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A08157 Summary:

BILL NOA08157
 
SAME ASSAME AS S06835
 
SPONSORLucas
 
COSPNSRAubry
 
MLTSPNSR
 
Amd §402, Pub Hous L; amd §1678, Pub Auth L
 
Imposes certain governance and reporting requirements on the New York city housing authority; requires the establishment of a training program for board members of NYCHA; makes related provisions.
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A08157 Actions:

BILL NOA08157
 
10/13/2023referred to housing
01/03/2024referred to housing
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A08157 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8157
 
SPONSOR: Lucas
  TITLE OF BILL: An act to amend the public housing law and the public authorities law, in relation to the New York city housing authority   PURPOSE OF BILL: To impose certain governance and reporting requirements on the New York City Housing Authority.   SUMMARY OF PROVISIONS: Section one of the bill amends the public housing law relating to the members of the New York City Housing authority ("NYCHA") to specify certain duties of such members, including requiring them to apply their fiduciary duties in the best interest of the NYCHA, its mission and its residents. The section also requires the establishment of a training program for board members regarding their legal, fiduciary and ethical responsibil- ities as directors of the NYCHA. Section two of the bill amends the public housing law relating to powers and duties of the NYCHA and imposes additional responsibilities on the NYCHA, including: 1. Establish guidelines for the disposal of personal and real property of NYCHA. The bill includes standards for disposing of real property at below fair market value; 2. Requires the development of a public system to track capital projects, disposition projects and maintenance and repair projects 3. Prepare and make available publicly an annual independent audit report and other reports, including a list of all real property belong- ing to NYCHA and of dispositions of real property; 4. Requires NYCHA to describe any government assistance to be received by the private parties to the transaction and to provide an analysis comparing the value received by NYCHA on a disposition with the value that a private party would receive for similar property; 5. Establish a "whistleblower" program; 6. Require members, officers and employees of the NYCHA to document any contact with lobbyists; 7. Establish an office of inspector general reporting to the NYC Depart- ment of Investigations; 8. Provides for a process to ensure that federal funds allocated for resident assistance are actually expended; 9. Requires NYCHA to comply with the NYC building code, and require the City to enforce the code against NYCHA buildings and structures; 10. Allow NYCHA to contract with DASNY to construct, reconstruct, reno- vate or rehabilitate NYCHA buildings and structures. Section four sets forth the severability clause. Section five sets forth the effective date of the bill.   JUSTIFICATION: In 2005 and 2009, the state of New York enacted comprehensive legis- lation to improve the practices of, and increase oversight over, the state's public authorities. As entities that are mostly publicly funded and are created to provide an important public service or good, public authorities needed to operate with more accountability and transparency. NYCHA is a publicly-funded public authority that provides essential and basic functions and services for hundreds of thousands of New Yorkers. As such, the State legislature believes that NYCHA should be held to same laws and standards that are currently imposed on all other New York state public authorities. It is in the best interest of the public to ensure that NYCHA functions as an open, transparent and accountable public authority.   PRIOR SENATE LEGISLATIVE HISTORY: 2021-22: S5424 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVEL- OPMENT 2017-18: S5042 - Referred to finance 2015-16: S.2470 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVEL- OPMENT 2013-14: S.4231A - AMEND AND COMMIT TO HOUSING, CONSTRUCTION AND COMMU- NITY DEVELOPMENT   BUDGET IMPLICATIONS: This bill will not result in any additional costs to the State. The New York City Housing Authority might see some additional costs for func- tions related to increased transparency, accountability, greater public involvement, additional public meetings and reports, and increased costs for establishing a tracking system for capital projects, and for mainte- nance and repair projects. 0   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such date.
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A08157 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8157
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    October 13, 2023
                                       ___________
 
        Introduced  by M. of A. LUCAS -- read once and referred to the Committee
          on Housing
 
        AN ACT to amend the public housing law and the public  authorities  law,
          in relation to the New York city housing authority
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The opening paragraph of subdivision 4 of  section  402  of
     2  the  public  housing  law  is designated paragraph a and three new para-
     3  graphs b, c and d are added to read as follows:
     4    b. The chairperson and the other members of the  authority,  including
     5  the  additional  tenant  member, shall: (1) exercise direct oversight of
     6  the authority's chief executive officer or  general  manager  and  other
     7  managers  or  supervisors in the effective and ethical management of the
     8  authority; (2) understand, review  and  monitor  the  implementation  of
     9  fundamental  financial and management controls and operational decisions
    10  of the authority; (3) adopt a code of ethics for officers and  employees
    11  of the authority consistent with section eight hundred six of the gener-
    12  al  municipal  law;  (4)  perform each of their duties as board members,
    13  including but not limited to those imposed  by  this  section,  in  good
    14  faith  and  with that degree of diligence, care and skill which an ordi-
    15  narily prudent person in like position would use under  similar  circum-
    16  stances,  and  may take into consideration the views and policies of any
    17  elected official or body, or other person and ultimately apply independ-
    18  ent judgment in the best interest of the authority, its mission and  the
    19  public.  At  the  time  that each member takes and subscribes his or her
    20  oath of office, or within sixty days after the effective  date  of  this
    21  paragraph if the member has already taken and subscribed his or her oath
    22  of  office, execute an acknowledgment, in a form consistent with the one
    23  prescribed by the New York independent authorities budget office  estab-
    24  lished  pursuant  to  title two of article one of the public authorities
    25  law in which the board member acknowledges that he  or  she  understands
    26  his or her role, and fiduciary responsibilities as set forth in subpara-
    27  graph  four  of  this  paragraph, and acknowledges that he or she under-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07981-01-3

