Nature of Claims: This action seeks an order enforcing New York City Local Law 79 (the “Tenant Empowerment Act”). The Act gives tenant associations in certain Mitchell Lama and federally subsidized housing projects in New York City an opportunity to purchase their buildings at appraised value if their owners intend to terminate their participation in the low-income housing program.
Current Status: On April 11, 2007, the trial court held that provisions of Local Law 79 that afford a right of first refusal for tenants in certain federally subsidized housing projects are impliedly preempted by federal law. The court reasoned that the Local Law constitutes “an obstacle to the purposes and objectives of Congress.” The court declined to follow numerous decisions, including those of the highest courts in Massachusetts, New Jersey and Connecticut, holding that local laws requiring continued participation in federal housing programs are not preempted by federal law. In a companion case, Real Estate Board of New York, Inc. v. City Council of City of New York, the trial court held that provisions of Local Law 79 that afford a right of first refusal to tenants in buildings withdrawing from the Mitchell-Lama program are preempted by the Mitchell-Lama law.
An appeal to the Appellate Division in the Mother Zion case is pending.
Related Action: Real Estate Board of New York v. Council of the City of New York, Index No. 114459/05 (Sup. Ct. N.Y. Co.)
No. Persons Affected: 75 families live in the Mother Zion project. Throughout New York City, tens of thousands of units of affordable housing in federally subsidized and Mitchell-Lama buildings will be lost if action is not taken to preserve the affordability of these units.