News & Notes from NYS Comptroller Tom DiNapoli...

COMPTROLLER DiNAPOLI PROPOSES LEGISLATION TO MAKE HIS BAN ON PLACEMENT AGENTS PERMANENT

June 2, 2011

State Comptroller Thomas P. DiNapoli has proposed legislation to codify his ban on the involvement of placement agents, paid intermediaries and registered lobbyists in investments with the New York State Common Retirement Fund (CRF). The CRF became the first public pension fund in the nation to ban placement agents when Comptroller DiNapoli issued his Executive Order in April 2009. His proposed legislation would make the ban part of state law.

If enacted, it would be the first time such a ban on placement agents was codified into law in the United States.

“Since I took office, we’ve worked to implement reforms that will help restore integrity and trust in this office and the pension fund,” DiNapoli said. “Banning placement agents and lobbyists from involvement in investments was a big step. Now it’s time to make that ban a permanent part of New York State law.”

“As long as I’m in office, I will never allow placement agents in CRF deals. But we have to eliminate any potential for abuse in the future. This bill will make sure that the Fund is protected no matter who is comptroller.”

Immediately after he took office, Comptroller DiNapoli began instituting a series of reforms to address the misdeeds of the previous administration. He has increased transparency, enhanced ethics reporting and worked with the Insurance Department to strengthen oversight of the pension fund. Among his top priorities has been to restore the public’s confidence in the integrity of the Fund’s investment decision making process and in the operations of the Retirement System.

The legislation, which would add a new Section 425 to the Retirement and Social Security Law, is sponsored by Assemblyman Peter Abbate. The bill defines a “placement agent or intermediary” as any person or entity, including a registered lobbyist, that is directly or indirectly engaged and compensated by an investment manager to promote investments to or solicit investment by the CRF, whether compensated on a flat fee, a contingent fee, or any other basis.

COMPTROLLER DiNAPOLI: RISING GAS PRICES COULD HURT FRAGILE ECONOMY

Supports Probe of Possible Energy Market Speculation

May 31, 2011

New York State Comptroller Thomas P. DiNapoli repeated his warning to New Yorkers that another gas price hike this summer will stall an “already slow” economic recovery. DiNapoli said: “There’s no question it will cause a setback.”

Speaking to Susan Arbetter on The Capitol Pressroom radio show Monday morning, DiNapoli said that government regulators should rule out improper speculation in oil commodities that could further harm the economy. New York Sen. Charles Schumer recently called on the Federal Trade Commission to investigate the possible manipulation of gas prices.

A report released Friday by the Comptroller details the effect of price hikes on residents, government and businesses.

DiNapoli is the sole trustee of the $140 billion New York State Common Retirement Fund. He noted that his approach to energy investing is to protect the state’s fund while also working for the greater public good. Last year, DiNapoli helped secure the resignation of Massey Energy Company Chairman Don L. Blankenship for his “callous disregard” of employee safety prior to the disaster at West Virginia’s Upper Big Branch mine which killed 29 miners. New York’s Common Retirement Fund holds about $14 million in Massey stock.

COMPTROLLER DiNAPOLI: HIGHER ENERGY PRICES MAY SLOW RECOVERY

May 27, 2011

Paying more at the pump may slow New York’s fragile economic recovery, according to a report issued today by New York State Comptroller Thomas P. DiNapoli. The rising price of oil—which tripled to over $100 per barrel since hitting a $30-per-barrel low in December 2008—has driven up food, transportation and heating costs for consumers, businesses and government agencies.

“The sprouts of economic growth we’ve seen recently may be mowed down by high energy costs,” said DiNapoli. “It’s costing a lot more to fill up your tank, and price hikes for oil and gas also mean more expensive food and rising heating costs. If the current upward trend holds, it’s also going to cost more to run basic government services like the MTA. All this could put another chill on the economy just as it’s starting to thaw. If we need another reminder, here it is: we need to find alternatives to the expensive, pollution-heavy fossil fuel energy we rely on.”

DiNapoli’s report estimates that the average cost of driving a car in New York totaled $1,646 during the April 1, 2010 to March 31, 2011 period, which was $288 more than during the prior twelve-month period. If current prices are maintained over the next twelve months, the cost of driving a car could increase by another $523 to $2,169. This would represent a two-year cumulative increase of $811, or 60 percent. The increase would be even higher for SUVs and light trucks.

