Attorney General James Sues JUUL Labs

Alleges that JUUL Engaged in Deceptive Marketing Practices Targeting Minors; Company Misled Consumers About Nicotine Content; Misrepresented the Safety of JUUL Products 

   New York Attorney General Letitia James announced a lawsuit against the electronic cigarette company JUUL Labs, Inc. (JUUL) for deceptive and misleading marketing of its e-cigarettes, which contributed to the ongoing youth vaping epidemic in New York State. The lawsuit, filed in New York County Supreme Court, alleges that JUUL took a page from Big Tobacco’s playbook by engaging in deceptive business practices when marketing and advertising its products, and illegally sold its products to minors through its website and in third-party retail stores throughout the state, causing large numbers of New York youth to become addicted to nicotine. The suit also alleges that JUUL’s advertising campaign misled consumers by failing to warn that they contained nicotine, and by misrepresenting its products as a safer alternative to traditional cigarettes.

JUUL’s pervasive ad campaign, which included bright, colorful images of attractive, young models, appealed to underage youth. Through this ad campaign, JUUL contributed to an upsurge of youth e-cigarette use. The damage done by the company’s ads since its launch has already been felt by millions of youth across the country. The results of a recent National Youth Tobacco Survey show that approximately 4.1 million high school students and 1.2 million middle school students across the country currently use e-cigarettes. In New York, a third of high schoolers smoke e-cigarettes. JUUL currently represents 70 percent of the market share for e-cigarettes and is a dominant player in the industry.

“There can be no doubt that JUUL’s aggressive advertising has significantly contributed to the public health crisis that has left youth in New York and across the country addicted to its products,” said Attorney General James. “By glamorizing vaping, while at the same time downplaying the nicotine found in vaping products, JUUL is putting countless New Yorkers at risk. I am prepared to use every legal tool in our arsenal to protect the health and safety of our youth.”  

The lawsuit alleges that JUUL’s conduct violates General Business Law §§ 349 and 350, which prohibit deceptive acts and practices and false advertising; Common Law Public Nuisance, which prohibits substantial and unreasonable interference with the public health; and Executive Law § 63(12), which prohibits repeated and persistent fraud and illegality, based on violations of the New York Public Health Law prohibiting underage sales of tobacco products to minors. Additionally, JUUL allegedly violated the Federal Trade Commission Act §5 prohibiting unfair business practices that substantially injure consumers, and the Food, Drug & Cosmetic Act 21 U.S.C. § 387k, prohibiting the introduction into interstate commerce of any modified risk tobacco product without an order from the Secretary of Health & Human Services.

As of November 13, 2019, New York State law was changed, making it illegal to sell nicotine products, including e-cigarettes, to consumers who are under 21-year-old. Previously, the law applied to consumers younger than age 18. Despite this prohibition, JUUL violated the law by selling its products to New Yorkers under the age of 18.

When JUUL launched in 2015, New York consumers were introduced to the company through targeted launch parties held in New York City and the Hamptons. Taking a page from Big Tobacco’s playbook, its ad campaigns featured young, attractive models, accompanied by the catchy phrase, “Vaporized,” with corresponding social media hashtags, including #Vaporized, #JUUL, #LightsCameraVapor, and #JUULvapor. JUUL further attracted teenagers by selling flavored products, and by failing to advertise the nicotine content in its products. Nicotine is highly addictive and harmful to young people. In subsequent years, JUUL’s social media presence continued to focus heavily on attracting young audiences. A 2018 study found that approximately 45 percent of the individuals who were following the official @JUULvapor Twitter account in April 2018 were between the ages of 13 and 17, while only 20 percent of followers were 21 or over.

In addition to marketing to young New Yorkers, JUUL engaged in direct outreach to high school students, including in at least one New York City school, where a JUUL representative falsely stated to high school freshmen that its products were safer than cigarettes. JUUL’s pervasive launch and ad campaign reached teenagers across the country, who then introduced JUUL’s products to their peers in rapid numbers. By 2017, JUUL’s products were ubiquitous in schools around the country.

The New York State Department of Health (DOH) estimates that 1 million residents use e-cigarette products on a regular basis – 220,000 of those users are under 18-years-old. To date, there have been 42 deaths and 2,172 cases of severe vaping-related illnesses nationwide, including 146 New Yorkers who have suffered vaping-related illnesses. In October 2019, a 17-year-old male from the Bronx died due to a vaping-related illness, making that the first reported vaping-related fatality in New York, and the youngest vaping-related fatality in the United States.  

