By Dan Murphy
Yonkers Inspector General Liam McLaughlin issued a scathing report on County Legislator Christopher Johnson and his illegal mismanagement of his affordable condo, and the purchase of a $770,00 private home with his wife outside the 16th County Legislative District that he represents.
Johnson, who lost the democratic primary to City Councilwoman Shanae Williams last month, now faces foreclosure on his affordable condo and removal for the remainder of his term this year.
IG McLaughlin’s report states:
RE: Christopher Johnson Affordable Housing Unit – 421 N. Broadway, Yonkers NY DATE: June 30,2023
EXECUTIVE SUMMARY After a series of newspaper articles documenting Westchester County Legislator Christopher Johnson’s, (hereinafter *Johnson’), purchase of a new home at 34 Rose Hil Terrace, Yonkers NY, (hereinafter “34 Rose Hill Terrace”), outside of his legislative district, this office opened an investigation to determine if Johnson had violated the terms of his agreement with the Yonkers Affordable Housing Office by moving out of and subleasing his subsidized Affordable Housing Unit at 421 N. Broadway, Unit 1, Yonkers, NY, (hereinafter “421 N. Broadway’ or “Affordable Housing Unit).
After a brief investigation which culminated in Johnson’s testimony under oath, Johnson admitted that he and his wife, Tai Johnson, purchased the home at 34 Rose Hill Terrace on June 10, 2022, that they moved into that home on or about July 1, 2022, he subleased the Affordable Unit at 421 N. Broadway to his brother-in-law and his family and that his primary residence was 34 Rose Hill Terrace.
Considering Johnson’s admissions and the documentary proof that was acquired by this office itis uncontroverted that Johnson has violated the residency requirement of his Affordable Housing Unit. Accordingly, the City of Yonkers should take every step necessary to enforce the terms of the agreement that Johnson entered into with the Affordable Housing Office to preserve the integrity of the Affordable Housing Program and ensure that affordable housing units are available to those who qualify for the program.
THE INVESTIGATION
On May 22, 2023, this office was contacted by Journal News Reporter David McKay Wilson regarding an article that he had written about Westchester County Legislator Christopher Johnson. Mr. Wilson was questioning Johnson’s participation in the City of Yonkers Affordable Housing Program, the possibility that Johnson had moved out of and was subletting his Affordable Housing Unit at 421 N. Broadway and whether Johnson had vacated his County Legislative office by moving out of the district to a new home at 34 Rose Hill Terrace.
Later that same day, this office received an email from Shamarla Morgan, a resident of the City of Yonkers, referencing the series of articles in the Journal News by David McKay Wilson regarding Johnson. Specifically, Ms. Morgan was questioning Johnson’s purchase of a SEVEN HUNDRED SEVENTY THOUSAND (770,000) DOLLAR house at 34 Rose Hill Terrace while owning and claiming as his primary residence the Affordable Housing Unit at 421 N. Broadway. Ms. Morgan stated that she believed that Johnson had vacated or “abandoned” his legislative office by moving out of the district to 34 Rose Hil Terrace and further questioned Johnson proclaiming both properties as his primary residence.
Based on the above, this office opened an investigation for the limited purpose of determining Johnson’s ownership and residency in the Affordable Housing Unit located 21421 N. Broadway. Initially, we contacted Lee Ellman, the Deputy Commissioner of the Planning and Development Department for the City of Yonkers, as that department administers the Yonkers Affordable Housing Program. In speaking with Deputy ‘Commissioner Ellman and Kathleen Kuhnel, the Affordable Housing Program Director, they explained that anyone who purchased a property pursuant to the Affordable Housing Program MUST maintain the unit as their primary residence, (See the 1988 Long Term Plan Order entered in United States v. Yonkers, 80 Civ. 6761 (LBS) S.D.N.Y. attached hereto as Exhibit 1). These covenants are further memorialized in the Mortgage Agreement assumed by Johnson when he purchased the Affordable Unit on September 29, 2010. (See Mortgage and Assumption and Mortgage Subordination Agreement attached hereto as Exhibit 2). As proof that each unit under the program remains owner occupied, each year the owners in the program must attest under penalty of perjury that the unit is their primary residence. (See Occupancy Monitoring Declaration attached hereto as Exhibit 3).
