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The Terms of Settlement Between County And Feds May Limit Developer’s Options
THE LEGAL BEAT
Last week, Rockland County and the U.S. Department of Housing and Urban Development (“HUD”) announced a settlement of a lawsuit brought against the county to enforce the terms of a 2018 Voluntary Compliance Agreement (VCA) requiring Rockland County to develop or rehabilitate affordable housing units.
As part of the settlement, the county agreed to ensure the completion of 36 affordable housing units by April 15, 2031. The settlement agreement refers to “a particular development site within the County, which has been identified to HUD by the County” but the location of the development site was not revealed.
Earlier this month, Rockland County selected Regan Development and Rockland Housing Action Coalition (RHAC) to redevelop the Sain Building site at 18 New Hempstead Road, New City. The redevelopment plan calls for the construction of a three-story mixed-use building with 23 age restricted affordable senior rental units, 25 non-age restricted affordable rental units.
The plan also provides a preference for 10% of the units for veterans, 5% for first responders/essential workers, and 10% for individuals with Intellectual/Developmental Disabilities (IDD), and a mix of units affordable to those earning 30%, 50%, 60% and 80% of AMI, or Area Median Income.
The county’s settlement with HUD requires the 36 rental units to be occupied by households with incomes at or below 60% of the AMI for Rockland County, with deed restrictions or other legal measures to ensure continued affordability for at least 50 years.
The County also agreed to monitoring, training, and the payment of a $10,000 civil penalty.
For the redevelopment of the Sain Building to meet the requirements of the settlement agreement, 75% of the units must be occupied by residents earning 60% of less than the County AMI. The 12 remaining units could be offered to residents earning between 60 and 80% of County AMI.
According to the settlement, construction deadlines are specified as follows:
- April 15, 2027: substantial completion of building foundation work.
- April 15, 2028: substantial completion of building superstructure and façade work.
- April 15, 2029: substantial completion of interior finishing work.
- April 15, 2030: substantial completion of construction work.
- April 15, 2031: full completion of 36 Affordable Units and issuance of Certificate of Occupancy.
The county is still ironing out the details of the contract with Regan Development, and if the Sain Building is the designated development site, the construction schedule in the settlement agreement would likely be part of the Regan contract.
According to the county, the resolution awarding the contract is being processed for submission to the County Legislature and is on track to be voted on during the June 16, 2026 legislative meeting.
The redevelopment of the Sain Building must also be approved through the Town of Clarkstown land use boards, which are considering a trove of development projects in close proximity to the Sain Building, including several residential developments along both North and South Main Streets in New City.
Under the terms agreed to between the county and HUD, the county has the option to offer an alternate development site should the Sain Building redevelopment not meet the requirements of the settlement agreement.
The Voluntary Compliance Agreement
The VCA resolved an earlier complaint filed with HUD alleging a private developer used HUD grant money given to Rockland County and the Village of Spring Valley to build 62 condominium units. The developer illegally designed and marketed the units to White Hasidic Jewish home buyers, and excluded prospective Black homebuyers from the process.
According to the lawsuit filed last January in the United States District Court for the Southern District of New York, Rockland County and Spring Valley agreed in 2018 to ensure that a separate group of 62 affordable housing units would be developed or rehabilitated during a seven-year period. The terms required approximately 25 of the affordable units be built within the first three years of the Agreement, but only four affordable units meeting the requirements of the Agreement were completed.
In March, Spring Valley settled with HUD and agreed to “reasonably ensure the development and/or rehabilitation of 22 Affordable Units for rental, occupied by households with incomes at or below 75% of the Area Median Income (“AMI”) for Rockland County.” The units must be located in the Village of Spring Valley (unless HUD agrees to locations outside the village).
Spring Valley also agreed to pay a civil penalty of $15,000 and agreed to monitoring, training, and periodic reporting and review by HUD.
With Spring Valley’s commitment to 22 units, Rockland County’s commitment to 36 units, and the four previously built, the total adds up to the 62 affordable units described in the original lawsuit.