        A. 8157                             2

     1  stands his or her duty of loyalty  and  care  to  the  organization  and
     2  commitment to the authority's mission and the public interest.
     3    c.  All  board members, including the tenant member, shall participate
     4  in training approved by the inspector general of the authority regarding
     5  their legal, fiduciary, financial and ethical responsibilities as direc-
     6  tors of an authority within one year of appointment to the board.  Board
     7  members shall participate in such continuing training as may be required
     8  to  remain  informed of best practices, regulatory and statutory changes
     9  relating to the effective oversight  of  the  management  and  financial
    10  activities of public corporations and to adhere to the highest standards
    11  of responsible governance.
    12    d.  Notwithstanding any laws to the contrary, the authority shall not,
    13  directly or indirectly, extend  or  maintain  credit,  arrange  for  the
    14  extension  of  credit, or renew an extension of credit, in the form of a
    15  personal loan to or for any officer, board member  or  employee  of  the
    16  authority.
    17    § 2. Section 402 of the public housing law is amended by adding eleven
    18  new subdivisions 12, 12-a, 13, 14, 15, 16, 17, 18, 19, 20 and 21 to read
    19  as follows:
    20    12. Disposition of property.  a. Definitions. For the purposes of this
    21  subdivision:
    22    (1) "authorities budget office" shall mean the independent authorities
    23  budget office established pursuant to section four of the public author-
    24  ities law.
    25    (2)  "city  comptroller" shall mean the comptroller of the city of New
    26  York.
    27    (3) "contracting officer" shall mean the officer or  employee  of  the
    28  authority  who  shall  be  appointed  by  resolution of the board of the
    29  authority to be responsible for the disposition of property.
    30    (4) "dispose", "disposition" or "disposal" shall mean the sale,  lease
    31  or  transfer  of  title  or any other beneficial interest in personal or
    32  real property in accordance with paragraph c of  this  subdivision,  and
    33  shall also include the demolition of real property.
    34    (5) "mayor" shall mean the mayor of the city of New York.
    35    (6) "property" shall mean personal property in excess of five thousand
    36  dollars  in  value, real property, and any inchoate or other interest in
    37  such property, to the extent that  such  interest  may  be  conveyed  to
    38  another person for any purpose, excluding an interest securing a loan or
    39  other financial obligation of another party.
    40    b.  Duties  of the authority with respect to the disposal of property.
    41  (1) The authority shall adopt  by  resolution  comprehensive  guidelines
    42  which shall (a) detail the authority's operative policy and instructions
    43  regarding  the  use, awarding, monitoring and reporting of contracts for
    44  the disposal of property, and (b) designate a property management  offi-
    45  cer  who  shall  be responsible for the authority's compliance with, and
    46  enforcement of, such guidelines.   Such guidelines shall  be  consistent
    47  with, and shall require the authority's disposition activities to comply
    48  with  this  subdivision,  the  authority's  enabling legislation and any
    49  other applicable federal laws and regulations for the disposal of  prop-
    50  erty, except that such guidelines may be stricter than the provisions of
    51  this  subdivision,  the  authority's  enabling legislation and any other
    52  applicable federal laws and regulations for the disposal of property  if
    53  the  authority  determines  that  additional safeguards are necessary to
    54  assure the integrity of its disposition activities. Guidelines  approved
    55  by the authority shall be annually reviewed and approved by the board of
    56  the  authority. On or before the thirty-first day of March in each year,

        A. 8157                             3
 
     1  the authority shall file with the authorities budget office  a  copy  of
     2  the  guidelines  most  recently  reviewed and approved by the authority,
     3  including the name of the  authority's  designated  property  management
     4  officer.  At  the  time  of  filing such guidelines with the authorities
     5  budget office, the authority shall also  post  such  guidelines  on  the
     6  authority's  internet  website.    Guidelines  posted on the authority's
     7  internet website shall be maintained on such website at least until  the
     8  procurement  guidelines  for  the  following  year  are  posted  on such
     9  website.
    10    (2) The authority shall:
    11    (a) maintain adequate inventory controls  and  accountability  systems
    12  for all property under its control;
    13    (b)  periodically  inventory such property to determine which property
    14  shall be disposed of; and
    15    (c) produce a written report  of  such  property  in  accordance  with
    16  subparagraph three of this paragraph.
    17    (3) (a) The authority shall publish, at least annually, a report list-
    18  ing  all  real  property owned, controlled or operated by the authority.
    19  Such report shall include a list and full description  of  all  property
    20  disposed  of  during  such  period.  The  report shall contain the price
    21  received by the authority and the name of the  purchaser  for  all  such
    22  property disposed of by the authority during such period.
    23    (b) The authority shall deliver copies of such report to the independ-
    24  ent  authorities budget office, the mayor, the city comptroller, the New
    25  York city council and the state legislature.
    26    c. Disposal of authority property. (1) Except as otherwise provided in
    27  this subdivision, the property  management  officer  designated  by  the
    28  authority shall have supervision over the disposition of property of the
    29  authority.
    30    (2)  The custody and control of the property of the authority, pending
    31  its disposition, and the disposal of such property, shall  be  performed
    32  by the authority.
    33    (3)  Subject to subparagraph five of this paragraph, the authority may
    34  dispose of property for not less than the  fair  market  value  of  such
    35  property  by  sale,  lease,  exchange, or transfer, for cash, credit, or
    36  other property, with or without warranty, and upon such other terms  and
    37  conditions  as  the authority deems proper, provided that such terms and
    38  conditions are consistent with industry practices and are comparable  to
    39  terms  and  conditions  contained  in  similar  agreements  or contracts
    40  between and by private parties, and it may execute  such  documents  for
    41  the  transfer of title or other interest in property and take such other
    42  action as it deems necessary or proper to dispose of such property under
    43  the provisions of this subdivision provided, however, that  no  disposi-
    44  tion  of  real property, or any interest in real property, shall be made
    45  unless an appraisal of the value of such property has been  made  by  an
    46  independent  appraiser  and  included  in the record of the transaction,
    47  and, provided further, that no disposition of any other property,  which
    48  because of its unique nature or the unique circumstances of the proposed
    49  transaction  is  not readily valued by reference to an active market for
    50  similar property, shall be made without a similar appraisal.
    51    (4) (a) All disposals or contracts for disposal  of  property  of  the
    52  authority  made  or  authorized  by  the  authority  shall be made after
    53  publicly advertising for bids except as provided in clause (c)  of  this
    54  subparagraph.
    55    (b)  Whenever public advertising for bids is required under clause (a)
    56  of this subparagraph:

        A. 8157                             4
 
     1    (i) the advertisement for bids shall be made at such time prior to the
     2  disposal or contract, through such methods, and on such terms and condi-
     3  tions as shall permit full and  free  competition  consistent  with  the
     4  value and nature of the property;
     5    (ii) all bids shall be publicly disclosed at the time and place stated
     6  in the advertisement; and
     7    (iii)  the award shall be made with reasonable promptness by notice to
     8  the responsible bidder whose bid, conforming to the invitation for bids,
     9  will be most advantageous to the  authority,  price  and  other  factors
    10  considered;  provided,  that  all bids may be rejected when it is in the
    11  public interest to do so.
    12    (c) Disposals and contracts for disposal of property may be negotiated
    13  or made by public auction without regard to clauses (a) and (b) of  this
    14  subparagraph  but  subject  to obtaining such competition as is feasible
    15  under the circumstances, if:
    16    (i) the personal property involved has  qualities  separate  from  the
    17  utilitarian purpose of such property, such as artistic quality, antiqui-
    18  ty, historical significance, rarity, or other quality of similar effect,
    19  that would tend to increase its value, or if the personal property is to
    20  be  sold in such quantity that, if it were disposed of under clauses (a)
    21  and (b) of this subparagraph, would adversely affect the state or  local
    22  market  for  such  property, and the estimated fair market value of such
    23  property and other satisfactory terms of disposal  can  be  obtained  by
    24  negotiation;
    25    (ii) the fair market value of the property does not exceed fifty thou-
    26  sand dollars;
    27    (iii) bid prices after advertising therefor are not reasonable, either
    28  as  to  all or some part of the property, or have not been independently
    29  arrived at in open competition;
    30    (iv) the disposal will be to the state or any  political  subdivision,
    31  and  the estimated fair market value of the property and other satisfac-
    32  tory terms of disposal are obtained by negotiation;
    33    (v) under those circumstances permitted by subparagraph five  of  this
    34  paragraph; or
    35    (vi) such action is otherwise authorized by law.
    36    (d)  (i)  An  explanatory  statement  shall be prepared of the circum-
    37  stances of each disposal by negotiation of:
    38    (A) any personal property which has an estimated fair market value  in
    39  excess of fifty thousand dollars;
    40    (B)  any  real  property  that  has  an estimated fair market value in
    41  excess of fifty thousand dollars;
    42    (C) any real property disposed of at below fair market value or for  a
    43  nominal price.
    44    (ii)  Each such statement shall be transmitted to the persons entitled
    45  to receive copies of the report  required  under  paragraph  b  of  this
    46  subdivision not less than ninety days in advance of such disposal, and a
    47  copy thereof shall be preserved in the files of the authority.
    48    (5)  (a)  No property owned, leased or otherwise in the control of the
    49  authority may be sold, leased, or otherwise alienated for less than  its
    50  fair market value except:
    51    (i)  if  the  purchaser, lessee or transferee is a government or other
    52  public entity, and the terms and conditions of the  disposition  require
    53  that  the ownership and use of the asset will remain with the government
    54  or any other public entity; or
    55    (ii) if the authority seeks to dispose of property for less  than  its
    56  fair  market  value  to  other  than a governmental entity the authority

