plan becomes law, those deductions would either be eliminated completely or heavily reduced, and New Yorkers would be devastated.

“In addition, the process by which this bill was written was just as disappointing as the final product. House Republicans once again took to writing a huge piece of legislation behind closed doors, without any input from Democrats. And considering what this bill will do to explode the deficit, I’m not sure how any House Republican who voted in favor if it can call themselves ‘fiscally responsible.’

“Thanks to this bill, the middle-class will be directly paying for an upper-class and big corporation tax cut. No fair minded elected official could support that. Hopefully the Senate will scrap this disaster so we can go back to the drawing board and write a bill that treats middle-class taxpayers fairly.”


Engel, Energy & Commerce Dems Call for FCC to Reconsider Proposed Changes to Lifeline Program

   Congressman Eliot L. Engel, a top member on the House Energy and Commerce Committee, joined 22 of Energy and Commerce Democratic colleagues on Wednesday in writing to Federal Communications Commission (FCC) Chairman Ajit Pai asking that he reconsider proposed changes to the Lifeline program.

The FCC is scheduled to consider proposed changes which would risk cutting off over 7 million Americans from accessing a mobile connection and prevent nearly three-quarters of the Lifeline program’s current providers from participating.

“This is a vital program that millions of Americans rely on for mobile connections,” Engel said. “Lifeline isn’t just some moniker. The individuals who utilize this program truly view it as critical to their way of life. House Energy and Commerce Dems understand this, which is why we are taking action to urge Chairman Pai to maintain the Lifeline program as it currently stands.”

The letter was cosigned by Congresswoman Matsui, in addition to Energy & Commerce Committee Ranking Member Frank Pallone (D-NJ), Representatives Mike Doyle (D-PA), Bobby Rush (D-IL), Anna Eshoo (D-CA), Eliot Engel (D-NY), Gene Green (D-TX), Diana DeGette (D-CO), Jan Schakowsky (D-IL), G.K. Butterfield (D-NC), Kathy Castor (D-FL), John Sarbanes (D-MD), Jerry McNerney (D-CA), Peter Welch (D-VT), Ben Ray Lujan (D-NM), Paul Tonko (D-NY), Yvette Clarke (D-NY), David Loebsack (D-IA), Kurt Schrader (D-OR), Joseph Kennedy, III (D-MA), Tony Cárdenas (D-CA), Raul Ruiz (D-CA), and Debbie Dingell (D-MI).


The full text of the letter can be found below and a PDF copy can be found here.

November 15, 2017

The Honorable Ajit V. Pai
Chairman
Federal Communications Commission

Dear Chairman Pai:
        
   Now more than ever, the wake of this year’s natural disasters has shown the critical importance that a mobile connection – a literal lifeline – can play in getting Americans back on their feet. We are concerned that proposed changes to the Lifeline program could potentially strand millions of struggling families with no way to connect. With that in mind, we ask that you reconsider these proposals and instead focus the Commission’s efforts on ways to help these Americans now, when they need it most.

Even when it is not an emergency, the FCC’s Lifeline program is essential every day for millions of Americans who need it to find work, to manage their health, to do their homework, to interact with government, or to simply stay connected with their families. First established in 1985, members of the Reagan Administration noted the goal of the program was not to increase telephone penetration. The aim of both Congress and the Administration was to help low-income Americans through difficult times in their lives. Today, Lifeline remains the only program targeted towards making communications services most affordable for these families, and it has become part of this century’s safety net. 

We therefore urge you to consider this history and Congressional direction of the Lifeline program. We are concerned that these proposals would have the effect of converting the only means-tested program that helps low income Americans afford phone service into a duplicative version of existing FCC deployment programs. As you know, non-facilities based providers make up nearly 70 percent of the program.

Without those carriers, over 7.3 million Americans would be simply cut off. Importantly, this risks growing the digital divide and decreasing both access and affordability of these services. Nearly three quarters of the customers who already depend on the program rely on these carriers for their mobile connection.

We are also concerned by the proposal to overturn recent safeguards imposed on the program in favor of an arbitrary cap, despite expert testimony before our committee that has demonstrated that a cap is not an effective mechanism to achieve the goal of curbing any waste, fraud, and abuse that exists in the program.  Instead, recently adopted safeguards are more likely to be effective without penalizing otherwise qualified recipients. For example, an arbitrary cap would eliminate the safeguards that ensure those living in veterans’ homes, women’s shelters, or group homes can enroll in the program.

Congress has specifically rejected efforts to cap or end Lifeline’s current structure multiple times. Last Congress, the House carefully considered three bills that closely match your proposals—H.R. 4884, H.R. 266, and H.R. 5525.  Yet, after being considered before either the House Energy and Commerce Committee or the broader House of Representatives, Congress instead chose to not move forward with these measures in favor of the FCC’s existing steps to better oversee the program. We urge you to uphold that congressional policy choice.

