The attorney for the New York City Housing Authority came out swinging in response to a
"The audit report is seriously flawed," NYCHA general counsel David Farber
On Wednesday, Stringer said NYCHA did not meet U.S. Housing and Urban Development guidelines to secure energy performance contracting incentives totaling $353 million, and failed to convert public housing into Section 8 housing, forcing the loss of $263 million in federal support because the authority failed to meet its commitment to convert 8,400 units of public housing to Section 8.
The unsecured money, said Stringer, would have funded energy efficient upgrades to lighting for stairwells, hallways and apartments, boilers and hot water heaters. Lighting problems at public housing developments made headlines after the fatal shooting last month of a man by a rookie police officer at the Louis H. Pink Houses in Brooklyn.
Police officials have called the shooting "a tragic accident."
Stringer also said NYCHA failed to meet HUD subsidy provisions meant to encourage efficiencies, leaving $75.9 million in operating subsidy funds on the table because NYCHA did not meet HUD's specifications to improve property management. He also said NYCHA lost $263.1 million in federal support because it failed to meet its commitment to convert 8,400 units of public housing to Section 8.
In addition, he said, NYCHA spent $10 million on the Boston Consulting Group study in 2012 but failed to track its recommendations.
"We want to see a real structural change at NYCHA," Stringer said in front of the Farragut Houses, also in Brooklyn.
Stringer's recommendations included increase transparency of budget estimates, with data support.
Farber said the audit "exaggerates and/or mischaracterizes" the revenue and cost savings opportunities. He said U.S. Department of Housing Energy Performance Contract policies inhibit the agency from saving the full $353 million.
"The EPC program rules made it nearly impossible for NYCHA to implement a long-term, multifaceted, large-scale EPC program without the long-term waivers that NYCHA has good reason to believe would be granted by HUD based on numerous discussions and correspondence."
According to Farber, NYCHA took advantage of other revenue opportunities "during the same period as the purported missed opportunities."
He cited a $900 million HUD mixed-income program in March 2010 to take advantage of a one-time opportunity under the stimulus program, and raising about $732 million through a "Bond B" collaboration with HUD and the New York City Housing Development Corp.
