Gov. Cuomo and state Attorney General Eric Schneiderman reached a truce Monday on how to spend part of a $613 million windfall from a housing forceclosure settlement.
Scheiderman had negotiated the settlement with JP Morgan Chase in a case brought against the banking giant over its role in the sub-prime mortgage crisis.
The terms of the settlement with the bank gave Schneiderman virtually sole discretion on spending the money to aid overburdened homeowners — triggering a tiff with Cuomo, his predecessor as AG, who argued the governor deserved a role.
“The agreement was the product of constructive negotiations,” said Schneiderman spokesman Matt Mittenthal.
The deal covers the distribution of the first installment of $163 million this year.
Cuomo and Schneiderman essentially agreed to a 50-50 split.
Existing state programs that provide relief to homeowners will get $81.5 million
The remaining $81.5 million will be awarded to boost housing through a competitive bidding process overseen by Schneiderman and housing agencies managed by the Cuomo administration, sources said.
“As was the case with funds from the National Mortgage Settlement, the attorney general looks forward to using his discretion to allocate funds from this and future bank settlements in an open and transparent way to help as many New York families as possible,” Mittenthal said.