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A legal showdown is brewing in New York City, where a group of property owners has launched a proposed class action lawsuit against the city, alleging that sidewalk shed regulations constitute an unconstitutional seizure of private property. The suit, filed just one day after the City Council passed a sweeping reform package targeting sidewalk sheds, could reshape property rights across the five boroughs.

The Battle Over Sidewalk Sheds: Property Owners Push Back

Four Manhattan property owners took their grievances to a New York federal court Thursday, arguing that they have been unfairly burdened by city-mandated sidewalk sheds that spill onto their land without compensation. Under existing building codes, when a property owner erects a sidewalk shed, it must extend between five and twenty feet beyond their own building—often encroaching on neighboring properties.

For years, affected property owners have had no legal avenue to challenge this intrusion. “Across the five boroughs of the city, many thousands of blameless neighbors have experienced and continue to experience infringement of their property rights because of the city’s laws and rules and because of sidewalk sheds,” the plaintiffs argued in their filing.

A Longstanding Problem: The Perpetual Shadow of Sidewalk Sheds

Since 1980, NYC building codes have mandated periodic inspections for structures taller than six stories. If inspectors deem a building unsafe, its owner must conduct repairs while keeping sidewalk sheds in place until the work is completed. However, delays in repairs have left the city blanketed with more than 375 miles of these structures—many of which remain standing for an average of 17 months, per the lawsuit.

The issue has drawn the ire of city officials. On Wednesday, the NYC Council passed five reform bills aimed at cracking down on landlords who delay shed removal. The legislation also enhances inspections and creates new penalties for prolonged structures.

But for affected property owners, the reforms don’t go far enough.

Legal Counsel: Reforms Don’t Address Key Grievances

Phillip Spector, one of the attorneys representing the property owners, acknowledged that the legislative package signals awareness of the problem but insisted that it fails to address his clients’ specific claims.

“There’s a broad consensus that these sheds are doing damage and something needs to be done about it,” Spector told Law360 Real Estate Authority. “It just happens to be the case that we don’t believe the legislative package actually solves the problem that’s been affecting our clients, which is that they’re due compensation for the period that the sheds have been on their property.”

Six Years in Limbo: Property Owners Detail Harms

The four plaintiffs allege that sidewalk sheds have intruded on their properties for as long as six years, often built without notice or consent. Some structures use their stairs, stoops, or lawns for support. Beyond the physical encroachment, property owners say the sheds have diminished their quality of life, damaged their real estate, and provided cover for criminal activity, including break-ins and attempted muggings.