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1 SUPREME COURT of the STATE of NEW YORK COUNTY of NEW YORK in the Matter of the Application Of

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1 SUPREME COURT of the STATE of NEW YORK COUNTY of NEW YORK in the Matter of the Application Of SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK In the Matter of the Application of: THE CITY-WIDE COUNCIL OF PRESIDENTS Index No. ___________________ and AT-RISK COMMUNITY SERVICES INC., Petitioners, Assigned to Justice ____________ For a Judgment Pursuant to Article 78 of the Civil Date Purchased: Practice Law and Rules, VERIFIED ARTICLE 78 -against- PETITION THE NEW YORK CITY HOUSING AUTHORITY and SHOLA OLATOYE, as Chair of the New York City Housing Authority, Respondents. “NYCHA has an obligation to protect the residents of its buildings. Its failure to do so . is inexcusable.” - Commissioner Mark Peters, NYC Dep’t of Investigation (3/28/17) Petitioners, the City-wide Council of Presidents (“CCOP”) and At-Risk Community Services Inc. (“At-Risk”), by and through their attorneys, Walden Macht & Haran LLP, for their verified petition, allege the following: INTRODUCTION 1. In many important and fundamental ways, the New York City Housing Authority (“NYCHA”) has exhibited a pattern and practice of failing to protect New York’s low-income community members (“Tenants”), including through blatant violations of the law. These failures include, but are in no way limited to, failure to protect Tenants from toxic lead, mold and other moisture problems, vermin, roaches, violent offenders who are actively engaging in criminal activity, broken entryway and apartment locks, and dangerous, 1 malfunctioning elevators. NYCHA is currently failing in its duty to provide heat during bitter winter temperatures, which affects hundreds of thousands of Tenants and has resulted in extreme physical hardship. 2. These problems have led to (a) numerous deaths, injuries, and sickness, (b) criminal and civil investigations and cases, (c) multiple findings of wrong-doing by the NYC Department of Investigation (“DOI”), including a November 14, 2017 Report regarding False Certification of NYCHA Lead Paint Inspections (the “DOI Report,” a true and correct copy of which is attached hereto as Ex. 1), (d) class action lawsuits, (e) a court-imposed monitor, and (f) staggering judgments. Despite this very real “parade of horribles,” corruption and incompetence within NYCHA remain part of its very fabric. Many Tenants continue to live—despite the intense media glare on NYCHA’s many failures—in conditions that are simply appalling. 3. What’s more, NYCHA is obligated by law—in addition to protecting Tenants from various physical harms—to provide meaningful economic opportunities to NYCHA Tenants. NYCHA is also legally required to consult with NYCHA Tenants on significant policy determinations. NYCHA flagrantly and persistently fails in these duties, which effectively ensures that NYCHA Tenants remain powerless and are denied economic justice. 4. With this lawsuit, for the first time in its history, the governing body for the citywide community of NYCHA Tenants, CCOP, brings suit—together with At-Risk, a nonprofit organization devoted to helping NYCHA Tenants secure safe and habitable living conditions, as well as economic justice—to ask this Court to impose an independent monitor over NYCHA for four of its important failures. 5. First, NYCHA has a statutory duty to keep Tenants safe from toxic lead. NYCHA has not only failed to remediate these toxic conditions, which have significantly impacted Tenants, including young children, but has lied about its compliance even to U.S. 2 Department of Housing and Urban Development (“HUD”) officials. 6. Second, NYCHA has a statutory duty to provide heat and hot water in Tenants’ homes. In the midst of record low temperatures this winter, hundreds of thousands of Tenants have been forced to endure long stretches without either. 7. Third, NYCHA has a statutory obligation to share meaningful economic opportunities with Tenants that arise from the billions of dollars of federal funding provided annually to NYCHA, including by hiring Tenants and awarding contracts to businesses that hire, or are owned by, Tenants. NYCHA has consistently failed to abide even minimal compliance with these important standards. 8. Fourth, NYCHA has a duty to include Tenants in all important policy-making decisions, which significantly affect the quality of Tenants’ lives. NYCHA has consistently failed to meaningfully consult Tenants and include their voices in decisions that impact their lives. 