New York Daily News

NYCHA’s legal hire NOT legal

Secret vote in big-bucks defense bid

- BY GREG B. SMITH

The Housing Authority violated the state’s open meeting law by secretly awarding a huge contract to a private law firm and then hiding the costs from the public for more than two years.

In early 2016, NYCHA’s board met behind closed doors and voted to retain Wilmer Hale, a private sector firm, to represent the nation’s largest public housing authority in ongoing city and federal investigat­ions.

The initial approval set a “not-to-exceed” figure, and was subsequent­ly amended by the board at least two more times in subsequent votes – again behind closed doors.

As of April, Wilmer Hale has racked up $9.7 million in legal bills, according to records obtained by the Daily News and revealed Tuesday.

The Housing Authority released the dollar figures on Wilmer’s bills only after The News threatened to sue, and has yet to release the actual invoices submitted by the law firm to justify their receipt of millions of taxpayer dollars.

The state’s Open Meetings Law allows public boards to discuss matters and even take votes behind closed doors in what’s known as “executive session.” The privacy is meant for topics such as ongoing criminal investigat­ions, collective bargaining or lease transactio­ns — all things that could unfairly alter the outcome of discussion­s if revealed to the public.

But the law explicitly states “no action by formal vote shall be taken to appropriat­e” public money.

“A public body can vote in executive session unless it involves an appropriat­ion, in which case they must return to public session and take the vote,” Robert Freeman, director of the state Committee on Open Government, said Tuesday. “Also a record must be maintained of how each member voted.”

Contacted by The News on Tuesday, NYCHA spokeswoma­n Jasmine Blake admitted the board had made a mistake by voting on Wilmer Hale’s contract in private, and promised to soon release the details of the ballot-casting.

“It’s no secret NYCHA has used outside counsel throughout this process, but the vote of the board to authorize the expenditur­e of these funds should have been in public,” Blake said. “Therefore, we will post all past votes online in the coming days, and all future votes will be held in the open.”

When questioned by The News on Monday about the law firm’s payments, NYCHA for the first time acknowledg­ed that all approvals of Wilmer Hale’s bills had taken place out of the public view.

The News reported that Wilmer Hale’s bills only run through this April, with millions more taxpayer dollars likely to be spent on the firm’s continued representa­tion of the Housing Authority.

Wilmer Hale has been representi­ng NYCHA in the Manhattan U.S. attorney’s investigat­ion that resulted in a consent decree filed in June and the revelation that NYCHA managers have for years lied and covered up their failure to comply with laws and regulation­s about providing habitable housing to its 400,000 residents.

And that representa­tion will likely continue for a long time. The consent decree is set to last for at least four years and has yet to be approved by a federal judge. Federal prosecutor­s will soon propose a monitor to oversee the authority going forward. That appointmen­t must also be approved by the judge.

 ??  ?? NYCHA board voted in private session in 2016 to spend millions on law firm Wilmer Hale to rep agency in city and federal probes.
NYCHA board voted in private session in 2016 to spend millions on law firm Wilmer Hale to rep agency in city and federal probes.
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