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Court Reinstates Westchester County Housing Lawsuit vs. HUD

Court Reinstates Westchester County Housing Lawsuit vs. HUD
HUD had previously cut off Westchester from federal funding

A federal appeals court has reinstated a lawsuit brought by Westchester County against the U.S. Department of Housing and Urban Development.

The lawsuit is part of Westchester's fight with the federal government over the settlement of a housing desegregation case. HUD says Westchester has failed to adequately analyze local zoning. 

HUD notified Westchester in 2013 that because of the dispute, the county was losing $7.4 million in federal housing grants. Westchester sued, saying the agency was being arbitrary and capricious. But a lower-court judge said HUD's decisions were not subject to judicial review. 

The 2nd U.S. Circuit Court of Appeals in Manhattan said the judge was wrong. But it said Westchester can pursue only about $750,000 that has not yet been redistributed. 

Lawyers did not immediately return messages seeking comment.