NEW ROCHELLE, NY (October 26, 2026) — The U.S. Department of Justice has filed a federal civil rights lawsuit against Stagg Group, alleging that the developer violated the Fair Housing Act by failing to make hundreds of apartments accessible to people with disabilities, including 185 apartments at 26 Garden Street in New Rochelle, the site of an ongoing environmental controversy involving a chemical incident that severely injured a worker.
The lawsuit, filed Sept. 25 in U.S. District Court for the Southern District of New York, identifies six apartment buildings containing a combined 607 residential units. Federal prosecutors allege that Stagg Group engaged in a pattern or practice of discrimination by designing and constructing multifamily housing that failed to meet federal accessibility requirements.
The New Rochelle property, known as West View, is one of the six developments identified in the complaint. It is also the location of a Nov. 4, 2025, chemical incident that injured a worker and prompted the New York State Department of Environmental Conservation to move toward revoking an environmental cleanup certificate associated with the development.
The federal housing discrimination lawsuit and the state environmental proceedings concern separate legal matters. Their intersection at 26 Garden Street, however, places the same New Rochelle development at the center of two significant government enforcement actions.
The Justice Department alleges that West View, constructed in 2024, contains accessibility barriers affecting residents and visitors who use wheelchairs. According to the complaint, a curb ramp near the building entrance has a running slope that makes it inaccessible to wheelchair users, while obstructions at laundry room door entrances prevent an accessible route into that facility.
Those are the two specific accessibility deficiencies identified at the New Rochelle property in the federal complaint. The government alleges that the conditions violate accessibility requirements applicable to covered multifamily housing under the Fair Housing Act.
The Fair Housing Act requires certain multifamily residential buildings constructed for first occupancy after March 13, 1991, to incorporate features that make housing accessible and usable by people with disabilities. The requirements include accessible routes through public and common-use areas, doors sufficiently wide for wheelchair passage and design features that permit residents with disabilities to use their apartments.
Federal prosecutors contend that Stagg Group failed to comply with those requirements at multiple developments. The complaint seeks a court order requiring the company to correct violations, inspect other covered properties for accessibility deficiencies and take steps to prevent similar violations in future construction.
The government also seeks monetary damages for people allegedly harmed by the violations and a civil penalty under the Fair Housing Act. The complaint does not specify a dollar amount for either form of relief.
The lawsuit extends beyond New Rochelle to five apartment buildings in the Bronx, where federal investigators identified additional alleged accessibility problems.
At Riverdale Tower, a 89-unit building at 3745 Riverdale Ave. constructed in 2024, the government alleges deficiencies involving bathroom maneuvering space, sink placement, a ramp and handrail, outdoor access, pet-washing controls and accessible parking signage.
At The Station, a 72-unit building at 5959 Broadway constructed in 2018, prosecutors allege that excessive thresholds, narrow bathroom doors, low electrical outlets and high mailboxes create accessibility barriers. The complaint also alleges that the building’s fitness center can be reached only by stairs.
At The Hudson, a 90-unit building at 6327 Broadway constructed in 2022, the government identifies allegedly narrow balcony doorways and excessive, unbeveled thresholds. At The Stables, a 42-unit building at 6375 Broadway constructed in 2022, the alleged deficiencies include excessive thresholds and thermostats installed too high for accessible use.
The sixth property, The Equestrian, is a 129-unit building at 1680 Pelham Parkway South constructed in 2016. Federal prosecutors allege problems involving a heavy entrance door, mailboxes, bathroom clearances, access to a patio, trash room hardware and a pet area.
Together, the six properties account for the 607 apartments identified in the government’s complaint. The alleged deficiencies differ by building, but federal prosecutors contend that they collectively demonstrate a broader failure to comply with accessibility requirements.
The complaint also identifies four additional Stagg Group properties where the government alleges the pattern or practice of discrimination may extend. One is located in Westchester County, at 223 Willett Ave. in Port Chester, bringing another Sound Shore community into the scope of the federal government’s allegations.
