United States v. Kips Bay Towers Condominium, Inc.
New York, New York · federal · United States District Court for the Southern District of New York
HOA loss · pets-animals
What happened
After HUD investigation and charge, the United States sued Kips Bay Towers Condominium, Inc. on January 18, 2017, alleging the New York City condominium board refused to allow three residents with psychiatric disabilities to live with emotional support dogs. On February 28, 2018, a stipulation of settlement required $125,000 in damages and civil penalties and adoption of a new reasonable-accommodation policy, resolving the claims.
What the court (or agency) held
Condominium lost via public settlement. Kips Bay agreed to pay $125,000 total (damages and civil penalties) and to adopt a new RA policy covering assistance-animal accommodations—no trial verdict required.
Why this matters for members
Hard-line condo ESA refusals for psychiatric disabilities are classic FHA election cases. Settlements commonly pair six-figure money with a rewritten reasonable-accommodation policy and notice to residents.
What the member did
Residents' HUD complaints led to a charge and DOJ litigation resolved by public settlement.
Questions for the board
- Does the current RA policy expressly address emotional support animals for psychiatric disabilities?
- How many ESA requests were denied in the last two years, and why?
- What notice of settlement/policy changes was given to unit owners?
- Is counsel reviewing assistance-animal requests under the Fair Housing Act and any stronger state law, not just HUD guidance (much of which HUD withdrew in 2025)?
Questions for a lawyer
- How was the $125,000 settlement allocated between damages and civil penalties?
- What policy language did the stipulation require?
- What HUD-charge-to-DOJ timeline applied after residents’ complaints?
- What monitoring or notice obligations remain after settlement entry?
Citation
United States v. Kips Bay Towers Condominium, Inc., No. 1:17-cv-00361 (S.D.N.Y.); stipulation of settlement entered Feb. 28, 2018 (2018-02-28). United States District Court for the Southern District of New York. Outcome chip: FHA consent/settlement. Source: https://www.justice.gov/crt/case/united-states-v-kips-bay-towers-condominium-inc-sdny
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.