The U.S. Attorney’s Office for the Southern District of New York announced that it has reached a settlement agreement with the Village of Spring Valley that will result in the construction of 22 units of affordable rental housing within the village over the next five years.
The settlement, announced by U.S. Attorney Jay Clayton, resolves a lawsuit brought under the Fair Housing Act (FHA) alleging that Spring Valley failed to comply with a 2018 Voluntary Compliance Agreement and Conciliation Agreement (VCA) it entered into with the U.S. Department of Housing and Urban Development (HUD). The lawsuit remains pending against Rockland County, which was also a party to that agreement.
“I applaud the commitment of the Village of Spring Valley to build more affordable housing as part of this resolution,” Clayton said. “Local regulations, including restrictions on new construction and overly burdensome permitting processes, can drive up housing costs. This agreement shows there is a path forward to lower costs and speed up the development of affordable housing.”
According to court filings in federal court in White Plains, the original agreement with HUD followed an investigation into allegations involving a privately developed affordable housing project funded through HUD programs overseen by Spring Valley and Rockland County. The project allegedly marketed and sold units almost exclusively to white Hasidic Jewish buyers, which federal officials said violated fair housing laws.
Administrative complaints alleged that Spring Valley and Rockland County were aware of concerns that potential buyers were being excluded based on protected characteristics but failed to take sufficient corrective action before the homes were completed and sold.
To resolve those complaints, Spring Valley and Rockland County agreed in 2018 to build 62 affordable housing units that would meet specific affordability requirements by set deadlines. However, by the time the federal lawsuit was filed in 2025, only four qualifying units had been constructed, even after the agreement was amended in 2021 to allow additional time.
Under the new court-approved settlement agreement, signed by U.S. District Judge Cathy Seibel, Spring Valley must ensure the completion of 22 affordable rental units by December 1, 2030. The apartments must be reserved for households earning 75% or less of the Area Median Income for Rockland County and must remain affordable for at least 50 years through deed restrictions or similar legal protections.
The agreement also requires the village to strengthen oversight of HUD-funded projects and provide Fair Housing Act training for municipal employees. In addition, Spring Valley agreed to pay a $15,000 civil penalty.
The federal lawsuit against Rockland County remains ongoing.
The case is being handled by the Civil Rights Unit of the U.S. Attorney’s Office Civil Division, with Assistant U.S. Attorney Samuel Dolinger leading the prosecution.