Affordable housing programs controlled by federal and state law. After multiple hearings on the declining number of affordable housing units, the City Council passed Local Law 79 of 2005 over a mayoral veto. The law gave tenants the right of first refusal to purchase their buildings when the owners sought to remove the properties from certain assisted rental housing programs. The law also allowed tenants who did not purchase their building to stay in their units at existing rent levels after their buildings left the programs. The law covered Mitchell- Lama developments, project-based Section 8 developments, and other developments receiving government subsidies or assistance.

The Real Estate Board of New York sued, arguing that the law was invalid since the City did not have the authority to legislate in an area dominated by state and federal law. (more…)