New York City Council
Committee on Oversight and Investigations
Feb 27, 2024
·
01:00 PM
3 hr 1 min
Summary
A hearing addressing the corruption scandal within the New York City Housing Authority (NYCHA), focusing on proposed improvements to its micro-purchase contracting process amidst allegations of rampant bribery among employees. Features testimony from NYCHA officials and the Department of Investigation, alongside testimonies from NYCHA residents and advocates for public housing.
Meeting chapters
Read summaries and watch videos for short segments that matter to you.
Opening Remarks by Council Member Chris Banks, Chair of the Committee on Public Housing,
Council Member Chris Banks initiates a joint hearing to scrutinize the corruption scandal within the New York City Housing Authority (NYCHA). - Banks chairs the first joint session alongside the …
0:00:26
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3 min
Open Remarks by Council Member Gale Brewer, Chair of the Committee on Oversight and Investigations
Council Member Gale Brewer leads a joint hearing on NYCHA's response to recent corruption, focusing on oversight and bribery related to micro purchase contracts. - Brewer emphasizes the urgency of …
0:03:42
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3 min
Opening Remarks by Public Advocate Jumaane Williams
Public Advocate Jumaane Williams addresses NYCHA's profound challenges, including systemic corruption, inadequate funding for repairs, and dire living conditions, at a city council hearing. - Williams highlights the extensive issues …
0:07:39
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4 min
Open Remarks by Council Member Julie Won, Chair of the Committee on Contracts
Council Member Julie Won addresses contract corruption within the New York City Housing Authority (NYCHA), highlighting the implications of a widespread bribery scheme. - Initiated by Won and her colleagues, …
0:12:17
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3 min
Resident from NYCHA Community on Concerns Regarding Representation and Strategy
A NYCHA community resident voices concerns about representation on the council board and questions the strategy for effecting change. - Expresses gratitude towards the council for listening to their concerns. …
0:16:30
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38 sec
Jocelyn Strauber, Commissioner of the Department of Investigation, on Recommendations to Reform NYCHA's Micro Purchase No Bid Contracts Process
Jocelyn Strauber discusses DOI's investigation into NYCHA's micro purchase no bid contracts, uncovering corruption, and proposes reforms to tackle vulnerabilities. - Strauber reveals findings from a joint investigation with the …
0:18:25
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11 min
What recommendations has the Department of Investigation made to NYCHA regarding micro-purchases, and were any declined?
The Department of Investigation summarizes its 14 recommendations to NYCHA regarding micro-purchases, noting 3 similar to past suggestions, and confirms no additional declined recommendations. - 14 recommendations were made to …
0:30:14
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51 sec
How has NYCHA responded to the 2020 Department of Investigation's recommendations about micro purchase contracts?
NYCHA has not fully implemented the 2020 Department of Investigation's recommendations on micro purchase contracts but plans to implement them now. - The recommendation to restructure the micro purchase process …
0:31:05
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76 sec
Why did the NYCHA not fully implement the DOI's recommendations, and were their reasons deemed acceptable?
The NYCHA did not fully implement the Department of Investigation's recommendations on restructuring the micro purchase process due to the perceived radical nature of the changes and instead proposed alternative …
0:32:22
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78 sec
What is the Department of Investigation's recommendation for NYCHA's micro purchase process staffing model?
The Department of Investigation recommends NYCHA identifies and implements a specialized staffing model for micro purchases but does not specify a staff number or qualifications. - Recommends removing micro purchase …
0:33:40
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75 sec
How can staff initiatives address tension between central and local housing development staff?
Centralizing contracting authority while involving field staff in proposals aims to reduce inefficiencies and tension. - Field staff will maintain a role in proposing necessary work but will not control …
0:35:01
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136 sec
How should vendor prequalification be conducted and improved in NYC?