Senate Majority Announces Joint Public Hearing On Housing Discrimination

The Senate announced that the Senate Standing Committees on Housing, Consumer Protections, and Investigation and Government Operations, will hold a joint public hearing on housing discrimination on Long Island. This hearing is a direct response to a Newsday investigation that revealed racial discrimination and evidence of unequal treatment by real estate agents. Senate Committee Chairs, Brian Kavanagh, Kevin Thomas, and James Skoufis will co-chair this hearing on Long Island. The hearing will take place on Thursday, December 12 at 10:00 AM at the Theodore Roosevelt Executive and Legislative Building in Nassau County.

“There is no place in New York for discrimination and predatory practices. The Newsday investigation uncovered a disturbing and unacceptable situation that is denying New Yorkers fair housing opportunities,” Senator Majority Leader Andrea Stewart-Cousins said. “The Senate Democratic Majority will be looking into this, and I applaud Senators Brian Kavanagh, James Skoufis, and Kevin Thomas for quickly organizing their committees to set up a hearing on this issue. This hearing will help the Senate Majority address this situation and these unfair housing practices over the coming Legislative Session.”

Senator Brian Kavanagh, Chair of the Senate Standing Committee on Housing said, “Housing discrimination is unacceptable and illegal, and the results of Newsday's investigation are alarming and deserve immediate attention. I look forward to working with my colleagues to investigate the situation and identify steps we can take to prevent discrimination and protect all New Yorkers' rights to fair access to housing.”

Senator James Skoufis, Chair of the Senate Standing Committee on Investigations and Government Operations said, “The disturbing results of this three-year examination by Newsday makes it glaringly clear that the State must respond to this situation and immediately prioritize accountability. What’s happening on Long Island is likely happening in other parts of the state as well and our Senate will not stand by while New Yorkers are discriminated against in the very place they call home. I look forward to co-chairing the upcoming hearing with my colleagues and shining a light on what exactly happened and what our next steps must be.”

Statement by Speaker Corey Johnson on Signing of Streets Master Plan Legislation into Law

“We take a giant leap closer to reclaiming our streets and making them safer for our residents. The Streets Master Plan, now signed into law, will revolutionize the way New Yorkers use our streets, creating more bus and bike lanes, more pedestrian space and safer street infrastructure. This law helps us make alternative transportation options more viable, which is necessary in our fight against climate change. Today would not have been possible without the hard work of transportation and street safety advocates, including families who lost love ones on our dangerous streets. Their persistence and passion led to a plan that will ultimately make New York City a more enjoyable place to live, work and play. New Yorkers for generations to come will be safer because of them.”

Comptroller Stringer: Proposed SEC Rule Change a Transparent Threat by Corporate Executives to Shareholder Rights

New York City Comptroller Scott M. Stringer submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) detailing his strong opposition to the proposed amendments to how shareholders, such as the New York City Retirement Systems (NYCRS), express concerns and hold companies accountable to long-term sustainable growth. Comptroller Stringer further called on the SEC to extend the comment period for the proposed amendments – “Amendments to Exemptions from the Proxy Voting Rules for Proxy Voting Advise” and “Procedural Requirements and Resubmission Thresholds under Exchange Act Rule 14a-8” – from 60 days to 120 days to allow investors to properly respond to the changes which include a total of 320 pages and hundreds of individual questions.

The proposed changes impact the Comptroller’s office’s capacity to vote on shareholder proposals and other ballot items at the companies that the NYCRS invest in – a crucial responsibility that enables investors to advocate for sound corporate governance and responsible business practices at portfolio companies – by compromising the independence of research by proxy advisory firms, reducing the amount of time available to review ballot items, and imposing additional burdens.

In the letter, Comptroller Stringer called into question the motivations behind the proposals, writing, that “to state the obvious, it is not the institutional investors who pay for and rely upon proxy advisor research who are calling for onerous regulation of proxy advisory firms. Instead, the impetus is coming from those who are the subject of their analysis, namely board members, corporate executives (and their lobbying organizations), who don’t like their performance or pay criticized.”

Comptroller Stringer further said, “the Proposal, individually and in combination with the proposed Shareholder Proposal Rule, seeks to remedy problems that do not exist and will radically tilt an already uneven playing field further in favor of corporate management and away from investors, such as the NYCRS, who actively and responsibly exercise our longstanding rights to cast informed proxy votes and to submit shareowner proposals to hold companies accountable for runaway CEO pay, excessive risk taking and irresponsible and harmful business practices.”

