An appeals court Thursday put on hold NYCHA’s ambitious plan to demolish and rebuild 2,000 public housing apartments in Manhattan’s upscale Chelsea neighborhood, a delay that could extend for months a project that was supposed to kick off last December.

A five-judge panel of the appellate division paused the project while they weigh a lawsuit that aims to force NYCHA and their private sector partners, the Related Companies and Essence LLC, to go back to the drawing boards and seek regulatory approval.

The project has triggered multiple lawsuits, including litigation filed by 18 elderly tenants who are refusing to relocate from their seniors-only development, a key first step in the massive project.

The appeals court set a hearing for May 19, when it will consider arguments by tenants and former state Sen. Tom Duane that the project violates federal housing law and was fast-tracked without the usual governmental review required of private developers seeking zoning changes. 

The court would likely issue a decision months later, pausing the project well into the summer.

The project involves demolishing 18 deteriorating NYCHA buildings in the Fulton, Elliott and Chelsea Houses, rebuilding six taller towers for their residents, then constructing nine more buildings that would house 900 affordable units and another 2,500 market-rate apartments whose value would help finance the entire project.

Last week, in a separate matter, attorney Thomas Hillgardner filed a lawsuit accusing NYCHA, Related and Essence of illegally harassing 18 residents of the seniors-only Chelsea Addition to force them to relocate during the demolition process — and relocate again when the new building is up three years later.

“Should the Duane plaintiffs prevail, it seems likely that the entire plan will need to be withdrawn and Related and NYCHA will have to go back to the drawing board,” Hillgardner said.

He predicted if that happens, NYCHA and Related would back away from their current plan that requires the elderly tenants of Chelsea Addition to relocate twice — a prospect that they say has caused them great anxiety.

Hours after the appeals court issued its terse two-page ruling, NYCHA spokesperson Michael Horgan stated, “The Court granted a stay pending the appeal, and we will await the Court’s final decision after consideration of the full appeal and following argument.”

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