        A. 8157                             5
 
     1  shall provide written notification thereof to the mayor, the city  comp-
     2  troller, the state legislature and the New York city council.
     3    (b)  In  the  event  a below fair market value property disposition is
     4  proposed, the following information must be provided to the  mayor,  the
     5  city  comptroller,  the  state legislature and the New York city council
     6  and the general public:
     7    (i) a full description of the property;
     8    (ii) an appraisal of the fair market value of  the  property  and  any
     9  other information establishing the fair market value;
    10    (iii)  a description of the purpose of the disposition and a statement
    11  of the kind and amount of the benefit to the residents of  the  authori-
    12  ty's  housing  resulting from the disposition, including but not limited
    13  to, the benefits, if any, to the communities in which  the  property  is
    14  situated;
    15    (iv) a statement of the financial value to be received by the authori-
    16  ty and by the private parties participating or otherwise involved in the
    17  property  compared  to the fair market value, including the projected or
    18  potential value of any tax credits, exemptions, government subsidies  or
    19  grants, or real property tax abatements given to the private parties;
    20    (v) the names of any private parties participating in the disposition,
    21  and  if  different than the statement required by subclause (iv) of this
    22  clause, a statement of the value to the private party;
    23    (vi) the names of other private parties who have  made  an  offer  for
    24  such property, the value offered, and the purpose for which the property
    25  was sought to be used; and
    26    (vii) an analysis comparing the value or consideration received by the
    27  authority for a disposition of authority real property with the value or
    28  consideration that a private party purchaser or lessor would receive for
    29  disposing of similarly-situated or comparable real property and explain-
    30  ing  the  differences  or  discrepancies between two values or consider-
    31  ation.
    32    (c) Before approving the disposal of any property for less  than  fair
    33  market  value,  the  board  shall  consider the information described in
    34  clause (b) of this subparagraph and make a  written  determination  that
    35  there is no reasonable alternative to the proposed below-market disposi-
    36  tion that would achieve the same purpose of such disposition. The deter-
    37  mination  shall  include  the  reasons  for disposing of the property at
    38  below fair market value.
    39    d. Public hearings. (1) In addition to the  public  hearings  required
    40  pursuant  to  federal  laws  and  regulations,  the authority shall also
    41  conduct at least one public hearing at the development,  project,  house
    42  or  site  in  which  the  disposition  is  being planned or proposed, as
    43  follows:
    44    (a) at least ten days prior  to  the  date  when  the  application  to
    45  dispose of the affected property is presented to the authority's govern-
    46  ing  board  for  approval. The hearing shall include a full and detailed
    47  presentation on the appraisal of the subject property;
    48    (b) if the authority makes a significant amendment to the  application
    49  at any time after the public hearing conducted pursuant to clause (a) of
    50  this  subparagraph.  The  authority  may  not  submit  the amendment and
    51  forward the amended application to the federal department of housing and
    52  urban development until the authority has conducted a public hearing  on
    53  the significant amendment. For the purposes of this clause, "significant
    54  amendment"  shall  mean:  any change to the application that will in any
    55  way impair, change or  affect  the  rights  of,  and  benefits  to,  the
    56  affected  residents,  the affected housing development or project or the

        A. 8157                             6
 
     1  residents of public housing; and that is not merely correcting  a  typo-
     2  graphical error, or making conforming or technical amendments; and
     3    (c) within fifteen days after the authority has received approval from
     4  the  federal  department of housing and urban renewal on the application
     5  to dispose of the property. The authority shall  not  be  authorized  to
     6  implement  the  approved  application until such public hearing has been
     7  held.
     8    (2) The authority shall provide written notice in a  manner  and  form
     9  sufficient  to  inform  the affected residents, tenant organizations and
    10  the public at least ten days before the date of any  public  hearing  is
    11  conducted pursuant to this paragraph.
    12    e.  Board action. (1) As a condition for its submission to the federal
    13  department of housing and urban development, the application to  dispose
    14  of  real  property  shall  be  approved  by the members of the authority
    15  pursuant to a board resolution, as provided in this paragraph.
    16    (2) The resolution must be dated after the date of the  last  resident
    17  meeting and after the date of any letter of support from the appropriate
    18  government  officials  relating to the application, and shall set forth,
    19  among other things:
    20    (a) the dates and a description of the  consultation  with  residents,
    21  tenant organizations and other interested parties;
    22    (b) the dates and a description of any consultation with local govern-
    23  ment officials; and
    24    (c)  letters  of support from the appropriate tenant organizations and
    25  public officials.
    26    12-a. Project tracking system. a. The authority  shall  establish  and
    27  maintain  a  system to track, monitor and assess the status and progress
    28  of all capital projects, and all disposition projects  approved  by  the
    29  federal department of housing and urban development and of every mainte-
    30  nance  or  repair  project  performed by the department. The information
    31  contained in any such system shall include, at a minimum:
    32    (1) a description of the project, including its location;
    33    (2) the category or type of repair, if applicable;
    34    (3) the original start date;
    35    (4) the actual start date, if different than the original start date;
    36    (5) the original budget;
    37    (6) the current budget;
    38    (7) the final cost of the project;
    39    (8) the current phase of the project;
    40    (9) the original completion date; and
    41    (10) the actual  completion  date,  if  different  than  the  original
    42  completion date.
    43    b.  The  system  shall  be open and available to the authority's resi-
    44  dents.  The authority shall ensure that the information contained in the
    45  tracking system is available on the authority's website.
    46    c. The authority shall issue a  report,  at  least  annually,  setting
    47  forth  and  explaining the information contained in the tracking system,
    48  including:
    49    (1) the total number of requests for  repairs,  broken  down  by  work
    50  types or categories;
    51    (2)  the  total number of pending or outstanding projects, broken down
    52  by work types or categories;
    53    (3) the total number of projects completed;
    54    (4) the average number of  days  to  complete  maintenance  or  repair
    55  projects, broken down by the different work types or categories;

