Village of Spring Valley Settles Fed Fair Housing Case; Will Build 22 Affordable Rental Housing Units

NEW YORK—The U.S. Attorney for the Southern District of New York announced on March 5 that the Village of Spring Valley has agreed to settle the fair housing lawsuit originally brought by the federal government in 2013 by completing 22 units of affordable rental housing by the end of 2030.

The settlement, which also includes payment by the village of a $15,000 civil penalty, stems from a claim by the federal government last year that the village and Rockland County had breached a Voluntary Compliance Agreement and Conciliation Agreement reached in 2018.

The original complaints filed against the village, Rockland County and developers in 2013 stemmed from HUD funding they had received for a 62-unit condominium development that was sold “in a discriminatory fashion.” According to the allegations made by the federal government, the developer designed the units and community spaces of the project “to cater to the religious needs of White Hasidic Jewish homebuyers, and by marketing the units predominantly to White Hasidic Jewish prospective homebuyers, while excluding Black prospective homebuyers and otherwise failing to affirmatively market the units to the entire community.”

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.

The U.S. Attorney’s office states in court documents that since the Voluntary Compliance Agreement was reached with the Village of Spring Valley and Rockland County eight years ago, only four of the 62 units to be developed or rehabilitated have been completed. The four affordable units are located at the Nyack Pointe development in Nyack.

“I applaud the commitment of the Village of Spring Valley to build more affordable housing as part of this resolution,” said U.S. Attorney Jay Clayton. “Local regulations, including restrictions on new construction and unduly burdensome permitting processes, are driving housing construction costs out of sight. It’s basic economics: if it costs too much to build new homes, the cost of existing homes is only going to go up. This agreement shows there is a way forward, and we appreciate the commitment of Spring Valley to lower the costs of and time it takes to build affordable housing.”

The agreement requires Spring Valley to ensure the completion of 22 affordable rental units by Dec. 1, 2030. The units are required to be occupied by households with incomes at or below 75% of the Area Median Income for Rockland County, with deed restrictions or other legal measures to ensure continued affordability for at least 50 years. The agreement also requires the village to ensure appropriate monitoring of HUD grantees and institute training for the village’s employees regarding the FHA and related federal requirements.

The case against Rockland County for breach of the 2018 VCA is still pending.