Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
The United States Attorney's Office for the Southern District of New York has announced a settlement with the Village of Spring Valley that aims to increase the availability of affordable rental housing in the area. The agreement comes as part of efforts to resolve a lawsuit alleging that Spring Valley failed to meet obligations under a previous compliance agreement related to fair housing.
According to U.S. Attorney Jay Clayton, "I applaud the commitment of the Village of Spring Valley to build more affordable housing as part of this resolution. 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 legal action stems from a 2018 Voluntary Compliance Agreement (VCA) between Spring Valley, Rockland County, and the U.S. Department of Housing and Urban Development (HUD). The VCA was established after allegations surfaced that HUD funds were used by a private developer—overseen by both local governments—to construct affordable housing units that were marketed almost exclusively to White Hasidic Jewish homebuyers. Administrative complaints claimed that both Spring Valley and Rockland County were aware of discriminatory practices but did not take sufficient corrective action before units were sold.
Under the original VCA terms, Spring Valley and Rockland County agreed to develop 62 units meeting specific affordability criteria by set deadlines. However, only four qualifying units had been completed by 2025 despite an extension granted in 2021.
The newly approved court settlement requires Spring Valley to ensure completion of 22 affordable rental units by December 1, 2030. These units must be available for households earning at or below 75% of Rockland County's Area Median Income and remain affordable for at least fifty years through deed restrictions or similar legal measures. The agreement also mandates monitoring HUD grantees and providing training for village employees on federal fair housing laws. Additionally, Spring Valley will pay a $15,000 civil penalty.
The lawsuit against Rockland County continues.
Jay Clayton expressed gratitude toward HUD’s Office of Fair Housing and Equal Opportunity staff for their assistance in this matter.
Assistant U.S. Attorney Samuel Dolinger is overseeing the case within the Civil Rights Unit.
