In this edition of “Up‑Zoning,” we highlight a pivotal Court of Appeals decision that clears the way for converting SoHo‑NoHo Joint Living Work‑Quarters for Artists (JLWQA) units to unrestricted residential use. The ruling upholds the Arts Fund fee established under the 2021 rezoning and brings long‑needed certainty for property owners now able to move forward with conversions.
Path for SoHo-NoHo JLWQA Conversions
On January 13, 2026, the New York Court of Appeals reversed the ruling of the Appellate Division in Matter of Coalition for Fairness in Soho & Noho, Inc. v. City of New York, clearing the way for the conversion of Joint Living Work-Quarters for Artists (JLWQA) units to unrestricted residential use. The decision ends years of uncertainty and provides the clarity needed for property owners (including condominium and cooperatives) to move forward with conversion plans.
In a 6-1 decision, the Court upheld the Arts Fund fee for the conversion of JLWQA units to unrestricted residential use that was introduced in conjunction with the 2021 SoHo/NoHo Rezoning. The Court found that the fee does not constitute a taking under the Takings Clause of the Fifth Amendment because a standalone monetary payment neither appropriates private property nor extinguishes existing use rights. The Court further reasoned that the Takings Clause is implicated only when the government requires the transfer of a property interest, not when it imposes a monetary obligation as a condition of obtaining a permit.
What this Means for JLWQA Property Owners
The Arts Fund fee is now enforceable and conversions of JLWQA units to open residential use may proceed. Owners who wish to pursue JLWQA conversion use must pay the fee of $100 per square foot (to be adjusted annually) and record the appropriate documentation with the City Register to receive certification from the Department of City Planning (DCP). Certification from DCP is required to obtain building permits from the Department of Buildings (DOB).
Potential Benefits of JLWQA Unit Conversions for Property Owners
Converting to open residential use removes the artist certification requirement that can limit the pool of potential buyers and tenants. This could expand marketability, may improve financing options, and has the potential to resolve compliance concerns that many JLWQA unit owners have faced. For properties where JLWQA restrictions created uncertainty, there is now a clear path forward for conversion.
Contact Us to Begin the Conversion Process
For owners of JLWQA units who have considered conversion in the past but held off due to ongoing litigation, now may be the time to evaluate your options. BBG stands ready to help you assess whether conversion makes sense for your property, navigate the approval process, and ensure compliance with City agency requirements. Please don’t hesitate to contact us with any questions or to discuss your particular property.
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About BBG’s Land Use and Zoning Practice Group
We represent a diverse range of clients, including property owners, developers, educational and religious institutions, as well as licensed professionals such as engineers and architects. Our experienced team of attorneys understands the intricacies of NYC land use and zoning laws and has a proven record of successfully guiding projects through due diligence, project planning, and the government review and approval process.
Our services include, but are not limited to:
- Due diligence and analysis of development potential and zoning review for licensed professionals, developers and lenders;
- Transfers of development rights (“air rights” transfers);
- Affordable housing and the City’s Universal Affordability Preference and Mandatory Inclusionary Housing Programs;
- Variance, special permit and appeals applications at the Board of Standards and Appeals;
- Rezoning and special permit applications at the Department of City Planning;
- Requests to obtain Zoning Resolution and Code Determinations from the Department of Buildings;
- Approval by the Landmarks Preservation Commission;
- Assemblage, easement and development agreements; and
- Construction License Agreements / Access Agreements.
Written by: Ron Mandel, Partner, Land Use and Zoning Practice, and Alaina Greene, Law Clerk. Ron can be reached at 212-867-4466 (Ext. 424), or rmandel@bbgllp.com.