Managers resign, one other demoted amid NYCHA lead paint scandal


The metropolis Housing Authority late Friday compelled the resignations of two high managers and demoted a 3rd — all making between $148,000 and $184,000 a 12 months — who have been on the coronary heart of the rising lead paint inspection scandal.

NYCHA Chairwoman Shola Olatoye introduced the shakeup in response to a metropolis Department of Investigation report launched Tuesday that discovered NYCHA had falsely licensed that they accomplished required inspections for lead paint.

The explosive prices triggered requires Olatoye to resign and a request for Gov. Cuomo to intervene. Mayor de Blasio referred to as the failures “unacceptable” however has backed Olatoye all the best way.

The DOI discovered that a number of “senior managers” have been conscious that NYCHA was not in compliance with lead inspection necessities way back to early 2015, and mentioned nothing when NYCHA licensed to the federal authorities that they have been.

NYCHA boss to return earlier than City Council, clarify lead paint lie

The three managers concerned in Friday’s shakeup have been all a part of NYCHA’s effort to carry the authority into compliance — an effort triggered by a federal investigation into the Housing Authority’s practices.

Two of the three have been among the many highest-paid managers at NYCHA: Brian Clarke, a $184,782-a-year senior vp for operations, and Luis Ponce, one other senior vp who makes $184,609 a 12 months.

Clarke resigned and Ponce was suspended with out pay for 30 days and demoted to a $88,499-a-year job as a constructing superintendent.

During the DOI investigation, Ponce instructed investigators that he was conscious early on that NYCHA was not in compliance with the lead inspection necessities, a supply conversant in the investigation instructed the Daily News.

Letitia James requires NYCHA chair Shola Olatoye to step down

The DOI report doesn’t title Ponce, however a supply confirmed that it was Ponce who instructed investigators he was able to sing like a canary.

“If asked, he would have answered that NYCHA was not in compliance with applicable lead laws – but he was never asked,” the DOI report learn.

A 3rd government, Jay Krantz, the $148,000-a-year director of technical providers, additionally resigned.

NYCHA General Manager Michael Kelly was additionally implicated within the DOI report as figuring out the company was in non-compliance whereas falsely certifying that it was. He managed to maintain his $216,429-a-year job.

De Blasio admits NYCHA didn’t carry out lead paint inspections

Luis Ponce (l.) was demoted and Brian Clarke resigned on Friday after they were allegedly involved in the growing lead paint inspection scandal.

Luis Ponce (l.) was demoted and Brian Clarke resigned on Friday after they have been allegedly concerned within the rising lead paint inspection scandal.


“Our residents deserve better and we will continue to implement changes at every level of the authority,” Olatoye mentioned.

The “sweeping changes” embody hiring a brand new chief compliance officer who will report on to the chair and ensure NYCHA follows all metropolis, state and federal legal guidelines and rules.

The DOI report discovered that for years NYCHA was in violation of Local Law 1, which requires landlords to yearly examine residences suspected of containing lead paint that home youngsters 6 and below.

NYCHA had additionally been violating a U.S. Department of Housing & Urban Development (HUD) regulation requiring annual inspections of all lead-paint residences, with or with out youngsters.

Councilman Ritchie Torres, chair of the general public housing committee, questioned NYCHA’s option to maintain the oversight in-house. Since DOI’s report was launched, he has been pushing for an impartial monitor.

“Calling these changes ‘sweeping’ hardly makes them so,” he said. “An internal compliance department is no substitute for an independent monitor. NYCHA’s failure to recognize the need for third-party accountability will only deepen the damage to its credibility.”

Olatoye mentioned within the spring of 2016, after she realized NYCHA was violating Local Law 1, she had four,232 residences with youngsters 6 and below inspected. On Friday she mentioned NYCHA staff made “paint corrective changes” in 2,363 of these residences.

The Friday night time shakeup included a number of different guarantees. For instance, NYCHA mentioned it’ll rent “leading experts in the environmental health field specializing in lead issues” to provide you with a plan to enhance inspection and remediation protocols.

The Housing Authority has been the topic of a two-year investigation by the Manhattan U.S. Attorney. The investigation has concluded and NYCHA and federal prosecutors are actually in talks to achieve a settlement that addresses the investigation’s findings.

On Friday the NYCHA badertion famous that the authority “has engaged with the U.S. Attorney’s Office for the Southern District of New York throughout its investigation and further reforms will result from those discussions going forward.”

A settlement is anticipated within the coming weeks, sources have instructed The News.


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