The National Verifier has the potential to be the Commission’s most important tool towards reducing waste, fraud, and abuse in the program. The 2016 Lifeline Order establishes a minimum benchmark of 25 states or territories by December 2018 and full implementation a year after that. The National Verifier will further improve the program’s integrity as well as our shared goal of ensuring Lifeline is an efficient, effective, and fiscally responsible program. Indeed, the Government Accountability Office testified the National Verifier will resolve most remaining issues. We therefore ask that the Commission fully implement and evaluate the 2016 reforms to the program, including the creation of the National Verifier, before taking further action.
           
Finally, it is regrettable that you did not mention these proposals at the October 25 Oversight Hearing before this Committee despite several questions about the Lifeline program. Public confidence requires transparency between this committee and those it oversees, yet you chose to avoid telling us that you planned to release this proposal within hours after the hearing concluded, leaving the impression that you are trying to evade congressional oversight. To restore public trust and allow Congress to exercise its oversight responsibility, we therefore ask that you do not take any final actions on your plan—on tribal lands or anywhere in the country—until you have another opportunity to testify before our committee on the impacts of this proposal.

For these reasons, we urge the FCC to immediately reconsider its proposal to set aside the Lifeline program as appropriate under the law.

Local Elected Officials React to NYCHA Lead Paint Scandal


BP DIAZ CALLS FOR STATE MONITOR OF PUBLIC HOUSING

  In a letter to Governor Andrew M. Cuomo, Attorney General Eric T. Schneiderman and State Comptroller Thomas P. DiNapoli, Bronx Borough President Ruben Diaz Jr. has called on the State government to appoint a monitor to oversee the New York City Housing Authority (NYCHA).

“More than 400,000 New Yorkers call our city’s public housing developments their home. This latest report only reinforces the mistrust that many residents already have in the New York City Housing Authority,” said Bronx Borough President Ruben Diaz Jr. “A State-appointed monitor is the only credible way forward to provide for the safety and well-being of our city’s public housing residents.”

Borough President Diaz’s letter comes on the heels of a damning report from the New York City Department of Investigation (NYCDOI) which found that NYCHA had failed to conduct mandatory testing for lead contamination within their apartments, but since 2013 has submitted false documents to the United States Department of Housing and Urban Development (HUD) indicating that all required testing had been completed and that the housing authority was in compliance with federal law.

Previous reports issued by the NYCDOI have found that NYCHA has neglected to provide working smoke and carbon monoxide detectors to residents, has not maintained elevators properly and has failed to prevent convicted criminals from living within public housing developments..

In its current report the NYCDOI calls for a monitor to oversee NYCHA, a position Borough President Diaz wholeheartedly agrees with. However, given the City’s current position supervising NYCHA, as well as the federal government’s apparent distaste for public housing and overall incompetence, the borough president believes that only the state has the ability to appoint a credible monitor to examine NYCHA at this time.

“The families who call our City’s public housing developments home deserve to be treated with dignity and respect. It is now plainly clear that a State-appointed monitor is the only way to make that happen,” said Borough President Diaz.

Read the full letter at http://on.nyc.gov/2zJt2Ox.

Assemblymember Pichardo: NYCHA’s failure to perform lead inspections puts countless families at risk

     “The revelation that the New York City Housing Authority (NYCHA) failed to perform mandatory annual lead inspections on thousands of apartments, needlessly putting the health and well-being of residents at risk, is deeply troubling. To make matters worse, NYCHA apparently tried to hide its negligence by filing false reports with the U.S. Department of Housing and Urban Development (HUD).

          “I commend the city’s Inspector General’s office for bringing this wanton disregard for our families’ safety to the public’s attention. NYCHA’s actions appear to violate both local and federal laws requiring annual lead paint inspections.

          “I call on city leaders to immediately answer as to how this degree of negligence could have possibly occurred in the first place, let alone over a four-year period. Those who are responsible must be held accountable to ensure the safety of all public housing residents and to show that this type of behavior will not be tolerated.”

STATEMENT FROM COUNCIL MEMBER ANDY KING ON NYCHA’S FAILURE TO PERFORM LEAD PAINT VISUAL ASSESSMENTS

   
"As a Council Member who has been very supportive of NYCHA and has allocated funds to improve and sustain these communities, I am appalled on behalf of the residents of the five NYCHA developments in my district that for years, the Housing Authority has lied to the federal government and to New Yorkers on testing for lead paint.  With thousands of families lives affected, heads must roll and we can never again allow a city agency to foster the distrust now created.  I welcome an outsider monitor, as proposed by the Department of Investigation, to enable a renewal of trust in this agency and to help fix this broken agency."


Assemblyman Sepulveda and Sanitation team that aided in Puerto Rico hurricane relief distribute turkeys to those who fled to New York


   Members of the NYC Sanitation Department team recently returned from performing relief efforts in Puerto Rico joined Bronx Assemblyman Luis Sepulveda's staff on Thursday, Nov.16 to distribute turkeys to several families forced to flee the devastation on the island and other nearby islands from Hurricane Maria.

