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Moody v. The Related Companies L.P.

FHA Discrimination Claim Not Stated as to Hudson Yards' Affordable Rental Units

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MEMORANDUM OPINION AND ORDER New York incentivizes real estate developers to include affordable units in otherwise market-rate developments through the 421-a Tax Incentive program. Plaintiffs argue that laudable goal has led to discrimination that is unlawful under the Fair Housing Act (“FHA”), 42 U.S.C. §3601 et seq., as well as under New York State and City law. Defendants have moved to dismiss Plaintiffs’ Amended Complaint, arguing that their claims are about economic discrimination, and that, therefore, they have not stated a claim pursuant to the FHA. The Court agrees. For the reasons that follow, Defendants’ motion to dismiss is GRANTED. BACKGROUND Plaintiffs Chanel Moody, Ayanda Carmichael, and Ronnie Clark were selected by lottery for access to affordable rental housing units in the building located at 15 Hudson Yards. That mixed-use building, which took advantage of the 421-a Program, includes some affordable rental units as well as market-rate condominiums. Am. Compl., Dkt. 18

4, 12, 18-23, 52-53, 67. The building was developed and is operated by Defendants The Related Companies, L.P. (“Related”) and ERY South Residential Tower LLC (“ERY”). Plaintiffs, who are Black1 and low-income, allege that tenants of the affordable housing units at 15 Hudson Yards are: segregated from spaces used by luxury condominium owners in the same building; required to use “poor doors” to access their apartments (meaning that the affordable units have a different street address than the address used by the market-rate condominium owners); and refused access to certain amenities that luxury condominium owners are given (such as access to a swimming pool, playroom, and fitness center). See, e.g., id.

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