The current prequalification process for vendors in NYC does not include sufficient checks, necessitating a revised or new list with rigorous, routine screening. - Currently, the prequalification process lacks comprehensive …
0:37:16
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111 sec
What are the recommended practices to improve NYCHA's micro purchase contracting process?
The Department of Investigation recommends centralizing contracting, implementing a cost estimate schedule, and verifying completed work to improve NYCHA's micro purchase contracting process. - Centralizing contracting responsibilities away from housing …
0:39:08
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114 sec
How can technology and data analytics help detect and prevent fraud in the micro purchase program?
Data analytics can detect significant price discrepancies for similar items across different contracts and vendors, serving as a red flag for potential fraud. - Using data analytics to review expenditure …
0:41:06
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45 sec
How frequently does the Department of Investigation (DOI) communicate with NYCHA, and are various issues discussed?
The Department of Investigation maintains ongoing, robust communication with NYCHA on a variety of issues. - There is an ongoing, robust dialogue between the Department of Investigation and NYCHA staff. …
0:41:51
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41 sec
Will the new monitor focus solely on mold and lead issues?
The monitor's mandate remains unchanged, focusing on mold and lead issues, but also covers other aspects impacting residents' quality of life. - The monitorship's focus remains on mold and lead …
0:42:33
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32 sec
Does the DOI recommend adopting a requirement contracts model for micro purchases?
The Department of Investigation (DOI) does not recommend adopting a requirement contracts model for micro purchases. - DOI is not proposing a specific type of contract model for micro purchases. …
0:43:05
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18 sec
Who is responsible for ongoing monitoring to safeguard against contract corruption at NYCHA?
The Department of Investigation recommends semi-annual audits by NYCHA’s quality assurance and compliance departments to safeguard against contract corruption, with findings to be made public. - A specific audit requirement …
0:43:23
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58 sec
How does NYCHA's procurement process differ from other city agencies?
The Department of Investigation Commissioner defers the question on NYCHA's procurement process as compared to other city agencies, citing a lack of specifics. - The Commissioner suggests the question would …
0:44:31
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50 sec
What are the differences between NYCHA's and the city's micro purchasing processes?
The Department of Investigation's Commissioner is unable to detail differences between NYCHA's and the city's micro purchasing processes, but mentions NYCHA's no-bid process is designed for quick work without extensive …
0:45:22
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69 sec
What is the timeline for soliciting a contractor for a micro purchasing contract?
The timeline for the superintendent or property manager to solicit a contractor for a micro-purchasing contract is unknown. - Jocelyn Strauber, Commissioner of the Department of Investigation, does not have …
0:46:31
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12 sec
Who has the authority to review or audit micro purchasing contracts outside the superintendent or property manager?
Commissioner Jocelyn Strauber discusses adding another level of review to the micro purchase process, acknowledging existing auditing capabilities while suggesting improvements. - Jocelyn Strauber suggests the insertion of an additional …
0:46:45
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42 sec
How is NYCHA attracting micro-purchasing contracts?
The Department of Investigation Commissioner explains the information on NYCHA's micro-purchasing contracts is stored electronically and available centrally, but lacks specific details on the process. - Information related to vendors, …
0:47:27
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30 sec
How much funding is allocated per development for micro purchasing contracts?
Commissioner Jocelyn Strauber of the Department of Investigation does not know the amount of funding allocated per development for micro-purchasing contracts. - Council Member Julie Won asks about funding for …
0:48:00
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8 sec
What training do property managers and superintendents receive for handling micro purchasing contracts, and how often?
Property managers, superintendents, and assistant superintendents receive training on managing micro purchasing contracts, focusing on vendor checks, anti-corruption, and identifying corruption risks, implemented based on 2021 recommendations. - Training includes …
0:48:09
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53 sec
What is the status of the NYCHA's repair backlog, and has the micro purchasing procurement rule change expedited repairs?
Council Member Julie Won questions the effectiveness of the micro purchasing procurement rule changes in expediting the New York City Housing Authority's (NYCHA) repair backlog, but receives no specific answer. …
0:49:03
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47 sec
What issues were faced with implementing the 2021 recommendations for the Department of Investigation?
