Real Estate & Property Law

'Garbage' New York Fair Housing Suit Leads to Landmark Settlement

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A lawsuit initially dismissed as “garbage” by officials in the well-to-do New York City suburb of Westchester County has now led to what the New York Times describes as a landmark settlement.

Without admitting liability concerning claims that the county misrepresented when obtaining federal funds that it had complied with requirements to promote diversity, the county has agreed to spend $50 million to build or buy “affordable” homes for working families in some of the county’s most segregated communities and aggressively market them to non-whites, the newspaper reports.

“Residential segregation underlies virtually every racial disparity in America, from education to jobs to the delivery of health care,” says Craig Gurian. He is executive director of the Anti-Discrimination Center, which filed the False Claims Act litigation in U.S. District Court in Manhattan.

Andrew Spano, who serves as Westchester County executive, said the county has complied with federal mandates but settled to avoid the ongoing cost of litigation and potential penalties. The settlement, he predicts, will have “a sweeping effect on communities nationwide.”

Additional coverage:

Am Law Daily: “Epstein Becker on Landmark Westchester Housing Settlement”

Updated on Aug. 11 to link to subsequent Am Law Daily post.

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