After hearing arguments Tuesday on Westchester County’s request for a restraining order stopping the Department of Housing and Urban Development from reallocating community development grants from 2011, a panel of judges from the United States Court of Appeals for the Second Circuit ordered that the appeal be heard on Sept. 20.
The decision will be issued by Sept. 30, the judges ordered. HUD has agreed not to reallocate the grants before that date.
HUD said it would reallocate the $7.4 million in grants to other communities in the New York metro area after Westchester County refused to write an analysis of local zoning to its satisfaction. The analysis is part of a look at impediments to fair housing that is required for grant applicants generally and for Westchester under the 2009 settlement resolving the federal government’s fair housing charges against the county.
HUD said it must reallocate the grants now because the 2011 appropriation will expire and the money will be unavailable at the start of the new fiscal year, Oct.1.