Jocelyn Strauber explains that the implementation challenges of the 2021 recommendations were financial and structural. - The recommendations were made before Strauber's tenure, and she did not have direct conversations …
0:50:24
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48 sec
Did changes made after 2021 investigations aid in improving efficiency and preventing corruption?
Jocelyn Strauber responds that changes made post-2021 investigations primarily targeted corruption risks rather than efficiency improvements and had limited effectiveness in preventing corruption, highlighted by seventy recent arrests. - Changes …
0:51:12
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40 sec
Have the implemented changes slowed down work processes?
Commissioner Jocelyn Strauber acknowledges the lack of data on whether changes have slowed down work processes. - Commissioner Strauber admits not seeing any data tracking the timing between requests and …
0:51:52
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17 sec
What is the Department of Investigation's plan going forward for efficient repair handling in housing developments?
The Department of Investigation plans to establish a centralized unit to expedite repairs in housing developments by using a prequalified vendor list. - A centralized unit is proposed to improve …
0:52:15
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54 sec
Would adopting all recommendations except centralization have prevented the NYCHA bribery scheme?
Commissioner Jocelyn Strauber expresses uncertainty regarding whether adopting all recommendations, excluding centralization, would have prevented the current situation but remains optimistic about their potential effect. - Strauber states it's hard …
0:53:10
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67 sec
Can frequent audit reviews effectively preempt or address problems compared to decentralization?
Public Advocate Jumaane Williams queries if regular audit reviews could match decentralization's effectiveness in preempting or addressing issues, with Commissioner Jocelyn Strauber indicating that, although audits might detect problems earlier, …
0:54:21
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81 sec
Why does NYCHA continue to outsource contracts despite in-house specialists, and what changes are recommended to address this?
The Department of Investigation suggests multiple changes to NYCHA's contracting and procurement processes, emphasizing the need for better corruption risk training, vendor checks, and data analysis on trivial purchases. - …
0:57:03
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3 min
What is the projected timeline for implementing reforms following the NYCHA bribery scheme, and how can transparency with residents be increased?
The Department of Investigation plans to implement reforms on a rolling basis, aiming to complete them within a year, while enhancing transparency for NYCHA residents. - Reforms are expected to …
1:00:39
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3 min
Lisa Bova Hiatt, Chief Executive Officer, New York City Housing Authority (NYCHA) on Addressing NYCHA's Bribery Charges and Transformative Efforts
Lisa Bova Hiatt details NYCHA's response to bribery charges and transformative changes to improve operations and service. - Emphasizes zero tolerance for illegal activities and outlines steps taken against implicated …
1:05:18
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13 min
What is the micro purchase process within the NYC Housing Authority (NYCHA)?
The NYC Housing Authority (NYCHA) outlines the micro purchase process, starting from need identification to the issuance of a purchase order. - A need is identified within a certain development …
1:19:23
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81 sec
How long does the micro purchase process take for superintendents to solicit contractors?
Sergio Paneque explains that superintendents can typically determine the scope for services and select a vendor within 1 to 3 days using the micro purchase process. - The timeframe can …
1:20:44
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34 sec
When should the New York City Housing Authority (NYCHA) utilize outside contractors or micro purchase contracts?
The New York City Housing Authority (NYCHA) opts for outside contractors when specific skill sets, such as fencing, mechanical work, or apartment clear-outs, are required beyond what their skilled trades …
1:21:19
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153 sec
How are NYCHA's micro purchase contracts reviewed and audited beyond the property management level?
Micro purchase contracts at NYCHA undergo a multi-stage review and audit process involving program requisitions, matching of service statements with invoices, and on-site monitoring by the compliance department. - Different …
1:23:52
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144 sec
What role does NYCHA's central office play in the micro purchase contracts process?
