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.