Astorino claims housing victory, demands HUD release $7 million in funds

Westchester County Executive Rob Astorino demanded last week that the U.S. Department of Housing and Urban Development release $7 million in withheld funds following a judge”™s ruling in the county”™s affordable housing settlement.

Since last May, HUD has delayed the release of those previously-approved affordable housing funds, arguing that Astorino was required to sign source-of-income legislation as part of the county”™s settlement with HUD, which would have required Westchester property owners to accept government vouchers as rental payments.

U.S. Magistrate Gabriel Gorenstein ruled March 16 in favor of the county in relation to Astorino”™s 2010 veto of the source-of-income legislation, saying that the settlement only required the county to “promote” and not to sign the legislation, contrary to what had been argued by the HUD-appointed housing monitor.

“HUD”™s preemptive move to try to punish the county before the court had ruled in the case was unconscionable,” Astorino said in a March 19 statement. “The primary purpose of the money was to advance the progress of the settlement, so HUD was only hurting the people it claims to help.”

In light of the ruling, Astorino said he would immediately reach out to HUD Secretary Shaun Donovan requesting that he release the funds.

In two separate rulings — decisions on the county”™s review of zoning practices and the rejection of the county”™s Analysis of Impediments, also delivered March 16 —  Gorenstein sided with the housing monitor.

Astorino spokesman Ned McCormack said last week the county has already complied with the first ruling, submitting to the monitor on Feb. 29 an extensive review of the county”™s 43 municipal zoning ordinances covering 853 zoning districts.

McCormack also downplayed the judge”™s ruling over the county”™s Analysis of Impediments, or AI.

The county had argued that after HUD repeatedly rejected its AI, the monitor should be responsible for reaching a decision over its sufficiency; however, Gorenstein said the monitor was not responsible for ruling on the county”™s AI.

 

LDC

The Westchester County Local Development Corp. held its first meeting earlier in March, confirming Eileen Mildenberger as the LDC”™s executive director.

The LDC will be able to authorize tax-exempt bond financing for nonprofits, something industrial development agencies have not been able to do since 2008, under state law.

County spokesman Ned McCormack said between 1994 and 2007, there were $241 million worth of projects in Westchester County that qualified for tax-exempt bonds.

“They”™re open for business. We think this is a really important vehicle,” he said. “This was a major accelerator, or catalyst, or enabler for nonprofits to get projects done.”

While several members of the county Board of Legislators last week questioned the transparency of similar local development corporations, McCormack said that all the proper safeguards are built into the county”™s LDC to ensure that any funds are appropriately used.