N.Y. Private Housing Finance Law § 608-a: Rent regulation of rehabilitated multiple dwellings acquired and reconveyed by the federal government

* § 608-a. Rent regulation of rehabilitated multiple dwellings

acquired and reconveyed by the federal government. 1. For the purposes

of this section:

(a)"Agency" shall mean a department of housing preservation and

development in a city having a population of one million or more.

(b) "Eligible property" shall mean real property located in a city

having a population of one million or more that has been: (i) acquired

by the federal government as the result of the foreclosure of a mortgage

loan insured by the federal government, and (ii) conveyed by the federal

government to an owner approved by the agency for the purpose of

undertaking an eligible rehabilitation project.

(c) "Eligible multiple dwelling" shall mean a multiple dwelling

located on eligible property that has been the subject of an eligible

rehabilitation project.

(d) "Eligible rehabilitation project" shall mean the rehabilitation of

an eligible multiple dwelling in accordance with an agreement between

the owner of the eligible property and the federal government.

2. Notwithstanding the provision of, or any regulation promulgated

pursuant to, the emergency housing rent control law, the local emergency

housing rent control act, the emergency tenant protection act of

nineteen seventy-four, and/or any local law enacted pursuant thereto,

upon completion of an eligible rehabilitation project, the agency may

establish the initial rent for each dwelling unit within the eligible

multiple dwelling. All dwelling units within such building subsequent to

establishment of initial rents by the agency shall be subject to the

emergency housing rent control law, the local emergency housing rent

control act, the emergency tenant protection act of nineteen

seventy-four, and/or any local law enacted pursuant thereto, if

applicable in the municipality in which such building is located, but

only if such laws and/or acts would otherwise apply to such dwelling

units; provided, however, that substantial rehabilitation work performed

in the course of an eligible rehabilitation project shall not cause such

laws and/or acts to cease to apply to such dwelling units. The tenants

in occupancy of such dwelling units in such a building that are

regulated pursuant to such laws and/or acts shall be offered a choice of

a one-year or two-year lease at the initial rent established by the

agency, notwithstanding any contrary provisions of, or regulations

adopted pursuant to, such laws and/or acts. The agency shall cause all

tenants in occupancy of each dwelling unit affected by this subdivision

to be notified of and have an opportunity to comment upon the

contemplated rehabilitation. Such notification shall advise such tenants

of the approximate expected rent increase and the subsequent

availability of a one-year or two-year lease. Such notification and

opportunity to comment shall be provided prior to commencement of the

rehabilitation and again after its completion before establishment of

the initial rents.

3. The supervising agency shall use its best efforts to ensure that

activities carried out pursuant to this section are structured so as to

minimize the likelihood of any involuntary economic displacement of

tenants who reside in multiple dwellings which are the subject of such

activities. However, if temporary physical displacement is required as a

direct result of rehabilitation work which is performed in the course of

the eligible rehabilitation project, suitable temporary relocation

arrangements shall be provided.

* NB Repealed June 30, 2027