“The two proposals are, in effect, a two-pronged attack on rights – proxy voting and shareowner proposals – that form the heart of the NYCRS Corporate Governance Program and that the NYCRS have long relied upon to advocate for sound corporate governance and responsible and accountable business practices at our portfolio companies. We believe the NYCRS Corporate Governance Program creates and protect long-term shareholder value on behalf of our participants and beneficiaries, and to the benefit of all investors,” he added.

MAYOR DE BLASIO SIGNS LANDMARK LEGISLATION TO REFORM COMMERCIAL WASTE COLLECTION INDUSTRY

New legislation caps years-long effort to create commercial waste zones, bringing environmental justice to industry and making it safer for cyclists, pedestrians, and workers

 Mayor Bill de Blasio today signed legislation that will radically overhaul the City’s commercial waste program, bringing much needed reform to an industry known for dangerous, unhealthy and unsustainable conditions. Intro 1574-A, sponsored by Council Member Antonio Reynoso, will create a safe and efficient commercial waste collection system that will advance the City’s Green New Deal and zero waste goals while providing high-quality, low-cost service to New York City businesses.

The Mayor signed the Commercial Waste Zones legislation and several other pieces of legislation overseeing the Trade Waste Industry at an event at El Puente in Williamsburg.

“Today’s bill signing doesn’t just mark a new day for commercial waste hauling,” said Mayor Bill de Blasio. “It’s a new day for New York’s Green New Deal, showing that we can create good-paying jobs while drastically reducing pollution and emissions. It’s a new day for working people – many of whom are immigrants chasing the American dream – ending the race to the bottom that has led to low labor standards and poor wages. It’s a new day for safety on our streets, whether you’re on the truck or biking next to it. And it’s a new day for New York City. I’d like to thank Council Member Reynoso and the City Council for helping us get to this day.”

“Today has been years in the making and is a monumental shift that will transform an industry that touches the lives of all New Yorkers,” said Deputy Mayor Laura Anglin. “This bill will not only lead to better paying and safer jobs for those working in the commercial waste hauling industry, but will dramatically reduce truck traffic, improve the air quality, and make our streets safer.”

“This day has been years in the making. Commercial waste zones will fundamentally transform an industry that is critical to our city and do so while protecting workers’ rights, improving safety for the public, and taking on the climate crisis,” said Sanitation Commissioner Kathryn Garcia. “This program will cut truck traffic by more than 50 percent and encourage businesses to recycle and compost more. This groundbreaking legislation would not have been possible without the support of the Mayor, the work by the Council, and the tireless efforts by advocates.”

“Today’s landmark law is a big win for the environment and a real a game-changer for traffic safety and New York City’s efforts around Vision Zero,” said Transportation Commissioner Polly Trottenberg. “This year alone, we have seen three pedestrians, three cyclists, and two motorcyclists struck and killed in crashes with reckless commercial-waste vehicles.  By dramatically reducing the number of truck-miles traveled, this new law will undoubtedly save lives on our streets.  I congratulate the Mayor as well as Commissioners Garcia and Genel for their steadfast leadership achieving this new law, with special thanks to Councilmember Reynoso and the entire Council for seeing the effort through.”

“BIC was created to root out corruption in the trade waste industry,” said Noah D. Genel, Commissioner and Chair of the Business Integrity Commission. “Intro 1573-A adds safety – and particularly traffic safety – to our mandate.  Now, BIC will be empowered to more closely regulate safety in the trade waste industry on the City’s streets and to consider an applicant’s safety record in making licensing decisions.  Trade waste companies must prioritize safety over speed.  Slow down; drive defensively; share the road.  Together with Intro 1574-A and working with the Department of Sanitation and our other City and community partners in this effort, we will continue to improve this industry.”

While the NYC Department of Sanitation (DSNY) collects trash and recycling from residents, more than 90 different private carters have crisscrossed the city each night for decades to service the city’s 100,000 commercial businesses, driving long, overlapping and unsafe routes. This system has created myriad issues for New Yorkers, whether creating public health hazards and a major source of greenhouse gas emissions, creating a race to the bottom of poor labor standards, or creating public safety risks for cyclists, pedestrians, and workers alike. Since 2010, 28 New Yorkers have been killed by private carters.

The Commercial Waste Zones program will dramatically improve safety and working conditions for workers in this industry. The law imposes training requirements for drivers, helpers and other commercial waste employees, and calls for the creation of a Safety Task Force jointly appointed by the Administration and Council to make recommendations on further steps to protect the safety of workers and the public. It also establishes a displaced worker list, promotes local hiring and includes protections for employees of certain companies undergoing merger or acquisition. 

