Judge temporarily halts demolition of NYCHA complex in Chelsea
Credit: Elvert Barnes on Flickr
A plan to demolish two Chelsea public housing complexes and replace more than 2,000 units has been temporarily halted after a judge issued a restraining order Thursday. Judge Margaret Chen issued the stay on the New York City Housing Authority’s (NYCHA) Fulton and Chelsea-Elliot Houses, part of a plan to replace 18 buildings and create 2,500 market-rate units across the two complexes, as The City reported. The order comes after a group of tenants successfully appealed to stop the project, which NYCHA approved in October 2024, following the dismissal of their initial lawsuit last month.
Developed by Related Companies and Essence Development, the project would replace all 2,056 existing homes with six new buildings across both campuses. It also calls for roughly 3,500 mixed-income apartments, including about 1,000 permanently affordable units.
Under the plan, most current residents would remain in their homes while the new buildings are constructed, moving into their new apartments in phases over the next seven years. About 120 tenants—including those in a senior building—would need to relocate temporarily until their new units are ready.
The developers have guaranteed that current NYCHA residents would receive new units on a “one-to-one” basis, at the same rent-capped rate, in any of the new buildings. As Chelsea News notes, if all displaced residents opt for units in the new development, it would require building 2,000 additional apartments—bringing the total to more than 5,000 new units.
The new apartments would feature resident-controlled heating and ventilation, dishwashers, and in-unit washers and dryers. Buildings would also include common areas, multi-purpose community spaces, rooftop access, and lobby attendants, as 6sqft previously reported.
On-site community resources, including healthcare facilities, community centers, grocery and retail stores, and outdoor recreation spaces, would also be included.
Last year, a group of tenant advocates led by State Sen. Tom Duane sued to halt the project, arguing that it violates a 2010 state law he helped pass, which he says prohibits developers from building any market-rate units on the site. Opponents also claim the plan improperly bypassed the city’s uniform land use review process.
The plaintiffs’ demand was rejected in January by Supreme Court Justice David Cohen. After they appealed, the appellate division’s ruling has now temporarily halted the project while the case is resolved.
Another major point of contention is the project’s cost. NYCHA and Related estimate it would cost about $2 billion, roughly the same as repairing the existing housing stock. Advocates, however, argue the true price tag is closer to $2.4 billion and claim that repairs would cost less than the $2 billion estimate.
Plans to demolish the two complexes have circulated for years, but only recently gained majority support from residents as conditions have continued to deteriorate. Tenants frequently report leaks, mold, heating issues, broken elevators, and other problems.
A survey previously conducted by NYCHA and the developers found that about 30 percent of eligible residents, roughly 950 people, responded, with 60 percent of respondents expressing support for the redevelopment plan.
The project is part of the Rental Assistance Demonstration (RAD) program, which transfers management of public housing buildings to private developers. In return for financing millions of dollars in critical upgrades, developers collect rent payments while the agency retains ownership.
Since 2017, RAD has encompassed more than 40,000 units, including the Fulton and Chelsea-Elliot complexes, as NYCHA works to address decades of neglect and mismanagement that have left tenants in deteriorating conditions, as reported by The City.
The appellate division’s ruling leaves the future of one of NYCHA’s most ambitious redevelopment efforts uncertain as the appeal moves forward.
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