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ICSC Legal Database - CasesMonday, February 22, 1999 05:01 PM

Case Index:
00137

Citation:
Asian Americans for Equality v. Koch, 128 A.D.2d 99, 514 N.Y.S.2d 939 (1987), aff'd 72 N.Y.2d 121 (1988).

Issue:
Whether the City of New York properly exercised its zoning power in creating the Special Manhattan Bridge

District, considering that the City did not affirmatively order the construction of dwelling units for low and

moderate income persons?

Facts:
In 1979, the New York City Planning Commission (Planning Commission) published a study of the Manhattan

Bridge area. The study called for the creation of a special zoning district in the Chinatown area directly adjacent

to the Manhattan Bridge. The study concluded that Chinatown was overcrowded with tenements and there had

been little new construction in the area. One reason for the lack of new construction was the existing

high-density zoning within the district. Thus, any new construction, which would replace obsolete old

tenements, would not provide an equal number of dwelling units. The Planning Commission proposed new

regulations which would be sensitive to the existing urban design of the area, create a center for a mixture of

income groups to move into the area, encourage development of new community facility space, and promote

rehabilitation of the existing older housing. In addition, the Planning Commission believed it important to provide

a wide range of housing opportunities for all income groups. The mechanism by which the Planning Commission

sought to achieve these goals was to permit special higher density zoning than usually allowable. On June 3,

1981, a hearing was held where representatives of local community groups and others could participate.

Subsequently, the Board of Estimate approved the new zoning regulations. Key to the new district zoning

amendments was a trade-off whereby the builders could increase the basic floor area ratio in return for a

promise to provide space for community facilities, dwellings for low and moderate income families, and

rehabilitation of existing sub-standard housing. Henry Street Partners (HSP) applied to the Planning

Commission for a permit to develop within the special zoning area. HSP planned to provide condominium units

for upper-middle income people. As part of HSP's permit, it was required to construct a YMCA on the premises

and contribute $500,000 to subsidize rehabilitation of low income housing. After HSP successfully received its

permit, Asian Americans For Equality initiated this class action suit against the City. The citizens group

claimed that the zoning amendments were not the product of a well-considered plan and that the amendments

failed to provide a realistic opportunity for the construction of low income housing. The trial court, in denying the

City's motion to dismiss, relied on New Jersey's "Mount Laurel Doctrine."

Holding:
Reversed. The Court began its analysis by enunciating the standard of review in zoning decisions. Unless the

zoning is shown to be arbitrary, it will not be overturned. In addition, the burden of establishing such

arbitrariness is imposed upon the person who asserts it. The Court next considered a related decision to the

case at bar. In the previous case, the citizens alleged that they did not receive adequate notice of the zoning

changes, a violation of their constitutional rights. In finding against the citizens, the court held that the failure to

publish notice of the zoning hearings in the Chinese language was not unreasonably calculated. Moreover, the

Court of Appeals of New York, in sustaining the intermediate level decision, held that the Special District

resulted from a well-considered plan. In rejecting the citizens' argument that, under "Mount Laurel II," the

amendments failed to provide a realistic opportunity for the creation of low income housing, the Court asserted

that "not by the widest stretch of the imagination could the fact pattern of Mount Laurel be applicable to New

York City's record for providing low and moderate income housing." The court rejected the citizens' Mount Laurel

claim based on a variety of New York appellate level decisions also rejecting the Mount Laurel Doctrine.

Furthermore, the court distinguished Mount

Laurel in that it called for regional planning, while the district in question was not larger than a fourteen block

area. The Court then examined New York precedent concerning exclusionary zoning. The proper inquiry into the

exclusionary zoning question is whether the zoning amendments would create a balanced and integrated

community. The Court found that the zoning amendments would create such a community. The permits would

provide for low and moderate income housing as well as upper-income housing. Finally, the Court realized that it

was not its place to supplant its judgment for that of the legislature in zoning matters. In concluding, the Court

asserted that the Plaintiffs had offered no legal authority holding that every area as small as the district in

question must contain provisions for the construction of low and moderate income housing. A dissenting justice

claimed

that, under the New York Constitution and various case law, the City had an affirmative duty to create low and

moderate income housing. The dissent asserted that proof of exclusionary zoning existed which would rebut the

presumption of constitutionality applicable to zoning regulations. After concluding that a triable controversy

existed, the dissent distinguished previous cases, relied on by the majority, to assert the constitutionality of the

special zoning district. Finally, the dissent concluded that, under the majority's decision, the harm to the

community would be irreparable and the decision to award the City summary judgment was unconscionable.

00137 - Legal Update - Winter 1988