NEW YORK CITY—The Related Cos. and its pet project, Hudson Yards, appear to be in trouble. The company has been called onto the carpet by Preet Bharara, US Attorney for the Southern District of New York for violations of the Americans with Disabilities Act—as well as the Fair Housing Act—at two of its multifamily buildings: the One Carnegie Hill apartments (at 215 E. 96th St.) and the Tribeca Green apartments (325 North End Ave.).

In addition, the District Attorney's complaint charges, “Related's pattern or practice of failing to design and construct dwellings and associated places of public accommodation in compliance with the FHA and the ADA…may extend to other multifamily buildings currently being designed and constructed, including, but not limited to 500 W. 30th St. and 15 Hudson Yards.” The suit also mentions the company's other multifamily properties around the country—of which, it says there are around 20—where similar issues may be in place.

In total, the DA charges Related with 17 violations each at One Carnegie and Tribeca. The infractions cover a wide range of issues, including everything from accessibility inside the units for wheelchair-bound residents to signs in public space that don't include raised-letter Braille for those with visual impairments.

The suit requests that the court require Related to repair the design and construction violations of these Federal regulations at all of its existing buildings, as well as those under construction. Further, it asks that Related be required to pay damages to any individuals harmed by the violations and that the company be charged with the maximum civil penalties allowed by law.

In a written statement, Related says, “We are disappointed by the fact that we have been unable to reach agreement with the U.S. Attorneys' office respecting the subject matter of the complaint, especially given our long-time commitment to accommodating disabilities. We have labored in good faith to reach a resolution, going substantially beyond what we felt was legally required. Unfortunately, for the time being, we have reached an impasse with the Government which we believe is asking for things not required by law. We are hopeful that as the case progresses, Related and the Government will be able to reach a resolution of all outstanding issues." The DA's office declined to comment.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.