Officials from the Trump administration voiced their frustration with New York City’s public housing, calling it a “waste” and a “scam” during a meeting with housing staff on Friday. They specifically criticized federal monitors for their failure to address various issues.
Scott Turner, the U.S. Secretary of Housing and Urban Development, laid out the responsibilities of the New York City Housing Authority (NYCHA) in a tense exchange with the agency’s leadership. “I see a lot of waste. I see a lot of fraud and a lot of abuse,” he stated emphatically.
Turner, alongside former NFL players visiting to discuss financial management, criticized the performance of federal watchdogs who are supposed to oversee NYCHA’s activities.
“The monitoring is not going well at all. You need to stock it. You need to ask a lot of difficult questions,” Turner remarked.
He pointed to pressing issues such as crime, referencing a recent shooting that claimed the life of a 21-year-old in Chelsea, and the staggering waiting list of 50,000 people, despite there being around 5,000 vacant units available. “This kid who was killed yesterday is deeply discouraging for me,” Turner said.
Federal oversight of NYCHA was initiated in 2019 after a series of scandals that had drawn significant national attention between 2015 and 2018, during which it was revealed that the agency had hidden dangerous conditions from public scrutiny.
A 2019 oversight agreement was reached to prevent a full federal takeover of the housing authority. While this seemed to be effective temporarily, it faced setbacks when, in 2024, 70 NYCHA employees were arrested in a significant bribery scandal, the largest single-day operation of its kind, involving about $13 million in contracts and over $2 million in bribes.
The current federal monitors, lawyers Neil Barovsky and Matthew Chipola from the law firm Jenner & Block, were installed in February 2024. Their predecessor had charged over $600 an hour for their work. Earlier this year, President Trump filed a lawsuit against Jenner, which many viewed as retaliation for an emergency lawsuit that the firm had filed relating to some of the president’s executive orders. Reports indicate that Trump’s lawsuit was subsequently blocked by a district judge.
While Turner criticized NYCHA, CEO Lisa Bova-Hiatt expressed more concern about potential federal budget cuts affecting the agency’s operations. “Of course, we’re concerned. Budgets are a concern for everyone,” she stated. She also expressed hope that Turner’s visit would highlight the importance of public housing.
Turner defended the proposed block grant system, which would allow states to directly manage funds. He argued this model would enable better identification and distribution of resources where needed, particularly in rental assistance and community services.
