NEW YORK APPELLATE COURT UNANIMOUSLY RULES SOHO-NOHO REZONING UNCONSTITUTIONAL

Ruling invalidates unconstitutional fee voted in the final days by the de Blasio Administration

NEW YORK, Dec. 9, 2024 /PRNewswire/ -- In a major victory for residents of SoHo and NoHo, the New York Supreme Court's Appellate Division unanimously struck down a key provision of New York City's controversial SoHo-NoHo rezoning plan. In a 5-0 decision issued Thursday, December 5, 2024, the Court declared unconstitutional an "Arts Fund" fee that the Bill de Blasio and Vicki Been administration ushered in during its final days. The Court found that the "Arts Fund" fee violated the takings clause of the Fifth Amendment of the U.S. Constitution as well as state protections.

The "Arts Fund" fee was part of a larger plan to force residents to physically convert their Joint Living Work Quarters for Artists (JLWQA) apartments into strictly residential. Many residents would be forced to pay hundreds of thousands of dollars to an ambiguous public "Arts Fund" supervised by the city. Expert affidavits found each home would have to pay over a million dollars in physical conversion costs and "Arts Fund" fees.

"The de Blasio administration's poorly conceived push for this rezoning was a betrayal of the very artists and families who made this community what it is today," said Bryan Chadwick, a certified artist and long-time SoHo resident.

In making its ruling, the Court applied the Nollan/Dolan doctrine, which separates legitimate impact fees from government overreach. It found the "Arts Fund" fee amounted to extortion, with no real connection to land-use goals or to protecting the artistic community. The judgment made clear the fee was merely a revenue-generating scheme, not a solution to any negative impacts, making it an unconstitutional taking without just compensation. 

"We are gratified that the Appellate Division upheld the constitutional rights of SoHo and NoHo families," said Jack Lester and Lawrence Marks, attorneys for The Coalition for Fairness in SoHo and NoHo that represents the community members living there. "The court recognized the oppressive nature of this so-called 'Arts Fund' fee, which unfairly penalized the very residents who turned SoHo and NoHo into global hubs of creativity."

Touted by the Department of City Planning as a means to create more affordable housing, the SoHo and NoHo rezoning has yet to produce a single affordable unit. Instead, it singled out long-term residents for massive costs and fees, destabilized numerous historic districts, and threatened to displace thousands of families.

As one of his first acts in office, Mayor Eric Adams vetoed the extreme penalty clause tied to the "Arts Fund" fee. In 2022, state legislators also passed an emergency law to prevent immediate displacement of residents, revealing the harm and chaos caused by this rezoning. 

"I am thrilled the Appellate Division has exposed the unconstitutionality of this conversion fee, an unfair attempt to extract hundreds of thousands from residents under the flawed SoHo NoHo Rezoning Plan," said Christopher Marte, Councilmember for New York City District 1 which includes SoHo. "This ruling highlights the City's misguided approach in targeting the very artists who shaped these neighborhoods and should prompt a complete reevaluation of how we create affordable, equitable communities."

The Coalition for Fairness in SoHo and NoHo has played a critical role in defending against the rezoning's harmful effects. It remains committed to working with City officials on fair zoning solutions that address housing needs without unfairly penalizing communities. 

"This ruling is a wake-up call for the Department of City Planning which fought fiercely for an unconstitutional law that unfairly burdened our community," said Clarence Hahn, a member of the Coalition's Steering Committee. "Their indefensible actions undermine public trust in our city institutions."

For more information, please visit SoHoNoHo.org or see the ruling itself here.

SOURCE The Coalition for Fairness in SoHo and NoHo