Similarly, the statewide average cost to heat a home by oil was $2,757 during the April 1, 2010 to March 31, 2011 period, which was $492 more than the prior twelve-month period. If current prices are maintained over the next twelve months, the cost of heating a home by oil could increase by another $535 to $3,784. This would represent a two-year cumulative increase of $1,027, or 45 percent. The cost increase would be higher in colder regions of upstate New York.

DiNapoli’s report cites a New York State Energy Research and Development Authority study that named New York the most energy-efficient state in the nation, due to a widespread public transportation system and the state’s highly-urbanized population. Despite its efficient use of power, New York remains the fifth largest consumer of energy in the nation.

COMPTROLLER DiNAPOLI AUDIT RECOMMENDS STRENGTHENING
ENFORCEMENT OF VETERAN HOUSING PREFERENCES

New DHCR Commissioner Darryl Towns Supports Recommendations

May 26, 2011

Mitchell-Lama housing companies in New York City failed to provide disabled war veterans with priority consideration for housing as required by state law, according to an audit released by New York StateComptroller Thomas P. DiNapoli at a news conference today. DiNapoli was joined by Darryl Towns, Commissioner of New York State Homes and Community Renewal (NYSHCR).

“By law, disabled veterans are supposed to be given a preference to Mitchell-Lama housing,” DiNapoli said. “What has happened is unconscionable. These vets have made unimaginable sacrifices for our nation; they shouldn’t be penalized when they come home.

“So many New Yorkers are serving in Iraq and Afghanistan. NYSHCR has to make and enforce immediate changes to ensure these men and women – and their families – aren’t turned away from the housing that they deserve and the law says they should have. Commissioner Towns has only been on the job a short while, but he’s already stepping up to implement our recommendations and protect veterans’ rights.”

Commissioner Towns said: “NYS Homes and Community Renewal is dedicated to increasing transparency and accountability in our programs and procedures. The audit released today indicated that practices that occurred in this agency under previous administrations did not adequately relay information about housing preferences to some disabled veterans on housing waiting lists. Actions that our administration has already initiated, and steps that we have since developed with the Comptroller’s office, will fix this problem.”

According to the law sponsored by Towns, a former assemblyman, housing companies must provide disabled veterans with a preference in admission to Mitchell-Lama housing developments. In advance of that law’s enactment, NYSHCR issued a memorandum in 2007 instructing housing companies on how they should implement the law. Since then, NYSHCR has required housing companies to revise their tenant selection procedures, marketing advertisements, outreach letters, and apartment applications to give disabled veterans, and their families, priority consideration for available housing.

In addition, the housing companies were to notify existing waiting list applicants of this new priority.

The audit covered the period November 2007 to September 2010. The law was subsequently expanded to include all wartime veterans and their spouses.

Auditors examined 18 housing facilities in the New York City area. Among the findings:

· Of eight developments required to have a tenant selection plan, three had not updated their plans to include a veteran preference.
· Of six that had placed advertisements for vacancies, five did not mention the veteran preference, even though NYSHCR approved the ads.
· Eight of the 17 developments that had open waiting lists had not updated their applications to include the veteran preference.
· NYSHCR reviewed tenant selection plans and prepared reports on 14 of the developments. These reports failed to mention deficiencies at 13 of those developments that DiNapoli’s auditors later discovered.

DiNapoli recommended that NYSHCR:

· Train Housing Management Representatives to properly review housing company compliance with applicable laws and division guidance; and
· Increase monitoring of housing company compliance with applicable laws and division guidance.

DHCR generally agreed with DiNapoli’s findings and indicated they would take corrective action.

The full audit can be read here:

Currently, there are 175 DHCR-supervised Mitchell-Lama developments in New York State, with approximately 73,000 units. There are approximately 695,000 wartime veterans who are residents of New York State, according to the U.S. Department of Veteran Affairs.

COMPTROLLER DINAPOLI SUPPORTS LEGISLATION TO LEGALIZE SAME-SEX MARRIAGE IN AN HRC VIDEO

May 26, 2011

The Human Rights Campaign (HRC) today released a video featuring New York State Comptroller Thomas P. DiNapoli expressing his strong support for legislation to legalize same-sex marriage.

“Common decency, human dignity and basic equality are still in short supply in New York,”

DiNapoli said. “Until the relationships of gay men and lesbians are respected and recognized by New York State, we cannot call New York a true democracy. Gay couples should not have to jump through legal hoops just to protect their loved ones and their property. New York should legalize same-sex marriage now.”

