8, 2007, section B, col 1, at 1.) In this action, plaintiff Real Estate Board of New York, Inc. seeks a declaratory judgment finding that Local Law No.
#Nyc connect mitchell lama housing code
79 (2005) of the City of New York (adding Administrative Code of City of NY § 26-801 et seq.) is illegal and void as: (1) preempted by New York State and federal housing laws, and (2) in violation of the Eminent Domain Procedure Law, and the Takings, Due Process and Equal Protection clauses of the United States and New York State constitutions. The Real Estate Board also seeks preliminary and permanent injunctive relief.
In this motion, the Real Estate Board moves for summary judgment. Defendants City of New York and New York City Department of Housing Preservation and Development (HPD) support the Real Estate Board's motion. Defendant City Council of the City of New York cross-moves for summary judgment declaring both that Local Law 79 is valid and that HPD must issue regulations pursuant to that law. Local Law 79, which was passed by the City Council on Augand became effective on November 15, 2005, was intended to address the housing crisis resulting from the lack of affordable low- and middle-income housing in New York City, and more specifically, the problems created by building owners withdrawing from city, state and federal programs for assisted rental housing. The primary purpose of Local Law 79 is to enable a tenant association to exercise a right of first refusal to purchase the building where an owner intends to sell the building or take other action which will result in the owner withdrawing from an assisted rental housing program. Pursuant to the law, the owner must give 12 months' notice to the tenant association or tenants (collectively, tenants) and HPD of the intention to withdraw from an assisted housing program, and must also give notice of a bona fide offer to purchase the building. (Administrative Code § 26-802.) The tenants then have 60 days in which to notify the owner and HPD of their intention to exercise their right of first refusal. (Administrative Code § 26-805.) HPD must then convene an advisory panel to determine the "appraised value" of the housing.
(Administrative Code § 26-804.) The tenants then have 120 days from notice of that determination to submit a bona fide offer to purchase the building. (Administrative Code § 26-806.) In addition, if the tenants do not purchase the housing and it is removed from the assisted rental housing program, the owner or purchaser must allow the current tenants to remain in the apartments for six months from the date of the conversion or until the tenants' leases expire, whichever is longer, at the same terms and conditions as before the housing was withdrawn from the assisted rental housing program. (Administrative Code § 26-810.)Īccording to testimony presented at the City Council hearings regarding Local Law 79, two thirds of New Yorkers live in rental apartments, with 25.5% of those New Yorkers paying more than 50% of their income for rent. (Transcript of minutes, Council of City of NY Comm on Hous & Bldgs, Oct. 28, 2004, at 158.) According to a 2002 vacancy survey, there was a 2.94% overall vacancy rate, but a vacancy rate of only 2% for apartments renting for $700 or less. (Id.) Statistics in August 2004 showed that 36,400 homeless men, women and children were sleeping in shelters and thousands more slept on park benches, streets, and in subways.
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