Kramer Levin Secures Court Approval of The Community Church of NY’s Anticipated Sale of Real Estate Assets

On July 28, 2022, the Supreme Court of New York issued a decision and order granting The Community Church of New York leave to ground lease and then sell certain real property it owns in the Murray Hill neighborhood of Manhattan, paving the way for the church to receive funds it hopes will allow its diverse congregation to survive and thrive, spiritually and financially, well into the future.

Under New York’s Religious Corporations Law and Not-For-Profit Corporation Law, a religious corporation must apply for, and obtain, leave of court and/or approval from the New York State Attorney General’s Office in order to sell any real property. With the firm’s help, the church successfully overcame objections and demonstrated to both the Supreme Court and the Attorney General’s Office, as the applicable statutes require, that the consideration and terms of the planned transaction are fair and reasonable and that the purposes of the church and the interests of its members will be promoted by the transaction. Among other things, the church intends to use cash proceeds from the transaction to purchase a new sanctuary dedicated to worship and church programming, to fund and strengthen its endowment, and to pursue future justice-seeking projects in line with the church’s mission.