 "Seeing the destruction in photos and on TV, I can't imagine the suffering these families and others went through, and are still going through. I hope these turkey at least help to bring some holiday cheer," said Sepulveda.

"I applaud the work of this Sanitation Department team, whose expertise was critical to the recovery effort," he added.

Sepulveda, in a statement, joined with First Deputy Sanitation Commissioner Steven Costas, who was on hand to help distribute the turkeys outside the Assemblyman's Parkchester district office, in thanking  the Municipal Credit Union for its financial donation for the turkeys., who was on hand to, also thanked the Municipal Credit Union’s support.

Sanitation Commissioner Kathryn Davis said in a statement: "The DSNY PREMA 31 team spent three weeks on the island assisting the residents of Puerto Rico in recovering from the storm. Today, they are proud to help distribute these Thanksgiving turkeys to those in need," she said. "We appreciate Assemblyman Sepulveda’s help in identifying the families receiving these donations and wish them all a great holiday and speedy return to their beloved homeland.” 

The team members who attended Thursday’s turkey event performed crucial damage assessment on the hurricane-ravaged main island and on its nearby islands of Vieques and Culebra.

Their work allowed local and federal response to better assess the personnel and heavy- and light-duty equipment needed to deliver supplies, remove debris and assist in rebuilding. The team also assisted in distributing supplies.

Along with the turkeys from the Department of Sanitation, Montefiore Medical Center and the National Supermarket Association also contributed turkeys, which will be distributed to local churches, food pantries, senior centers and other organizations.

Sepulveda continues to collect relief supplies for Puerto Rico, the U.S. Virgin Islands and other affected islands at his district office. He also just began a coat drive for those who fled the islands for New York City.

While praising his early efforts, the Assemblyman called on Gov. Cuomo to help those who have fled the devastation of Hurricane Maria who have a number of critical issues when they arrive in New York, including housing, education, and transferring different health insurance and Medicaid plans.

 Assemblyman Sepulveda represents the 87th Assembly District covering Parkchester, Castle Hill, West Farms, Van Nest and Stratton Park.

Wednesday, November 15, 2017

Senator Jeff Klein and ShopRite host turkey giveaway for residents of Sack Wern Houses and Clason Point Gardens


ShopRite representatives announced they expect to open their Bruckner Plaza store by mid-2018



   Senator Jeff Klein, joined by ShopRite officials, hosted a turkey giveaway for residents of the Sack Wern Houses and Clason Point Gardens on Monday night. More than 80 turkeys were donated to residents of both housing developments less than two weeks before Thanksgiving.

“The holiday season is all about giving back to those in need, so as Thanksgiving nears I’m proud to partner with ShopRite to provide turkeys for residents of Sack Wern Houses and Clason Point Gardens,”said Senator Jeff Klein. “I’m thankful for ShopRite’s assistance in organizing this important event, and I look forward to the much-anticipated opening of their store in my district.”

“ShopRite cares deeply about the communities we serve, so we are excited to get a head start by providing Thanksgiving turkeys to local families ahead of our anticipated mid-2018 opening in Bruckner Plaza.” said Perry Blatt, third generation owner and operator of Village Super Market ShopRite stores. “We cannot wait to bring the fresh product offerings and great value that ShopRite is known for to Bronx residents.”

During Monday’s turkey giveaway, ShopRite officials revealed their Bruckner Plaza store is expected to open by mid-2018. The supermarket will provide produce and other healthy eating alternatives to a Soundview community that currently lacks many other options.

HOUSING NEW YORK 2.0: MAYOR DE BLASIO RELEASES NEW ROAD MAP TO BUILD AND PRESERVE 300,000 AFFORDABLE HOMES


Plan accelerates and expands production, fights tenant displacement, creates more homes for seniors and working families and new homeownership tools

  Mayor Bill de Blasio today released his “Housing New York 2.0” plan laying out new tools and programs to build and preserve affordable homes for 300,000 New York families – up from the previously announced goal of 200,000 homes. Under the accelerated and expanded plan, the City will boost the number of affordable homes for seniors and families to an unprecedented 25,000 per year, while also increasing resources and strategies for affordable homeownership programs and not-for-profit organizations purchasing rent-regulated buildings to preserve affordability. 

Housing New York 2.0 introduces a suite of initiatives that will help create 200,000 affordable homes two years ahead of schedule, by 2022, and reach a new goal of 300,000 homes by 2026. The City’s upgraded housing plan was announced at New Settlement Apartments in the Bronx where nearly 900 affordable homes, across 15 buildings, are being preserved as affordable for another generation of New Yorkers. 
  
“Building on the incredible affordable housing accomplishments of our first term, Housing New York 2.0 commits us to creating 25,000 affordable homes a year and 300,000 homes by 2026. Making New York a fairer city for today and for future generations depends on it,” said Mayor Bill de Blasio.
  
Housing New York 2.0 requires an additional $150 million a year in the current 4-year financial plan. This will bring the City’s investment in achieving the 100,000 more homes – or 300,000 total homes – to about $1.3 billion per year over the next nine years. Future financial plans will reflect the commitment.