The law divides the city into 20 zones, each served by up to three carters selected through a competitive bidding process. Five carters citywide, will also be selected to collect containerized waste from dumpsters and compactors. Commercial waste zones will reduce truck traffic and mileage associated with commercial waste collection by more than 50 percent, while strengthening service standards and preserving customer choice.

The law also requires that selected haulers provide recycling and organics collection at a discount to incentivize waste diversion; promotes the use of low-emission or zero emission collection trucks; and incentivizes the use of transfer stations that use rail or barge transport or are located near the designated zones.

Following today’s bill signing the City will begin program implementation, starting with formally defining the geographical boundaries of the zones. Next year, DSNY will release a request for proposals from interested and qualified waste haulers, which will be evaluated on the basis of several factors outlined in the law. DSNY expects to begin a multi-year customer transition process in 2021.

At today’s ceremony, the Mayor also signed three additional bills to improve safety and oversight over the trade waste industry:

Intro 1573-A expands the Business Integrity Commission’s authority to establish environmental, safety and health standards for trade waste carters;

Intro 1083-A imposes fines on trade waste companies that fail to report employees to BIC including a minimum of $1,000 and maximum of $10,000 for each unreported individual; and

Intro 1082-A requires commercial waste collection trucks be equipped with global positioning systems (GPS) that can transmit data on location and speed.

  

"Today marks a sea change in how New York City deals with its commercial waste. Intro. No. 1574-A becoming law means that our air will be cleaner, our streets will be safer, and customer service to businesses throughout the city will be improved. The private carting industry has operated without proper safeguards concerning air quality and street safety for far too long and sprawling, inefficient collection routes have resulted in millions of excess truck miles driven every year. This law is a huge step forward in fixing this broken practice." said Council Speaker Corey Johnson

“Today's bill signing marks the beginning of a new era in the private carting industry,” said Council Member Antonio Reynoso, Chair of the Committee on Sanitation and Solid Waste Management. “Under a commercial waste zones system, vehicle miles traveled will be drastically reduced, companies will be required to provide training to workers, and haulers will be incentivized to make critical investments in modern recycling, composting, and transfer station infrastructure. The transformation of this industry will have life changing impacts for workers, community members, and our environment. I am grateful for Speaker Corey Johnson, my Council Colleagues, and the advocates who were instrumental in the passage of this bill and want to thank Mayor de Blasio and Commissioner Garcia for their dedication in implementing this vision."

Engel, Velázquez, Meng Lead NYC Delegation Letter to NYCHA Calling for Immediate Action to Provide Heat This Winter

Representatives Eliot L. Engel (NY-16), Nydia M. Velázquez (NY-7), and Grace Meng (NY-6) led the New York City Congressional Delegation on a letter to NYCHA Chair and CEO Gregory Russ calling on the Housing Authority to take immediate action to ensure NYCHA residents have adequate heat this winter.

In 2016, the New York City Congressional delegation was successful in passing an amendment as part of the Housing Opportunity Through Modernization Act, which directed the Department of Housing and Urban Development (HUD) to issue federal guidelines establishing minimum heating requirements for federally-supported public housing units such as NYCHA. These guidelines were issued on November 19, 2018. Yet despite these guidelines, NYCHA has been unable to keep all of its boilers working and its units at a proper temperature.

In their letter to Chairman Russ, the Members demanded details of NYCHA’s proposed “Action Plan” to provide consistent heat to NYCHA residents.

“It is completely unacceptable for any resident to be forced to live in these cold, and, often unsafe, conditions,” The Members wrote. “While we understand that the Action Plan is still under review by the Federal Monitor, we are becoming increasingly concerned about the lack of transparency of the Action Plan. Many of our constituents are already reporting heating outages in their NYCHA units.”

“Access to safe, quality housing is a human right. That includes ensuring that everyone has a warm home during the cold winter months. But for too many of my constituents who live in NYCHA housing, a warm home is often a dream,” said Rep. Engel. “Three years ago, Representative Meng and I authored a provision, which was later signed into law, requiring strict guidelines for NYCHA to follow when providing heat to residents. But since its passage, reports of faulty boilers, poorly insulated walls and windows, and other drastic problems are still prevalent. These failures on the part of NYCHA are entirely unacceptable. Our letter makes clear to Chairman Russ that NYCHA needs to start treating their residents with dignity and respect, and that begins with meeting our heat guidelines.”   

