The Village of Spring Valley has just settled a massive lawsuit filed in early 2025 by the United States Department of Housing And Urban Development (HUD).
The matter stems from a complaint filed with HUD a number of years ago alleging a private developer used HUD grant funding given to the village and Rockland County to build 62 condominium units, but - contrary to legal requirements applicable to subrecipients of federal funding - designed and marketed those units specifically for use by White Hasidic Jewish homebuyers, and excluded prospective Black homebuyers from the process.
In response to those complaints, HUD investigated and determined that Rockland County and Spring Valley - which were involved as recipients of the HUD grant funding in question - were on notice of the discriminatory practices of the private developer, which was their grant subrecipient, but failed to ensure that appropriate remedial steps were taken before the project was completed and the units were sold.
As part of HUD’s investigation, it estimated that 44 deed holders at the condominium development, more than 91 percent, were likely to be White and non-Hispanic, in a census tract where only 14.4 percent of the population is White and non-Hispanic.
Following this investigation, in 2018, the fed's got Rockland County and Spring Valley to enter into a Voluntary Compliance Agreement (VCA) which required them to develop or rehabilitate affordable housing units.
The consent agreement aimed to ensure that a separate group of 62 affordable housing units would be developed or rehabilitated during a seven-year period. The terms required approximately 25 of the affordable units be built within the first three years of the Agreement.
In September 2020, Rockland County requested that the deadlines for the remaining units be extended due to the COVID-19 pandemic. In 2021, Rockland County and Spring Valley were granted additional time to provide the other 58 units – 18 of which were required to be completed by March of 2023.
Under the amended VCA, 15 additional units were to be completed by March of 2025; 13 more by 2027, and 12 more by 2029. 31 of the 58 units were to be home ownership, not rental units.
In actuality, by early 2025, only four affordable units meeting the requirements of the Agreement had since been completed. At that point the fed's ran out of patience and filed a massive lawsuit in federal court against Rockland County and the Village of Spring Valley to enforce the terms of the VCA.
The complaint charges Rockland County and Spring Valley breached the agreement, missed the deadlines and otherwise failed to complete “a single additional affordable housing unit meeting the terms and criteria set forth in the VCA since the completion of the four units in the Nyack Point project in 2018.”
The Village of Spring Valley has now entered into a settlement agreement which will result in the completion of 22 units of affordable rental housing within the Village over the next five years.
The Agreement requires the village to ensure the completion of 22 affordable rental units by December 1, 2030. These units are required to be occupied by households with incomes at or below 75% of the Area Median Income for Rockland County, with deed restrictions or other legal measures to ensure continued affordability for at least 50 years. The Agreement also requires the village to ensure appropriate monitoring of HUD grantees and institute training for the Village’s employees regarding the FHA and related federal requirements. The village also agreed to pay a $15,000 civil penalty.
Rockland County is not a party to the settlement agreement. They continue to defend against the lawsuit, including with counterclaims against the village.
The case is being handled by the United States Attorney for the Southern District of New York’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorney Samuel Dolinger is in charge of the case.
The settlement agreement was entered by U.S. District Judge Cathy Seibel sitting in White Plains.
"I applaud the commitment of the Village of Spring Valley to build more affordable housing as part of this resolution,” said United States Attorney for the Southern District of New York, Jay Clayton. “Local regulations, including restrictions on new construction and unduly burdensome permitting processes, are driving housing construction costs out of sight. It’s basic economics: if it costs too much to build new homes, the cost of existing homes is only going to go up. This agreement shows there is a way forward, and we appreciate the commitment of Spring Valley to lower the costs of, and time it takes, to build affordable housing.”
To join the FAA News community click here. It's a private group. No one will see your number.
No comments:
Post a Comment