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HUD Dispute Won't Affect Current Peekskill Grants

PEEKSKILL – Westchester County’s battle with the Department of Housing and Urban Development will not affect their block grants, at least not this year.

The Federal agency recently announced it would withhold $7 million in Community Development Block Grants, or CDBGs, from the county until it meets the requirements it has put forth in the settlement. Peekskill City Manager Rick Finn said that the current projects in the city will not be affected by the county’s lawsuit.

“Projects already approved are not affected, only the ones not started yet have been put on hold,” Finn said. Among those grand-funded projects currently underway are the renovation of the Depew Park Playground, Renovations at Memorial Park on Division Street and the re-roofing of the Riverfront Green Gazebo.

In the 2009 settlement agreed to by former County Executive Andrew Spano, Westchester agreed to build 750 units of affordable housing in 31 predominately white communities in an August 2009 lawsuit settlement made with the Anti-Discrimination Center and federal authorities.

When Westchester’s fifth required analysis of impediments report was rejected on July 13, Astorino accused HUD of committing “an unprecedented, overreaching” of the federal government. The county executive has said HUD is illegally requesting Westchester ignore a clause in the New York State Constitution that gives local municipalities the power to set zoning.

Astorino also said HUD’s suggestion that half of the 750 units have three bedrooms as economically impossible since the new construction requirements would cost the county $94.3 million -- almost twice the $51.6 million cost previously agreed on. Like other county municipalities, Peekskill will have to wait and see what happens while it applies for CDBG grants for years 2012 through 2014. “It’s between the county and HUD,” Finn said. “We’re only affected by it.”

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