WESTCHESTER - Westchester County will not be getting $7 million in federal funds for public works projects.

A federal appeals court ruled Friday evening that the money at the center of the ongoing battle over affordable housing will instead go to other New York municipalities.

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The Department of Housing and Urban Development says Westchester has failed to follow the terms of a 2009 settlement in a housing desegregation lawsuit. That settlement called for the county to take a closer look at local zoning laws that may hinder fair housing.

The county maintains that it complied, but HUD has rejected its findings.

The county is ahead of schedule on part of that 2009 agreement calling for 750 affordable-housing units in mostly white areas to be built and targeted to minorities. As for the $7 million, some of the funds will come back to cities within the county, including White Plains and Yonkers, which applied for funds.