Westchester County Legislators Bring Legal Action Against HUD to Recover $17 Million in Grant Funding

On Monday March 16, 2015 at a Special Meeting of the Board of Legislators legislation was passed that enabled County Attorney Robert Meehan to amend the legal proceedings against the federal Department of Housing and Urban Development (HUD). The vote was unanimous. The court action is an attempt to recover approximately $17 million in Community Development Block Grants (CDBG) that were earmarked for Westchester County but reallocated outside of Westchester by HUD.

HUD had informed County Executive Rob Astorino that it would reallocate the CDBG funds because the County Executive had not submitted an “Analysis of Impediments (AI) acceptable to HUD

On behalf of the County Executive, the County Attorney petitioned Judge Denise Cote, who is presiding over the completion of the settlement, to overturn HUD’s decision to reallocate the CDBG funds. Judge Cote had ruled that HUD’s actions are not subject to judicial review. The County Executive and HUD have remained at an impasse regarding the AI.

“It is unfortunate that we have to go these lengths to try and recuperate funds that HUD had no right to withhold in the first place. The Court of Appeals decision that led us to this vote confirmed what the County Executive has been saying all along, HUD does not have the right to act with impunity. The reallocation of these funds from the communities and people that need them most was an arbitrary and capricious decision” – Legislator John G. Testa, Minority Leader.

On February 18, 2015 the U.S. Court of Appeals for the Second District ruled on Westchester’s appeal that HUD’s actions were in fact, subject to judicial review. That ruling was the impetus for the legislation that was passed by the BOL on Monday.

BOL Chairman Michael Kaplowitz (D) Somers, has tried to mediate a resolution to the impasse between the County Executive and HUD. This past year Chairman Kaplowitz was successful in getting HUD to delay the reallocation of the CDBG funds. Chairman Kaplowitz also appealed to Westchester’s Congressional Representatives and proposed to HUD that the CDBG funds be distributed to Westchester municipalities by New York State. On February 9th, Congresswoman Nita Lowey announced that HUD would release approximately $5 million in CDBG funds to the state, earmarked for Westchester communities. The state is working out the details of a competitive application process for those funds.

Following the vote, Chairman Kaplowitz said, “An important objective in dealing with HUD on the Affordable Housing Settlement has been to prevent the loss of the CDBG funds that are owed to Westchester County. While we have been successful in saving about $5 million that the State will administer, I am hopeful that the legislation we passed today will secure the release of additional CDBG funds meant for Westchester.” Kaplowitz added, “The recent ruling from the Court of Appeals provides Westchester County with an opportunity to petition the courts for our lost CDBG monies but more importantly, it is an opportunity for the County Executive and HUD to finally sit down and work out a compromise that will produce an acceptable AI. Losing the HUD funding is certainly something we want to avoid but remaining in a protracted standoff with HUD risks far greater penalties for Westchester County.”

Minority Leader, Legislator John Testa (R) Peekskill, Cortlandt, Yorktown, said, “The Republican caucus was happy to vote for this legislation. It is unfortunate that we have to go these lengths to try and recuperate funds that HUD had no right to withhold in the first place. The Court of Appeals decision that led us to this vote confirmed what the County Executive has been saying all along, HUD does not have the right to act with impunity. The reallocation of these funds from the communities and people that need them most was an arbitrary and capricious decision. Many of the municipalities that HUD sought to punish by reallocating the funds, like my hometown of Peekskill, aren’t even subject to the affordable housing settlement.”

About John G. Testa

Former District 1 County Legislator, John G. Testa is served five terms at the Westchester County Board of Legislators, spending the last 3 terms as BOL Minority Leader. John G. Testa is a lifelong resident of Peekskill who first entered elected public service as a member of the Peekskill Common Council in 1998 and then served three terms as Mayor. He previously served on the Conservation and Parks Advisory Board and Zoning Board of Appeals. John became an elected official eager to improve the City in which his family has lived for more than a century and quickly earned a reputation as a strong, independent, nonpartisan voice for fiscal responsibility. John received a BS degree in Technology from SUNY Oswego, where his academic achievements gained him induction into Epsilon Pi Tau, the International Honorary Fraternity of Technology. He earned his MS degree in Technology from the City College of New York. He began his teaching career in 1980 at Peekskill High School, his alma mater, as an instructor in Technology and Social Studies, retiring in 2013 after 33 years teaching. John has been a leader in support for the Arts Community in Westchester. He presided over the construction of the Peekskill Art Lofts, the establishment of the Hudson Valley Center for Contemporary Art, and the complete restoration of the Paramount Center for the Arts, originally a 1930’s movie house and helped bring critical funding to many Westchester programs. Legislator Testa received the “Advancing the Arts in Westchester Award” by ArtsWestchester. John has a been a leader on environmental issues for two decades and has a long record of initiatives he has supported and spearheaded. His active involvement in developing and promoting environmentally friendly policies began as mayor and continued throughout his time as Westchester County Legislator. His efforts consistently earned John the endorsement of the NY League of Conservation Voters. John’s most recognizable accomplishment has been his promotion and preservation of local history and historic landmarks, bringing an unprecedented focus on the region’s rich history, and its legacy of historic Victorian architecture. His roots in historical preservation stem from his experience as a Revolutionary War re-enactor and member of The Brigade of the American Revolution for 50 years. John was instrumental in securing the preservation of the Lincoln Depot, now the Lincoln Depot Museum, where he now serves as President. The museum was recognized in 2015 as one of The Best Museums in Westchester. He also secured the preservation of historic Fort Hill as parkland, a 40-acre parcel that was originally a Revolutionary War encampment site. Under his leadership, the United States Dept. of the Interior declared Peekskill a “Preserve America Community.” John was able to establish a record number of National Register designations of local structures, including the first Downtown and Neighborhood Historic Districts and supported the preservation of the historic Miller House in North White Plains. In 2017 John was named a “Champion of History” by the Lincoln Society in Peekskill. John and his wife of 37 years, Nancy, live in Peekskill and have two adult children, John, Jr. (fiancé Courtney Kelly) and Katy (husband Mike Mearon). John and Nancy recently welcomed the arrival of their first grandchild, Lacey Mae, in 2019.

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