Housing New York 2.0 sets a new bar, one that reflects the urgency of the needs on the ground, and builds on the incredible progress that has been made over the past several years.  Through innovative new programs and far-reaching policies, we are delivering affordable housing at a clip that hasn't been seen in decades while doing more to protect tenants and ensure the quality and safety of their homes.   Looming threats on the horizon demand that we be more resourceful with underused sites and new technologies; more targeted in preserving the affordability of neighborhoods experiencing rapidly rising rents; and more creative in serving our seniors and expanding opportunities for affordable homeownership.  I want to thank the Mayor, my team at HPD and HDC, and our many partners for helping us build a stronger, more equitable city today and for generations to come,” Housing Preservation and Development Commissioner Maria Torres-Springer said.

“This Administration has made remarkable progress towards achieving Mayor de Blasio's vision of a more affordable and equitable New York City.  Building on that momentum, our recalibrated housing plan will deploy critical resources and new initiatives to preserve and create even more affordable housing opportunities for New Yorkers,” said HDC President Eric Enderlin. “I thank the Mayor for his leadership, and I commend our many colleagues in the public and private sectors for their continued partnership as we take Housing New York to the next level.”  

Department of City Planning Executive Director Purnima Kapur said, “Our housing agencies have been indispensable partners as we work with stakeholders in neighborhoods throughout the city to plan for a more equitable and vibrant future with housing for all New Yorkers. Building on the considerable success of the last four years, Housing New York 2.0 is enhancing the toolkit to address the needs of residents today and in the future. From increasing the City’s commitment to preservation in collaboration with local non-profits, to providing pathways to affordable homeownership, to serving our growing senior population, and pioneering new models of affordable housing, the expansion of the housing plan will go even further to help achieve the goals of a more affordable and equitable New York. City Planning is proud to be part of this critical multi-agency effort.”

“New York City is addressing the housing shortage with an unprecedented investment in affordable housing,” said NYCHA Chair and CEO Shola Olatoye. “Under NextGen NYCHA, our long-term strategic plan, we’re proud to play our part in providing seniors with affordable homes through Housing New York 2.0.”

Today’s unveiling of Housing New York 2.0 was made at New Settlement Apartments, which were built during the Koch Administration. With City financing, the buildings are being rehabilitated and affordability will be extended for all 893 apartments for an additional 60 years. System wide upgrades include the installation of solar panels and energy efficient boilers at each building. 

In partnership with the City, the not-for-profit affordable housing developer Settlement Housing Fund also rehabilitated a playground and initiated the new construction of 60 affordable apartments on a once vacant lot within the portfolio. The 11-story building, where families will start moving in as early as next month, creates 60 new homes for households earning between $20,000 and $53,00 a year, as well as for formerly homeless families.

Since Housing New York launched in 2014, the City has financed the creation or preservation of affordable homes for more than 78,000 households across New York City. This puts the City on track to secure more affordable housing in the first four years of the Administration than in any comparable period since 1978.

Under Housing New York, the City has tripled the share of affordable housing for households earning less than $25,000, and doubled funding for housing construction and preservation.

Building on this foundation Housing New York 2.0 will:

• Create more homes for seniors by setting aside underutilized public lots for new affordable senior housing, and make new and preserved affordable housing accessible to seniors and people with disabilities.

• Build a firewall against displacement in fast-changing neighborhoods by helping non-profits purchase as many as 7,500 traditional rent-stabilized apartment buildings and keep them affordable to current residents.

• Protect affordability at Mitchell-Lama buildings, which represent some of the last already existing affordable homeownership opportunities.

• Unlock affordable homeownership to help low- and moderate-income New Yorkers build equity, improve the quality of their homes, and stabilize New York City neighborhoods by financing construction of coops and condos for first-time home buyers and by offering home repair loans. 

• Unlock the potential of vacant lots long considered too small or irregular for traditional housing with innovative smaller homes, and develop more affordable housing on lots long used for parking at existing Mitchell-Lama and federally regulated senior affordable housing complexes.

• Capitalize on advances in technology and innovative design to expand modular building and micro-units that can lower the cost of construction, build new homes faster, and respond to the city’s changing demographics.

New York City Department of Investigation - Investigation into False Certification of NYCHA Lead Paint Inspections


New York City Department of Investigation 

Investigation into False Certification of NYCHA Lead Paint Inspections  

EXECUTIVE SUMMARY 
The New York City Department of Investigation (DOI) has conducted an investigation into mandated inspections for potential hazardous lead-based paint conditions in New York City Housing Authority (NYCHA) apartments. The investigation determined that NYCHA has violated city and federal laws by failing to conduct mandatory safety inspections for lead paint. Further, since 2013, NYCHA has falsely certified to the United States Department of Housing and Urban Development (HUD) that it was in compliance with the federal law.(1) By 2015, certain senior NYCHA officials were aware that NYCHA was violating city lead laws. By summer 2016, NYCHA’s Chair, Shola Olatoye, knew that NYCHA was out of compliance both with city and federal lead laws when she submitted a false certification to HUD. 