“It is simply unconscionable that working families, seniors and other vulnerable neighbors who live in NYCHA facilities are entering the winter months with no assurance we won’t again see widespread heat outages,” said Rep. Velázquez. “I’ve authored legislation to make a historic federal investment in public housing, helping reverse decades of disinvestment. However, we must also have transparency and accountability at the local level. NYCHA’s winter heating plan must be approved and released to the public as soon as possible so we know how the agency’s leadership will address these issues.”

“Nobody should be forced to endure frigid temperatures,” said Rep. Meng. “NYCHA’s troubling history of heating problems has been reckless and unacceptable, especially after we passed minimum heating requirement guidelines into law. My district includes three NYCHA public housing units: Pomonok, Latimer and Bland Houses. As winter sets-in, I demand that NYCHA residents in my district and throughout the city have warm homes during the cold weather. I am thankful to and proud to work alongside my colleagues, Representatives Engel and Velázquez in holding NYCHA accountable. I await Chairman Russ’ response to our letter.”

A copy of the letter is below.

Gregory Russ

Chair and Chief Executive Officer

New York City Housing Authority

250 Broadway

New York, NY 10007

Dear Chair Russ:

As winter approaches, we urge the New York City Housing Authority (NYCHA) to ensure that all its residential buildings are properly heated.  

NYCHA is the nation’s largest public housing authority, and houses approximately 380,000 residents in 316 developments across the City. These residents depend on NYCHA to fulfill an important need: keeping their apartment units warm during the winter season. 

In the past, NYCHA has often struggled to fulfill this responsibility. In 2013, press reports surfaced that NYCHA would shut down boilers unless temperatures fell below 25 degrees Fahrenheit. This ill-advised practice forced residents, including young children and the elderly, to go without heat for some of the coldest months of the year.

In 2016, the New York City Congressional Delegation was successful in passing an amendment as part of HR 3700, the Housing Opportunity Through Modernization Act (Pub. Law 11-201) that directed the U.S. Department of Housing and Urban Development (HUD) to issue model guidelines establishing minimum heating requirements for federally-supported public housing units such as NYCHA. HUD issued guidelines on November 19, 2018.

Yet despite these guidelines, NYCHA has been unable to keep all of its boilers working and its units at a proper temperature. It is completely unacceptable for any resident to be forced to live in these cold, and, often unsafe, conditions.

As you know, on January 31, 2019, NYCHA, HUD, and the City of New York entered into a Consent Decree in order to remedy the living conditions across NYCHA. Among other things, the Consent Decree requires NYCHA to maintain the following temperatures in apartments between October 1 and May 31 (the Heating Season):

A - between the hours of 6:00 a.m. and 10:00 p.m., a temperature of at least 68 degrees Fahrenheit whenever the outside temperature falls below 55 degrees; and 

B - between the hours of 10:00 p.m. and 6:00 a.m., a temperature of at least 62 degrees Fahrenheit.^[1] 

The Consent Decree further required NYCHA to establish an Action Plan that identifies, for each development, how NYCHA will respond to heating outages, taking into account resident populations, historical data about prior outages, the availability of on-site and remote maintenance personal, and response times by October 1, 2019.^[2]  It is our understanding that NYCHA established an Action Plan and submitted it to the Federal Monitor by the required date of October 1, 2019. 

However, last month, Congresswoman Nydia Velázquez organized a meeting for the New York City Congressional Delegation and the New York Senators in Washington, D.C. so that we may discuss the future of NYCHA. At that meeting, we all made clear to you that we expected to see the details of the Action Plan as soon as possible so that we might review and discuss NYCHA’s plan for maintaining units at the designated temperatures, as set forth in Consent Decree outlined above. 

While we understand that the Action Plan is still under review by the Federal Monitor, we are becoming increasingly concerned about the lack of transparency of the Action Plan. Many of our constituents are already reporting heating outages in their NYCHA units.

Therefore, we write to you today to reiterate our expectation that the heating Action Plan be made available for our review as soon as possible. Further, we wish to make clear that should NYCHA’s heating Action Plan be returned to NYCHA without Federal Monitor approval we expect to be notified of such an event and be provided a detailed understanding of why the Plan was not approved. 

As the City prepares for the coldest months of the year, when temperatures frequently fall below the freezing point, we must all work together to ensure the temperature in NYCHA units are properly maintained and the health and safety of NYCHA residents are guaranteed. 

MAYOR DE BLASIO SIGNS SAFE STREETS BILL INTO LAW

New legislation commits City to build 250 miles of protected bike lanes and 150 miles of dedicated bus lanes over five years, submit new street design master plans regularly

 Mayor Bill de Blasio signed new safe streets legislation into law, the latest step in the Administration’s progress implementing Vison Zero to make New York City’s streets safer. The legislation was introduced by Speaker Corey Johnson.