Multiple NYCHA business units are involved in the micro purchase contracts process, including procurement and compliance. - NYCHA's central office operations are part of the process. - Procurement, compliance, and …
1:26:26
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28 sec
How does NYCHA track micro purchase Contracts?
NYCHA utilizes its Oracle system and data analytics to track micro purchase Contracts, ensuring compliance and identifying trends. - NYCHA's Oracle system manages all procurement from requisition to payment, aided …
1:26:58
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119 sec
What is the New York City Housing Authority (NYCHA) doing to address overpricing in contracts, and can restitution be obtained?
The New York City Housing Authority (NYCHA) acknowledges overpricing issues and explores restitution efforts. - NYCHA has implemented procurement changes to limit overhead costs and requires detailed itemization of costs. …
1:29:07
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75 sec
What steps are taken to reexamine current prequalified vendors for micro contracts?
NYC Housing Authority explains the process and measures for reexamining prequalified vendors, focusing on ensuring vendor competence and integrity. - The prequalification lists address challenges related to sealed bids and …
1:30:23
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3 min
How do NYCHA's procurement roles differ from other city agencies, and what is the relationship with MOCS?
NYCHA operates under unique procurement guidelines not applicable to other city agencies and has a distinct relationship with MOCS. - NYCHA is governed by federal and state requirements, specifically 2 …
1:33:40
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109 sec
Are the implicated employees still receiving a salary from the New York City Housing Authority (NYCHA)?
The implicated employees are currently suspended without pay from the New York City Housing Authority (NYCHA). - Council Member Julie Won inquires about the current pay status of employees implicated …
1:35:31
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21 sec
How many micro purchases per contractor were made in fiscal years 2022 and 2023?
The Chief Procurement Officer reports the total number of micro purchases per contractor for fiscal years 2022 and 2023. - In fiscal year 2022, there were 13,883 purchase orders totaling …
1:35:54
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48 sec
How many unique contractors received micro purchases in fiscal years 2022 and 2023?
In fiscal years 2022 and 2023, 948 and 766 unique contractors, respectively, received micro purchases. - The unique contractor count for fiscal year 2022 was 948. - In fiscal year …
1:36:46
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21 sec
How many vendors from the two fiscal years have not been part of the investigation?
Lisa Bova Hiatt, CEO of NYCHA, admits they do not have an answer regarding the number of vendors from the two fiscal years that have not been part of the …
1:37:09
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19 sec
How does the New York City Housing Authority (NYCHA) distinguish bid splitting from the use of microcontracts for Minority and Women-owned Business Enterprises (MWBE) goals, and what training is provided?
The New York City Housing Authority (NYCHA) distinguishes prohibited bid splitting from leveraging microcontracts for Minority and Women-owned Business Enterprises (MWBE) goals by incorporating ethics training and creating procurement policies. …
1:38:12
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100 sec
Does NYCHA’s Oracle ERP system flag repeated micro purchase quotes?
NYCHA's Oracle ERP does not automatically flag repeated micro purchase quotes, but the authority is developing tools for monthly review. - NYCHA is building data tools to review repeated micro …
1:39:51
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53 sec
How is the New York City Housing Authority (NYCHA) building its internal dashboards, and what efforts are being made to address gaps in tracking financial abuses?
The New York City Housing Authority (NYCHA) is actively developing in-house dashboards to better track financial management and has made significant efforts to address previous gaps in tracking abuses and …
1:40:44
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93 sec
Will the New York City Housing Authority (NYCHA) implement a public dashboard for transparency in auditing and accountability?
The New York City Housing Authority (NYCHA) confirms plans for a public transparency dashboard, including data analytics on spending and performance against requirements. - A public report will be added …
1:42:28
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87 sec
Do micro purchasing contract vendors undergo a passport check?
Micro purchasing contract vendors at NYCHA do not currently undergo a passport check but will undergo a vendor integrity check similar to passports for contracts over $250,000. - Vendors currently …
1:43:56
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71 sec
What are NYCHA’s strategies for addressing repair backlogs and vacancies, and how are staff performance evaluations being improved?
