Provides that municipal housing authorities in N.Y. city shall be subject to the review and regulation of the authorities budget office; repealer

Summary of provisions

Section 1-Municipal Housing Authorities- located within a city having a population of one million or more-are added to the definition of "local authority."

Section 2-Repeals Section 7 of Chapter 913 of the Laws of 1957 which is a necessary conforming amendment.

Section 3-Lists the effective date as 120 days after this bill shall have become a law.

Justification

This bill ensures that Municipal Housing Authorities (MHAs)- located within a city having a population of one million or more-are subject to the review and regulation of the Authorities Budget Office (ABO). In practice, this legislation will apply only to the New York City Housing Authority (NYCHA)-a federally funded, state chartered, city operated authority that provides affordable housing-and a spectrum of additional services-to nearly 420,000 low-and moderate income City residents by managing and maintaining 334 public housing developments encapsulating 181,000 apartment units throughout the five boroughs. Owing to the fact that NYCHA is a bifurcated creature of the Federal and State governments but operates singularly within New York City as an independent authority it has been exceptionally challenging to require necessary levels of transparency, accountability and answerability to residents, the general public and governmental oversight bodies (including the City and State Comptrollers and the New York City Council). A recent example of this distressing phenomenon can be found in the form of NYCHA's proposed.

"Infill/Land Lease Program"-an unprecedented land disposition project that would have affected eight developments across Manhattan-by forever eradicating parks, open spaces, parking lots, recreational spaces and community centers and replacing them with luxury housing towers. NYCHA initially rolled out this proposal without any feedback or participation from affected residents and the greater community and only came around to the notion of transparency by force. Additionally, in the Summer of 2012 a series of negative stories arose in the press concerning the accusation that NYCHA was sitting on over $1 Billion

dollars that they had not spent to repair apartments and install security upgrades at developments. This was impossible for the City or State to verify because it has been exceptionally difficult for the State or City Comptroller to compel NYCHA to open their books to an audit-despite the fact that their annual operating budget hovers around $3 Billion dollars. These "black eyes" harm NYCHA and ultimately imperil their ability to provide decent, affordable housing to those that count on it.

Public housing, especially in New York City, is an invaluable resource. As such, it is the duty of our State to ensure absolute responsibility at NYCHA, including -operating transparency, financial accountability, board governance best practices, State Comptroller approval of contracts, whistleblower protections, MWBE participation and land disposition oversight.

This very simple bill partially remedies an oversight dating back to 1957 when all MHA's-including those located within a city having a population of one million or more-were rationally consolidated into the same section of law, severing them from the requirements of the public authorities law. What may have made sense in the time of Governor W. Averell Harriman has long been superseded by the considerations of sunlight, answer ability and good governance. This legislation is supported by the Community Service Society of New York and the Urban Justice Center.

Legislative history/ senate

01/09/13 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS 01/08/14 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS 03/10/14 NOTICE OF COMMITTEE CONSIDERATION - REQUESTED 04/28/14 REPORTED AND COMMITTED TO FINANCE 05/08/14 AMEND AND RECOMMIT TO FINANCE 05/08/14 PRINT NUMBER 1550A 06/02/14 1ST REPORT CAL.1062 06/03/14 2ND REPORT CAL. 06/09/14 AMENDED 1550B 06/09/14 ADVANCED TO THIRD READING 06/19/14 PASSED SENATE 06/19/14 DELIVERED TO ASSEMBLY 06/19/14 referred to corporations, authorities and commissions

Fiscal implications

Minor, if any at all, costs associated with compliance.

Effective date

120 days after this bill shall have become a law.