Oyster Bay votes to settle housing discrimination lawsuits

The Oyster Bay Town Board authorized a plan to settle more-than-a-decade-old federal and state discrimination claims over housing policies that prioritized town residents.

The U.S. Justice Department filed a lawsuit in 2014, alleging the two programs — one for seniors and another for new homebuyers — violated the terms of the federal Fair Housing Act. The policies were discriminatory, the lawsuit said, because they gave preference to residents of the town, where a majority of residents are white. New York's Division of Human Rights alleged in its 2015 suit that the town programs had violated the state's Human Rights Law.

The town board voted to advance the settlement Tuesday in a unanimous vote.

Oyster Bay will drop a residency preference for town residents and family members as part of its Next Generation housing program, according to settlement terms outlined in a resolution. That program incentivizes housing for first-time homebuyers. But under the Golden Age Housing program, for seniors 62 and over, town residents will still hold priority.

The federal and state governments agreed to drop claims against the Golden Age program, and there is no financial element to the settlement, according to the town resolutions.

"This marks an important milestone, bringing closure to a decades-old lawsuit that predates my administration while safeguarding our commitment to ensuring seniors can continue to live in our community,” Oyster Bay Supervisor Joseph Saladino said in a statement.

Long Island housing advocates criticized the settlement Tuesday, arguing it wrongly keeps the residency preference in place for seniors.

"Why is it not good on one program, but good on another?" Ian Wilder, executive director of the Bohemia-based Long Island Housing Services, said in a phone interview. "I have a real problem with that."

Two programs affected

The town’s population is about 70% white and 2% Black, according to 2024 U.S. Census Bureau data. 

The Fair Housing Act prevents municipalities and others from using discriminatory practices to restrict housing based on race, religion and other criteria. The Golden Age program, established in 1993, allows seniors to purchase co-ops within the town where denser development is allowed. It comprises 1,476 units in Bethpage, Woodbury and Massapequa, town officials said.

Next Generation incentivizes developers to build affordable homes for first-time homebuyers and was first introduced in 2004. The town can grant variances allowing for denser development — up to 12 units per acre. In exchange, developers agree to only sell to town residents, or relatives, who meet income requirements. A total of 56 units have been built through Next Generation at The Seasons at Plainview and The Seasons at Massapequa, settlement documents show.

Christian Vitek, a spokesman for the state Division of Human Rights, said in an email the specifics of the settlement are pending. "The state Division of Human Rights believes every New Yorker deserves a fair opportunity to find a home, and we are committed to rooting out housing discrimination wherever it occurs."

The U.S. Department of Justice did not respond to a request for comment.

As part of the town settlement agreement, elected officials and other staff members are required to attend two hours of annual fair housing education and training for three years. The town has to report who participated in the training and when it occurred.

Criticism for senior policy

Keeping priority for residents in the senior program is disappointing, said Elaine Gross, president emerita of the Syosset-based ERASE Racism. That's especially true, she said, as Long Island faces an acute housing affordability crisis.

"The settlement is sending a message that the state and the federal government are still wishy-washy on this matter," Gross said in an interview. "It's sending the wrong message."

The federal government's case alleged the town intentionally discriminated against Black people.

"The Town is predominantly white, and very few African-American residents are eligible for these housing programs," U.S. Justice Department lawyers wrote in the 2014 complaint. "Indeed, few, if any of the units developed under these programs have been purchased by African-Americans."

The town maintained its housing programs were not discriminatory.

Frederick K. Brewington, a Hempstead-based civil rights attorney, said it's not surprising the case is headed toward a settlement.

The resolution reflects a view that eliminating the residency policy in one program and adding a training requirement for town officials was the best immediate outcome.

"This may not be the perfect solution, but when we have real problems in our society, the law is not always the best way of fixing it," Brewington said.

By Joseph Ostapiuk

joseph.ostapiuk@newsday.com@OstapiukJ