NYCHA General Manager To Resign Amid Heating, Lead-Testing Woes

NEW YORK, NY — The New York City Housing Authority's second-in-command will resign next month as the agency grapples with heating problems and the continued fallout of a lead-testing scandal, officials said Monday.

Michael Kelly will step down Feb. 22 after his three-year stint as NYCHA's general manager and chief operating officer, the housing authority's press secretary, Jasmine Blake, said.

Mayor Bill de Blasio on Monday appointed Vito Mustaciuolo, the head of enforcement for the Department of Housing Preservation and Development, as Kelly's acting successor. Mustaciuolo will work alongside Kelly until he leaves to ensure a "solid handover" of the job's duties, Blake said.

The change in NYCHA's No. 2 job comes as the authority struggles to keep tenants warm in freezing winter temperatures because of persistent problems with aging boilers. The agency has also faced criticism in recent months for falsely telling the federal government it had performed required inspections for lead paint even though it hadn't, as a city Department of Investigation report revealed in November.

Blake denied that Kelly's departure had to do with those issues directly, saying it comes at a "natural transition point" at the start of de Blasio's second term. City officials praised Kelly's efforts to reduce response times for repairs and improve NYCHA's engagement with residents.

"I and the executive team are grateful for Michael’s deep industry knowledge and connections and his commitment to improving the lives of the 1 in 14 New Yorkers who call NYCHA home," NYCHA Chairwoman Shola Olatoye said in a statement.

Kelly started his second term as NYCHA's general manager in March 2015. He also held the job from 2009 to 2011 before federal officials picked him to rescue the Philadelphia Housing Authority.

City officials touted his role in developing NextGeneration NYCHA, the housing authority's plan to strengthen its finances and make billions of dollars worth of fixes at its buildings after decades of disinvestment. Kelly has also reduced the average wait time for repairs to eight days from 35 days in 2015.

But the top levels of NYCHA's administration came under fire after the DoI revealed that high-ranking officials under Kelly knew lead inspections were not being done when the authority was telling the U.S. Department of Housing and Urban Development that they had.

Kelly and Olatoye said they knew nothing about the lapses and false reports until April 2016, a year after "senior operations" staff knew, the DoI found. Two top operations officials resigned and a third was demoted in the scandal's wake.

NYCHA workers have also struggled to maintain the aging boilers that frequently break down in cold weather. Boiler problems left thousands of tenants without heat and hot water during this month's massive snow storm. De Blasio last week pledged $13 million in extra city money to hire 57 new repair workers, rent three mobile boilers and seal or repair 9,600 windows.

In his previous role with Housing Preservation and Development, Mustaciuolo oversaw more than 1,000 employees who enforce the city's housing laws against private landlords. City officials say that background will help him continue addressing NYCHA's recent problems while continuing Kelly's progress.

"My top priorities are advancing the level of service to NYCHA tenants, increased portfolio-wide capital improvements, and timely restoration of essential services," Mustaciuolo said in a statement. "There is nothing more important than improving the quality of life of the thousands of families and individuals that call NYCHA 'home.'"

Mustaciuolo's salary is still being negotiated, Blake said. Kelly currently makes $216,000.

Public Advocate Letitia James, one of NYCHA's most vocal critics, praised Mustaciuolo's appointment but said the housing authority still has more work to do.

"While this staffing change is a good start, more must be done to address systemic mismanagement at NYCHA, including appointing an independent monitor and increasing transparency and accountability," James said in a statement.

(Lead image: Michael Kelly, the New York City Housing Authority's general manager, will resign on Feb. 22. Photo from nyc.gov)