The Department of Housing and Urban Development has agreed to postpone the reallocation of $7.4 million in disputed community development grants that had been set aside for Westchester to give a federal appellate court time to decide on the county’s request for a stay.
HUD had said the 2011 grants would be sent to other communities in the region by Aug. 29 but the court asked for a delay to give it time to consider the county’s request for an injunction. A panel of judges from the U.S. Court of Appeals for the Second Circuit will consider the request Sept. 10, according to a letter filed Tuesday by the U.S. attorney.
The letter says HUD cannot delay beyond Sept. 10. The appropriation expires Sept. 30 and the money returns to the Treasury.
The county had asked a federal District Court to prevent the reallocation but the case was dismissed earlier this month.
Click here for more on the fight over the grants.