HUD Denies Plea for Reallocation of CDBG Funds

This just in from Greenburgh Town Supervisor Paul Feiner: Due to the impasse between the Department of Housing and Urban Development and Westchester County over the affordable housing settlement the county lost $7.4 million in HUD funding in Community Development Block Grants from fiscal year 2011. According to Feiner, some of these funds were earmarked to help low income neighborhoods in Greenburgh for sidewalks/safety enhancements in north Elmsford (where there was a pedestrian fatality in recent years) and street scaping enhancements on Manhattan Avenue, near Union Baptist Church.

In order to secure the funds, Feiner wrote to HUD and asked them to send the funds to the state, rather than the county – suggesting that the state could allocate the monies to the intended beneficiaries. However, in the letter below from HUD, they say that the $7.4 million in funds has already been "reallocated or otherwise expired."

Feiner says, "I am extremely disappointed that HUD will not provide the grants to any entity other than the county. I think communities like Greenburgh are being penalized for a dispute that is taking place between County Executive Astorino and the federal government – something that we have nothing to do with. The town of Greenburgh is not one of the communities that were ordered by the federal government to build more housing. We have been building affordable housing on our own –voluntarily for many decades. Because of the county government's actions, the Town of Greenburgh is losing significant grants that were earmarked to help low income neighborhoods. Among them: sidewalks/safety enhancements in north Elmsford (there was a pedestrian fatality in recent years) and street scaping enhancements on Manhattan Avenue, near Union Baptist Church.

Here is the text of the letter: (it's puzzling that it's stamped January 28, 2013 – not 2014!)

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON. DC 20410-l 000

ASSISTANT SECRETARY FOR CONGRESSIONAL AND INTERGOVERNMENTAL RELATIONS                                         

JAN 2 8 2013 (stamp receipt)

Paul J. Feiner
Town Supervisor Town of Greenburgh
Office of the Supervisor
177 Hillside Avenue
Greenburgh, NY 10607

Dear Supervisor Feiner:

Thank you for your letters of November 12 and December 24, 2013, to Deputy Secretary Jones urging the Department to provide communities that are members of the Westchester Urban County Consortium with Community Development Block Grant (CDBG) funds. HUD appreciates the keen interest you have in this issue, and understands your concerns about the effect that the County's noncompliance has had on services to residents of the Town of Greenburgh.

Like you, HUD is anxious to gain resolution of outstanding issues regarding the County's Analysis of Impediments to Fair Housing Choice, so that the County may move forward with its HUD­ funded housing, community development and homeless assistance programs. Regretfully, the County's refusal thus far to come into compliance has meant that $7.4 million in FY 2011 funds for housing and community development have already been reallocated or otherwise expired. Additionally, HUD has been unable to approve funding for the County for FY 2012 and 2013 and these funds will also be subject to expiration or reallocation without appropriate actions by the County to correct the noncompliance. Should the County resolve the issues, however, the Department will be able to release available funds to the County.

HUD has considered other alternatives-including whether HUD could grant the money to the State to administer within the County or to otherwise get money to serve intended beneficiaries within the County. In fact, HUD was able to reallocate FY 2011 Emergency Solutions Grant funds to the State to administer within the County. Unfortunately, for CDBG and HOME, statutory provisions prevent the Department from providing the grant to any entity other than the County to provide funds within the Urban County Consortium. HUD must ensure that the County's actions and documents comply with statutory and regulatory requirements as well as the terms of the Settlement Agreement before it can approve its action plans. Going forward, the Town of Greenburgh could qualify as an entitlement community and receive direct CDBG entitlement grants separate from the County once the current Urban County Cooperation Agreement period expires at the end of the County's 2014 program year on April 15,2015.

I hope the information provided is helpful. Please let me know if I can be of further assistance.

Sincerely,

Dominique M. McCoy
General Deputy Assistant Secretary for
Congressional and Intergovernmental Relations