HUD Secretary Goes Off on NYCHA Over Fraud and Waste—Here’s What Went Down

Let’s Set the Scene

You know that moment when someone finally says the quiet part out loud? That’s exactly what happened last Friday in New York City. HUD Secretary Scott Turner walked into NYCHA headquarters and basically dropped a truth bomb—accusing them of systemic fraud, waste, and a whole lot of failed oversight. And let me tell you, it wasn’t pretty. The kind of meeting where you can cut the tension with a knife.

But here’s why this matters: we’re talking about hundreds of thousands of low-income New Yorkers stuck living in crumbling apartments while bureaucrats apparently play games with taxpayer money. Not cool.

NYCHA 101: The Messy Backstory

What Even Is NYCHA?

Okay, quick primer—NYCHA runs public housing for over 400,000 New Yorkers. That’s like if the entire population of Miami lived in their buildings. And with a $3 billion budget, you’d think things would run smoothly. But nope.

A History of “Oops” Moments

Remember when NYCHA got caught lying about lead paint inspections? Yeah, that was 2019. Fast forward to now, and we’ve got reports showing only about a third of repairs get done on time. And get this—$40 million in questionable overtime payments last year alone. Like, come on. As housing advocate Maria Torres put it in the Times: “This isn’t just bad management—it’s a full-on breakdown.”

Friday’s Showdown: The Good, The Bad, and The Ugly

Turner’s Mic-Drop Moments

So Turner goes in and just unloads for 45 straight minutes. The highlights (or lowlights):

• A quarter billion in deferred maintenance—despite federal money pouring in
• Contractors getting paid for work they never did (DOJ’s already on that)
• Employees working side gigs during city hours because… why not?

But the killer line? When he said: “Grandmas freezing without heat while paper-pushers pad their pensions isn’t just waste—it’s morally bankrupt.” Oof.

NYCHA’s Defense

To be fair, NYCHA’s CEO Lisa Bova-Hiatt did point out some improvements:

• Almost 30% fewer overdue repairs since 2021
• New rules to prevent shady contracts
• 500 more maintenance hires (though let’s see if they actually show up)

But let’s be real—when the feds come knocking with receipts, “we’re trying” doesn’t always cut it.

The Watchdogs Who Didn’t Watch

How Federal Monitoring Works

Here’s the thing—HUD’s had monitors inside NYCHA since 2016. We’re talking $10 million a year to make sure things improve. Except…

Turner Calls BS on the Monitors

This was wild. Turner straight-up accused the monitors of being asleep at the wheel because:

• They approved nearly three-quarters of NYCHA’s self-reported progress without checking
• Missed a dozen straight deadlines for lead paint reports (you know, that thing that poisons kids?)

His exact words? “Monitors shouldn’t be lapdogs.” Cue the record scratch moment in the room.

Fallout and What Comes Next

Politicians Weigh In

Mayor Adams called it “unhelpful.” City Council’s housing chair warned about “federal overreach.” But tenant leader Tyrone Johnson? He kept it 100: “We’re tired of being pawns. Just fix the damn elevators already.”

Possible Consequences

HUD could:

• Freeze $1.2 billion in funding (ouch)
• Take over completely like they did in Boston
• Clean house at the top

But here’s the catch—Chicago fought similar moves for years before finally caving. So this could get messy.

Big Picture: America’s Public Housing Crisis

Not Just a NYC Problem

Philly had a $50 million embezzlement scandal. LA has half a million maintenance requests backing up. According to the Washington Post, over 30 major housing authorities are under investigation right now. The system’s broken everywhere.

Possible Fixes?

Some ideas floating around:

• Let tenants actually run things (worked okay in San Francisco)
• Tie funding to real results—miss targets, lose money
• Bring in private partners carefully (Atlanta’s model isn’t perfect but it’s something)

The Bottom Line

Here’s the brutal truth—we’ve got 1.6 million Americans waiting for housing help while agencies like NYCHA can’t get their act together. As Turner was leaving, some tenant yelled what we’re all thinking: “We just want homes that won’t make us sick.” Until everyone—HUD, NYCHA, politicians—starts putting people over paperwork, that basic ask might stay out of reach.

Want to go deeper? Check out The City’s ongoing NYCHA coverage or dig into HUD’s official reports (bring coffee—it’s dry reading).