Westchester County has filed for a second time for an injunction to keep the Department of Housing and Urban Development from sending $7.4 million in grants designated for nonprofits and municipalities in Westchester to other places in the metro region.
HUD has said it will reallocate Community Development Block Grants from 2011 because the county cannot certify that it can comply with fair housing laws. First it needs to complete an analysis of obstacles to fair housing, including zoning, required under the 2009 fair housing settlement with the federal government.
Grants from 2012 and 2013, along with lead paint grants, have been withheld but are not yet in danger of reallocation.
Judge Denise Cote, who is overseeing the fair housing settlement, denied a stay in April, saying the county wasn’t in immediate danger of losing the funds. But HUD has said it may reallocate them as early as Aug. 29 to beat the deadline of the end of the federal fiscal year on Sept. 30, when the funds would be returned to the Treasury.