Case Summary: United States ex rel. ADC v. Westchester County, New York (S.D.N.Y.)

On August 10, 2009, the court entered astipulation and order of settlementresolvingUnited States ex rel. ADC v. Westchester County, New York(S.D.N.Y.). As part of its applications for funding under the HUD grant program, between 2000 and 2008 the County periodically certified that it was meeting its obligations to affirmatively further fair housing. Thecomplaint-in-interventionfiled on December 18, 2006, alleged that the County violated the Housing and Community Development Act and the False Claims Act when it failed to identify and address impediments to fair housing to comply with the express conditions of the HUD grants and falsely certified that it had acted to affirmatively further fair housing. To settle the United States' claims under the Housing and Community Development Act, the County has agreed to repay $21.6 million to the County's account with HUD. That amount, along with an additional $30 million of County funds, will be used for the construction of 750 units of fair and affordable housing over the next seven years in areas of the County with low African-American and Hispanic populations. To resolve the False Claims Act claims in the complaint, the County has agreed to pay the United States a total of $30 million, with a credit for the $21.6 million repaid to the County's HUD account. The County will also undertake and fund marketing, public education, and other outreach efforts to promote fair and affordable housing. Finally, the County's compliance with the agreement will be overseen by a court-appointed monitor. The allegations of wrongdoing were first brought to the attention of the United States by the Anti-Discrimination Center of Metro New York, a fair-housing advocacy group, which filed a complaint as a whistleblower under the qui tam provisions of the False Claims Act. Those provisions permit the United States to intervene in cases originally commenced by private parties who know of fraud committed against the Government. The Anti-Discrimination Center will receive $7.5 million as part of theFalse Claims Act settlement.