The other properties are at 1001 Whitlock Ave. and 410 East 203rd St. in the Bronx, and 21-07 Astoria Blvd. in Astoria, Queens. The complaint does not identify specific inspected accessibility violations at those four additional addresses, and their inclusion does not establish that violations occurred at each location.
The federal case, United States v. Stagg Group, is assigned to U.S. District Judge Jesse M. Furman under docket number 1:26-cv-08372. According to the court docket, a waiver of service was filed Oct. 22, following transmission of the waiver on Oct. 21, and Stagg Group’s response to the complaint is due Dec. 21.
Furman has scheduled an initial pretrial conference for Jan. 5, 2027, at 9 a.m., to be conducted by telephone. As reflected in the docket records reviewed through Oct. 25, Stagg Group had not yet filed an answer addressing the government’s allegations.
The filing of a civil complaint does not establish liability, and the allegations remain subject to litigation. The waiver of service is a procedural step and does not constitute an admission of the government’s claims.
The Justice Department’s action adds a new dimension to the legal and regulatory scrutiny surrounding 26 Garden Street, where a separate controversy began nearly a year earlier.
Worker Blinded
On Nov. 4, 2025, worker José Candelario suffered severe chemical injuries during an incident involving environmental groundwater monitoring wells in the parking structure at the property. The incident involved sodium persulfate and sodium hydroxide, chemicals introduced into a monitoring well at a site enrolled in New York’s Brownfield Cleanup Program.
State environmental authorities subsequently investigated the incident and questioned whether the introduction of chemicals had compromised the integrity of groundwater monitoring at the property. The developer has disputed the state’s interpretation of events, maintaining that workers mistakenly treated a monitoring well as a drain during cleaning activities.
The environmental dispute centers on the property’s eligibility for a Certificate of Completion under the state’s Brownfield Cleanup Program, which provides liability protections and potential financial benefits to qualifying redevelopment projects. On June 1, 2026, DEC issued a notice of intent to revoke the conditional Certificate of Completion previously issued for the Garden Street site.
The developers requested an administrative hearing on June 30 to contest the state’s proposed action. The environmental proceedings are distinct from the federal disability discrimination case, which concerns the accessibility of the completed apartment building rather than the handling of chemicals or groundwater testing.
The Garden Street incident has also figured in litigation involving other development properties associated with Mark Stagg. Four Article 78 proceedings filed in September and October challenge DEC decisions affecting Brownfield Cleanup Program participation at sites in the Bronx, Peekskill and Yonkers.
Those proceedings include disputes over two Bronx properties associated with South Bronx Development entities, a former industrial property at 418 North Division Street in Peekskill and a development site in Yonkers. The developers contend that DEC improperly relied on events at Garden Street when making decisions affecting separate properties.
The state cases are being handled by attorney Albert J. Pirro Jr. and the law firm Abrams Fensterman LLP. They concern administrative decisions by DEC and do not resolve the federal government’s accessibility allegations against Stagg Group.
The federal complaint names Stagg Group as the defendant. Although the development company is associated with developer Mark Stagg, the Justice Department’s lawsuit does not name him individually as a defendant.
For New Rochelle, the federal case raises questions about whether the city’s newest residential developments comply with federal accessibility requirements. The allegations at West View concern features of the building that affect whether people with disabilities can enter and use common areas, including a curb ramp and laundry facilities.
The Justice Department is asking the federal court to require corrective action not only at the six identified buildings but also through broader compliance measures addressing the company’s covered multifamily housing. Whether those remedies will be ordered, and whether the government can establish its allegations, will be determined as the case proceeds.
For now, the 185-unit West View building at 26 Garden Street remains the subject of two separate controversies: an environmental dispute stemming from a worker’s severe chemical injuries and a federal civil rights lawsuit alleging that the property was constructed with barriers to people with disabilities.
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This article was prepared with the assistance of AI tools under the direction and editing of Robert Cox.
Have information about this story? Email robertcox@talkofthesound.com (preferred) or contact via WhatsApp: +353 89 972 0669.
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