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In April 1991, creation of the village of Airmont was allowed in the town. Airmont had 9,500 people, including around 250 Orthodox Jews and many non-Orthodox Jews. The founders of the town said that they intended for “strong zoning” to preserve the character of the community. William P. Barr, the United States Attorney General, and Otto G. Obermaier, the United States Attorney for the Southern District of New York, filed a suit against Airmont and the town of Ramapo; Barr and Obermaier said that Airmont created a zoning plan intended to exclude Orthodox Jews from living in the village and “that other individuals acting at the behest of the defendants have engaged in a pattern of harassment against Orthodox Jews in the village.” The officials cited the Fair Housing Act as the relevant law. The plaintiffs said that, because many Orthodox do not travel by car on Saturdays, preventing the creation of a synagogue would exclude Orthodox from the community. The Anti-Defamation League of B’nai B’rith supported the suit. The Spring Valley Chapter of the National Association for the Advancement of Colored People had opposed the creation of Airmont. As a result of the suit Airmont revised its zoning code to allow religious sites. Airmont’s zoning restricted synagogues to 2-acre (8,100 m²) lots, which were too costly for most Orthodox congregations. A federal judge ruled that the code was discriminatory and ordered Airmont to revise the code; the legal case continued by 1997.

Around 2005, Congregation Mischknois Lavier Yakov proposed building a yeshiva and a boarding school with a 70-adult student dormitory (with provisions for their families, which could result in a population of several hundred individuals) on 19 acres (77,000 m²) of land. Town residents opposed this, causing legal action including meetings and lawsuits. In 2005, the U.S. federal government filed a civil rights lawsuit accusing Airmont of discriminating on the basis of religion and violating the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Fair Housing Act by banning boarding houses.

In 2011, Airmont and the federal government reached a settlement and Airmont agreed to amend its zoning code to allow Mischknois Lavier Yakov to build a school with student housing. The agreement included a $10,000 civil penalty against Airmont and marked the second time federal prosecutors had intervened in Airmont zoning affairs since its 1991 incorporation. In 2018 nothing has happened and the zoning has expired. The congregation complex will most likely never happen.