Law Giving Tenants Right to Buy Assisted Buildings Void

April 30, 2007

LVT Number: #19594

Landlord organization sued to challenge Local Law 79 of 2005. The law gave tenant associations a right of first refusal to buy a building when landlord intended to sell or take another action that would result in withdrawal from an assisted rental housing program. The law applied to state and federal subsidized housing. The court ruled for landlord, finding that Local Law 79 was preempted by the Mitchell-Lama law and by federal housing law, to the extent that it applied to federal housing programs.

Landlord organization sued to challenge Local Law 79 of 2005. The law gave tenant associations a right of first refusal to buy a building when landlord intended to sell or take another action that would result in withdrawal from an assisted rental housing program. The law applied to state and federal subsidized housing. The court ruled for landlord, finding that Local Law 79 was preempted by the Mitchell-Lama law and by federal housing law, to the extent that it applied to federal housing programs. The Mitchell-Lama law gives landlords permission to withdraw from that program after 20 years and gives the city limited authority to impose further restrictions.

Real Estate Board of New York, Inc. v. City Council of the City of New York: NYLJ, 4/30/07, p. 18, col. 1 (Sup. Ct. NY; Shafer, J)

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