Community group files lawsuit against SoHo/NoHo rezoning

A local group that advocates for SoHo and NoHo residents filed a lawsuit to stop the neighborhood rezoning.

The nonprofit organization, known as Coalition for Fairness in SoHo and NoHo, is challenging the constitutionality of the recently passed rezoning plan. In the lawsuit, the group argues that the rezoning will cause displacement of residents and generate fewer affordable units than the city has predicted. 

The SoHo/NoHo rezoning plan was passed in mid-December. The proposal changes land-use rules across 56 blocks in Lower Manhattan. In addition, the rezoning opens the area to large department stores and gyms of 10,000 square feet or more. 

Mayor Eric Adams supports the overall plan to rezone SoHo and NoHo. However, recently, Adams vetoed a provision of the rezoning to increase fines for non-artist who buy lofts reserved for artists and fail to pay the conversion fee, Commercial Observer reports. 

The Coalition for Fairness in SoHo and NoHo thanked mayor Adams for rejecting the legislation but says that the veto “did not resolve the main issues in the rezoning.” According to the group, “residents of SoHo and NoHo still have no real path to conforming ownership, and are still subject to fines and confiscatory fees.”

The rezoning plan requires developers to follow option 1 of the Mandatory Inclusionary Housing plan. The MIH Option 1 states that 25 percent of new residential units must be available to households earning on average 60 percent of the area median income (AMI) or $64,440 for a family of three. 

The group’s petition states that affordable housing generated through the rezoning “is out of reach for most low-income households and the large unhoused populations in the city. Thus, the EIS (Environmental Impact Statement) fails to address the possibility and likelihood that the new affordable units will be unaffordable to most low-income households.”

Moreover, according to the lawsuit, increased developments in SoHo and NoHo will spike land and housing prices and cause displacement of local residents. Finally, Coalition for Fairness in SoHo and NoHo argues that large commercial developments “could alter the character of the community.”

The claims made by the neighborhood group prevent the construction of more housing. According to the Atlantic, new constructions are safer and can better accommodate the modern lifestyle. New residential units feature modern heating and ventilation systems and generally are more sustainable. The barriers to new construction decrease the housing inventory and make homes even less affordable.  

This is not the first lawsuit against SoHo/NoHo rezoning, and it is unlikely to succeed. Last summer, New York State Supreme Court Justice Arthur Engoro dismissed another lawsuit filed by two community groups, Commercial Observer reports.

Resources:

“Judge Dismisses City’s Push to Kill SoHo Rezoning Lawsuit,” by Nicholas Rizzi (Commercial Observer, 2021)

“Group sues to annul Soho rezoning, citing artist fee,” by Kathryn Brenzel (The Real Deal, 2022)

“SoHo-NoHo residents file suit against neighborhood rezoning,” by Max Parrott (AMNY, 2022)

“Adams vetoes measure that would increase fines for non-artist residents in upzoned Soho-Noho,” by Devin Gannon (6sqft, 2022)

“Neighborhood Coalition Renews Legal Crusade Against SoHo Rezoning,” by Mark Hallum (Commercial Observer, 2022)

“Adams Vetoes Proposal To Fine Non-Artist SoHo & NoHo Residents $15,000 For Their Lofts,” by Sophia Chang (Gothamist, 2022)

“The SoHo, NoHo & Chinatown Rezoning,” (Coalition for Fairness in SoHo and NoHo)

“New lawsuit seeks repeal of SoHo rezoning,” by Natalie Sachmechi (Crain’s New York, 2022)

“Newly-Approved SoHo Rezoning Promises Affordable Homes. How Much Will they Really Cost?” by David Brand (City Limits, 2021)

“Stop Fetishizing Old Homes,” by M. Nolan Gray (The Atlantic, 2022)