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To: nihil who wrote (68307)12/23/1999 3:37:00 AM
From: greenspirit  Read Replies (1) | Respond to of 108807
 
Article...

Feds Seize City's 60M In Funds for Homeless

By MICHAEL FINNEGAN
Daily News Staff Writer
mostnewyork.com

Housing Secretary Andrew Cuomo yesterday yanked the city's power to spend federal funds for the homeless, saying it illegally denied money to groups that criticized Mayor Giuliani.

The unprecedented move touched off a nasty war of words between Cuomo, one of New York's top Democrats, and the Republican mayor.

Andrew Cuomo speaks at a State Assembly hearing on the homeless yesterday. The move will make New York the only city in the nation whose federal aid for the homeless is controlled directly by the Clinton administration.

"This is a very serious situation," Cuomo said at an Assembly hearing in Manhattan. "We cannot allow federal funds to be politicized."

Cuomo cited a court ruling that found the city had punished Housing Works, a group fiercely critical of the mayor, by withholding $2.4 million in federal subsidies from its shelters for people with AIDS.

"It shouldn't make a difference whether or not the city likes you," Cuomo said. "It should really be about whether or not the homeless in this city need you."

The U.S. Department of Housing and Urban Development will take over the city's role in divvying up $60 million in federal money for homeless services to several dozen nonprofit groups.

Giuliani responded with a scathing attack on Cuomo, saying he was seizing control of the program to dole out political patronage.

"In essence, he wants to take over and give the money to his political operatives, to the people who work on Democratic campaigns," Giuliani said.

He cited a recent report by HUD's inspector general that found the agency had wasted money on several hundred workers disseminating "political" information.

Giuliani also pointed to First Lady Hillary Rodham Clinton's recent hiring of Bill de Blasio, HUD's New York regional manager, for her Senate campaign.

Giuliani, Clinton's likely opponent in the race, also described Cuomo as "very involved" in Vice President Gore's presidential campaign. "There's no question that Andrew Cuomo runs a major league political operation," Giuliani said.

Cuomo ? whose father is former New York Gov. Mario Cuomo ? denied that his motives were political. But when asked about the Senate race, he said: "Hillary Rodham Clinton is going to be the next senator from New York. You heard it here first."

In his testimony before the Assembly, Cuomo echoed Clinton's recent accusation that Giuliani was "criminalizing" homelessness by arresting people for sleeping on the streets.

Charles King, the co-executive director of Housing Works, called Cuomo's move "a victory for homeless New Yorkers."