Brooklyn housing cooperative sues NYC over alleged property taking


Judge Pamela K. Chen of the U.S. District Court for the Eastern District of New York | Administrative Office of the United States Courts | Wikipedia Commons

A low-income housing cooperative in Brooklyn has filed a lawsuit against the City of New York and several city officials, alleging that the city has unlawfully taken possession of its property.

The lawsuit filed by the plaintiff, 789 Macdonough Street Housing Development Fund Corporation, names Molly Wasow Park, the Commissioner of Social Services of the City of New York, as one of the defendants.

The plaintiff alleges violations of its constitutional rights under the Fifth and Fourteenth Amendments, claiming the city has compelled it to provide housing without compensation to Emma Oliver, a former shareholder and board president. Oliver was previously convicted of grand larceny for embezzling more than $120,000 from the cooperative. The cooperative states it obtained a lawful eviction order against Oliver for nonpayment of maintenance fees totaling over $46,000 since 2019. However, city agencies allegedly intervened to block the eviction.

The complaint asserts that the New York City Department of Investigation issued stays on the eviction without court authority and that the Commissioner of Social Services initiated guardianship proceedings that led to a temporary restraining order preventing Oliver's removal.

The plaintiff argues that these actions constitute a "physical taking" under Cedar Point Nursery v. Hassid (2021), which holds that government-authorized physical occupation of private property requires just compensation. The cooperative claims this has resulted in increased costs and financial strain while depriving it of the use of its property. It further asserts that it is not equipped or obligated to serve as a shelter without compensation.

The cooperative seeks relief under 42 U.S.C. § 1983, including a declaration that its rights have been violated, just compensation for past and ongoing rental value, financial damages, attorneys’ fees, and related costs.

The plaintiff is represented by attorney Gregory Byrnes of Anderson Law. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-3680.

Organizations Included in this History


More News

Daily Feed

Sports

Ducks Have First Signing of 2026

The Long Island Ducks have announced the team’s first signing of 2026, welcoming Major League veteran outfielder Jacob Robson. Robson will begin his first season with the Ducks, his second in the Atlantic League, and his 10th season in professional baseball.


Local

The King is Back in the South Shore Press

The legendary Long Island journalist Karl Grossman’s latest column.


Sports

Don't Expect Bregman to Pay Off

This week, one of the bigger names in the free agency cycle signed with the Chicago Cubs, and fantasy managers everywhere sighed. Usually, anyone heading to Wrigley Field is viewed as a positive, but for Alex Bregman, more information has emerged suggesting this move could spell trouble for his fantasy outlook. Bregman is a right-handed pull hitter who previously played in two of the more favorable home parks for that profile in Houston and Boston. Both parks feature short left-field dimensions that reward pulled fly balls and help inflate power numbers.