NYCHA outlines strategies for reducing repair backlogs and vacancies among property managers, superintendents, and assistant superintendents, and discusses improvements in staff performance evaluations. - NYCHA targets critical areas for backlog …
1:45:15
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7 min
How has the bribery and corruption scandal affected NYCHA's work order completions and repair times?
Daniel Greene clarifies that the bribery and corruption scandal has not affected NYCHA’s work order completions or repair times. - Greene states that progress is being made in closing work …
1:54:25
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151 sec
What steps is NYCHA taking to improve accountability and safety following the DOJ investigation?
Brad Greenberg, NYCHA's Chief Compliance Officer, outlines the implementation and progress of recommendations following a DOJ investigation, including staff training, procedural changes, and new compliance measures. - Recommendations include an …
1:57:01
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4 min
How are residents engaged in NYCHA decision-making, and what measures are taken to rebuild trust?
NYCHA officials describe communication efforts with Tenant Association leaders and residents, but Council Member Stevens calls for more direct inclusion of resident recommendations in decisions. - NYCHA Chief Executive Officer …
2:02:17
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3 min
How is the New York City Housing Authority (NYCHA) improving trust and services for residents?
The New York City Housing Authority (NYCHA) is undertaking efforts to rebuild trust with residents through better communication and service delivery, including addressing top concerns like broken doors and improving …
2:05:20
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137 sec
How does the New York City Housing Authority (NYCHA) communicate with its residents, and is there a newsletter?
The New York City Housing Authority (NYCHA) utilizes various communication methods, including a weekly newsletter, to keep residents informed. - NYCHA communicates through robocalls, meetings, and direct outreach to convey …
2:07:39
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133 sec
How does the New York City Housing Authority (NYCHA) evaluate job performance for supers, property managers, and assistant supers?
The New York City Housing Authority (NYCHA) outlines the limited evaluation and disciplinary processes for supers, property managers, and assistant supers, highlighting the need for a structured system. - Initial …
2:10:00
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3 min
How is increased staff supervision achieved, and does it require collective bargaining?
Council Member Gale Brewer learns that achieving greater staff supervision within NYCHA requires collective bargaining, not a contract amendment or an executive order. - Gale Brewer inquires about the method …
2:14:15
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31 sec
How many referrals have been made to the Department of Investigation (DOI) by the New York City Housing Authority (NYCHA)?
The New York City Housing Authority (NYCHA) does not have an exact number of referrals made to the Department of Investigation (DOI). - NYCHA is in constant communication with the …
2:14:54
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18 sec
Are there rules for NYC Housing Authority contractors owned by employees or retired employees?
Lisa Bova Hiatt, CEO of NYCHA, states they do not have immediate information on rules for contractors owned by employees or retired employees and suggests seeking a waiver from COIB. …
2:15:34
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34 sec
How does NYCHA verify and vet vendors and their ownership?
The New York City Housing Authority (NYCHA) is modifying its vendor verification and vetting process in accordance with Department of Education (DOE) recommendations. - The vetting process, part of the …
2:16:08
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68 sec
What training has been provided for NYCHA property managers and superintendents on managing micro-purchase contracts?
Trainings have been developed for NYCHA property managers, superintendents, and assistant superintendents on managing micro-purchase contracts through the Oracle system and other tools. - Training development began in November 2022. …
2:17:16
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47 sec
What is the cost estimate for the new centralized unit for controlling NYCHA's operating deficit, and will it be funded by Nitro's budget?
The cost for the new centralized unit is estimated at $6,100,000, though staffing has not been finalized. - Lisa Bova Hiatt states the cost is approximately $6.1 million. - Staffing …
2:18:04
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36 sec
What additional resources does NYCHA need for enhanced fraud prevention in micro-purchasing?