“We’re very grateful to Comptroller DiNapoli for joining the mainstream majority of New Yorkers who endorse marriage equality,” said HRC’s Senior Strategist for New York, Brian Ellner. “Now is the time to get this done and let all loving and committed couples marry the person that they love."

DiNapoli is a long time supporter of marriage equality and has repeatedly demonstrated his support since becoming comptroller in 2007. The New York State Common Retirement System recognized same-sex marriages conducted in Canada under the principle of comity, a legal doctrine that has been followed by New York State for many years. In September 2007, DiNapoli directed the Retirement System to recognize same-sex marriages conducted in any jurisdiction where they are legal.

As Comptroller, DiNapoli is sole trustee of the New York State Common Retirement Fund. He has consistently advocated for corporate recognition of same-sex partner rights in the work place and protection from corporate discrimination based on sexual orientation and gender. In addition, DiNapoli created a section of his Your Money New York Web site that provides lesbian, gay, bisexual and transgender (LGBT) New Yorkers with essential resources to help achieve financial stability. The section offers access to reliable information on legal rights, on domestic partnerships and programs of interest to the LGBT community, and on other resources that can support individuals through tough economic situations.

The Human Rights Campaign represents a force of more than one million members and supporters nationwide. As the largest national lesbian, gay, bisexual and transgender civil rights organization, HRC envisions an America where LGBT people are ensured of their basic equal rights, and can be open, honest and safe at home, at work and in the community. The DiNapoli video is part of an on-going series featuring prominent Americans promoting marriage-equality.

COMPTROLLER DiNAPOLI TO CHEVRON: RESOLVE AMAZON LAWSUIT

Standoff on Poor Ecological Record Bad for Business

May 25, 2011

New York State Comptroller Thomas P. DiNapoli and a coalition of investors today released a letter to oil giant Chevron urging the company to settle its 20-year legal battle with indigenous populations in the Amazon rainforest. The long-running court case alleges that Texaco, which merged with Chevron 10 years ago, destroyed huge tracts of the rainforest by dumping billions of gallons of oil waste products over several decades. Citing the “grave reputational damage” Chevron has suffered due to the lawsuit, DiNapoli and other investors called on the company to promptly negotiate a reasonable settlement to prevent further shareholder damage.

“It’s time for Chevron to face reality,” said DiNapoli, trustee of the $140.6 billion New York StateCommon Retirement Fund (Fund), which owns 7.5 million Chevron shares worth an estimated $780 million. “The effects of this horrific, uncontrolled pollution of the Amazon rainforest are still being felt today. Investors don’t derive any benefit from this never-ending courtroom drama.

“The entire case is looming like a hammer over shareholders’ heads. Chevron should start fresh with a new approach that embraces environmental responsibility and risk management as part of its corporate culture. More legal proceedings will only delay the inevitable.”

For nearly 25 years, beginning in 1964, Texaco and its joint venture partner Petroecuador dumped nearly 16 billion gallons of oil waste products into the Amazon rainforest. The two companies also spilled nearly 17 million gallons of oil from their trans-Ecuadorian pipeline operation between 1971 and 1991 —50 percent more oil than was spilled by the Exxon Valdez crash.

In a letter sent in November 2008, DiNapoli called on Chevron’s board of directors to come to an equitable settlement in order to avoid substantial penalties in an Ecuadorian court. Chevron refused to negotiate, and in February, 2011 the Ecuadorian Provincial Court awarded plaintiffs nearly $18 billion in compensatory and punitive damages. The Ecuadorian court judgment is the second-largest of its kind, topped only by BP’s $20 billion fund established to settle claims stemming from the 2010 Gulf of Mexico oil spill. DiNapoli is co-lead plaintiff in an ongoing class action lawsuit filed against BP last year.

In an effort to improve Chevron’s environmental policies, DiNapoli has co-sponsored a proposal calling for the appointment an independent board director with a high level of environmental expertise. Shareholders are expected to vote on the resolution at Chevron’s annual meeting today (May 25).

Cuomo’s Commissioners Mostly Mum After Cabinet Meeting by Jon Campbely - Politics on the Hudson

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This much we know about a meeting of Gov. Andrew Cuomo’s cabinet that just wrapped up: various department heads and appointees gathered and discussed the administration’s priorities moving forward, watching some sort of video or slideshow presentation. Read entire article...


