SDNY Announces Settlement Agreement With Rockland County To Increase Supply Of Affordable Housing

United States Attorney for the Southern District of New York, Jay Clayton, announced the settlement of a lawsuit against ROCKLAND COUNTY ("ROCKLAND COUNTY"), which will result in the completion of 36 units of affordable rental housing within the County over the next five years.

The settlement under the Fair Housing Act ("FHA") resolves a claim that ROCKLAND COUNTY breached a Voluntary Compliance Agreement and Conciliation Agreement ("VCA"), which it entered into in 2018 with the U.S. Department of Housing and Urban Development ("HUD"). On March 4, 2026, the United States settled the lawsuit as to the VILLAGE OF SPRING VALLEY ("SPRING VALLEY"), the other defendant in the action, which was also a party to the VCA.

"We appreciate that Rockland County, along with its codefendant, the Village of Spring Valley, will build more affordable housing and finally resolve this long-running case," said U.S. Attorney Jay Clayton. "More affordable housing is good for everybody-by increasing the supply of affordable units, we can help bring high housing costs down across New York and the county."

According to the Complaint filed in White Plains federal court and the Agreement entered by the court:

The VCA between HUD, SPRING VALLEY, and ROCKLAND COUNTY resolved a prior HUD investigation into allegations regarding a private developer who used HUD funds overseen by SPRING VALLEY and ROCKLAND COUNTY to build affordable housing, but unlawfully designed and marketed the resulting units almost exclusively for sale to White Hasidic Jewish prospective homebuyers, in violation of federal law. Administrative complaints made to HUD alleged that SPRING VALLEY and ROCKLAND COUNTY became aware of allegations that the developer was excluding interested homebuyers based on protected characteristics, but failed to ensure that appropriate remedial steps were taken before the project was completed and the units were sold.

In 2018, SPRING VALLEY and ROCKLAND COUNTY entered into the VCA with HUD to resolve those administrative complaints. The VCA required SPRING VALLEY and ROCKLAND COUNTY to build 62 units of affordable housing, meeting specified criteria for affordability by specified deadlines. However, only four affordable units qualifying under the VCA were built by the time this lawsuit was filed in 2025, despite an amendment of the VCA in 2021 that provided SPRING VALLEY and ROCKLAND COUNTY with additional time to complete the required units.

The resolution between the United States and ROCKLAND COUNTY, in the form of a court-approved settlement agreement (the "Agreement"), was entered yesterday by U.S. District Judge Cathy Seibel. The Agreement requires ROCKLAND COUNTY to ensure the completion of 36 affordable housing units by April 15, 2031. Rental units are required to be occupied by households with incomes at or below 60% of the Area Median Income for Rockland County (at or below 80% in the event that the units are owned as opposed to rented), with deed restrictions or other legal measures to ensure continued affordability for at least 50 years. The Agreement also requires ROCKLAND COUNTY to ensure appropriate monitoring of HUD grantees and continue to provide training regarding the FHA and related federal requirements. ROCKLAND COUNTY also agreed to pay a $10,000 civil penalty.

The United States entered into a similar agreement with SPRING VALLEY on March 4, 2026, in which SPRING VALLEY agreed to build 22 affordable rental units by December 1, 2030. The four qualifying units built before 2025, when added to the 22 units to be built under the agreement with SPRING VALLEY, and the 36 units to be built under the agreement with ROCKLAND COUNTY, approved yesterday, will equal the total number of affordable units originally required under the VCA. With this agreement with ROCKLAND COUNTY, this case is now fully resolved.

Mr. Clayton thanked the staff of HUD's Office of Fair Housing and Equal Opportunity for their assistance in this matter.

The case is being handled by the Office's Civil Rights Unit in the Civil Division. Assistant U.S. Attorney David J. Kennedy, with former Assistant U.S. Attorney Samuel Dolinger, is in charge of the case.