        A. 8157                             7
 
     1    (5) the total number of maintenance and repair projects not completed,
     2  broken down by the different work types or categories;
     3    (6)  an estimate of the number of days required to complete all of the
     4  projects, including any backlogs;
     5    (7) an explanation or reasons for any delays in the  completion  of  a
     6  project in a timely manner; and
     7    (8)  an explanation or reasons why the costs of a project exceeded the
     8  original budget, if applicable.
     9    13. Reporting requirements.   a. The authority  shall  submit  to  the
    10  independent  authorities  budget  office established pursuant to section
    11  four of the public authorities law, the mayor and the comptroller of the
    12  city of New York and the state legislature, within ninety days after the
    13  end of its fiscal year, a complete and detailed report or reports to the
    14  extent that such matters are not fully  reported  or  disclosed  in  the
    15  annual  independent  audit  report  pursuant to this subdivision setting
    16  forth:  (1) its financial reports, including (a) audited  financials  in
    17  accordance  with  all  applicable  regulations  and  following generally
    18  accepted accounting principles, (b)  grant  and  subsidy  programs,  (c)
    19  operating  and financial risks, and (d) long-term liabilities, including
    20  leases and employee benefit plans;  (2)  a  compensation  schedule  that
    21  shall  include,  by  position, title and name of the person holding such
    22  position or title, the salary, compensation, allowance  and/or  benefits
    23  provided  to  any  officer, director or employee in a decision making or
    24  managerial position of such authority whose salary is in excess  of  one
    25  hundred  thousand  dollars;  (3) biographical information, not including
    26  confidential personal information, for all directors and senior  manage-
    27  ment;  (4)  an  assessment  of the effectiveness of its internal control
    28  structure and procedures; (5) a description of  the  authority  and  its
    29  board  structure,  including  (a)  names  of  committees  and  committee
    30  members, (b) lists of board meetings and attendance, (c) descriptions of
    31  major authority divisions, departments and bureaus, and  (d)  the  total
    32  number  of  full and part-time employees; (6) its by-laws; (7) a listing
    33  of material changes in operations  and  programs  during  the  reporting
    34  year;  (8)  at  a  minimum,  a four-year financial plan, including (a) a
    35  current and projected  capital  budget,  and  (b)  an  operating  budget
    36  report,  including  an  actual versus estimated budget, with an analysis
    37  and  measurement  of  financial  and  operating   performance;   (9)   a
    38  description  of  the  total amounts of assets or services or both assets
    39  and services bought or sold without competitive bidding,  including  (a)
    40  the  nature of those assets or services, (b) the names of the parties to
    41  the transaction, and (c) where the contract price for assets or services
    42  purchased exceeds fair market value, or where  the  contract  price  for
    43  assets  or  services  sold  is  less  than fair market value, a detailed
    44  explanation of the justification for making the purchase or sale without
    45  competitive bidding, and a certification by the  chairperson  and  chief
    46  financial  officer of the authority that they have reviewed the terms of
    47  such purchase or sale and determined that it  complies  with  applicable
    48  law  and  procurement  guidelines;  (10)  a  list and description of the
    49  disposition projects undertaken by the  authority  in  the  past  fiscal
    50  year, in the current fiscal year, and in the following fiscal year; (11)
    51  a  list  and description of all real property owned, controlled or oper-
    52  ated by the authority, regardless of size or  value;  (12)  a  list  and
    53  description  of  any real property acquired by the authority for a price
    54  of fifty thousand dollars or more in the current fiscal year, regardless
    55  of whether the purchase was for cash, mortgage, in-kind services or  any
    56  other  consideration; (13) a list and description of any other assets or

        A. 8157                             8
 
     1  property, the value of which exceeds ten thousand dollars; (14)  a  list
     2  and  description  of  any  service or employment contracts, the value of
     3  which exceeds fifty thousand dollars, to which the authority is a party;
     4  (15) the extent of participation by minority and women-owned enterprises
     5  in authority contracts and services; (16) employment numbers relating to
     6  the  authority's  resident  employment  program for the reporting fiscal
     7  year, including but not limited to, the total number of positions avail-
     8  able, broken down by the type of jobs; the number of applicants for each
     9  position; the length of employment of each position; the rate of pay and
    10  benefits for each position; and the number  of  positions  that  led  to
    11  full-time employment for participating residents; and (17) a description
    12  of any material pending litigation in which the authority is involved as
    13  a party during the reporting year.
    14    b.  (1)  The  authority  shall  make accessible to the public, via its
    15  official web site, the report or reports required pursuant to  paragraph
    16  a  of this subdivision except information that is exempt from disclosure
    17  pursuant to article six of the public officers law. The authority  shall
    18  also prepare and make accessible a summary in plain English of the prin-
    19  cipal information in its operating and capital budget and conclusions to
    20  be drawn from it. Any financial information required to be posted on the
    21  website pursuant to the provisions of this section shall be presented in
    22  a downloadable, searchable format.
    23    (2)  The  authority  shall  also prepare and make available for public
    24  inspection on its website: (a) information that details the  sources  of
    25  data and the assumptions and methods of estimation used to calculate all
    26  operating  and  capital  budget  projections,  consistent with generally
    27  accepted budgetary practices; (b) within sixty days of  the  release  of
    28  the  adopted  budget, monthly projections for the current fiscal year of
    29  all revenue and expenses, and staffing for the authority; (c) the status
    30  of capital projects by capital element, including  but  not  limited  to
    31  commitments,  expenditures  and  completions;  and (d) an explanation of
    32  material variances from the capital plan,  such  as  cost  overruns  and
    33  delays.
    34    c.  Every  financial  report submitted under this subdivision shall be
    35  approved by the board and shall be certified in  writing  by  the  chief
    36  executive  officer and the chief financial officer of the authority that
    37  based on the officer's knowledge (1) the information provided therein is
    38  accurate, correct and does not contain any untrue statement of  material
    39  fact; (2) does not omit any material fact which, if omitted, would cause
    40  the  financial statements to be misleading in light of the circumstances
    41  under which such statements are made; and (3)  fairly  presents  in  all
    42  material  respects  the financial condition and results of operations of
    43  the authority as of, and for, the periods  presented  in  the  financial
    44  statements.
    45    d.  At the request of the authority, the authorities budget office may
    46  determine that the reports, records,  data  and  any  other  information
    47  submitted  by  the  authority  pursuant  to federal laws, rules or regu-
    48  lations  fully  complies  with  or  otherwise  satisfies  the  reporting
    49  requirements  set  forth  in  this  subdivision.  The authorities budget
    50  office shall inform the authority of its  determination  and  may  waive
    51  compliance  with  paragraph a of this subdivision or shall specify those
    52  matters set forth in such  paragraph  a  that  the  authority  shall  be
    53  required  to  submit a report on. Any determination made by the authori-
    54  ties budget office pursuant to this paragraph shall  be  final  and  not
    55  subject to judicial review.

