NYC Property Owners Lawsuit: Class Action Targets Sidewalk Shed Rules

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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.

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“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.