State, Federal Laws Preempt New York City Law Giving Tenants Right to Buy Subsidized Projects

摘要

Federal and state laws preempt a New York City law giving tenants a right of first refusal to purchase a subsidized housing project if the owner intends to withdraw from the subsidy program, the New York Supreme Court, New York County, ruled. (Real Estate Board of New, York, Inc. v. City of New York, Index No. 114439/05, April 11, 2007; Mother Zion Tenant Association v. Donovan, Index No. 402239/06, April 11, 2007) Local Law 79, enacted in 2005, applies when the owner of a project assisted under the state Mitchell-Lama program or a federal project-based subsidy program seeks to sell the project or withdraw from the program.