Astorino Says HUD Does 'Extortion,' Seeks Lawsuit & Hearing

In a Wednesday announcement, Westchester County Executive Rob Astorino slammed the U.S. Department of Housing and Urban Development (HUD) for its plans to withhold more than $7.4 million in federal funds unless the county submits a zoning analysis in connection with its affordable housing settlement.

“In a nation of laws, the rules apply to everyone and that includes HUD,” Astorino said in a press release. “If HUD has issues, there is a process to be followed. What HUD is doing is extortion based on nothing more than its unsupported opinions. The county is asking for nothing more than to be treated fairly under HUD’s own rules.”

Astorino sent a letter, which is dated April 4, to HUD Secretary Shawn Donovan requesting a formal hearing on the dispute. He also wants the county to sue by seeking an injunction to stop HUD from withholding the funds, and has submitted a letter to the county board of legislators requesting that approval is given to start a challenge.

Astorino's actions are in response to a March 25 letter submitted by Vincent Hom, HUD's director for community planning and development. In it, Hom wrote that Westchester must provide a "satisfactory" zoning analysis and identifying "exclusionary" zoning at the local level. Hom also demanded that Westchester communicate with municipalities, who control zoning, about how to make changes to exclusionary zoning and what the consequences would be if changes are not made. Hom also raised the spectre of the county taking legal action against municipalities was suggested as a possible measure.

The county has submitted findings, officially called an Analysis of Impediments, in the past but HUD deemed them insufficient. Astorino's office contends that Westchester has been thorough, with a look at every zoning district in its borders, a review of 26,443 data points and legal analysis from Pace University's Land Use Center.

The funds in question are for the 2011 fiscal year and cover programs such as the Community Development Block Grant, Emergency Shelter Grants and the HOME Investment Partnership.

Astorino, in his letter to Donovan, described HUD's action on the funds, which he argues were promised to the county, as "arbitrary and capricious."

Hom also demanded that the county give a description of a plan to promote source-of-income legislation, which would ban landlords from rejecting federal support programs such as Section 8 housing vouchers, a move that Astorino has balked at because he believes that landlords should be allowed to choose. 

The source-of-income topic has gained new attention since a federal appeals court ruled last week to uphold a district court's decision that was in favor of HUD in a dispute over compliance on the matter, although both Astorino and legislative Democrats are demanding that the other side makes the next move. Astorino is calling on the legislators to reintroduce source-of-income legislation. However, in a press release from Tuesday, legislative Democrats argue that Astorino needs to bring legislation forward for the body to act on.

The federal housing settlement, reached in 2009, requires that Westchester support the construction of 750 affordable housing units in mostly white communities over a 7-year period. Astorino's office states that the county is ahead of schedule, with 305 units that have financing, versus a year-end deadline of 300.