Judge Says NYCHA's Lead Paint Settlement 'Not Fair'

NEW YORK — A federal judge on Wednesday rejected the New York City Housing Authority's sweeping settlement with the federal government over its failure to protect tenants from lead paint, mold and other squalid conditions.

The U.S. Attorney's Office in Manhattan announced the consent decree with NYCHA and the city in June after a lengthy probe into the beleaguered housing authority. The deal required that the city feed NYCHA more than $1 billion in extra capital funding over five years and provided for a federal monitor to oversee NYCHA.

But Senior U.S. District Judge William H. Pauley III ruled that the agreement is "not fair, reasonable, or consistent with the public interest." It "sidelines" the U.S. Department of Housing and Urban Development, which regulates and funds NYCHA, and does not outline specific requirements for the housing authority to follow, Pauley wrote in a 52-page opinion and order.

While the decision will "likely delay sorely needed relief for NYCHA tenants," Pauley wrote, "the proposed decree suffers from fatal procedural flaws, including its formless injunctive relief and enforcement mechanisms."

The ruling will not stop the city's efforts to reform public housing, a spokesman for Mayor Bill de Blasio said.

More than 100 NYCHA tenants reportedly testified to their experiences with vermin, lead paint, busted boilers and other myriad problems at a September hearing on the consent decree. They pushed for more tenant involvement in negotiating and enforcing the deal, according to Pauley's decision.

Stanley Brezenoff, NYCHA's interim chairman, also reportedly worried about the federal monitor having too much power, telling the New York Post editorial board that he did not support "a separate management entity" for the housing authority.

It's unclear exactly how federal prosecutors' case against NYCHA will now proceed. Pauley directed the parties in the case to issue a "joint status report" by Dec. 14 about how they want to move forward.

Whether they decide on a court-managed consent decree, a federal receivership or some other path, "it appears that half-measures that merely maintain the status quo while shielding the powers-that-be from politically unpalatable solutions are doomed to fail," Pauley wrote.

Pauley's ruling will not impact de Blasio's investment in public housing, Eric Phillips, the mayor's press secretary, said.

De Blasio, a Democrat, has touted the funding his administration has provided to NYCHA. He has also overseen changes in the housing authority's management, bringing in Brezenoff and General Manager Vito Mustaciuolo after their predecessors resigned.

"For the sake of NYCHA’s residents, this Mayor’s reforms – including those outlined in the consent decree – will not stop and will not slow down," Phillips said in a statement. "We will, at the same time, be responsive to the Court, and we look forward to continuing to partner with the United States Attorney to improve conditions in public housing."

The ruling creates a degree of uncertainy for NYCHA as it also grapples with continued heating problems and a nearly $32 billion list of capital needs.

(Lead image: A NYCHA complex is seen on the Lower East Side in April 2018. Photo by Drew Angerer/Getty Images)