NYCHA requires collaboration and support from council members, the public advocate, and the DOE for enhanced fraud prevention in micro-purchasing. - Collaboration and support from council members, the public advocate, …
2:18:57
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56 sec
What measures is the New York City Housing Authority (NYCHA) taking to reform its organizational culture and regain trust?
The New York City Housing Authority (NYCHA) aims to transform its organizational culture through compliance, service, and targeted training programs. - NYCHA is under a federal monitor since 2019 and …
2:19:57
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117 sec
Alexa on NYCHA's Management of Section 9 and Concerns with Private Development Agreements
Alexa, a resident of the New York City Housing Authority (NYCHA) community since 1969, addresses issues regarding Section 9 and interactions with private developers. - Expresses frustration with the lack …
2:23:22
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70 sec
Celines Miranda, Resident of Elliott-Chelsea Houses, on the Threats of Demolition, Privatization, and Lack of Accountability in NYCHA
Testifying before the NYC City Council, Celines Miranda expresses significant concerns regarding the potential demolition of public housing, the privatization efforts, and the urgent need for accountability within the New …
2:24:44
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4 min
Joel Kupferman, Executive Director, Environment Justice Initiative on Environmental Hazards in NYCHA Housing and the Need for External Oversight
Joel Kupferman discusses the environmental hazards in New York City Housing Authority (NYCHA) properties and urges for external oversight. - Kupferman emphasizes the worsening environmental conditions in NYCHA housing and …
2:29:11
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4 min
Christopher Leon Johnson on Council Bias, RAD/PACT, and Mismanagement in NYCHA
Christopher Leon Johnson criticizes council member bias and expresses concerns over RAD/PACT initiatives and NYCHA mismanagement. - Johnson accuses council members, particularly due to carpenters' union influence, of supporting RAD/PACT …
2:33:33
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129 sec
Resident of Elliott Houses on NYCHA's Accountability and Inefficacy of Current Solutions
A resident of Elliott Houses criticizes the New York City Housing Authority (NYCHA) for lack of accountability and ineffective solutions to housing challenges. - Highlights NYCHA's original goal of providing …
2:35:54
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85 sec
Aisha Torres, President, Alfred E. Smith Residents' Association on Resident Exclusion, Rights Violations, and Health Concerns
Aisha Torres testifies on the exclusion of residents from the decision-making process, violations of their rights, and health issues due to the negligence of the regulatory body Nycha. - Torres …
2:37:49
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4 min
Resident Council President of Saint Mary's Park Houses on Questionable Expenses and Vendor Practices in Housing Projects
The Resident Council President of Saint Mary's Park Houses discusses the questionable expenses and vendor practices that affect residents' quality of life in housing projects. - Highlights issues with vendor …
2:42:53
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5 min
Jacqueline Lara, Resident of Fulton (NYCHA Community), on Opposing Demolition and Seeking Accountability
Jacqueline Lara opposes the demolition of Fulton buildings, criticizing elected officials and NYCHA executives for neglect and lack of transparency. - Lara, a 22-year resident, questions the need for demolition, …
2:49:12
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123 sec
Karen Blondel, Resident of NYCHA Community, on NYCHA Transformation and Oversight Challenges
Karen Blondel, a NYCHA community resident, shares her insights on the NYCHA transformation plan and its oversight challenges. - Blondel appreciates Council Member Chris Banks and expresses eagerness to meet …
2:51:28
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167 sec
Maria Forbes, Resident Council President, on Accountability and Mismanagement within Housing Authorities
Maria Forbes provides a powerful testimony on the urgent need for accountability and thorough investigation into the mismanagement within housing authorities. - Forbes discusses systemic issues in housing management, including …
2:54:45
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160 sec
Sevina Willis, Red Hook Resident, on Mismanagement in Public Housing Finances
Sevina Willis discusses the persistent mismanagement and corruption within public housing finances. - Willis emphasizes that the residents of public housing are not to blame for the problems faced by …
2:57:39
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114 sec
