Case Type

Other

Housing Type

Other

Court

Supreme Court of the State of New York

County

New York County (Manhattan)

L&T / Index / Case / Docket / Clerk's Number

No. 112

Slip Opinion Number

2026 NY Slip Op 00076

Petitioner

The Coalition for Fairness in Soho and Noho, Inc.

Respondent

City of New York, New York City Department of City Planning, New York City Planning Commission, New York City Council, Adams, Eric

Judge

Rivera, J., Halligan, J., Garcia, J.

Decision/Order Date

2026-01-13

Posture

Other

Disposition

Judgment for Landlord

Winner

Landlord Substantially Won

Synopsis

The Court of Appeals reversed the Appellate Division, upholding the City's 2021 rezoning plan for SoHo/NoHo artist lofts. The plan imposed a one-time fee on landlords for converting Joint Living-Work Quarters for Artists (JLWQA) units to unrestricted residential use. The court held that this fee does not constitute a compensable taking under the Fifth Amendment's Takings Clause. It reasoned that landlords lack a compensable property interest in converting their units to a new, more valuable use, as the fee does not burden their existing property rights or coerce them into relinquishing an interest that the government would otherwise have to compensate for. The fee is not a taking as it affects only a potential new property interest.

Keywords

Land Use; NYC Agency’s Standalone One-Time Fee for Conversions of Artist Loft Space to Unrestricted Residential Use Does Not Implicate Constitution’s Fifth Amendment Takings Clause; Joint Living-Work Quarters for Artists Law; 2021 Re-zoning of Soho/Noho; No Compensable Property Interest Because Fee Does not Burden Existing Use and Applies Only if Landlord Seeks to Convert to New Undoubtedly More Valuable/Profitable Use

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