Court shuts down REBNY’s opposition to hotel conversion law

Local Law 50 prevents 150-room-plus hotels from converting more than 20% of its space

New York /
Jun.June 24, 2016 11:31 AM

Overcoming a legal challenge by the real estate industry, the de Blasio administration prevailed in a battle over a 2015 law that curbs hotel-to-residential condominium conversions.

New York State Supreme Court Justice Margaret Chan ruled Thursday that the Real Estate Board of New York, which sought to overturn the law in a pair of lawsuits filed last year, did not have legal standing, Politico reported. Chan dismissed REBNY’s argument that the real estate industry would suffer financial damages from lost earning potential, saying the argument lacked evidence.

REBNY’s lawsuit took on a law last year that prevents hotels with more than 150 rooms from converting more than 20 percent of their space to non-hotel use – was unconstitutional and skirted the city’s land-use review process.

But Mayor Bill de Blasio and the New York Hotel Trades Council supported the law. 

In its suit, REBNY cited a similar case in the Long Island town of Brookhaven in which a developer said a rezoning blocked its construction of a planned supermarket. “Here, there is only speculation,” Chan wrote.

Hotels that recently traded – such as the Waldorf Astoria, for $1.95 billion in 2014 – are exempt from the law, which placed a two-year moratorium on large-scale conversions. [Politico] – E.B. Solomont


Related Articles

arrow_forward_ios
John Banks
High expectations: A look at John Banks’ 4 years at REBNY
High expectations: A look at John Banks’ 4 years at REBNY
John Banks
John Banks to step down as REBNY president
John Banks to step down as REBNY president
REBNY Awards
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Total size of New York construction sites is smallest since 2010. (Getty)
New construction projects off to slow start in 2021
New construction projects off to slow start in 2021
(iStock)
Landlords seek up to 5% rent hike on stabilized apartments
Landlords seek up to 5% rent hike on stabilized apartments
Gov. Andrew Cuomo, Andrea Stewart-Cousins and Carl Heastie (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
Landlords’ building emissions workaround is dead
Landlords’ building emissions workaround is dead
From left: Assembly member Harvey Epstein, State Sen. Julia Salazar,  MBA's Mike Flood and REBNY's James Whelan (Getty, Anuja Shakya/Whelan, MBA/Flood)
Real estate makes last-minute push to kill proposed preferred equity tax
Real estate makes last-minute push to kill proposed preferred equity tax
Compass' Robert Reffkin and REBNY's James Whelan. (Getty, Whelan ph: Anuja Shakya)
Compass slams REBNY with antitrust suit
Compass slams REBNY with antitrust suit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...