        A. 8157                             9
 
     1    14. Annual independent audit report.  a. The authority shall submit to
     2  the  independent  authorities  budget office established pursuant to the
     3  public authorities law, the mayor and comptroller of  the  city  of  New
     4  York,  and  the state legislature, together with the report described in
     5  subdivision  thirteen  of this section, a copy of the annual independent
     6  audit report, performed by a certified public accounting firm in accord-
     7  ance with generally accepted auditing standards, and  management  letter
     8  and  any  other  external  examination  of the books and accounts of the
     9  authority.
    10    b. The certified independent public accounting firm that performs  any
    11  audit  required  by  this  subdivision  shall timely report to the board
    12  members of the authority: (1) all critical accounting policies and prac-
    13  tices to be used; (2) all alternative treatments of  financial  informa-
    14  tion  within  generally  accepted  accounting  principles that have been
    15  discussed with management officials of the authority,  ramifications  of
    16  the  use  of such alternative disclosures and treatments, and the treat-
    17  ment preferred by the certified independent public accounting firm;  and
    18  (3)  other  material  written communications between the certified inde-
    19  pendent public accounting firm and the management of the authority, such
    20  as the management letter along with management's  response  or  plan  of
    21  corrective  action, material corrections identified or schedule of unad-
    22  justed differences, where applicable.
    23    c. Notwithstanding any other provision of law  to  the  contrary,  the
    24  certified  independent public accounting firm providing such authority's
    25  annual independent audit will be prohibited in providing audit  services
    26  to  the  authority  if  the lead (or coordinating) audit partner (having
    27  primary responsibility for the audit), or the audit partner  responsible
    28  for  reviewing the audit, has performed audit services for the authority
    29  in each of the five previous fiscal years.
    30    d. The certified independent public  accounting  firm  performing  the
    31  authority's  audit  shall  be  prohibited  from performing any non-audit
    32  services to such authority  contemporaneously  with  the  audit,  unless
    33  receiving  previous  written  approval by the board including: (1) book-
    34  keeping or other services related to the accounting records or financial
    35  statements of such authority; (2) financial information  systems  design
    36  and  implementation; (3) appraisal or valuation services, fairness opin-
    37  ions, or  contribution-in-kind  reports;  (4)  actuarial  services;  (5)
    38  internal  audit  outsourcing services; (6) management functions or human
    39  services; (7) broker or dealer, investment advisor, or investment  bank-
    40  ing services; and (8) expert services unrelated to the audit.
    41    e.  It  shall  be  prohibited  for  any  certified  independent public
    42  accounting firm to perform for the authority any audit  service  if  the
    43  chief executive officer, chief financial officer, chief accounting offi-
    44  cer,  or  any  other  person  serving  in an equivalent position for the
    45  authority, was employed by that certified independent public  accounting
    46  firm  and  participated  in  any  capacity in the audit of the authority
    47  during the one year period preceding the date of the initiation  of  the
    48  audit.
    49    f. Notwithstanding any provision of law to the contrary, the authority
    50  may exempt information from disclosure or report, if the counsel of such
    51  authority  deems  that such information is covered by article six of the
    52  public officers law.
    53    15. Whistleblower protection.  a. For the purposes  of  this  subdivi-
    54  sion:
    55    (1) "attorney general" shall mean the attorney general of the state of
    56  New York.

        A. 8157                            10

     1    (2) "employees" means those persons employed at the authority, includ-
     2  ing but not limited to: full-time and part-time employees, those employ-
     3  ees on probation, and temporary employees.
     4    (3)  "inspector  general"  shall  mean  the  inspector  general of the
     5  authority appointed pursuant to subdivision seventeen of this section.
     6    (4) "whistleblower" shall mean  any  employee  of  the  authority  who
     7  discloses information concerning acts of wrongdoing, misconduct, malfea-
     8  sance, or other inappropriate behavior by an employee or board member of
     9  the  authority, concerning the authority's investments, travel, acquisi-
    10  tion of real or personal property, the disposition of real  or  personal
    11  property and the procurement of goods and services.
    12    b.  The  board  of  the authority shall establish written policies and
    13  procedures protecting employees from retaliation for disclosing informa-
    14  tion concerning acts of wrongdoing,  misconduct,  malfeasance  or  other
    15  inappropriate  behavior by a board member or an employee of the authori-
    16  ty, including but not limited to, investments, travel,  the  acquisition
    17  of  real property, the disposition of real or personal property, and the
    18  procurement of goods and services.
    19    c. The inspector general, after consultation with the attorney  gener-
    20  al,  shall  develop  a whistleblower access and assistance program which
    21  shall include, but not be limited to:
    22    (1) evaluating and commenting on whistleblower programs  and  policies
    23  by board;
    24    (2)  establishing toll-free telephone and facsimile lines available to
    25  employees;
    26    (3) offering advice regarding employee rights under  applicable  state
    27  and federal laws and advice and options available to all persons; and
    28    (4) offering an opportunity for employees to identify concerns regard-
    29  ing any issue at the authority.
    30    d.  Any  communications  between an employee and the inspector general
    31  pursuant to this subdivision shall be held strictly confidential by  the
    32  inspector  general,  unless  the employee specifically waives in writing
    33  the right to confidentiality, except that such confidentiality shall not
    34  exempt the inspector general from  disclosing  such  information,  where
    35  appropriate, to any law enforcement authority.
    36    e. The authority shall not fire, discharge, demote, suspend, threaten,
    37  harass  or  discriminate  against  an employee because of the employee's
    38  role as a whistleblower, insofar as the actions taken  by  the  employee
    39  are legal.
    40    16. Lobbying contacts. a. As used in this subdivision:
    41    (1)  "lobbyist" shall have the same meaning as defined in the legisla-
    42  tive law.
    43    (2) "lobbying" shall mean and include, but  not  be  limited  to,  any
    44  attempt to influence:
    45    (a)  the  adoption  or  rejection of any rule or regulation having the
    46  force and effect of law by the authority; or
    47    (b) any determination involving or relating to any contracts or agree-
    48  ments in any amount of the authority, including procurement contracts.
    49    (3) "contact" shall mean any conversation, in person or by  telephonic
    50  or other remote means, or correspondence between any lobbyist engaged in
    51  the  act of lobbying and any person within the authority who can make or
    52  influence a decision on the subject of the lobbying  on  behalf  of  the
    53  authority, and shall include, at a minimum, all members of the board and
    54  all officers of the authority.
    55    b. The authority shall maintain a record of all lobbying contacts made
    56  with such authority.

