(Read more on the multifamily market.)

NEW YORK CITY-A New York State Supreme Court judge has struckdown Local Law 79, a bill that put building-ownership restrictionson the Mitchell Lama program in order to protect tenants, in aruling signed April 11, but just made public. Former city councilspeaker Gifford Miller helped pass it into law in August 2005,which became effective that November. The bill was originallyvetoed by the mayor, although his decision was ultimatelyoverruled.

Local Law 79 allowed those who live in pre-1974 Mitchell Lamahousing projects to either have right of first refusal to purchasethe property or to maintain their units for six months or until thelease expires. The hope was to protect those tenants who could seea rise in rents should a low- or middle-income housing projectleave the Mitchell Lama program and rents suddenly rise as aresult.