Mayor Adams’ outgoing administration has offered to let a group of developers build an affordable apartment complex on a city-owned plot in Manhattan, but there’s a catch related to the Elizabeth St. Garden, where the outgoing mayor’s team is trying fervently to block a housing project.
The development group, comprising Pennrose Properties, Habitat for Humanity and RiseBoro, was selected years ago to carry out “Haven Green,” a project that involves building 123 affordable apartments for senior citizens on the site of Nolita’s city government-owned Elizabeth St. Garden.
Adams used to be a big supporter of Haven Green. But after Randy Mastro, who has ties to Haven Green opponents, became his first deputy mayor in spring 2025, Adams reversed himself and announced he opposed the redevelopment of the Elizabeth St. Garden.
Adams’ newfound opposition culminated in his administration last month designating the garden as “parkland,” a move that makes construction on the plot much more difficult.
The developers struck back, however, filing a lawsuit that alleged the move amounted to an illegal ploy by the mayor and Mastro to derail affordable housing on behalf of the garden’s well-connected supporters.
Then, in a Friday letter to the developers who brought the lawsuit, Mastro made an offer.
Mastro’s letter, provided to the Daily News and first reported by amNewYork, says Adams’ administration is willing to let the developers build a version of the Haven Green project at 22 Suffolk St. on Manhattan’s Lower East Side, a different city government-owned plot.
However, Mastro wrote that the administration is only willing to let the crew of developers get that site if they first agree to drop their Elizabeth St. Garden lawsuit. Mastro wrote they must move to drop the suit by “no later than” noon this Wednesday, Adams’ final day in office.
“Absent such confirmation by then, the Administration would be compelled to direct [the Department of Housing Preservation and Development] to revoke and terminate your selection as the approved entity to develop the Suffolk Street Site and authorization in accordance with the terms and conditions of the Site Authorization Letter, thereby discontinuing further advancement of the project with your team and instead seeking another partner to develop affordable housing on the Suffolk Street Site,” Mastro’s missive said.
Attorneys for the developers didn’t immediately return requests for comment Monday on Mastro’s proposal.
In his letter, Mastro noted the developers are expected to be able to build even more 100% affordable apartments at the 22 Suffolk St. plot than they could have at the Elizabeth St. Garden. But unlike the Elizabeth St. Garden, where shovels could hit the ground immediately, the 22 Suffolk St. site will need to go through the city’s land use process, which can take years, before development can begin.
The 22 Suffolk St. plot was once earmarked for the development of a new public school, and The News first reported in May 2025 that Mastro was eyeing it as a plan B option as he sought to find ways to derail the Elizabeth St. Garden redevelopment.
Opponents of the Elizabeth St. Garden redevelopment, including celebrities like Robert De Niro and Patti Smith, say it would ruin a cherished green space. Supporters of the development have noted that the Haven Green project would still leave some of the garden intact, while making room for much-needed senior housing in a neighborhood that has produced little of it in recent decades.
Adams’ successor, Mayor-elect Zohran Mamdani, said on the campaign trail he wanted to reverse his predecessor’s move and resurrect the Elizabeth St. Garden development. But after the parkland designation last month, Mamdani said that plan has become “nearly impossible.”
If Mastro persuades the developers to drop their suit, Mamdani’s administration would likely have an even harder time trying to bring back the Elizabeth St. Garden project.
In addition to the letter to the developers, Adams’ office on Monday released the parkland designation agreement his administration has entered into with the Elizabeth St. Garden’s operators.
Under that agreement, the operator, Elizabeth Street Garden Inc., will need to pay off $100,000 in back rent it owes the city over the course of 10 years.
The nonprofit will also be allowed to keep operating the garden, but it won’t need to pay the city any new rent, as the plot now technically would be under the purview of the city Parks Department. Under its previous lease, the nonprofit paid the city $4,000 a month in rent, records show.