After reviewing Johnson’s Affordable Housing file and public records from the Westchester County Clerk’s Office, including the Deed dated June 10, 2022 for the purchase of 34 Rose Hil Terrace, (Attached hereto as Exhibit 4), we determined that Johnson signed the Occupancy Monitoring Declaration on or about May 31, 2022, (See attached Occupancy Monitoring Agreement attached hereto as Exhibit 5), swearing under penalty of perjury that 421 N. Broadway, Unit 1 was his primary residence, a mere 10 days before he purchased his family’s home at 34 Rose Hil Terrace. A subpoena was issued to Johnson (See attached Exhibit 6), seeking his appearance for questioning along with various documents including but not limited to tax returns, the mortgage loan application for the purchase of 34 Rose Hill Terrace, utility bills and lease or sub-lease agreements.
After an initial adjournment requested by his attorney, Mayo Bartlett, Esg., Johnson appeared with his attorney and many of the subpoenaed documents for questioning on June 21, 2023 at 2:30 PM. The subpoenaed documents were reviewed by this office prior to questioning. The following, inter alia, was noted by this office in review of the documents provided by Johnson;
1) In their 2022 Federal and State Income Tax returns Christopher Johnson and Tai Johnson listed their address as 34 Rose Hill Terrace.
2) Christopher and Tai Johnson’s Uniform Residential Loan Application (hereinafter “Loan Application’) for the loan to purchase 34 Rose Hill Terrace states on page 5 that the property located at 421 N. Broadway will be an investment property generating income of $2,500 a month.
3) The Loan Application also states on page 5 that 34 Rose Hill Terrace wil be occupied as a primary residence.
4) There was a draft residential lease agreementfor421 N. Broadway, Unit 1 with Johnson renting the unit at $1,500 per month.
When questioned under oath, Johnson stated, (among other things):
1) That he purchased 421 N. Broadway, Unit 1 on or about September 2010.
2) When he purchased 421 N. Broadway, he was aware that the property was to be maintained as his primary residence.
3) That on June 10, 2022, he purchased 34 Rose Hil Terrace with his wife Tai Johnson, and that they currently live there with their son Joshua.
4) That his primary residence is 34 Rose Hil Terrace.
5) That he moved to 34 Rose Hill Terrace on or about July 1, 2022.
6) He has not filed his Affordable Housing Program Occupancy Monitoring Declaration that was due June 20, 2023, for 421 N. Broadway.
CONCLUSION Christopher Johnson, by his own admission, verified that 421 N. Broadway is no longer his primary residence. He further confirmed that he has subleased the unit to his brother-in-law, his brother-in-law’ girlfriend and their two children for $1,500 a month. This clearly violates the residency requirements under the Yonkers Affordable Housing Program. As such, the City has no option but to enforce the remedy provisions under the Mortgage.
As an offshoot of this investigation, Mayor Spano has directed this office to conduct a broader investigation of the Affordable Housing Program to ensure that the units are being maintained as the primary residences of the owners who received the benefits. That investigation continues and a report will be issued at the conclusion of that investigation. -End of IG Report.
Mayor Spano told the Journal News, “These are not to be used as investment properties for a couple making enough income to afford a house costing close to $800,000. I think it’s in the best interests of the city to put it back in the system so that someone else can enjoy the affordability that goes along with it.”
It is unclear whether the mortgage taken out by Mr. and Mrs. Johnson is fraudulent, based on the fact that they listed the affordable unit as rental-investment income. The monthly mortgage payment on a $700,000, 30-year loan would be $3,750 plus taxes, or about $5,000, a number that the Johnson’s can afford based on their dual income of about $200,000.
Johnson’s time on the Board of Legislators could be limited. County Board Chairman Vedat Gashi said that the BOL will conduct their own review. Shanae Williams has called on “the Board to take action,” after the allegations were made public.
IG McLaughlin did not release the report until after the democratic primary held on June 27.