Here’s video of Towns and Destito briefly addressing reporters:

NYS Comptroller Tom DiNapoli Audit Recommends Strengthening Enforcement of Veteran Housing Preferences

New DHCR Commissioner Towns Supports Recommendations

Mitchell-Lama housing companies in New York City failed to provide disabled war veterans with priority consideration for housing as required by state law, according to an audit released by New York State Comptroller Thomas P. DiNapoli at a news conference today. DiNapoli was joined by Darryl Towns, Commissioner of New York State Homes and Community Renewal (NYSHCR).


“By law, disabled veterans are supposed to be given a preference to Mitchell-Lama housing,” DiNapoli said. “What has happened is just unacceptable. These vets have made unimaginable sacrifices for our nation; they should get every benefit they’re entitled to when they come home.


“So many New Yorkers are serving in Iraq and Afghanistan. NYSHCR has to make and enforce immediate changes to ensure these men and women – and their families – aren’t turned away from the housing that they deserve and the law says they should have. Commissioner Towns has only been on the job a short while, but he’s already stepping up to implement our recommendations and protect veterans’ rights.”


Commissioner Towns said: “NYS Homes and Community Renewal is dedicated to increasing transparency and accountability in our programs and procedures. The audit released today indicated that practices that occurred in this agency under previous administrations did not adequately relay information about housing preferences to some disabled veterans on housing waiting lists. Actions that our administration has already initiated, and steps that we have since developed with the Comptroller’s office, will fix this problem.”


According to the law sponsored by Towns, a former assemblyman, housing companies must provide disabled veterans with a preference in admission to Mitchell-Lama housing developments. In advance of that law’s enactment, NYSHCR issued a memorandum in 2007 instructing housing companies on how they should implement the law. Since then, NYSHCR has required housing companies to revise their tenant selection procedures, marketing advertisements, outreach letters, and apartment applications to give disabled veterans, and their families, priority consideration for available housing.


In addition, the housing companies were to notify existing waiting list applicants of this new priority.


The audit covered the period November 2007 to September 2010. The law was subsequently expanded to include all wartime veterans and their spouses.


Auditors examined 18 housing facilities in the New York City area. Among the findings:

• Of eight developments required to have a tenant selection plan, three had not updated their plans to include a veteran preference.
• Of six that had placed advertisements for vacancies, five did not mention the veteran preference, even though NYSHCR approved the ads.
• Eight of the 17 developments that had open waiting lists had not updated their applications to include the veteran preference.
• NYSHCR reviewed tenant selection plans and prepared reports on 14 of the developments. These reports failed to mention deficiencies at 13 of those developments that DiNapoli’s auditors later discovered.

DiNapoli recommended that NYSHCR:

• Train Housing Management Representatives to properly review housing company compliance with applicable laws and division guidance; and
• Increase monitoring of housing company compliance with applicable laws and division guidance.

DHCR generally agreed with DiNapoli’s findings and indicated they would take corrective action.


The full audit can be read at: http://www.osc.state.ny.us/audits/allaudits/093011/10s42.pdf.

Currently, there are 175 DHCR-supervised Mitchell-Lama developments in New York State, with approximately 73,000 units. There are approximately 695,000 wartime veterans who are residents of New York State, according to the U.S. Department of Veteran Affairs.

New York State Homes & Community Renewal Commissioner/CEO Darryl Towns at CHPC Annual Luncheon 2011

Bill Traylor introduces NYS Homes & Community Renewal Commissioner/CEO Daryl Towns to the Citizens Housing & Planning Council (CHPC) of New York at the Marriott Marquis Times Square, on Thursday April 14th

Photos from North Brooklyn Independent Democratic Club Meeting on April 9th...

Click here to view these pictures larger

Back and Forth: Ed Towns by Chris Bragg - City Hall News

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Rep. Ed Towns has been popping up in a lot of Google alerts lately. His son, Assembly Member Darryl Towns, just took a job in the Cuomo administration. His daughter is running to replace her brother. And the congressman wants to run for his son’s old district leader spot. All the while, the Dilans—Sen. Martin Dilan and his son, Council Member Erik Dilan—are angling to get those seats in their corner. Meanwhile, Assembly Member Hakeem Jeffries’ advisors have been making noise about Jeffries running for Congress against Towns. In an interview, Towns talked about his daughter’s political prospects, his training regimen for 2012 and one of his top legislative priorities: building more women’s bathrooms.



