NYC Housing Authority Settles With Feds Over Lead Paint Lies: DOJ

NEW YORK, NY — The New York City Housing Authority settled with federal prosecutors Monday, agreeing to increased federal oversight of the nation's largest public housing authority and pledging an increase of city funding.

Federal prosecutors from the Southern District of New York filed a civil complaint Monday against the New York City Housing Authority accusing the agency of exposing its residents to lead poisoning and lying to federal officials for years about conducting the proper lead testing. A settlement between NYCHA and federal prosecutors also details thousands of complaints filed each year by NYCHA residents for mold, inadequate heating and pest infestations.

"The problems at NYCHA reflect management dysfunction and organizational failure, including a culture where spin is often rewarded and accountability often does not exist," federal prosecutors said in a civil complaint

At least 19 children contracted lead poisoning after being exposed to lead paint in their NYCHA apartments between 2010 and 2016, federal prosecutors said. The 19 known cases likely "understate the true extent of lead poisoning likely to have been caused by crumbling lead paint at NYCHA," prosecutors said in a civil complaint

In a settlement with federal prosecutors, NYCHA admitted to the accusations and agreed to be overseen by a federally-appointed monitor. City officials also agreed to provide $1 billion in capital funding to NYCHA over the next four years and an additional $200 million each following year until a judge clears the city of its commitment to a settlement struck Monday with prosecutors from the Southern District of New York.

The monitor will be selected by the federal government and must be approved in court, according to a consent decree filed Monday by prosecutors. The monitor will ensure that NYCHA complies with federal lead paint laws, provides its tenants with "housing that is decent, safe, sanitary, and in good repair" and does not mislead federal authorities.

In addition to overseeing the agency, the monitor will also convene a Community Advisory Committee at least twice per year, according to the consent decree. The committee will be made up of NYCHA residents, employees and other stakeholders and advise the monitor on priority projects. The monitor will also have full access to all of NYCHA's internal information, according to the consent decree.

New York City Mayor Bill de Blasio said during a press conference that he was "mad as all hell" when he first read federal prosecutors' civil complaint detailing the extent to which NYCHA covered up its lies and deceived federal inspectors.

The mayor also said that the settlement between the city, NYCHA and the federal government is a step toward fixing decades-old problems at NYCHA to better the lives of its 400,000 residents.

"By further acknowledging and providing solutions to a decades-old pattern of mismanagement, divestment and neglect, I am confident this settlement will be a turning point for our public housing system," de Blasio said in a statement Monday. "By enshrining in City government my administration’s absolute commitment to never turning a blind eye to those in need, this agreement takes a dramatic step to fulfilling our obligation to more than 400,000 New Yorkers who call NYCHA home."

The mayor said that the city will investigate the allegations made against NYCHA by federal prosecutors and that any employee found to have acted inappropriately will face "severe consequences." De Blasio declined to comment on specific allegations such as prosecutors' claim that 19 children contracted lead poisoning from paint in their NYCHA apartments.

It was revealed in a 2017 city Department of Investigation report that NYCHA officials didn't perform required lead testing in its buildings over four years and then falsely told the federal government they had. Former NYCHA chair Shola Olatoye resigned over the scandal.

A group of tenant leaders sued NYCHA earlier this year for neglecting what they call "appalling" conditions in public housing.

This is a developing story. Check with Patch for updates.

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