File #: Res 1148-2007    Version: * Name: Approve legislation extending the right of first refusal to federally funded Project-based Section 8 developments.
Type: Resolution Status: Filed
Committee: Committee on Housing and Buildings
On agenda: 11/15/2007
Enactment date: Law number:
Title: Resolution calling upon Congress to pass and President George W. Bush to approve legislation extending the right of first refusal to federally funded Project-based Section 8 developments.
Sponsors: Alan J. Gerson, Gale A. Brewer, Lewis A. Fidler, Letitia James, John C. Liu, Melissa Mark-Viverito, Michael C. Nelson, Annabel Palma, Larry B. Seabrook, Thomas White, Jr., Robert Jackson
Council Member Sponsors: 11

Res. No. 1148

 

Resolution calling upon Congress to pass and President George W. Bush to approve legislation extending the right of first refusal to federally funded Project-based Section 8 developments.

 

By Council Members Gerson, Brewer, Fidler, James, Liu, Mark-Viverito, Nelson, Palma, Seabrook, White Jr. and Jackson

 

Whereas, According to a July 9, 2007, Washington Post article entitled, “Low-Rent Program Predicts Losses; Rising Land Values Diminish Appeal of Section 8 Contracts” the Project-based Section 8 program captures 22,000 properties and 1.5 million units nationwide; and

Whereas, Over thirty year ago, the federal government developed an approach to creating affordable housing subsidies that would keep rents low for 20, 30, and 40 years, depending upon the programs; and

Whereas, Participation in the Project-based Section 8 program is dwindling and the need for affordable housing is growing exponentially; and

Whereas, According to the United States Department of Housing and Urban Development (HUD), “Affordable Housing Needs 2005: Report to Congress”, nearly 6 million Americans faced severe difficulties paying rent or lived in substandard housing in 2005; and

Whereas, The alarming rate of prepayment of subsidized mortgages of private owners, owners opting out of project-based subsidy programs, federal governments elimination of programs designed to promote the preservation of subsidized housing, and the federal government’s failure to create and fund new subsidized housing calls for the need for a federal right of first refusal; and

Whereas, The right of first refusal would mandate that owners of buildings leaving the Project-based Section 8 program provide existing tenants with “first buy” opportunities; and

Whereas, The right of first refusal would require that during the notification period when owners opt-out, the owner may not sell or contract to sell the property; and

Whereas, If the owner has received a bona fide offer to purchase the property, the owner must notify the tenants and local housing agencies and for 90 days following notification any of the designated rights holders may be able to make an offer for the property; and

Whereas, The right of first refusal would give at-risk tenants the right to purchase their Project-based Section 8 developments upon termination of participation in the program in order to maintain their affordability, now, therefore, be it

Resolved, That the Council of the City of New York calls upon Congress to pass and President George W. Bush to approve legislation extending the right of first refusal to federally funded Project-based Section 8 developments.

 

LS# 3641

BJG

10/12/2007