For years, the Stony Brook Gardens Cooperative in Massachusetts thrived as a self-managed affordable housing community. But that stability was upended when a board of directors began violating the co-op’s bylaws—refusing to hold elections, withholding information from shareholders, and operating the co-op for their own benefit rather than for the residents. The once vibrant community descended into a culture of division, isolation, and fear of speaking out.
“We never expected this to happen to us,” said one resident. “We thought everyone was going to do the right thing.”
As governance broke down, residents feared for the safety of their families and the future of their homes. The co-op teetered on the edge of bankruptcy, and more than 50 families faced the possibility of losing their homes.
A legal lifeline
Recognizing the urgency, the City of Boston turned to Nixon Peabody, whose deep experience in affordable housing made the firm a natural fit. NP took on the case pro bono, helping residents understand their legal rights as shareholders.
With Nixon Peabody’s guidance, the residents launched a court action to assert their rights and restore proper governance. The firm’s legal strategy focused on enforcing the co-op’s bylaws, reestablishing democratic elections, and ensuring transparency in management.
Community-powered recovery
The residents’ passion and determination were central to driving the case forward. Their commitment to restoring Stony Brook as a well-run, transparent housing cooperative helped propel the legal strategy and community organizing efforts.
With Nixon Peabody’s advocacy, the co-op avoided bankruptcy and regained stability. The residents now have a second chance to build a stronger, more accountable community—with the legal guardrails in place to protect it for the future.
Positive impact: Protecting families and their homes
As cities across the nation wrestle with the challenges of soaring housing costs, developments like Stony Brook play a pivotal role in preserving affordable spaces for community members. Nixon Peabody is proud to leverage its pro bono resources to support the mission of these communities and the residents working hard to sustain them.
