Federal Law Preempts NYC Tenant Empowerment Law

October 31, 2008

LVT Number: #20792

Facts: New York City Local Law 79 of 2005, known as the Tenant Empowerment Act, requires owners of rental apartments who withdraw from an assisted housing program to offer tenants the right of first opportunity to buy the building at an "appraised value" set by a three-member advisory panel. In March 2006, landlord of a 76-unit building told tenants that it would opt out of its Section 8 contract the following year. Tenants formed an association and advised landlord that they wished to exercise their rights under Local Law 79. Landlord refused, and tenants sued.

Facts: New York City Local Law 79 of 2005, known as the Tenant Empowerment Act, requires owners of rental apartments who withdraw from an assisted housing program to offer tenants the right of first opportunity to buy the building at an "appraised value" set by a three-member advisory panel. In March 2006, landlord of a 76-unit building told tenants that it would opt out of its Section 8 contract the following year. Tenants formed an association and advised landlord that they wished to exercise their rights under Local Law 79. Landlord refused, and tenants sued. They sought an injunction requiring HPD and landlord to comply with the law. The court ruled against tenants and dismissed their case. Tenants appealed.

Court: Tenants lose. There is a conflict between Local Law 79 and federal law, which permits landlord to withdraw from the Section 8 program. Forcing landlord to comply with Local Law 79 would be contrary to federal law.

Mother Zion Tenant Association v. Donovan: NYLJ, 10/9/08, p. 34, col. 1 (App. Div. 1 Dept.; Saxe, JP, Nardelli, Buckley, Catterson, JJ)

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