After more than a decade, the bitter fight over a plan to build affordable housing on the Elizabeth Street Garden site in Manhattan may be nearing an amicable resolution. In 2017, the city selected developers Pennrose, Habitat for Humanity, and Riseboro to build 123 units of low-income senior housing. Then-Mayor Eric Adams abruptly canceled the plan in June 2025, sparking a lawsuit from the developers.\n\nNow, court filings suggest a potential settlement: the city may transfer a lot at 22 Suffolk Street to the developers, where they could build 180 affordable homes.

City spokesperson Matthew Rauschenbach stated the city is committed to delivering housing while resolving the lawsuit. The developers’ attorneys have declined to comment on specifics.\n\nSupporters of the Elizabeth Street Garden celebrated Adams' decision, while housing advocates like Barika Williams warned that overturning approved plans sets a dangerous precedent. The two sides are due back in court on August 13, with expectations that the matter will be resolved before then.