“I’m proud to sign this new safe streets legislation that will further the ambitious commitments we’ve begun under Vision Zero,” said Mayor Bill de Blasio. “We thank Speaker Johnson for his leadership and look forward to continuing our work with elected officials and communities on creating new bus lanes and protected bike lanes in their districts even before this new plan takes effect. Over the next two years, we will continue to lay the critical groundwork that will allow this plan to be put into motion on Day One, and we are confident that this new plan firmly cements New York City’s reputation as the nation’s leader on street safety.”

“Today we take a giant leap closer to reclaiming our streets and making them safer for our residents,” said City Council Speaker Corey Johnson. “The Streets Master Plan, now signed into law, will revolutionize the way New Yorkers use our streets, creating more bus and bike lanes, more pedestrian space and safer street infrastructure. This law helps us make alternative transportation options more viable, which is necessary in our fight against climate change. Today would not have been possible without the hard work of transportation and street safety advocates, including families who lost love ones on our dangerous streets. Their persistence and passion led to a plan that will ultimately make New York City a more enjoyable place to live, work and play. New Yorkers for generations to come will be safer because of them.”

The new law requires DOT to implement a master plan for street design every five years, and contains specific targets for protected bike lanes, accessible pedestrian signals, transit signal priority and stop upgrades for buses, and new pedestrian public space. As part of the first master plan, the City will build 50 miles of protected bus lanes and 30 miles of protected bike lanes annually. In the first two years, one million square feet of pedestrian space will also be constructed. With today's announcement, the City also committed to ramping up the process to be ready to meet master plan commitments, both for DOT and for other city agencies, including DSNY, NYPD, FDNY, DPR, DDC and DEP. 

Intro 1557-A was passed last month by the New York City Council under the leadership of Speaker Corey Johnson and City Council Transportation Committee Chair Ydanis Rodriguez. The law will go into effect immediately, with the first master plan due from DOT no later than December 1, 2021.

Since 2014, DOT has made unprecedented improvements in street design, including building nearly three times as many miles of on-street protected bike lanes as every other mayor combined. In the Mayor’s Green Wave plan announced this summer, DOT committed to install over 80 miles of new protected bike lanes by the end of 2021, with a focus on high-fatality areas and neighborhoods with high ridership that lack adequate bike infrastructure. The City has committed $58.4 million in funding over the next five years for the Green Wave plan.

  

“No other American City has ever changed its streets at the pace that DOT has undertaken in the Vision Zero era, and so I offer DOT’s congratulations to Speaker Johnson and the Council for a new law that further enhances the rate that these major safety improvements will arrive on our streets,” said DOT Commissioner Polly Trottenberg. “The Master Plan sets key benchmarks, but DOT’s work has already begun: prior to drafting the first plan and as part of Green Wave and Better Buses efforts, we will be busy getting ourselves ready for a dramatic surge in our work.“

“I am proud to have worked alongside my colleague Speaker Johnson on a number of bills that have increased protections for all cyclists and pedestrians. This Master Plan represents an ambitious and fundamentally different approach to our City’s streets, prioritizing people over cars, and safety over parking,” said Council Member Ydanis Rodriguez, Chairman of the Transportation Committee. “Since being elected and appointed chair of the Transportation Committee I have made it a top priority to ensure we keep pedestrians and cyclists safe through redesigning streets, building protected bike lanes, and working on congestion pricing. I will continue working with Speaker Corey Johnson, colleagues, DOT Commissioner Polly Trottenberg, and advocates to ensure we continue expanding road protections across the 5 boroughs.”

MORE PERMANENT HOUSING FOR HOMELESS FAMILIES: DE BLASIO ADMINISTRATION TO CREATE OVER 200 UNITS OF AFFORDABLE HOUSING

  The de Blasio Administration announced today that it is entering the second phase of the City’s plan to convert more cluster buildings into permanent housing for homeless New Yorkers. Through this preservation transaction, the City will help not-for-profit housing developers acquire and rehabilitate another 14 residential “cluster site” buildings, currently used to house homeless families, and convert them into over 200 permanent affordable housing units to continue addressing the homelessness crisis.

As a result, more than 200 homeless families will receive permanent affordable housing with rent-stabilized leases, regulatory protections, and rehabilitated apartments. When this transaction is complete, this Administration will have reduced city-wide cluster use by nearly 70 percent citywide.