9. This lawsuit, once and for all, seeks to hold NYCHA accountable for its systematic failures and impose a court-appointed monitor to ensure future compliance with the law. 10. Petitioners CCOP and At-Risk (together, “Petitioners”), in their capacities as representatives of the Tenants of New York City public housing, bring this proceeding pursuant to CPLR 7803 for a judgment directing and compelling Respondents—NYCHA and its Chair, Shola Olatoye—to comply with NYCHA’s legal obligations with respect to: a. Lead inspection and remediation, pursuant to both federal and New York City lead-related laws, including 42 U.S.C. §§1437d(f), 4822, and 4851; 24 C.F.R. Part 35 and § 5.703(f); and New York City Local Law 1 of 2004 3 (see Toxic Lead at 9–29); b. Heat and hot water, pursuant to 42 U.S.C. 1437d(f) and 24 C.F.R. § 5.703(d) (see Heat and Hot Water at 29–33); c. Employment and economic opportunities, pursuant to Section 3 of the Housing and Urban Development Act of 1968 (“Section 3”) (see Economic Opportunities at 33–49); and d. Meaningful involvement of Tenants in all decisions affecting NYCHA operations under 24 C.F.R. § 964 and 42 U.S.C. § 1437c (see Meaningful Involvement of Tenants in Policy Matters at 50–54). 11. Petitioners further bring this proceeding pursuant to CPLR 7803 for a judgment appointing an independent monitor to oversee and enforce NYCHA’s compliance with its above-referenced obligations. VENUE AND JURISDICTION 12. Pursuant to New York Civil Practice Law and Rules (“CPLR”) §§ 7804(b) and 506(b), venue in this proceeding lies in New York County, in the judicial district where a portion of the material events occurred and where the Respondents’ principal places of business are located. 13. CPLR § 7804(b) further provides this Court with subject matter jurisdiction. PARTIES 14. Petitioner CCOP is the elected body representing all NYCHA Tenants. Its purpose is to advocate for the concerns and interests of NYCHA Tenants and to engage in such activities as will improve the quality of their lives. The members of CCOP are the Presidents of the nine resident District Councils across the city (Bronx North, Bronx South, Manhattan 4 North, Manhattan South, Brooklyn East, Brooklyn West, Brooklyn South, Queens, and Staten Island). 15. Petitioner At-Risk is a non-profit corporation dedicated to serving the needs of New York City’s low-income housing tenants. 16. Respondent NYCHA is a corporate governmental agency (N.Y. Pub. Hous. Law § 3[2]) created by the New York State Legislature as a body corporate and politic (N.Y. Pub. Hous. Law § 401), with its governing Board, including the chairperson, appointed by the Mayor of the City of New York, pursuant to New York Public Housing Law § 402. It is designated as a local housing agency responsible for administering the federally subsidized housing program in New York City. NYCHA is a Public Housing Agency which receives federal assistance from HUD under 42 U.S.C. § 1437, pursuant to an Annual Contributions Contract. NYCHA also receives annual subsidies from the City of New York. 17. NYCHA owns and operates 326 public housing developments in the five boroughs of New York City. 18. NYCHA maintains its principal offices at 250 Broadway, New York, New York 10007. 19. Respondent Shola Olatoye is the Chair of NYCHA’s Board, as well as its Chief Executive Officer. Respondent Olatoye is being sued solely in her official capacity. In her capacity as Chair, Respondent Olatoye is responsible for, and has played an active role in, NYCHA’s false certification of its compliance with federal and local lead laws, the heat and hot water crisis in NYCHA’s buildings, and NYCHA’s failure to comply with the relevant requirements of Section 3, 24 C.F.R. § 964, and 42 U.S.C.A. §§ 1437c and 1437d. ARTICLE 78 20. A special proceeding under Article 78 of the CPLR is available to challenge 5 the actions or inaction of agencies and officers of state and local government. Under CPLR § 7803, a Court may determine, inter alia, “whether the body or officer failed to perform a duty enjoined upon it by law,” and “whether a determination was made in violation of lawful procedure, was affected by an error of law or was arbitrary and capricious or an abuse of discretion.” 21. Under CPLR § 7806, a judgment under Article 78 “may grant the petitioner the relief to which he is entitled.” FACTUAL AND LEGAL BASIS OF COMPLAINT 22. As noted above, NYCHA’s persistent failure to abide its legal obligations and to protect Tenants is dizzying in scope, and includes (but it not limited to) toxic lead,1 mold and other moisture problems,2 vermin,3 roaches,4 violent offenders who are actively engaging 1 Yaov Gonen and Bruce Golding, NYCHA lied about doing lead paint inspections, shocking report claims, N.Y. Post, Nov. 14, 2017, available at https://nypost.com/2017/11/14/nycha-lied- about-doing-lead-paint-inspections-shocking-report-claims/ (a true and correct copy of which is attached hereto as Ex. 2). 2 Natural Res. Def. Counsel, Court: NYCHA Violating Agreement to Repair Mold & Moisture Problems in Public Housing (Dec. 15, 2015), https://www.nrdc.org/media/2015/151215 (a true and correct copy of which is attached hereto as Ex. 3). 3 See Greg B. Smith, Invasion of rats for residents at NYCHA apartments and now tenants suing the beleaguered housing agency, N.Y.
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