Neighbors Can't Block Agency Funding of Low-Income Housing

Facts: The Cathedral of St. John the Divine leased some of its property to a developer to construct an apartment building with 296 market-rent apartments. After community opposition, the developer agreed to an 80/20 building so that 20 percent of the apartments would be used for affordable housing. The New York City Housing Development Corporation (HDC) then approved funding for the affordable housing. HDC found that the environment wouldn't be affected by a loan funding reservation of 59 of the apartments for low-income housing. Neighboring residents then sued HDC to challenge its funding. They claimed that the new building would block their views of the Cathedral. HDC asked the court to dismiss the case.

Court: HDC wins. The nearby residents never challenged the actual construction of the building, which was well underway. They didn't have standing to challenge HDC's funding for the low-income housing. And even without the HDC loan, the building would be built, with all apartments being rented at market value.

Sutherland v. New York City Housing Development Corp.: NYLJ, 8/11/08, p. 20, col. 3 (Sup. Ct. NY; Kornreich, J)