County Could Lose Funds Over Housing Settlement Dispute: Reports

Westchester County was warned on Monday that it could lose $7.4 million in federal funding if it does not comply with orders from the U.S. Department of Housing and Urban Development (HUD) in connection with its 2009 affordable housing settlement, according to published news reports, although the county executive argues they are not part of the deal.

The county was given a letter from HUD demanding, by April 25, that it give a "a satisfactory analysis" of exclusionary zoning in its area, the Associated Press reports. The AP story adds that the county is also being asked to push for legislation that bans landlords from being able to reject government subsidies as income sources. 

The type of financing that is at stake is called Community Development Block Grant (CDBG) funding.

The 2009 settlement, reached by the county and federal government, calls for Westchester to facilitate building 750 units of affordable housing by 2016 in communities that are predominantly white. 

County Executive Rob Astorino has been loathe to go along with an income sources ban, arguing that landlords should have the right to decide what to accept.

“This would take away that right," Astorino said at a January forum in Chappaqua.

Astorino's camp also contends that the county has already supplied a zoning analysis regarding exclusion.

Ned McCormack, Astorino's communications director, blasted the letter in an evening statement, arguing that the beyonds are not part of what was agreed to in the settlent.

"The county’s position is that it is in full compliance – in fact ahead of schedule – with the settlement’s requirements and that HUD’s most recent letter of March 25 is just one more example of the federal government trying to bully Westchester to do things that go far beyond the terms of the settlement and dismantle local zoning."

Astorino's office also notes that the county is ahead of schedule for the roll out of units, with 305 now versus a 300-unit deadline for the end of this year.

A legal dispute between Astorino (R-Mount Pleasant) and HUD over the source of income issue is now before the U.S. Second Circuit Court of Appeals, according to McCormack.

Meanwhile, the Democratic caucus in the county board of legislators does not appear to be sympathetic to the county executive. In a press release, Legislator Catherine Borgia (D-Ossining), who chairs the Government Operations Committee, issued a terse reply.

“We can’t have any more stalling, political posturing and finger-pointing. I call on County Executive Astorino to work collaboratively with the Board of Legislators and the federal government to remedy this perilous situation before more harm is done to Westchester.” 

Borgia warned that losing CDBG funds would hurt county taxpayers and low-income residents.

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