BILL NUMBER:S2460

TITLE OF BILL:  An act to amend the public authorities law, in
relation to making municipal housing authorities subject to the review
and regulation of the authorities budget office; and to repeal section
7 of chapter 913 of the laws of 1957 amending the public housing law
relating to incorporating certain provisions of the public authorities
law therein, relating to exempting municipal housing authorities from
the public authorities law

PURPOSE:

This bill adds municipal housing authorities-located within a city
having a population of one million or more-to the list of entities
that fall under the oversight of the Authorities Budget Office.

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.