Long Island fair housing watchdog 'breathing easier' after federal judge restores DOGE cuts

Long Island Housing Services, a local fair housing watchdog, said Wednesday it has greater assurance it will get paid for its work following a federal court order that requires the Trump administration to restore funding to nonprofits that combat housing discrimination. 

A federal judge in Massachusetts on Wednesday ordered the U.S. Department of Housing and Urban Development to reinstate grants to fair housing nonprofits around the country, citing a recent appellate court decision in a similar case. 

U.S. District Judge Richard G. Stearns granted a request for a temporary injunction after HUD had terminated fair housing grants to 66 nonprofits through letters sent on Feb. 27, which said the cancellations were at the direction of President Donald Trump's Department of Government Efficiency. HUD did not respond to questions about the funding Wednesday.

The order affects grants to two nonprofits that serve Nassau and Suffolk counties — Long Island Housing Services in Bohemia and Fair Housing Justice Center in Long Island City, Queens. Earlier this month, Long Island Housing Services told Newsday that the canceled grants represent about $1 million over the next 2 ½ years. The grants allow the nonprofits to field discrimination complaints, conduct investigations and provide educational programs about fair housing laws to groups, such as landlords and real estate agents.

"We’re breathing a little easier because a court has agreed with our reading of the law that the contract was not lawfully terminated," said Ian Wilder, executive director of Long Island Housing Services.

Four fair housing nonprofits from different parts of the United States sued HUD earlier this month in federal court in Boston to restore funding, alleging violations of the Administrative Procedure Act because the terminations were arbitrary and capricious. 

Stearns’ order blocked HUD from terminating any Fair Housing Initiatives Program grant, which would cover funding to nonprofits across the country, not just the four plaintiffs, said Rebecca Livengood, an attorney at Relman Colfax in Washington D.C., who represented the plaintiffs. 

"We have every expectation that HUD will make payments in accordance with the order," Livengood said. 

Wilder said a few weeks ago he feared the nonprofit might not be able to serve as many clients and would have to cut some educational programs because the HUD funding represents about 20% of its annual budget. But Wednesday he said the order gave him comfort the nonprofit's services would remain intact.

"This definitely makes us feel more confident in our understanding of the law that our contract is still in force, and we can provide services that will be compensated," Wilder said

Craig Waletzko, a spokesman for Fair Housing Justice Center, said the nonprofit "never stopped doing the work funded by these grants as we recognized the cancellations were illegal."

The federal government had argued that the court lacked jurisdiction and did not have the power to review HUD’s decision making on how to allocate funds.

In his order, Stearns cited a decision made by the 1st U.S. Circuit Court of Appeals on Friday in Boston, which left in place an injunction that required the U.S. Department of Education to restore funding for states’ teacher preparation programs, including in New York. Those programs were terminated by the Trump administration in February because it said they promoted diversity, equity and inclusion initiatives. 

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.