Opinion 24-149

September 12, 2024

Facts/Issue:    A full-time judge and their sibling are the sole owners and officers of a corporation which owns a vacant lot.  The judge asks if they may lease the property to a developer to build a mixed-use building with commercial retail space and residential apartments.  The judge envisions that a third party would initially serve as landlord and operate the mixed-use building, but also asks if the judge’s corporation may directly manage the building as landlord to both retail and residential tenants. 

Discussion:     Although the Rules Governing Judicial Conduct preclude full-time judges from a broad range of business activities (see 22 NYCRR 100.4[D][3]), they expressly permit a judge to “hold and manage investments of the judge and members of the judge’s family, including real estate” (22 NYCRR 100.4[D][2]).  Accordingly, we have said a full-time judge may be an officer of a closely-held family corporation that invests in real estate, and may participate in management of the corporation’s real estate investment.  All members of the corporation must be within the sixth degree of relationship to the judge.  The judge may no longer serve as an officer of the corporation if a non-family member becomes a shareholder. 

Conclusion:     Where a full-time judge and their sibling are the sole owners and officers of a corporation that owns a vacant lot, the judge may allow the corporation to enter into a lease agreement with a developer to build a mixed-use building on the lot and thereafter may either manage the building directly as landlords to retail and residential tenants or may permit a third party to manage it.

Authorities:    Opinions 21-154; 21-22(B); 18-179; 10-203(B); 10-77.