This investigation uncovered what, at a minimum, constituted a series of flawed decisions and a lack of due diligence by NYCHA, including by NYCHA executive leadership, that resulted in NYCHA submitting false lead certifications, from 2013 through 2016, with HUD. These certifications passed through NYCHA executive leadership without anyone performing basic due diligence checks to ensure that the information submitted to HUD – under penalty of perjury – was accurate. Indeed, by 2016, senior staff at NYCHA affirmatively knew that the forms were not accurate. 

The filing of this false information with the federal government demonstrated a significant breakdown in communication, poor judgement and a lack of public transparency on a significant health issue, the state of lead compliance at NYCHA. 

Notably, this Report constitutes the fourth time in two years that DOI investigations have determined that NYCHA has neglected safety rules and regulations. In December 2015 and March 2017, DOI issued reports regarding NYCHA’s failures to exclude dangerous criminal offenders from public housing. In March 2016, DOI found that NYCHA was not performing critical elevator inspections, and in October 2016, DOI found that NYCHA was failing to perform critical inspections inside of NYCHA apartments including testing smoke alarms and carbon monoxide detectors. As a result of this continued pattern of failing to conduct safety inspections, DOI is recommending, among other things, that a monitor be appointed to ensure future compliance with inspections for safety items identified by DOI, including lead paint hazards, smoke alarms, carbon monoxide detectors and possibly elevator safety. 
(1 Shola Olatoye became the Chair in 2014.) 

BACKGROUND 
States, but, according to NYCHA, is not known to be widely used at NYCHA. Based on improved medical understanding of the toxicity of lead products, New York City banned the use of lead-based paint in residential buildings in 1960, and a federal ban went into effect in 1978. However, some older buildings still contain lead, primarily in paint on components such as window casings, pipes, and baseboards.(2)  

NYC Local Law 1 of 2004, the New York City Childhood Lead Poisoning Prevention Act,(3) requires landlords – including NYCHA -- to conduct annual visual inspections of apartments built before 1960, or between 1960 and 1978 “where the owner has actual knowledge of the presence of lead-based paint,” but only for apartments where the tenant has reported the presence of a resident child under the age of six.(4) At NYCHA, there are, once pending exemption applications have been processed, approximately 4,200 units in which lead paint has not been ruled out and which indicate a resident child under 6.

Similarly, a HUD regulation known as the Lead Safe Housing Rule, 24 C.F.R. 35, requires public housing authorities to conduct annual visual assessments of apartments where the possibility of lead-based paint has not been ruled out, regardless of the age of the occupants.(5)  Conversely, if testing demonstrates that no lead-based paint is present, public housing authorities may obtain exemptions.6 At NYCHA, as of 2016, there were approximately 55,000 apartments must be visually assessed pursuant to 24 C.F.R. 35.

(2 A common cause of lead poisoning in children is the ingestion of paint chips or dust from peeling lead-based paint in residential buildings. A blood test is the only way to conclusively determine whether a child has been exposed to lead. New York State and City regulators, including the NYC Department of Health and Mental Hygiene (DOHMH), have long-standing protocols for screening young children for possible lead exposure, identifying children with elevated blood lead levels, and locating and testing residential and other sites that are associated with such children. Since 2010, 17 units out of approximately 178,000 NYCHA apartments have been associated to a child with an elevated blood lead level. DOI investigators reviewed these cases in detail and found that NYCHA appropriately and timely responded by abating, re-testing, and obtaining clearance approval from DOHMH.)
(3 Article 14, Lead Poisoning Prevention and Control, § 27-2056.1 et seq.) (4 § 27-2056.4(a).)  (5 24 C.F.R. 35.1355(a)(2).)  (6 24 C.F.R. 35.115) 

INVESTIGATIVE FINDINGS
As a Public Housing Agency (PHA) receiving federal funding from HUD, every fall NYCHA is required to file with HUD a PHA Annual Agency Plan (the “Annual Plan”) for the upcoming Fiscal Year, a document that contains information about NYCHA programs and initiatives ranging from physical needs assessments to technological innovations.  

The Annual Plan also requires the attachment of numerous documents, including the “PHA Certifications of Compliance with PHA Plans and Related Regulations” (the “HUD certification”), also known as HUD form 50077, and all documentation must be made available for public review. Concerning lead-based paint, NYCHA attests via the HUD certification that: 

The PHA will comply with the Lead-Based Paint Poisoning Prevention Act, the Residential Lead-Based Paint Hazard Reduction Act of 1992, and 24 CFR Part 35. 
and 
The PHA certifies that it is in compliance with all applicable Federal statutory and regulatory requirements. 

