A Manhattan judge on Aug. 25 blocked New York City from moving forward with a plan to open a 106-bed homeless shelter in a building whose entrance would be about five feet from a Lower Manhattan elementary school.

Manhattan Supreme Court Justice Arthur Engoron wrote that the city failed to fully consider “all potential negative effects” of converting the former Hampton Inn at 320 Pearl St. into a shelter for adults, including people with histories of incarceration and substance use. Engoron cited the project’s proximity to the Peck Slip School and the presence of an outdoor smoking area near school windows as particular concerns.

“There are two, eight-hundred pound gorillas in the room,” Engoron wrote in his ruling. “The first is the fact that the proposal would place a shelter for troubled adults adjacent to a school for three-to-eleven-year-olds. . . . The second . . . is the City’s cavalier attitude towards fulfilling its obligation to demonstrate that it seriously considered the siting criteria,” the judge wrote, criticizing the city’s analysis of compatibility with nearby institutions.

The city had argued it had reviewed “public facilities and institutions” within a 400-foot radius of the site as part of its siting process. Engoron found that approach insufficient and said the record did not show the city had adequately addressed the specific risks posed by the shelter’s immediate proximity to an elementary school.

The proposed facility would convert the former hotel at 320 Pearl St. into a 106-bed shelter intended to serve adults experiencing homelessness, including individuals with histories of criminal justice involvement and substance use disorders. The planned entrance to the building sits steps from the Peck Slip School, which serves children in early elementary grades, according to the ruling.

Engoron’s decision halts the city’s plans for the site while the court matter proceeds. The ruling focuses on whether the municipal agencies met legal obligations to evaluate site compatibility and potential impacts on nearby schools and public facilities before approving the project.

Peck Slip School near South Street

The case highlights tensions that frequently arise when municipal governments seek locations for shelters and social-service facilities in dense urban neighborhoods where schools, residences and other public institutions are nearby. New York City has repeatedly faced legal and community challenges over shelter siting, with courts weighing whether agencies have complied with statutory siting criteria and adequately analyzed public-safety and neighborhood impacts.

Engoron’s written order did not outline a remedial timeline. The ruling remains a significant legal hurdle to the city’s plan to open the facility at 320 Pearl St. while the court evaluates whether the city’s approval process satisfied the requirements for siting such a shelter adjacent to an elementary school.