In Wake of Bribery Scandal, NYCHA Tightens Requirements for Small-Dollar Vendors

In Wake of Bribery Scandal, NYCHA Tightens Requirements for Small-Dollar Vendors


Eight months after what federal prosecutors called the “largest single-day bribery takedown in the history of the Justice Department,” NYCHA is tightening requirements when awarding small contracts, among other reforms.

In Wake of Bribery Scandal, NYCHA Tightens Requirements for Small-Dollar Vendors

Ed Reed/Mayoral Photography Office

NYCHA’s Hammel Houses in Queens, one of dozens of public housing developments where staff allegedly took bribes in exchange for doling out work contracts.

Eight months after what federal prosecutors called the “largest single-day bribery takedown in the history of the Justice Department” NYCHA is tightening requirements when awarding small contracts, an effort to root out abuse.

In February, 70 New York City Housing Authority (NYCHA) employees were charged for allegedly accepting bribes or “kickbacks” in exchange for awarding small-dollar contract work.

NYCHA gives property managers the green light to award no-bid contracts to third-party companies for fixes that cost no more than $10,000. The intention was to help speed up repair times:  the housing authority needs $78.3 billion worth of capital repairs over the next 20 years.

However, the lack of oversight meant the process was rife for abuse. The Department of Investigation (DOI) alleges that the accused NYCHA employees pocketed approximately $2 million in bribes in exchange for handing out a total of $13 million in no-bid contracts.





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