“We’re making good on our promise to transform the shelter system and create more, high-quality permanent housing for New Yorkers in need. With these conversions, over 200 families will have homes of their own, setting them on a path to lasting stability for generations to come,” said Mayor Bill de Blasio. 

Earlier this year, in the first completed conversion, the City financed not-for-profit developers’ acquisition of 17 such buildings, creating permanent affordable housing for more than 450 homeless families and preserving hundreds of additional units of affordable housing in the process. This second conversion of 14 buildings to create permanent affordable housing for more than 200 homeless families takes the City’s progress phasing out the 19-year-old Giuliani-era cluster program even further.

Connecting Homeless Families to Permanent Housing––Through this transaction, qualified locally-based not-for-profit housing developers will assume ownership and operation of the buildings as permanent, low-income affordable housing. Regulatory protections will be extended to the converted units to preserve their affordability for the long term, and the buildings will also undergo rehabilitation and renovation. As this transition takes place over the coming months, the cluster apartments will continue to be operated as shelter for New Yorkers experiencing homelessness with funding and services provided by the City’s Department of Homeless Services. Beginning this week, the City will directly engage the families experiencing homelessness and currently residing in these cluster shelter units, going door-to-door and family by family, to discuss this transition and rehousing opportunity with each household, including to verify that families would like to remain at these locations and obtain permanent housing there. Homeless families residing at these locations who are prepared for housing permanency at the point of transition to not-for-profit ownership will be offered the opportunity to remain as tenants with a new rent-stabilized lease if they wish to remain in the building. For families that may be seeking, already connected to, or in the process of preparing to move to permanent housing elsewhere or for families who may have additional service needs (such as mental health services) that require more significant continued support as they get back on their feet will transition to alternative shelter locations before moving to permanency.

Ending the Stop-Gap Cluster Shelter Program Once and For All–– Since January 2016 when the City was using a high-point of approximately 3,600 cluster units and first announced its intention to end the cluster site program, the City’s Department of Homeless Services has reduced the citywide use of cluster apartments to shelter homeless families by more than 60 percent using multiple strategies, including through outright closure, transition to alternative uses, and conversion to permanent housing. This transaction accounts for approximately 16 percent of the remaining cluster units (224 units). When complete, there will be fewer than 1,200 cluster units remaining (approx. 1,175 units), a 67-percent reduction from the high-point.

  

ICYMI: Turning the Tide on Homelessness in NYC–– The de Blasio Administration has taken aggressive action to address the citywide challenge of homelessness over the past several years, restoring the City’s rental assistance and rehousing programs, which have helped more than 125,000 New Yorkers remain in or secure permanent housing, and directing unprecedented resources toward a new comprehensive and holistic approach to fighting homelessness focused on prevention, street homeless outreach, expanded transitional housing options, averted shelter entry, improved shelter conditions, expanded civil legal services, and more robust rehousing and aftercare services. In February 2017, the Mayor announced “Turning the Tide on Homelessness in New York City,” his neighborhood by neighborhood blueprint for transforming a shelter system that built up in a haphazard way over decades. The plan has four core pillars:

1. Preventing homelessness whenever we can;
2. Addressing street homelessness;
3. Rehousing families and individuals so they can move out of shelter or avoid homelessness altogether; and
4. Transforming the haphazard approach to providing shelter and services that has built up over the last four decades by shrinking the Department of Homeless Services’ footprint by 45 percent and ending the use of 360 “cluster” shelter and commercial hotel locations while opening a smaller number of 90 borough-based shelters in all five boroughs

2019 Status Update: Headed in the Right Direction, More Work to Do–– The de Blasio Administration’s strategies have taken hold, headed in the right direction. The shelter census for 2017 and 2018 remained essentially flat year over year for two years for the first time in more than a decade; and through the strategies outlined above and below, the City is preventing homelessness, providing permanent housing, shrinking and strengthening the NYCDHS shelter footprint and raising the bar for the services and supports provided citywide. Moving aggressively to implement each pillar, the City has made important progress:

1. Investing in legal services and implementing first-in-the-nation access to counsel plan for tenants in housing court: evictions dropped by approximately a third between 2013 and 2018 
2. Investing in comprehensive HOME-STAT outreach and specialized Safe Haven shelter for street homeless individuals:  tripled the number of dedicated ‘safe haven’ beds citywide, with hundreds opening in the coming years, and helped more than 2,200 homeless New Yorkers off the streets and subways who’ve remained off
3. Rebuilt rental assistance from scratch after City and State cuts in 2011 and reinstated rehousing programs: helped more than 125,000 children and adults remain in or secure permanent housing, with the vast majority exiting shelter to permanent housing
4. Closing less effective stop-gap shelters while opening new high-quality borough-based shelter sites: closed more than 200 shelter sites that did not meet our standards (down from the 647 sites reported in Turning the Tide) and sited 55 new borough-based shelters, shrinking the DHS shelter footprint by a third (31%)—well on the way towards the goal of shrinking the footprint by 45 percent overall.