This investigation determined that NYCHA fell out of compliance with Local Law 1 and 24 C.F.R. 35 by the end of 2012. As a result, the HUD certifications submitted by NYCHA from 2013 through 2016 were false.(7) (7 Technically, only failure to comply with the federal rule makes the certification false. However, NYCHA’s failure to comply with City lead safety rules is also troubling.)

August 2012: NYCHA Stops Performing Annual Lead Inspections 
Historically, NYCHA performed the required visual assessments for lead-based paint hazards as part of HUD-mandated annual inspections to evaluate general apartment conditions. In 2012, HUD relaxed its rule so that apartment inspections were no longer required to be performed every year, in order to free up resources for apartment maintenance.(8)  This rule change did not eliminate the requirement to inspect for lead where relevant. Following that federal rule change, in approximately August 2012, NYCHA ceased conducting annual apartment inspections and did not create a separate protocol to continue lead inspections. As a result, NYCHA was no longer performing annual visual assessments for potential lead-based paint hazards as legally required. 
(8) 8 HUD Public and Indian Housing Information Resource Center, January 2012 HUD e-Newsletter: “Public Housing Unit Inspections . . . because there is no longer an annual unit inspection requirement, [public housing authorities] now have the latitude to schedule unit inspections in a manner that can satisfy the statute’s intent and simultaneously free up resources, especially those necessary to provide unit maintenance” including inspection of a representative sample of units, or establishment of a risk hierarchy based on historical records. 

October 2013: NYCHA Files a False Certification of Compliance with HUD 
In October 2013, NYCHA submitted to HUD its Fiscal Year 2014 Annual Plan with accompanying certifications, including HUD Form 50077, which NYCHA’s then-Chair signed on October 11, 2013. 

Because NYCHA had not conducted visual assessments for lead-based paint hazards every year beginning in 2012, NYCHA’s certification that it was compliant with federal lead-based paint laws was false.

October 2014: NYCHA Files a False Certification of Compliance with HUD
In October 2014, NYCHA submitted to HUD its Fiscal Year 2015 Annual Plan with accompanying certifications, including HUD Form 50077, which was signed by Chair Shola Olatoye on October 16, 2014.(9)  Because at that time NYCHA was still not conducting annual lead inspections, it continued to be noncompliant with Local Law 1 and 24 C.F.R. 35, thereby making the certification to HUD false. (9) For PHA Plan FY2015, which was submitted in 2014, the signature line for the HUD form 50077 is erroneously dated “10/16/15.” April 2015: 

Senior Officials at NYCHA Learned of Local Law 1 Violation 
A senior official at NYCHA reported that he believed in 2015 that there was “general knowledge at the executive level” that NYCHA had suspended apartment inspections, because the General Manager’s office was involved in the process of resuming inspections. By April 2015, certain senior officials had learned that NYCHA was not in compliance with Local Law 1.(10). 

During a DOI interview, the General Manager said that he did not know of the Local Law 1 violation until approximately a year later in April or May 2016. Chair Olatoye also said that she was not made aware that NYCHA was out of compliance with Local Law 1 until April or May 2016. 
(10)  On 5/7/15, in an email, a senior operations executive asked another NYCHA official to provide a list of apartments with children under 7 years old in reference to lead law compliance. Meeting minutes show that on 6/5/15, a group of NYCHA managers discussed apartment inspections including requirements for annual inspections. On 7/16/15, a group of NYCHA managers recommended that development maintenance workers be assigned approximately eight apartment inspections per day in order to meet various goals, including inspection of “all apartments that may contain lead and have children under the age of six (6) residing in them, every year.” Further, during a DOI interview, another senior operations executive stated that he first learned of the Local Law 1 violation in 2015 when he was working with a group on a plan to switch back to annual inspections, focusing first on apartments with children under six. 

October 2015: NYCHA Files a False Certification of Compliance with HUD 
In October 2015, NYCHA submitted to HUD its Fiscal Year 2016 Annual Plan with accompanying certifications, including HUD Form 50077, which Chair Olatoye signed on October 12, 2015. Again, this certification that NYCHA was compliant with federal lead-based paint laws was inaccurate. 

Although NYCHA’s Chair and General Manager stated they were not aware that HUD form 50077 was false at the time it was submitted in October 2015, DOI determined that in spring 2015, certain senior NYCHA officials, including operations executives, did know that NYCHA was out of compliance with Local Law 1 (and thus should have known of a potential violation of the corresponding federal rule), because they were working to remediate the legal violation. In fact, one operations executive told DOI that if asked, he would have answered that NYCHA was not in compliance with applicable lead laws – but he was never asked. Instead, DOI’s investigation determined that NYCHA failed to put in place a system to confirm the accuracy of federal forms before they were submitted. Simply put, NYCHA’s failure to confirm the accuracy of filings before they were made is an unacceptable gap in procedures.

After NYCHA’s Chair and General Manager became aware of Local Law 1 noncompliance in April or May 2016, NYCHA began a program to inspect and remediate any lead hazards in units where NYCHA had not ruled out lead paint and a child under six resided.

