Settlement reached in New York case over inaccessible housing features affecting people with disabilities

New York, New York – A major federal housing case in New York has come to a close after developers and construction-related parties agreed to make significant changes to multiple residential buildings and provide financial compensation to those affected. The case, announced by United States Attorney for the Southern District of New York Jay Clayton, focused on alleged violations of the Fair Housing Act involving accessibility issues in newly constructed housing.

The lawsuit centered on Lettire Construction Corp. and others involved in the design and construction of the Chestnut Commons rental building in Brooklyn. Through a series of settlements filed in federal court, the parties agreed to address accessibility concerns not only at Chestnut Commons but also at two additional buildings, The Tapestry in Manhattan and the Atrium at Sumner in Brooklyn.

The agreement requires retrofits at all three properties, though improvements at the Atrium at Sumner had already been completed before residents moved in. In addition, up to $100,000 will be made available to compensate individuals who were affected by inaccessible conditions at The Tapestry and Chestnut Commons. The defendants also agreed to pay $70,000 in civil penalties.

Settlement targets accessibility barriers in housing

The final settlement related to Chestnut Commons was approved by U.S. District Judge Alvin K. Hellerstein, officially resolving the case. Earlier settlements tied to The Tapestry and the Atrium at Sumner had already received approval in 2025.

At the heart of the lawsuit were claims that the buildings did not meet federal accessibility standards required under the Fair Housing Act. These rules apply to multifamily housing built after January 1991 and are meant to ensure that people with disabilities can safely and easily access and use their homes.

According to the complaint, the buildings included several design features that created barriers. These allegedly included high thresholds at entrances and within units, bathrooms without grab bars or proper insulation, and layouts that did not provide enough space for individuals using wheelchairs to move freely. Officials said these conditions made daily living more difficult for people with disabilities and did not meet required design guidelines.

“The Fair Housing Act is about whether people with disabilities can actually live in and move through their homes—in other words, Fair Access means just that,” said U.S. Attorney Jay Clayton. “As alleged, these buildings were constructed with barriers—high thresholds, inaccessible bathrooms—that can make daily life difficult or even impossible for those with disabilities. New Yorkers want their neighbors with disabilities to have housing they can access and use, and we will continue to enforce the law to ensure they have it. We appreciate the cooperation of Lettire and its partners in working constructively with the government and in committing to remedying these conditions.”

As part of the agreement, Lettire, Chestnut Commons Housing Development Corp., and MHANY Management Inc. must make changes to both shared spaces and individual units at Chestnut Commons to improve accessibility. They are also required to adopt new procedures to ensure compliance with federal law in future projects. This includes hiring a compliance consultant to review designs and conduct site visits to identify any issues before construction is completed.

The settlement also requires training and policy updates to ensure employees and agents understand and follow accessibility requirements moving forward.

Individuals who may have been affected by the inaccessible conditions could be eligible for compensation. This includes people who were discouraged from living in the building, those who experienced harm due to the conditions, or those who paid out of pocket to make their units more accessible.

Officials noted that this case is part of a broader effort to address housing accessibility. In recent years, the U.S. Attorney’s Office has reached more than two dozen similar agreements with developers and property companies to correct accessibility violations and improve housing conditions.

The case was handled by the Civil Rights Unit of the U.S. Attorney’s Office, with Assistant U.S. Attorney Danielle J. Marryshow leading the effort.