Federal officials are imposing tough new restrictions on the city's Housing Authority in response to a lead paint scandal that erupted late last year.
It's just the latest headache for the de Blasio administration regarding NYCHA, where thousands were left without heat and hot water during frigid winter months.
Governor Andrew Cuomo has blasted the agency's management in a series of recent visits.
Now, the federal Department of Housing and Urban Development is cracking down, requiring NYCHA to get HUD approval before spending any money on upgrades and repairs.
"Despite our repeated request, and after multiple extensions, the New York City Housing Authority (NYCHA) has not produced a plan to ensure the health and safety of its residents. Earlier this month, HUD reminded NYCHA that it needed to provide a corrective action plan outlining the specific steps it will take to address lead-based paint hazards and other physical conditions issues in its properties. As a consequence of its failure to produce this corrective plan, HUD will now review and approve all expenditures from NYCHA's Capital Fund. While unfortunate, this is a necessary step to encourage the housing agency to comply with its obligation to provide their residents with decent, safe and healthy living conditions," a HUD spokesperson said in a statement.
One city official says the move by HUD was bizarre and unexpected because the city has been negotiating for months with the U.S. attorney's office on exactly the type of corrective action plan that HUD is now seeking.