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Brooklyn residents took their fight to Manhattan State Supreme Court Tuesday, to battle the city's decision that gives a private developer the job of turning a former Greenpoint hospital site into housing.

"Why was an outside developer from another area allowed to come into our community with the assistance of the city and take away what rightfully belongs to the community?" said community activist Diane Jackson.

One year ago, the city chose the Queens-based, TNS Development Group to build affordable housing on the large and last parcel of the complex. The developer plans to construct 240 affordable housing units.

Neighborhood organizations say the city's bidding process was unfair. They submitted their own proposal which includes housing and health care facilities for seniors---under the nonprofit Greenpoint Renaissance Enterprise Corporation.

"There is a strong evidence to show that they favored a private corporation over a successful, outstanding community-based organization," said community activist David Dobosz.

"We believe the city has to redo this effort. We believe the city should support a community plan," said lawyer Harvey Epstein of the Urban Justice Center.

The city says it has no comment on pending litigation. GREC has been advocating for the site since the hospital was closed down nearly 30 years ago. For a decade it fought against the homeless shelter the city set up there. It eventually closed. Then the coalition turned five of the hospital buildings into affordable housing and a community center.

It says its latest proposal is solid and the multimillion-dollar contract the city awarded to TNS should instead should go to GREC.

"Money that is awarded to a community-based development organization stays in the community, goes back to the community, develops the community," said Dobosz.

The judge is expected to issue a ruling by June.