Mayor expected to make billion-dollar deal with federal government to fix NYCHA

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NEW YORK — Federal prosecutors and the mayor are working out a deal that would mean a federal take over of public housing in NYC.

The deal, city leaders tell PIX11 news, would require the city to give billions of dollars to finally fix the New York City Housing Authority.

Sources tell PIX11 News NYC is working on a deal to commit to spending up to $2.2 billion over the next decade to finally settle a two-year federal investigation of NYCHA

“A signed consent decree is an admission of wrong doing,” City Councilman Ritchie Torres said.

Torres, who chairs the committee on oversight and investigations for the City Council, sent a four-page letter to the mayor's office, now obtained by PIX11 News.

The councilman questions why a deal is being made now.

“Why is the federal government forcing the city to pay a billion dollars if it did nothing wrong? I think there is an attempt to withhold the truth from the public,” Torres said.

PIX11 News reached out to the U.S. Attorney's Office and U.S. Department of Housing and Urban Development. Both agencies cannot comment on this story at this time. PIX11 also reached out to the mayor's office and NYCHA, and got no response.

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