Summer 2016: NYCHA’s Chair and General Manager Learn of HUD Violation 
In summer 2016, a senior advisor at NYCHA researched federal law concerning lead,(11) and concluded that NYCHA was also in violation of the HUD regulations, 24 C.F.R. 35.(12) She convened a group of the relevant executives to conduct an urgent assessment of NYCHA’s lead based paint situation, and at the end of July 2016, Chair Olatoye was presented with a “lead workflow”/“game plan” to address NYCHA’s lead obligations. 

During DOI interviews, both the General Manager and Chair Olatoye told DOI that they were first advised that NYCHA was also in violation of the HUD regulations in summer 2016.
(11) In October 2015, NYCHA received notice of a federal inquiry concerning a range of issues including lead paint.
(12) In July 2016, a senior advisor circulated a draft chart detailing NYCHA’s obligations under Local Law 1 and 24 C.F.R. 35, including a notation that the HUD regulation required visual assessments “at unit turnover and every 12 months.”

September 2016: NYCHA Reportedly Disclosed Noncompliance to HUD 
NYCHA advised DOI that on September 13, 2016, during a routine quarterly oversight meeting attended by NYCHA’s Chair, General Manager, and other top NYCHA executives at HUD’s central office in Washington, D.C., NYCHA executives delivered a PowerPoint presentation about various operations issues to numerous HUD officials, including the Assistant Secretary of Public and Indian Housing.(13) During a slide concerning “Accountability: Lead-Based Paint,” NYCHA’s talking points read:
(13) NYCHA senior officials told DOI that shortly before this September 2016 meeting, NYCHA told HUD’s local and regional New York offices of NYCHA’s noncompliance in a telephone call.

NYCHA has approximately 55,000 units where we have not yet ruled out lead-based paint. Approximately 4,200 of these 55,000 units have a child under 6 years old living there. We just completed inspections of these 4,200 units. . . . I want to talk a little more about inspections. Earlier, when we spoke about service levels, it was mentioned that a mistake of the previous administration was putting too much focus on work order numbers and there were some consequences. In a recent review of how this approach affected other areas of operations, it came to our attention that, starting in 2012, the previous administration made the decision to cease apartment inspections for a two year period. It was through these annual apartment inspections that lead-based paint apartments also received their annual visual  assessments, so this also ceased for these two years. Completing the recent inspections of the 4,231 units where a child under 6 years old focused our resources on where the risk of exposure to lead hazards is the greatest but it was just the first step in correcting for this. We are also creating a new operations plan that will also address the annual required inspections for the remaining 50,000 lead-based paint units which don’t have a child under 6 years old, bringing us back on track. 

DOI has, to date, been unable to corroborate NYCHA’s reported self-disclosure. At any rate, this disclosure, if it occurred, constituted a private statement to certain HUD officials and did not expressly reference either the certification or specific regulation

October 2016: NYCHA Files a False Certification of Compliance with HUD 
One month after the aforementioned meeting with HUD, on October 18, 2016, NYCHA submitted to HUD its Fiscal Year 2017 Annual Plan, with HUD Form 50077 signed by Chair Olatoye wherein NYCHA falsely certified that it was in compliance with federal lead-based paint regulations.

During a DOI interview, Chair Olatoye stated that in October 2016 when this certification was submitted, she was aware that NYCHA was not in compliance with the HUD regulations, which she considered “obviously a management failure,” and thus that the certification was not accurate. However, she stated that in August and September 2016, NYCHA had already disclosed that information to HUD both in a briefing document and orally. However, as noted above, at most these were private briefings for senior HUD officials. The forms by contrast are certifications to the overall agency that are publicly available including to NYCHA tenants and other interested parties.

The General Manager, who reviewed the HUD certification in August/September 2016 before it went to a Board vote, also told DOI that although he was aware at the time that NYCHA was not in compliance with federal regulations, “we felt that this was something that… HUD knew about, and we were submitting the report to HUD so . . . the disclosure was the important part.”  

This investigation revealed that although Chair Olatoye, the General Manager and other senior executives were aware that NYCHA was out of compliance with federal lead-based paint regulations, NYCHA nonetheless submitted a false certification in October 2016, and had no reasonable explanation why this was acceptable.

July 2017: NYCHA Publicly Discloses Its Noncompliance in a New HUD Certification 
On July 26, 2017, several months after DOI commenced its investigation, NYCHA’s Board considered and approved a Significant Amendment to the Fiscal Year 2017 Annual PHA Plan, which concerned various non-lead-related real estate operations matters. With the Significant Amendment, NYCHA submitted HUD Form 50077 with the following additional asterisked language, qualifying its certifications of compliance with lead-based paint laws: 

*As previously discussed with the U.S. Attorney’s Office for the Southern District of New York (“SDNY”) and HUD, NYCHA has not complied with certain requirements related to lead-based paint but is working to ensure full compliance. NYCHA is cooperating with an investigation by the SDNY regarding conditions in NYCHA housing. We will continue to engage with both the SDNY and HUD regarding our remedial efforts. 

