New York City Housing Authority Settlement

WASHINGTON (June 11, 2018) — Scott Pruitt, Administrator of the U.S. Environmental Protection Agency (“EPA”), Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ben Carson, Secretary of the U.S. Department of Housing and Urban Development (“HUD”), and Helen M. Albert, Principal Deputy Inspector General, performing the duties of the Inspector General, HUD Office of the Inspector General (“HUD OIG”), announced today the simultaneous filing of a Complaint against defendant NEW YORK CITY HOUSING AUTHORITY (“NYCHA”) and a proposed settlement agreement, in the form of a Consent Decree, with NYCHA and the City of New York (the “City”).  The Complaint alleges that NYCHA for years has violated and continues to violate basic federal health and safety regulations, including regulations requiring NYCHA to protect children from lead paint and otherwise to provide decent, safe, and sanitary housing.  The Complaint further alleges that NYCHA has repeatedly made false statements to HUD and the public regarding its lead paint compliance, and has intentionally deceived HUD inspectors.  To fundamentally reform NYCHA and ensure that it provides housing that complies with federal law, the Consent Decree – which is subject to the review and approval of the Court – imposes a strong federal Monitor and requires the City, among other things, to provide $1.2 billion of additional capital funding to NYCHA over the next five years, and $200 million every year thereafter until the problems are fixed and the Consent Decree is no longer necessary.