The U.S. Attorney’s Office for the Southern District of New York has reached a settlement with the Village of Spring Valley to address affordable housing shortages in the area. The agreement follows allegations that Spring Valley failed to comply with a previous Voluntary Compliance Agreement and Conciliation Agreement (VCA) signed in 2018 with the U.S. Department of Housing and Urban Development (HUD).
The settlement, announced by U.S. Attorney Jay Clayton, requires Spring Valley to complete 22 units of affordable rental housing within the next five years. These units must be occupied by households earning no more than 75% of Rockland County’s Area Median Income and will remain affordable for at least 50 years through deed restrictions or similar legal measures.
“I applaud the commitment of the Village of Spring Valley to build more affordable housing as part of this resolution,” said U.S. Attorney Jay Clayton. “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 original VCA resolved an investigation into claims that HUD funds were used by a private developer—overseen by both Spring Valley and Rockland County—to construct affordable housing that was then marketed almost exclusively to White Hasidic Jewish buyers, contrary to federal law. Complaints alleged that both municipalities were aware but did not act before completion and sale.
Despite agreeing in 2018 to develop 62 units meeting affordability criteria, only four qualifying units had been built by 2025 when this lawsuit was filed. An amendment in 2021 gave additional time for compliance but did not yield significant progress.
Under the new court-approved settlement entered by U.S. District Judge Cathy Seibel, Spring Valley will also implement monitoring procedures for HUD grantees and provide Fair Housing Act training for village employees. Additionally, Spring Valley agreed to pay a $15,000 civil penalty.
The case against Rockland County remains ongoing.
U.S. Attorney Clayton acknowledged HUD’s Office of Fair Housing and Equal Opportunity staff for their support in this matter.
Assistant U.S. Attorney Samuel Dolinger from the Civil Rights Unit is overseeing the case.