        A. 8157                            11
 
     1    c.  Every  board  member,  officer or employee of the authority who is
     2  contacted by a lobbyist shall make  a  contemporaneous  record  of  such
     3  contact  containing the day and time of the contact, the identity of the
     4  lobbyist and a general summary of the substance of the contact.
     5    d. The authority shall adopt a policy implementing the requirements of
     6  this  subdivision. Such policy shall appoint an officer to whom all such
     7  records shall be delivered. Such officer shall maintain such records for
     8  not less than seven years in a filing system designed to  organize  such
     9  records  in  a  manner  so  as  to make such records useful to determine
    10  whether the decisions of  the  authority  were  influenced  by  lobbying
    11  contacts.
    12    17.  Office  of inspector general.  a. Establishment and organization.
    13  (1) There is hereby established the office of the inspector  general  in
    14  the authority. The head of the office shall be the inspector general who
    15  shall be appointed by, and report to, the commissioner of the department
    16  of investigation of the city of New York.
    17    (2)  The  inspector general shall hold office at the discretion of the
    18  commissioner and until his or her successor is appointed and has  quali-
    19  fied.
    20    (3)  The  inspector  general may appoint one or more deputy inspectors
    21  general to serve at his or her pleasure, who shall  be  responsible  for
    22  conducting investigations in the authority.
    23    b.  Functions and duties. The inspector general shall have the follow-
    24  ing duties and responsibilities:
    25    (1) receive and investigate complaints from any source, or upon his or
    26  her own initiative, concerning allegations of corruption, fraud,  crimi-
    27  nal activity, conflicts of interest or abuse in the authority;
    28    (2)  inform the board and chief executive director of such allegations
    29  and the progress  of  investigations  related  thereto,  unless  special
    30  circumstances require confidentiality;
    31    (3)  determine  with  respect to such allegations whether disciplinary
    32  action, civil or criminal prosecution, or further  investigation  by  an
    33  appropriate  federal,  state or local agency is warranted, and to assist
    34  in such investigations;
    35    (4) prepare and release to the public written reports of such investi-
    36  gations, as appropriate and to the extent permitted by law,  subject  to
    37  redaction  to  protect  the confidentiality of witnesses. The release of
    38  all or portions of such reports may be deferred to protect the confiden-
    39  tiality of ongoing investigations;
    40    (5) review and examine periodically the policies and procedures of the
    41  authority with regard to the prevention  and  detection  of  corruption,
    42  fraud, criminal activity, conflicts of interest or abuse;
    43    (6)  recommend  remedial  action  to  prevent or eliminate corruption,
    44  fraud, criminal activity, conflicts of interest or abuse;
    45    (7) establish programs for training authority officers  and  employees
    46  regarding  the prevention and elimination of corruption, fraud, criminal
    47  activity, conflicts of interest or abuse in covered agencies.
    48    c. Powers. The inspector general shall have the power to:
    49    (1) subpoena and enforce the attendance of witnesses;
    50    (2) administer oaths or affirmations and examine witnesses under oath;
    51    (3) require the production of any books and papers deemed relevant  or
    52  material to any investigation, examination or review;
    53    (4)  notwithstanding  any  law  to  the  contrary, examine and copy or
    54  remove documents or records of any kind prepared, maintained or held  by
    55  the authority;

