Marla Diamond/WCBS 880

Judge Blocks City’s $2 Billion Deal To Overhaul NYCHA

November 14, 2018 - 5:25 pm

NEW YORK (WCBS 880) — A federal judge has strongly rejected New York City’s $2 billion deal with the federal government to fix NYCHA.

Judge William Pauley decided Wednesday that the deal between the city and federal government had “fatal procedural flaws,” one of which was the amount of money needed to fix all the issues.

NYCHA currently has 400,000 residents dealing with led paint and lack of heating, among dozens of other issues.

The city had agreed to allocate $2.2 billion to fix the issues over the course of the next decade. However, Pauley pointed out, the plan only works if NYCHA’s housing stock does not deteriorate further.

“The rejection of the consent agreement is earth-shattering,” said City Councilman Ritchie Torres.

Torres has been critical of the agreement, but said the lack of a firm agreement now “destabilizes hundreds of thousands of people.”

“The people who pay the heaviest price are the residents of public housing. So, even though the judge’s argument are compelling, the practical effect of the decision is more chaos and more confusion,” Torres told WCBS 880.

In a statement, Mayor Bill de Blasio’s press secretary said the decision will not affect the city’s investment in NYCHA and the city will continue to work with the federal government on being responsive to the court.

The statement read: “For the sake of NYCHA’s residents, this Mayor’s reforms – including those outlined in the consent decree – will not stop and will not slow down. We will, at the same time, be responsive to the Court, and we look forward to continuing to partner with the United States Attorney to improve conditions in public housing.”