RMF Files Federal Lawsuit Against Town of Hempstead on Behalf of Heatherwood Communities Seeking $160mm in Damages

Uniondale, NY – October 23, 2025 – Ruskin Moscou Faltischek P.C. attorneys Daniel Shapiro and Michael Faltischek are spearheading a federal lawsuit against the Town of Hempstead and the Town  Board on behalf of firm client, Heatherwood Communities, seeking more than $160 million in damages after the Town attempted, albeit unsuccessfully, to revoke  previously approved Transit-Oriented Development (TOD) zoning. Despite the fact that the Nassau County Supreme Court has already ordered the Town to restore the TOD zoning and process Heatherwood’s building permit application “forthwith” for its project – a five story 300 plus unit mixed-use development near the Lawrence Long Island Rail Road station – the Town has refused to do so.  That refusal has given rise to the latest lawsuit in a saga that now spans more than six years. After prevailing in two New York State Court proceedings, Heatherwood is now pursuing its rights for money damages in federal court based on the Town’s actions relating to the project. Heatherwood’s project was permitted under Hempstead’s 2019 TOD zoning, which the Town attempted to repeal in November 2024, years after Heatherwood acquired land within the TOD district in reliance on the zoning.  In 2022, Heatherwood filed its application for permit approvals for the project, which the Town has not acted on nor processed, to date. The State Supreme Court (Nassau County) recently ruled that the Town’s repeal of the zoning was invalid. This federal lawsuit seeks compensation for the losses Heatherwood incurred during the delay and for losses they continue to sustain, which accrue each day the Town fails to act in accordance with two State Court orders.

“The Town of Hempstead, which initially approved the rezoning, offered no alternatives and actively blocked development of the project,” said Daniel Shapiro, Partner, Ruskin Moscou Faltischek, P.C. “This action seeks to recover the substantial damages caused by reliance on the town’s approved zoning.”

Heatherwood remains committed to advancing the Inwood project while defending its rights and investments.

About Heatherwood Communities

Heatherwood is a family-owned developer committed to creating high-quality spaces that foster community. Guided by its core values of integrity, fearlessness, commitment, and enthusiasm, Heatherwood strives to build projects that enhance residents’ lifestyles and create welcoming, vibrant communities

About Ruskin Moscou Faltischek P.C.

For over 50 years, Ruskin Moscou Faltischek P.C., headquartered in Uniondale, has built a reputation as one of the region’s leading providers of innovative legal services. Its attorneys are practical, experienced advocates who measure their success by their clients’ success. Cornerstone groups in all major practice areas of the law are represented at the firm, including corporate and securities, corporate restructuring & bankruptcy, commercial lending, commercial litigation, intellectual property, health care, real estate, employment, not-for-profit, cybersecurity and data privacy, energy, and trusts and estates. Clients include large and mid-sized corporations, privately held businesses, institutions and individuals.