Mayor Blasio and federal prosecutors are eyeing a deal to end the investigation of the beleaguered NYC Housing Authority that would require the city to inject $1 billion into the agency over the next four years — and potentially more than $2 billion over the next decade.
Additionally, NYCHA would be placed under direct federal oversight, three sources confirmed to The Post.
The agreement is the latest fallout from the lead-paint inspection scandal that rocked NYCHA and cost then-chair Shola Olatoye her job, after it was disclosed she misled federal officials and the City Council about testing for the dangerous substance at the city’s public housing complexes.
The city would be required to pony up $1 billion in the first four years, sources told The Post. Additionally, it would have to provide the cash-strapped authority with up to $200 million annually — adding up to $2.2 billion over a decade.
The New York Times also reported that City Hall would be required to shell out $200 million a year after the first four years.
“I support greater funding for public housing, but it should be done on terms dictated by the mayor and the City Council, not by the US attorney,” said Councilman Ritchie Torres (D-Bronx), who chaired the committee that oversaw public housing and who now runs the oversight committee. “A signed consent decree is an admission of wrongdoing, which raises the question: What did City Hall do wrong?”
Spokespersons for Mayor de Blasio and NYCHA declined to comment late Tuesday.
“We have no comment on the federal investigation or any attempt by the city to settle it to avoid going to trial,” said Gov. Cuomo spokeswoman Dani Lever. “We don’t know what the allegations are against the city that would force them to pay such a significant amount of money for a public-housing authority that it isn’t legally responsible for funding and we will comment when we see a resolution.”
Details about the potential settlement and federal oversight come as NYCHA is at a crossroads.
Key city leaders — de Blasio, council members and representatives of NYCHA tenants — face a Friday Deadline to agree on the appointment of a NYCHA emergency manager, a requirement imposed by Cuomo to access $250 million in state aid to speed repairs at public housing across the city. A person familiar with the talks said little progress has been made.
If they do not agree on a manager, the responsibility for picking one would fall to city Comptroller Scott Stringer under Cuomo’s order. Stringer sought to remove himself from the process on Thursday, claiming a conflict of interest under the City Charter.
Cuomo’s office disputed Stringer’s argument.
Additional reporting by Rich Calder