(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, 2024