[BwayDems] Ben Carson threatens to declare city's public housing authority in 'substantial default'

[Paula Diamond Roman]

BenCarson threatens to declare city's public housing authority in 'substantialdefault'

BySALLY GOLDENBERG

Federal Housing and Urban Development Secretary Ben Carson threatened todeclare the New York City Housing Authority in “substantial default” and warnedhe would exercise more control over the agency if city officials don’t come upwith a suitable plan by the end of January.

That includes the possibility of a federal takeover of the nation’s largestpublic housing authority, which is home to some 400,000 residents.

Carson issued the warning in a brief letter sent Friday to Mayor Bill de Blasioand housing authority chairman Stanley Brezenoff. A copy was also sent to Gov.Andrew Cuomo, who ran the Department of Housing and Urban Development duringBill Clinton’s presidency.

“Please be advised that if an arrangement acceptable to the United StatesDepartment of Housing and Urban Development regarding the future of the NewYork City Housing Authority (NYCHA) is not reached on or before January 31,2019, I intend to declare a substantial default with respect to NYCHA,” Carsonwrote.

Hesaid he would also “exercise appropriate remedies from the wide range availableunder the United States Housing Act of 1937, as amended, and other legalauthorities.”

He released the letter Friday evening, as de Blasio and federal prosecutorswere finalizing their joint plan to submit to Judge William Pauley. Last monththe judge rejected the parties’ consent decree that would have installed anoutside monitor and required the city to spend at least $1.2 billion inadditional funds on public housing.

Carson didn’t specifically threaten a takeover, which HUD has done in otherdistressed housing authorities throughout the country. But the prospect of whatis known as receivership has been looming since Pauley rejected the originalplan, which resulted from a federal complaint declaring the housing authorityunsafe for its residents.

“Declaring substantial default is never our first choice but unless and untilNew York City can produce an acceptable roadmap forward, I will not hesitate toexercise my legal authority to impose serious sanctions,” Carson said in arelease.

“The families who are enduring unimaginably poor housing conditions deservebetter from their housing authority,” he added. “We need bold new solutions foran old problem and I earnestly hope the city is serious about turning a newpage for NYCHA.”

He said any new agreement must “establish tangible goals and milestones toaddress serious health and safety hazards in the housing authority’sproperties, including lead-based paint hazards and mold.”

The deal must address broken elevators, vermin and antiquated boilers thatcaused 80 percent of residents to lose heat or hot water during a cold snaplast winter.

He also called for “reduction of unwarranted costs,” less bureaucracy andbetter management of the agency. The federal complaint found housing authorityofficials broke local law by failing to conduct annual lead paint inspectionsand lied about it to HUD officials. The malfeasance predated the de Blasioadministration but continued on his watch.
Carson also called onthe city and state to give more money to the housing authority, which needs $32billion for five years of capital repairs to its 2,418 buildings that housemore than 400,000 people.

De Blasio has increased the city’s allocations to NYCHA substantially, but hisbudget comes nowhere near addressing the agency’s needs. He announced plansthis week to tackle $24 billion in repairs over 10 years through a series ofinitiatives, including leasing unused sites for market-rate apartments andselling untapped development rights belonging to the agency.

Cuomo is still withholding most of the $550 million he allocated to the housingauthority in recent years, saying he is waiting for the outcome of the federalcase.

A de Blasio spokesman declined to comment on Carson’s letter.

"These receiverships at minimum are a mixed bag — some of them turned outvery poorly, some of them involved privatization, some of them involved tearingdown public housing in different cities," de Blasio said during a radioappearance on WNYC's The Brian Lehrer Show Friday. "A lot of them involveddisplacing their residents who never got to come back."

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