County Wins Another Legal Battle with Feds over Grant Money

The United States Court of Appeals for the Second Circuit Friday granted the Westchester County an injunction that prohibits the U.S. Department of Housing and Urban Development from reallocating approximately $10 million - which had been designated for the county - to other communities, County Executive Rob Astorino announced.

The decision marks another legal victory in the county’s battle with HUD over the funding and the two sides continuing struggle over the handling and interpretation of a 2009 housing settlement.

“In February, the court said HUD was subject to the law just like everyone else,” said Astorino in a statement. “Today it’s saying HUD has no right to give away the money at the heart of the court case. Both decisions are victories for Westchester and for the country against an aggressive and overreaching federal government.”

Over the course of the dispute, HUD has reallocated roughly $10 million designated for Westchester for the years 2011 and 2012 to other communities, according to Astorino. Today’s decision prohibits HUD from reallocating another $10 million for 2013 and 2014 that it is currently withholding from the county.

Friday’s ruling follows a February decision by the Second Circuit Court. Astorino went to court challenging HUD’s decision to withhold funds from the county “simply on the agency’s assertion that the county was not in compliance with the 2009 federal housing settlement,” which calls for developing 750 units of affordable housing in 31 communities by the end of next year.

Astorino argued that the county “was in compliance with the settlement and that any contention that it was not is for the courts to decide.” The Second Circuit unanimously agreed with Westchester County, saying HUD’s actions were subject to “judicial review.”

The case now continues for a decision on the merits.

Related:

• Federal Court Gives Westchester a Victory in County’s Fight over Affordable Housing
• Gov. Cuomo, Congresswoman Lowey Announce Deal to End Hold Up of $5 Mil. in Housing Funds to Westchester
• Astorino, Feds Continue Dispute Over Housing, Block Grants
• Astorino Says HUD Does ‘Extortion,’ Seeks Lawsuit & Hearing
• Astorino, Legislators Seek to Stop HUD from Withholding Funds
• Westchester County Exec Blasts HUD for Changing Terms of Affordable Housing Settlement

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