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Dec.22, 1999

New York- In a sharp rebuke to the administration of Mayor Rudolph Giuliani, federal officials have decided to bypass city agencies in handing out millions of dollars in government money to those who help the homeless. The mayor said the change was motivated by politics.

U.S. Housing Secretary Andrew Cuomo said the change is necessary following a federal court ruling that found city officials demonstrated a pattern of antagonism and acted with "retaliatory intent" against a nonprofit service provider that had criticized the mayor. The provider eventually lost $2.4 million in federal funds.

The change means the U.S. Department of Housing and Urban Development will distribute federal money directly to those helping homeless people, rather than using the city as a middleman.

"The U.S. Department of Housing and Urban Development is acting in the best interests of homeless people in New York City, to ensure that the most qualified homeless assistance programs get our funding," Cuomo said Tuesday.

Giuliani accused Cuomo, a Democrat, of playing politics, noting his support of Hillary Rodham Clinton's Senate bid and that a regional HUD director under Cuomo, Bill DeBlasio, was recently named Mrs. Clinton's campaign manager.

To miss the connection, "I would have to be extremely naive, and I'm not," said Giuliani,who is expected to seek the Republican nomination to run for Senate. "There's no question that Andrew Cuomo runs a major league political operation."

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Giuliani, however, said the city can't fight the change.

"I don't think we can," he said. "It's their money."

Last month, a federal court found that the city downgraded the performance of Housing Works, a nonprofit group that operates two houses for homeless people suffering from AIDS, mental illness and drug addiction, because of the group's public opposition to the mayor's AIDS policies rather than its effectiveness.

The lower rating prevented Housing Works from receiving $2.4 million in federal funds to cover three years of operating expenses for the two residences. The city has appealed the ruling.

"This fully vindicates what we've been saying. He has been using the process to reward his allies and punish others," said Charles King, co-executive director of Housing Works.

Giuliani denied he had any political interest in punishing Housing Works.

Later Tuesday, at a state Democratic Committee holiday party where Mrs. Clinton spoke, Cuomo's wife, Kerry Kennedy Cuomo, stood up and bragged about what Cuomo had done, saying: "Just a few hours ago, my husband pulled up the gauntlet."

She went on to criticize Giuliani's homeless policies and added: "Next time Rudy, pick on someone your own size."

Judges have temporarily stopped Giuliani's plan to evict homeless adults, who refuse to work, from city shelters. POOR magazine staff hopes that Cuomo's action will also impact all of King Giuliani's archaic anti-poverty measures, such as his recent act of ordering police to arrest homeless people who refuse orders to move from sidewalks.

If an upcoming election spurs this kind of event, maybe there should be an election every day in America. Thank-you Mr.Cuomo!! ............ PNN staff

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