City Councilmembers are planning to grill public housing administrators Tuesday during a joint oversight hearing examining the extensive bribery and extortion scandal that rocked the New York City Housing Authority earlier this month.
At least 70 of NYCHA’s current and former employees were arrested in connection to the probe on Feb. 6, which federal prosecutors called “the largest single-day bribery takedown in the history of the justice department.”
According to U.S. Attorney Damian Williams, NYCHA superintendents and associates would allegedly skim between $500 and $2,000 off contracts for minor construction projects such as window repairs. The kickbacks eventually ballooned to more than $2 million, in exchange for more than $13 million in NYCHA business across at least 100 developments.
Williams called the scheme a classic “pay to play,” where NYCHA employees would require contractors to pay up front to be awarded the job, or would demand payment after the work was completed.
In a statement following the arrests, NYCHA CEO Lisa Bova-Hiatt said the agency has “zero tolerance for wrongful and illegal activity.”
“The individuals allegedly involved in these acts put their greed first and violated the trust of our residents, their fellow NYCHA colleagues and all New Yorkers,” she added.
Charles Lutvak, a spokesperson for City Hall, said Mayor Eric Adams’ administration would work to hold those responsible accountable.
NYCHA is the country’s largest public housing agency, with about 400,000 tenants in 335 developments citywide. It employs more than 12,000 staff and has a budget of more than $3.3 billion thought it has been chronically underfunded for decades and has tens of billions of dollars in capital needs.
According to the U.S. Attorney’s office, employees at complexes spread throughout all five boroughs allegedly participated in the scheme.
Tuesday’s hearing will be held by the Council Committees on Oversight and Investigations, Public…
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