BILL NUMBER: S5634

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to making munic-
ipal 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 Comp-
troller 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 dispo-
sition 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 popu-
lation 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:

S.5140 of 2019-20:Referred to Corporations, Authorities and Commissions
S.5460 of 2017-18:REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
S.2460 of 2015-2016(Perkins):Passed Senate
A.1974 of 2015-2016(Brennan): Died in Corporations, Authorities and
Commissions
S.1550-8 of 2013-2014 (Perkins): Died in Corporations, Authorities, and
Commissions / Passed Senate
A.2847-A of 2013-2014 (Brennan): Died in Corporations, Authorities and
Commissions
S.7535 of 2012 (Perkins): Died in Corporations, Authorities and Commis-
sions
A.10548 (Brennan): Died in 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.