        A. 8157                            12
 
     1    (5)  require  any officer or employee of the authority to answer ques-
     2  tions concerning any matter related to the performance  of  his  or  her
     3  official duties. No statement or other evidence derived therefrom may be
     4  used  against such officer or employee in any subsequent criminal prose-
     5  cution  other  than for perjury or contempt arising from such testimony.
     6  The refusal of any officer or employee  to  answer  questions  shall  be
     7  cause  for removal from office or employment or other appropriate penal-
     8  ty;
     9    (6) monitor the implementation by the authority of any recommendations
    10  made by the inspector general;
    11    (7) perform any other functions that are necessary or  appropriate  to
    12  fulfill the duties and responsibilities of office.
    13    d. Responsibilities of authority officers and employees. Every officer
    14  or  employee  of  the  authority  shall report promptly to the inspector
    15  general any information concerning corruption, fraud, criminal activity,
    16  conflicts of interest or abuse by another authority officer or  employee
    17  relating to his or her office or employment, or by a person having busi-
    18  ness dealings with the authority relating to those dealings. The knowing
    19  failure  of  any  officer  or  employee  to so report shall be cause for
    20  removal from office or employment  or  other  appropriate  penalty.  Any
    21  officer  or  employee who acts pursuant to this subdivision by reporting
    22  to the inspector general  improper  governmental  action  shall  not  be
    23  subject to dismissal, discipline or other adverse personnel action.
    24    18. Financial disclosure.  Notwithstanding any other provisions of law
    25  to the contrary, board members, officers, and employees of the authority
    26  shall file annual financial disclosure statements as required by section
    27  12-110 of the administrative code of the city of New York.
    28    19.  Compliance  with building codes.   Housing and other buildings or
    29  structures that are owned, controlled or operated by the authority shall
    30  be maintained in accordance with the building code of the  city  of  New
    31  York.  Such  city shall enforce the building code with respect to build-
    32  ings and structures of the authority pursuant to the  city  charter  and
    33  the administrative code of the city of New York.
    34    20. Tenant assistance. a. For the purposes of this subdivision:
    35    (1)  "CCOP"  shall  mean  the  citywide  council of presidents, a body
    36  established by the authority consisting of every president of a resident
    37  association recognized by the authority; and
    38    (2) "RAB" shall mean a resident advisory board, a board consisting  of
    39  authority  residents,  required  to  be  established pursuant to federal
    40  rules and regulations.
    41    b. At the beginning of every calendar year, the authority shall inform
    42  the CCOP executive board regarding, and make available to such executive
    43  board, the amount of federal funds  appropriated  or  allocated  to,  or
    44  otherwise held by, the authority for the purposes of providing technical
    45  assistance  or  education  to the residents or resident organizations of
    46  the authority.
    47    c. (1) The CCOP executive board shall expend or use such funds to: (a)
    48  retain or employ housing and real estate  experts,  such  as  attorneys,
    49  accountants,  financial  advisors,  real property appraisers, to provide
    50  advice, counsel and other assistance to affected residents  or  resident
    51  associations  or organizations on any real property demolition or dispo-
    52  sition project planned or proposed by the  authority;  or  (b)  for  any
    53  other expenditures authorized in applicable laws, rules and regulations.
    54    (2) The CCOP executive board shall inform each RAB of the availability
    55  of  such  experts  and any other resources. At the request of a RAB, the
    56  CCOP executive board shall make such experts and other resources  avail-

        A. 8157                            13
 
     1  able  to  any  RAB  affected by a planned or proposed disposition by the
     2  authority.
     3    (3)  Such  experts shall be paid directly from the funds appropriated,
     4  allocated or held for such purpose, and shall  report  directly  to  the
     5  CCOP executive board.
     6    d.  At  the  end  of the calendar year, the CCOP executive board shall
     7  prepare and submit a report to the authority  setting  forth  the  total
     8  amount  of  funds  that  were  expended  during  the calendar year and a
     9  detailed account on how such funds were expended.
    10    21. Sole source contacts.   a. The authority  shall  notify  the  city
    11  comptroller  of  the  city of New York of any contracts or categories of
    12  contracts, the value of which exceeds one  million  dollars,  where  the
    13  contract  or  categories  of  contracts is proposed to be awarded by the
    14  authority to a single source, a sole source or  pursuant  to  any  other
    15  method  of  procurement  that  is not competitive.   Notwithstanding any
    16  provisions of law to  the  contrary,  such  contract  or  categories  of
    17  contracts  are  subject  to the approval of such city comptroller.  Such
    18  notification shall identify the process for submission, the contract  or
    19  categories  of  contracts  at  issue  and the time period for which such
    20  submission is to take place. The city comptroller shall promulgate  such
    21  rules  and  regulations  as  may  be  necessary  to carry out his or her
    22  responsibilities under this subdivision, including but  not  limited  to
    23  the  standards for determining which contracts will be subject to his or
    24  her review and for approving such contracts.
    25    b. Where the city comptroller, pursuant to paragraph a of this  subdi-
    26  vision,  has  notified  the  authority  that  a  contract or category of
    27  contracts is subject to his or her approval, if the comptroller has  not
    28  approved  or  disapproved  any  contract  subject to his or her approval
    29  within ninety days of submission to his or  her  office,  such  contract
    30  shall become valid and enforceable without such approval.
    31    c.  This subdivision shall not apply to contracts entered into for the
    32  procurement of goods, services or both goods and services made  to  meet
    33  emergencies arising from unforeseen causes or to effect repairs to crit-
    34  ical  infrastructure that are necessary to avoid a delay in the delivery
    35  of critical services that could compromise tenant or  public  safety  or
    36  welfare.
    37    § 3. Section 1678 of the public authorities law is amended by adding a
    38  new subdivision 33 to read as follows:
    39    33.  To  enter  into  a construction management agreement with the New
    40  York city housing authority, pursuant to which one  or  more  buildings,
    41  facilities  or  structures owned, controlled or operated by the New York
    42  city housing authority located in  the  city  of  New  York  are  to  be
    43  constructed,  reconstructed,  rehabilitated, improved, modernized, reno-
    44  vated or expanded for such authority.
    45    § 4. Severability. If any clause, sentence, paragraph, section or part
    46  of this act shall be adjudged by any court of competent jurisdiction  to
    47  be  invalid,  the  judgment  shall not affect, impair, or invalidate the
    48  remainder thereof, but shall be confined in its operation to the clause,
    49  sentence, paragraph, section or part thereof directly  involved  in  the
    50  controversy in which the judgment shall have been rendered.
    51    §  5.  This  act shall take effect on the ninetieth day after it shall
    52  have become a law. Effective immediately, the addition, amendment and/or
    53  repeal of any rule or regulation necessary  for  the  implementation  of
    54  this  act  on its effective date are authorized to be made and completed
    55  on or before such date.
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