Chair Olatoye told DOI that during preparations to file the Significant Amendment to the Fiscal Year 2017 Annual PHA Plan, NYCHA raised with HUD the certification, and a HUD attorney suggested that asterisked language be added to clarify that NYCHA was not in compliance but was working towards full compliance. NYCHA also released a fact sheet and letter to residents on lead-based paint programs in July 2017. These documents also acknowledged NYCHA’s noncompliance with lead regulations. In working towards full compliance, NYCHA is developing a phased corrective action plan, which includes the integration of its lead-based paint data into its work order tracking system, and has already procured a vendor to conduct visual assessments of units for which lead paint has not been ruled out. DOI will monitor NYCHA’s performance of this program initiative. 

POLICY AND PROCEDURE RECOMMENDATIONS
This investigation showed that NYCHA violated city and federal laws by failing to conduct mandatory lead paint inspections at NYCHA apartments and that they falsely certified lead compliance to the federal government during a four year period. These failures were, in part, the result of poor communication, failure to exercise due diligence and resulted in a lack of public transparency. As a result of these failures, DOI makes the following Policy and Procedure Recommendations to NYCHA:  

1) NYCHA must ensure that it is fully compliant with city and federal lead-based paint laws, including by conducting annual visual assessments for lead-based paint hazards in certain apartments as required by law, and by performing biannual quality assurance reevaluations every two years.

2) NYCHA should complete the integration of its lead-based paint data into its computerized apartment work tracking system so that development management and other involved NYCHA departments can access historical information, including building construction date, notifications from DOHMH or tenants of potential lead-based paint issues, apartment components that have tested positive for lead, prior abatement, apartment exemptions, and annual inspection history. 

3) NYCHA should evaluate the feasibility of systematically abating the remaining public housing apartments that are known or presumed to contain lead-based paint, beginning with apartments known to house a child under six. 

4) NYCHA, for all future filings and certifications, must implement a system to collect written sign off of the accuracy of all statements. 

5) NYCHA should ensure compliance with safety laws and rules by: a) hiring a third-party integrity monitor to review lead-based paint inspections by conducting field spot-checks to ensure that annual apartment inspections are done, needed abatement is completed, and quality assurance reevaluations are duly performed in accordance with Local Law 1 and 24 C.F.R. 35; b) engaging the integrity monitor to conduct field visits to ensure that critical apartment safety checks of smoke alarms, carbon monoxide detectors and window guards, are duly performed in accordance with NYCHA policy; and c) potentially ensuring full compliance with elevator safety measures put in place by NYCHA following DOI’s March 2016 report about a fatal elevator accident.(14)
(14) The proposed monitor is intended to emphasize issues regarding NYCHA operations. As the issue referenced above regarding exclusion of criminal offenders is not considered an operational function of NYCHA, oversight of NYCHA’s performance on this issue shall not be the focus of the proposed monitor.

Salamanca Requests Action is Taken by NYCHA Following DOI Report



  Following a DOI investigation and report outlining that NYCHA falsified reports surrounding compliance of federal and city laws on lead paint inspections and abatement, Council Member Salamanca has called for immediate action to be taken to address the agency's negligence. 

"The findings in this report are truly unacceptable, and leaves me deeply concerned for my constituents in public housing," said Council Member Salamanca. "I have visited apartments far too many times where paint is peeling, notably in units with small children." 

"I want to be able to honestly tell them that their homes do not leave their children susceptible to lead poisoning - something clearly I’m not confident I can do currently."

Salamanca is requesting the following actions be taken immediately:

- Immediately conducting visual assessments for lead-based paint hazards in a sufficient sampling of units in all NYCHA developments in Council District 17, and in all units known to house children under the age of 6 years of age.

- Immediate abatement of all units that are known to contain samples of lead paint, starting with units housing children in all NYCHA developments in Council District 17.

- As suggested in the DOI report, hiring a third-party monitor to ensure compliance with safety laws and rules concerning lead-based paint inspections. The independent integrity monitor should conduct field spot-checks to ensure that annual apartment inspections are done, needed abatement is completed, and quality assurance re-inspections are duly performed in accordance with Local Law 1 of 2004 and 24 C.F.R. 35.

- Delivering to my office all data surrounding mandatory safety inspections for lead paint in the NYCHA developments located in Council District 17, including PHA Certifications of Compliance with PHA Plans and Related Regulations (HUD Form 50077); visual inspection data pertinent to my district; data that demonstrates compliance with Local Law 1 of 2004 and 24 C.F.R. 35; and all other documentation demonstrating compliance with local lead laws.
In addition to the requests outlined, Salamanca also is planning to introduce a resolution urging for NYCHA to hire a third-party monitor in order to better ensure compliance. 

"It's my hope that we can turn the tide on bringing real accountability to NYCHA on these issues, because anything less is unacceptable," said Salamanca. "I intend to keep the pressure high until we see meaningful change in their processes." 


EDITOR'S NOTE:

The DOI report can be found in the previous posting on this blog.