NEW YORK, N.Y. – July 25, 2013 – (RealEstateRama) — City Comptroller John C. Liu today called on the New York City Housing Authority (NYCHA) to open its operations to the public as well as reject a plan to raise $750 million in a new bond issue, amid grave concerns over a deepening crisis that threatens the Authority’s finances and operations.
Formal comments were submitted earlier this week, with Liu raising key concerns at tonight’s NYCHA public hearing on its Annual Plan for Fiscal Year 2014.
Comptroller Liu’s full submission to NYCHA can be found at:
http://comptroller.nyc.gov/press/pdfs/NYCHAAnnualPlanLetter_7-24-13.pdf
Comptroller Liu noted that there are even questions about the legitimacy of the current NYCHA board, given that Mayor Bloomberg has not yet appointed new board members as required by a new state law.
“The Mayor’s refusal to act is tantamount to vetoing legislators’ actions and demonstrates his contempt for the legislative process,” Comptroller Liu said. “In the meantime, it is unconscionable that NYCHA is holding just one public hearing in light of its fiscal woes, significant issues of crime and safety, and literally groundbreaking plans to offload 14 parcels of valuable land in Manhattan to be used for luxury housing.”
Comptroller Liu also questioned NYCHA’s plan for a new bond issue. “As it is, the Authority is sitting on about $700 million in unused capital funds and clearly lacks the capacity to spend the new funds it is seeking. NYCHA should postpone any new bonds until the new board has an opportunity to assess NYCHA’s financial condition. In order to restore public faith in its finances, NYCHA also should accept our longstanding invitation to join Checkbook NYC, our financial-transparency website.”
Liu’s full testimony as prepared for delivery is below:
TESTIMONY OF COMPTROLLER JOHN C. LIU ON NYCHA’S DRAFT ANNUAL PLAN FOR FY 2014
AS PREPARED FOR DELIVERY
As the Chief Financial Officer of the City of New York, I am gravely concerned about the deepening crisis at the New York City Housing Authority.
There are even questions about the legitimacy of the current NYCHA Board, as the Mayor drags his feet in appointing new members. His refusal to act is tantamount to vetoing legislators’ actions and demonstrates his contempt for the legislative process.
Our review of NYCHA’s annual draft plan raises serious questions about NYCHA’s management and finances – as well as its ability to deliver services to its more than 400,000 residents. The sustainability of quality affordable housing is vital to ensuring the City’s economic health.
NYCHA needs to provide answers – now. We’ve submitted detailed comments to NYCHA, which are also available on our website. Among our top concerns are:
1) NYCHA continues to shun openness and transparency. Given the size of NYCHA’s budget – $3.7 billion available in FY 2014 – the fiscal woes it complains of, significant issues of crime and safety, and literally groundbreaking plans to offload 14 parcels of valuable land in Manhattan to be used for luxury housing, holding just one public hearing is patently insufficient. Our office further welcomes NYCHA to disclose its financials to Checkbook NYC, our online transparency tool.
2) NYCHA should reject its plan to saddle the authority with a new $750 million bond issue. Already, the Authority is sitting on $700 million in unused capital funds and clearly lacks the capacity to spend new funds.
3) NYCHA must develop and implement a portfolio-wide and office-wide disaster-preparedness and -recovery plan in the wake of Hurricane Sandy.
4) NYCHA should disclose the number of police officers it houses who are not eligible for public or assisted housing – and whether such occupancies increase the rate of stop-and-frisk activities.
5) NYCHA’s unwarranted payments to the City for police and sanitation services and Payments in Lieu of Taxes (PILOT) should end. Why should NYCHA pay for NYPD and Sanitation services that are given to private landlords for free?
6) NYCHA needs to explain how it handles maintenance and repair requests, given that hundreds of thousands of work orders magically disappear and untold numbers of units are in serious disrepair.
7) NYCHA needs to do more to protect its residents with stronger measures such as security cameras. NYCHA says it has $61 million earmarked for cameras, yet most developments that were supposed to get camera still have not – a situation that seems mired in bureaucratic red tape and incompetence.
8) NYCHA should look at creative ways to keep seniors in their apartments and improve the quality of their lives, rather than kicking them to the curb.
9) Raising rents in the midst of an historic affordability crisis in New York City should be undertaken only as a last resort.
10) NYCHA must be much better at finding meaningful training and employment opportunities to residents – plus give more than lip service to improving relationships with its residents.
These are just some of the issues raised in my comments, which I invite you to read.
I look forward to NYCHA officials’ response, as it imperative that the Agency do more to ensure its fiscal integrity as well as the delivery of critical services. The City depends on it.
Thank you.
Contact: Stephanie Hoo, (212) 669-3747