“Today marks the next step in a transition that promises to uplift hundreds more families in New York City, as we continue to convert cluster sites into permanent affordable housing urgently needed in our communities,” said Deputy Mayor for Health and Human Services Dr. Raul Perea-Henze. “Through the use of this innovative tool in partnership with local non-profit housing professionals who can support our families with services as needed, we continue to place homeless New Yorkers on the path to long-term stability and move closer to ending the ineffective stop-gap measure of cluster sites once and for all.”

“Earlier this year, we provided permanent housing to more than 1,000 New Yorkers in need when we helped experienced, locally-based affordable housing developers acquire a portfolio of cluster buildings in their entirety—the first of a series of bold transactions to both address homelessness and end the Giuliani-era cluster program,” said Department of Social Services Commissioner Steven Banks. “Today, we are announcing the second use of this proven strategy to connect several hundred more homeless families to preserved affordable housing for the long-term. As part of this next phase, we are ending the use of another 14 cluster locations as shelter and transferring ownership to non-profit housing developers who will upgrade these buildings and provide more than 200 families with upgraded apartments, rent-stabilized leases, and regulatory protections for generations to come.” 

“The de Blasio Administration continues to work collaboratively to implement holistic efforts to address the homelessness crisis,” said New York City Department of Housing Preservation and Development (HPD) Commissioner Louise Carroll. “I am proud of the hard work and dedication displayed by all parties in this agreement to convert these apartments into permanent, affordable housing for our most vulnerable New Yorkers.”

“Mayor de Blasio is moving New York City closer to the applaudable goal of closing cluster shelters,” said Mitchell Netburn, President & CEO of Samaritan Daytop Village. “As one of the agencies chosen to redevelop and provide social services at a Phase 1 site, we are seeing, firsthand, that giving formerly homeless families stable, safe, supportive and affordable housing can make a dramatic and positive difference in their lives. Samaritan Daytop Village is proud to partner with the Mayor, once again, to transform these Acquisition Phase 2 sites and help turn the tide on homelessness.” 

“MHANY Management Inc. is proud to be a partner as the City takes bold and necessary steps towards ending the scatter site shelter program by providing formerly homeless individuals and families a place they can truly and safely call home,” said Ismene Speliotis, Executive Director of MHANY Management Inc.

“Converting these apartments from cluster sites into permanent, affordable housing for homeless New Yorkers is the right move, and will provide much-needed housing to homeless families. The City is making good on its pledge to reduce the use of problematic cluster site shelters, and this announcement expands the supply of housing available and affordable to those without homes — an important piece of the puzzle in the larger fight to reduce record homelessness," said Giselle Routhier, Policy Director at Coalition for the Homeless.

“Homeless Services United commends the de Blasio administration on another successful conversion of cluster shelter to permanent, affordable housing,” said Catherine Trapani, Executive Director of Homeless Services United. “Thanks to this extraordinary effort, we are not only moving closer to the goal of closing ineffective, costly shelter models but, two hundred families will have their very own rent stabilized apartments in buildings owned and operated by responsible nonprofits with a commitment to quality housing that is affordable in the long term.  Congratulations to all involved in this important effort.”

"The Bronx is suffering from the homeslessness crisis, and has been hit hard over the past decades from the failures of cluster sites, said Senator Luis Sepulveda. “I commend Mayor de Blasio on his efforts to close all cluster sites by 2021, in our city-wide efforts to combat the causes and consequences of homelessness and ensure reliable, quality, and affordable housing for all."

EDITOR'S NOTE:

It appears that State Senator Luis Sepulveda is unaware that the de Blasio administration sent homeless people from other boroughs to the Bronx. The Bronx has less than 18% of the total NYC population, but the Bronx has 37% of the homeless population. Either that or Senator Sepulveda is doing the mayor's bidding in saying that the Bronx is suffering from the homelessness crisis.

Senator Sepulveda should say to his friend Mayor Bill de Blasio - "place the over abundance of homeless people the Bronx has received (and continues to receive) from other boroughs back to that borough and neighborhood they originally came from." 

Stop dumping on the Bronx Mayor de Blasio, and Senator Sepulveda.