What follows is an edited transcript.


City Hall: Why run for district leader after three decades in Congress?
Ed Towns: That little corner around there, we’ve sort of been the district leader of it for quite some time between me and Darryl, and, of course, Darryl is moving on, so I thought maybe I would just come back and help because that corner is sort of at the end of the borough and sometimes it’s forgotten. That’s basically the reason for it.

CH: Council Member Erik Dilan, who wants to run for district leader also, has argued that a younger person should be in the position. What do you make of that?
ET: I think what the party needs is an experienced, stable hand. I think that’s very much what it needs, more than ever. I think that’s part of our problem today, not having a stable situation in our political organization. I’m concerned with the fact that people running for national office in the most populated Democratic county in the nation and people will run for national office and never come to Brooklyn. So I think that we need to have folks that need to be able to stop this from occurring. Can you imagine one of the most populated counties in the nation, that people run for national office and never come here? I’ve been around a little longer and have more contacts and ties around the nation than most people. I also think we need to bring the county organization together and I feel I can be helpful in that regard.

CH: The Dilans have also said your son’s Assembly seat should now be filled by a Hispanic and are running Council Member Dilan’s chief of staff Rafael Espinal. Do you buy into that logic?
ET: I don’t have a problem with that—my daughter’s Hispanic. She’s from the Dominican Republic. She’s adopted. She’s been with us since she was six weeks old. So those kinds of arguments should be eliminated. It’s not something that I make a case of, but when people make statements like that, I have to respond.

CH: The Dilans say they will be in control of who gets the Democratic nomination for both the district leader and Assembly seat. Do you agree with that?
ET: I think that’s logical, but that doesn’t stop us from running. You can go out and create a line and it’s a special election, there have been a lot of situations where people in a special election have won. Charlie Johnson ran up in the Bronx in a special election and won. Bobby Garcia ran for Congress in a special election on the Liberal Party line and won. When there’s nothing there but that race, the Democratic line is one you would always like to have, and I think you make your life a lot easier if you do have it. That does not stop us from going out and running. The name Towns is known in the district.

CH: Have you thought a name for the ballot line? The Towns line?
ET: Save Our Children? There’s a lot of things that can be used. Rent’s Too Damn High and the Gas Too? [Laughs.]


CH: Are you planning on running for re-election to Congress in 2012?
ET: Oh, I’m running. I feel good, I feel good. I know some people have mentioned my age, but I’ll take on whoever’s mentioning my age. If they want to have a track race, I’ll race with them on foot, I’ll take that. And I really mean that, whoever it is. You just tell them I’m prepared to give them a foot race, a contest to see how many hours we can go in a day. Whatever.

CH: You’re in training?
ET: Oh yeah. I enjoy what I’m doing. It’s hard to beat somebody who enjoys what they’re doing.

CH: Assembly Member Hakeem Jeffries is looking at running for your seat. Does that worry you?
ET: That’s one of the weaknesses of democracy—that people are able to run against me. But no, no, I have no problem with that. If people are eager, that’s it. But would I be worried? Absolutely not. I mean, really. I’ve represented this district 29 years. And I’m prepared to take on whoever or whatever. And I’m the kind of guy who’s had a lot of races throughout the years.

CH: Jeffries is seen as an up-and-comer though…
ET: I think he has a lot of potential. And I personally like him. But I understand how politics go. That doesn’t stop him from being eager or wanting to take my place or thinking I should retire when I don’t want to.

CH: Charles Barron is also talking about running, what do you think about that?
ET: The more the merrier. If you hear of anybody else, tell them, ‘Come on.’

CH: Was it difficult losing your spot chairing the House Oversight Committee, and then your spot as ranking member?
ET: No, no. All my advisors and all my immediate staff felt that I should get back to Energy and Commerce. Because when you’re the ranking member on the Oversight Committee, you really have no say. Being on the Energy and Commerce committee is one of the most prestigious committees in the United States Congress. Fifty-five percent of all legislation in the House goes through that committee.

CH: What issues are you working on right now?
ET: We’re still looking at the student athletes’ right to know, in terms of the college and universities reporting college graduation rates with athletes. Because what had happened in many instances is that you have young people who sign up with a university and have no chance of graduating. In fact, some schools have gone 10 or 20 years without graduating an athlete. So making sure athletes or anyone advising them have the information that anyone advising them knows, that in the letter offering them a scholarship to the university, they have to put that information in. We’re working on a bill called bathroom parity, which is very important. That’s making sure any building funded with government dollars has an a comparable amount of bathrooms for women. You see women standing in long lines to go to the ladies room and we need to correct that. In the old days, women didn’t go to sporting events and things like that, so therefore, they didn’t provide for them. Up until a few months ago they didn’t even have a bathroom for women on the floor of the House of Representatives. So we’re looking at issues like that that are very, very important.

