BILL NUMBER: S7959
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public housing law, in relation to requirements for
certain contracts for materials, supplies, or services
 
PURPOSE OR GENERAL IDEA OF BILL:
To require the New York City Housing Authority (NYCHA) to develop poli-
cies and procedures governing the procurement of materials, supplies,
and services that are not required to be made pursuant to sealed bid
requirements.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one requires NYCHA to develop policies and procedures governing
the procurement of materials, supplies, and services that are not
required to be made pursuant to sealed bid requirements and provides
parameters for the policies and procedures.
Section two provides for the effective date.
 
JUSTIFICATION:
In February 2024, 70 NYCHA employees were arrested on federal bribery
and extortion charges related to the use of micro-purchases which are
not subject to competitive bidding requirements. It is alleged that
employees demanded over $2 million in payments in exchange for awarding
over $13 million in micro-purchase contracts, dating back to 2013.
The micro-purchase process can be a helpful mechanism to allow NYCHA to
make smaller repairs in a more timely manner. However, without proper
oversight it is ripe for abuse, ultimately leaving less funding avail-
able for crucial maintenance and repairs. This bill will assist NYCHA in
providing better oversight of how funding is spent and ensure residents
needs are being met efficiently.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: A.10286 Passed Assembly; S.9800 Referred to Housing,
Construction and Community Development
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next suCbfeling the
date on which it shall have become a law. Effective immediat6117, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
to be made and completed on or before such effective date.