HUD Rejects County’s Housing Plan; Astorino’s Office Balks

The U.S. Department of Housing and Urban Development (HUD) has rejected Westchester County’s 2013 action plan for its federal affordable housing settlement, arguing that it did not include a satisfactory analysis of municipal zoning and that it lacks a plan to overcome “exclusionary” zoning. 

The county submitted an updated Analysis of Impediment (AI) in late April, but HUD argues that it “is lacking in substance.” HUD claims that the study includes “problematic methodology” and has conclusions that its data does not support.
HUD wants Westchester County to develop a “clear strategy to overcome exclusionary zoning practices,” with steps including identifying such zoning and suing municipalities who do not change zoning codes deemed to be such. HUD has given the county until June 10 to comply or else it will withhold millions of dollars worth of community development block grant (CDBG) funding, which the county handles as a passthrough for municipalities. The funds are used to pay for local programs.

Ned McCormack, who is communications director for County Executive Rob Astorino, blasted HUD’s demand.

“The latest letter clearly indicates that HUD won’t be satisfied until it has dismantled local zoning in Westchester and that it has no problem hurting the county’s poor and homeless until it gets its way,” he stated.

HUD initially set a compliance deadline for late April or else funds would be withheld. The county went to federal court to seek an injunction. However, according to McCormack, a judge determined that it was premature to act on the matter because HUD had not actually taken steps to withhold the funds and a June status update was requested.

The federal department also rejected annual plans for the 2009 settlement in 2011 and 2012, and has already demanded that legal action be an option. HUD, as another CDBG condition, also reiterated its call for Astorino to promote source of income legislation, which would bar landlords from rejecting federal assistance as forms of rental payment. The legislation has been in the news several times in recent months. In March, an appeals court affirmed a district court’s 2012 ruling that the county was in breach of the settlement by not acting on the issue; Astorino’s office contended that it was in compliance, and that it called on the BOL to work on the issue. 

After a subsequent standoff earlier this spring with HUD and U.S. Attorney Preet Bharara - the prosecutor threatened to seek contempt against the county and Astorino - the county board of legislators now has legislation pending. It is currently before several committees. Astorino vetoed similar legislation in 2010, claiming that it would make the Section 8 voucher program go from voluntary to mandatory. After Bharara’s office warned of contempt last month, Astorino submitted legislation modeled after the 2010 version to the BOL and committed to signing it if approved.