Dilan v. Towns Tensions Escalate As Deidra Towns Declares For Assembly by Chris Bragg - City Hall News

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Deidra Towns, the adopted sister of outgoing Assembly Member Darryl Towns, is set to run for her brother’s seat, she confirmed in an interview on Monday.

“Yes, I am intending to run when the seat becomes available,” she said.
The move is certain to heighten tensions between the Towns family—led by Rep. Edolphus Towns and his son, Darryl—and the Dilan family, led by State Sen. Martin Malave Dilan and Council Member Erik Martin Dilan.

The two families had been in negotiations about whom would get the Democratic notification to replace Darryl Towns, both in his district leader position and in his Assembly seat.

Nearly every candidate in the discussions is either a family member or has close ties to one of the two central Brooklyn dynasties.

Other possible candidates include Janitza Luna Dilan, Erik Martin Dilan’s wife, as well as Council Member Dilan’s chief of staff, Rafael Espinal. And the race for the Assembly seat is not the only contest pitting the two families against each other. Ed Towns is running for his son’s old district leader spot—but Erik Dilan is also interested, if he does not run for Assembly.

Darryl Towns had originally been supportive of the idea of Erik Dilan running to replace him in the Assembly.
Sen. Martin Dilan expressed dismay at Deidra Towns’ decision to run for the Assembly seat, saying this represented a breakdown in the negotiations between the two families.

“The congressman is in discussions with us in respect to a district leader position and independent of that, it seems he wants his daughter to be an Assembly member, his son to be a commissioner,” Dilan said. “This appears to leave no room for anyone else to grow.”

The Dilan family ostensibly controls the county committee process that will ultimately determine who gets the Democratic nomination for the Assembly seat, so Deidra Towns will likely have to petition on the ballot and run as an independent candidate.

But Deidra Towns would likely pull back if Erik Dilan runs for the seat, which would allow the Towns faction to put up a candidate for his Council seat.

Council Member Dilan is said by multiple sources to be likely to ultimately take a pass and allow his wife or his chief of staff to run.

Martin Dilan said Monday afternoon that a decision would likely be made Monday evening about who would run from the Dilan faction. He did not return subsequent phone calls seeking comment.

Many insiders see Espinal as the favorite since Janitza Luna Dilan has two young children and is said to be reluctant to go to Albany.

In an interview, Ed Towns somewhat jokingly suggested two possible names for the independent line that his daughter will run on: Save Our Children or the Rent’s Too Damn High, and the Gas Too.

Towns disputed the idea put forward by the Dilans that a Hispanic aligned with the Dilans should be elected to represent a district with a growing Hispanic population.

After all, Towns noted, his daughter is actually Hispanic—she was born in the Dominican Republic and adopted by Towns at six weeks old.

Towns said he believes his daughter could pull out an uphill victory. The family has very high name recognition in the district and several independent candidates have won past special elections.
He reiterated that he was fine with Erik Martin Dilan running for the Assembly seat, but would oppose any other Dilan-backed candidate.

Andy Disses Vito! Cuomo’s New Housing Czar is No Fan of Lopez • The Brooklyn Paper

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Gov. Cuomo slapped Brooklyn Democratic Party boss Vito Lopez, picking a longtime rival of the powerful Assemblyman to run the state’s housing agency.

Cuomo nominated Assemblyman Darryl Towns (D–Bedford-Stuyvesant) last week to run an agency in charge of affordable housing — Lopez’s passion — in an effort to antagonize him.

He also believes that the cancer-stricken Lopez’s career as a housing advocate and lawmaker, in its fifth decade, is winding down, sources familiar with the appointment said.

Once he takes over the agency next month, Towns will control the funding spigot for affordable housing projects — including Lopez’s political base, the Ridgewood Bushwick Senior Citizens Council, which received four contracts worth $811,000 last year.

Lopez (D–Bushwick) has exerted tremendous influence over the state’s Department of Housing and Community Renewal over the years — he orchestrated the appointment of a former staffer, Deborah Van Amerongen, as its commissioner in 2007.

