High court to hear Oyster Bay housing case

ALBANY -- New York's highest court said Thursday that it will take up a case that focuses on accusations by a state agency against the town of Oyster Bay for alleged discriminatory housing practices.

The town's lawyer said the Court of Appeals decision to hear the case is a big break for Oyster Bay and gives local officials a chance to show it's the state that is discriminating by trying to eliminate a new zoning designation.

"My reaction is that it may be that the Court of Appeals will view this as I do: as a case of reverse discrimination," said Joseph Giaimo, lawyer for Oyster Bay. "I'm absolutely overjoyed."

Giaimo predicted: "This is going to end up in the U.S. Supreme Court no matter who wins or loses" at the state level.

At issue are zoning categories created by the town. Dubbed Next Generation, one created in 2004 offered below-market housing for first-time buyers -- with a preference for town residents and their children. A second, the Golden Age District, which was created a decade earlier, gives similar advantages to senior residents of the town.

Supporters say the zoning designations encourage residents to remain in Oyster Bay. The Golden Age District now covers 1,476 housing units; Next Generation covers 58, according to town officials.

But the state agency that handles discrimination complaints saw big problems in the initiatives. According to court documents, the Division of Human Rights said that "because of already existing racial segregation" in the town, the Next Generation and Golden Age District programs would further discriminate against minority buyers.

"Preserving housing for the children and parents of current residents would likely result in discrimination against potential minority purchasers and unlawfully perpetuates segregation and separation," the agency said in court documents. Leticia Greene, deputy commissioner of the Division of Human Rights, declined to comment Thursday, citing the ongoing litigation.

In 2009, the agency lodged a complaint charging Oyster Bay with unlawful discriminatory practices in housing, a violation of the state's human rights law.

The town filed suit, claiming the agency overstepped its authority. The town said the agency cannot file such a complaint itself, but rather act only on discrimination complaints filed by individuals.

But two lower courts have sided against the town. Among other things, the courts disagreed with Giaimo's claim of reverse discrimination, noting that the agency isn't seeking to earmark a certain number of houses for minorities, but rather wants to eliminate the zoning preferences altogether.

The town asked for permission to take its case to the state's highest court; the request was granted. The case will be heard some time in 2012.

"We welcome this review with the hope that they will uphold the Town of Oyster Bay's position in this matter," Oyster Bay Supervisor John Venditto said in an email.