In an on-going effort to protect Mitchell-Lama and Section 8 affordable housing units, New York State Senator Liz Krueger today unveiled a bill to give existing tenants a "right-of-first-refusal," should the owners of their developments choose to leave these affordable housing programs and sell the building at market-rate.

Mitchell-Lama and Section 8 affordable housing units are found throughout New York State, including New York City, Buffalo, Albany, Rochester, Syracuse, and Westchester and Nassau counties.

"Owners who choose to sell their buildings after profiting from Mitchell-Lama or Section 8 status leave their tenants facing crippling rent increases," Krueger said. "Subsidized developments like these were built using a mix of state, local, and federal dollars that came with incredibly low-interest loans for the developers. In return, the developers maintained the units as affordable for a designated period of time—20, 30 or 40 years. Families living there when that expiration date hits are left uprooting their lives."

In 2005, New York City passed Local Law 79, which protected Mitchell-Lama and Section 8 tenants' "right-of-first-refusal." However, that law did not withstand court challenges from the Real Estate Board of New York, and was shot down in April 2007 on the basis that the City has no jurisdiction over State law.

The federal Section 8 rent subsidy program was created by the U.S. Congress in 1974, and requires low-income tenants to pay 30 percent of their income for rent, and additional monies are paid to the landlord by the government. The Mitchell-Lama housing program was created in 1955, with new developments continuing to be built into the mid-1970s under a mix of state, local and federal funding. Low-interest loans covering up to 95 percent of all development costs were made available to developers. The developments came with 20-, 30- or 40-year life spans, after which these developments could be privatized—when landlords give up tax incentives in favor of market rate rents.

Senator Krueger's bill would protect tenants by ensuring that:

1.) Tenants are notified of any impending action at least 12-months in advance.

2.) The Division of Housing and Community Renewal (DHCR) will supervise the value appraisal of the property, with one appraiser appointed by the owner, one appointed by the tenants, and one agreed upon by both entities.

3.) Owners share legitimate sale offers with tenants who have notified the owner of their intent to purchase.

4.) In the event of first-refusal, tenants have the ability to remain in their current residence under the same circumstance for the longer of six months, or when their leases expires.