Publicly, everyone is playing nice — but Cuomo is known to be wary of Lopez. As attorney general, Cuomo led the audits into the Lopez-founded Ridgewood Bushwick Senior Citizens Council, investigations that briefly caused the state to freeze funding to the nonprofit.

Lopez has called allies in Albany to complain about Cuomo’s appointment of Towns, said one source, and Towns recently told one public official that he “hated” Vito and was willing to work with insurgent political clubs who opposed him.

The bad blood stems from more than a decade of political brinkmanship between the Towns family and Lopez’s clique.

Lopez recruited and ran former Councilman, now state senator, Martin Dilan against Towns in an Assembly primary 1998 and 2000 — even though Dilan was once Towns’s campaign manager.

And about three years ago, Lopez demanded that pharmaceutical giant Pfizer fire its lobbyist, Karen Boykin-Towns, Towns’s wife, because the company did not set aside the property of its former headquarters for affordable housing.

Enraged, Towns confronted Lopez in Albany demanding an apology, according to several sources.

“They argued, they confronted each other in the hallways, and Towns said, ‘What’s up with that and my wife? You crossed a boundary. How dare you?’” said a source.

Towns later said that Lopez’s demand was “an attack on the corporation,” not on his wife. Boykin-Towns was later promoted.

Debra Feinberg, a Lopez spokeswoman, said that chatter over the appointment of Towns does not change the essential fact that “Assemblyman Vito Lopez has been an outspoken voice in Albany in advocating for restorations and increases in allocations for affordable housing programs in the budget. He looks forward to working closely with Assemblyman Towns … and hopes that by working together, well-established and vital programs continue to be able to be funded throughout the state of New York.”

It’s almost as if Towns put out the same statement.

“Assemblyman [Lopez] and I have a history of being very successful when we work together,” said Towns. “There have been times when we have differed on opinions.”

Special Election Alert! Assemblyman Towns Lands Cuomo Post (Updated) by Liz Benjamin - Capital Tonight

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Gov. Andrew Cuomo just announced he has tapped Brooklyn Assemblyman Darryl Townsto serve as commissioner and C.E.O. of New York State Homes and Community Renewal(HCR), sparking yet another special election – this time in the Assembly.

Under Cuomo’s proposed consolidation of state housing programs the commissioner also serves as chief executive of all the major housing and community renewal agencies, including the Housing Finance and Mortgage agencies.

Towns has served in the Assembly since January 1993. He currently chairs the Assembly Standing Committee on Banks and the Black, Puerto Rican/Hispanic and Asian Legislative Caucus (a post he has held since 2007).

“I have always said that I would reach out to the best and the brightest to join my administration. Assemblyman Towns is a dedicated public servant who certainly fits the bill,” Cuomo said in a press release.

“He has served the people of New York State with integrity and pride, and I look forward to working with him in the future.”

UPDATE1: Cuomo spokesman Josh Vlasto informs me this appointment does not require Senate confirmation. Also, as per Vlasto, Towns’ salary will be $150,000, which is a considerable decrease from the previous compensation of $225,000.

The 54th AD is solidly Democrat-dominated, so I don’t foresee another pick-up for the GOP in this one, but there could be a squabble among the Democrats over who gets to run to succeed Towns.

Towns is also the son of Rep. Ed Towns, who has successfully turned by two primary challenges by former reality TV star Kevin Powell twice since 2008, but nevertheless remains the subject of retirement rumors.

I always thought the younger Towns might try to succeed his father in the House, but apparently he’s decided to forgo the public stage for a while in favor of a job with the Cuomo administration.

Darryl Towns is, I believe the first African American commissioner appointed by Cuomo. (The governor has tapped several black and Latino cabinet members, and also selectedDr. Nirav Shah to be his health commissioner).

Cuomo came under fire during the campaign due to the lack of diversity on the statewide Democratic ticket, which included no candidates of color, one woman (Sen. Kirsten Gillibrand) and two upstaters (Gillibrand and LG Bob Duffy).

The Rev. Al Sharpton was a critic during the Democratic convention in Rye and also duringCuomo’s transition from AG to governor.

Cuomo, who is particularly sensitive to the who race issue after his failed challenge to then-Comptroller H. Carl McCall in the 2002 gubernatorial primary, worked hard last year to rally the support of black leaders. He repeatedly promised he would have the most diverse administration in New York history.