Federal and State Officials Support Hasidic Developers in Forestburgh Zoning Battle

WJFF - The Local Edition - Special Report

A federal civil rights lawsuit involving allegations of religious discrimination in the Town of Forestburgh has escalated into a national legal flashpoint, with both the U.S. Department of Justice and the New York State Attorney General backing the Hasidic Orthodox Jewish developers behind a long-stalled housing project.

The developers allege that Forestburgh officials deliberately revised zoning laws to prevent their planned community from moving forward. The 2,600-unit project, originally envisioned as a golf resort called Lost Lake, has changed hands over the years. The latest owners purchased it for over $13 million and say they have encountered systemic resistance rooted in religious bias.

“This is a version of a fight we’ve seen across the Hudson Valley and the Catskills,” said Philip Pantuso, Managing Editor of the Times Union’s Hudson Valley bureau, in an interview with Radio Catskill’s Patricio Robayo. “But what’s different here is the depth of evidence pointing to discriminatory intent.”

That evidence includes internal emails exchanged by town officials and residents. In one message cited by federal prosecutors, the chairman of the planning board wrote, “Please don’t be scared about the Hasidic threat ― we’re energized and have the cash to fight and make their lives miserable.” Another email warned of Hasidic families “taking over like locusts” and destroying Forestburgh “as we know and love it today.”

Earlier this year, the U.S. Attorney’s Office in Manhattan filed a 21-page statement of interest in federal court supporting the developers’ civil rights claims. State Attorney General Letitia James followed with a strongly worded letter praising the Justice Department’s action.

“Your engagement in this matter sends a powerful message that no individual or community is above the law — and no community is beyond its protection,” James wrote to the acting U.S. attorney.

James’ office had previously warned Forestburgh officials that the town’s zoning code may violate anti-discrimination laws, particularly for requiring five-acre minimum lots for places of worship and excessive lot-line setbacks—restrictions the plaintiffs argue were designed to keep Hasidic Jews out.

In response, Forestburgh’s legal counsel, Jafid Afzali, defended the zoning laws, saying they apply equally to religious and secular uses such as daycares and libraries. He also argued that the cited emails dated back to 2015—well before the current developers acquired the property—and that they don’t represent official town policy.

“These communications have been taken out of context and do not reflect the actions or official position of the Town Board,” Afzali wrote, adding that the town has worked to ensure compliance with constitutional and statutory land-use laws.

Still, critics of the town’s actions say the pattern resembles other legal battles, including a 2019 case in Chester, Orange County, where the state and federal governments intervened to stop what they deemed discriminatory housing policies aimed at blocking Hasidic migration.

The Forestburgh case remains in federal court, with the developers seeking damages and a halt to what they describe as unconstitutional zoning barriers. In the meantime, development on the site remains frozen.

“There have been other disputes on this land before the Hasidic community got involved,” Robayo noted during his conversation with Pantuso. “But what’s surfaced in the emails is something entirely different—it goes beyond environmental or aesthetic concerns and reveals deeper issues.”

A resolution may still be months away, but the involvement of the top state and federal law enforcement agencies signals that Forestburgh’s zoning practices will remain under intense scrutiny.

“This case exemplifies the critical need for robust enforcement of the Fair Housing Act,” James said, “and the protection of all communities from discriminatory governmental conduct.”