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New York City

A New York City ordinance (N.Y., N.Y., ADMIN. CODE §§ 26-801 - 26-813) grants the rights of first purchase and first refusal to tenant associations and other “qualified entities” experienced in the management of affordable housing if designated by at least 60 percent of the residents. The ordinance covers all situations where owners seek to terminate assistance or restrictions, and requires owners to provide a 12-month notice to tenants of any proposed action that would result in the conversion of the assisted rental housing. The notice must advise tenants of their purchase rights, as established by other sections of the law. Owners must also notify tenants of any proposed purchase offers to which the owner intends to respond, so that tenants can exercise their rights of first refusal to purchase. After the tenants or their designee have given notice of their intent to purchase, the city will convene a panel consisting of an appraiser selected by the owner, another by the tenants and a third by mutual agreement, or by the city if there is no mutual agreement, which then determines the property’s appraised value.

A state court ruled the law unenforceable as preempted by federal law in the Mother Zion case.

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