New Rochelle staff proposes opt‑in to state 'good cause' eviction law and a multifamily rehab program to protect naturally affordable housing

City staff presented a two‑part housing strategy Sept. 9: a local resolution to opt into New York State's Good Cause Eviction authority with locally tailored thresholds, and a companion multifamily residential rehabilitation program to preserve naturally occurring affordable housing.

What staff proposed

- Good Cause Eviction opt‑in: staff proposed the council adopt a local resolution to activate the state law option for eligible buildings in New Rochelle, with two local adjustments: lower the exemption for a "small landlord" to owners of as few as one unit (the state default treats small landlords differently), and raise the high‑rent exemption to 345% of HUD fair‑market rent so the local threshold excludes true luxury units while protecting a wider set of affordable and market‑rate units. Staff said a 345% FMR cap would protect units with rents up to roughly $8,043 per month in New York City (sample calculation cited for context; local FMR numbers will be applied to determine exact thresholds in New Rochelle). Staff said the draft resolution would be brought to the council as a local law/intro at the next regular meeting.

- Multifamily residential rehabilitation program: staff outlined a program to encourage and finance repairs and upgrades in small multifamily buildings (2–9 units) that are currently "naturally occurring affordable housing" (units that are affordable because of their age, condition or location rather than subsidy). The program would offer low‑interest loans, grants and technical assistance and require a restrictive covenant on properties that receive funds to preserve affordability for a specified period. Staff estimated roughly 3,800 units in small buildings could be eligible under the proposed program and said the city plans to seek HOME, CDBG, state preservation and other funds to launch it.

Why staff says it matters

Staff said regulated and subsidized housing stock (public housing, LIHTC projects, Section 8 vouchers and other project‑based subsidy arrangements) already include tenant protections and program oversight; the Good Cause option and a rehab program would extend protections and stabilization tools to unregulated, market‑rate housing that is affordable only because of condition or age. The goal is to reduce displacement risk when owners upgrade units and to create incentives for owners to rehabilitate while preserving affordability.

Council discussion and concerns

Council members pressed staff on scope and exclusions. Questions included whether co‑ops, properties with existing subsidy covenants, and older buildings covered by the Emergency Tenant Protection Act (ETPA) would be affected (ETPA and subsidized projects were identified as having separate protections and typically are not covered by the proposed opt‑in). Several council members said they support expanding tenant protection but asked for clarity on which buildings would be covered locally. Staff said the draft resolution will include a precise definition and that a public hearing will be scheduled so council and residents can review exact maps and affected addresses.

Next steps

Staff said it will present a draft resolution to the council at the next regular meeting to opt into Good Cause with the proposed local thresholds, and will return later in the year with a formal design and funding plan for a multifamily residential rehab program to submit as part of HUD annual action planning and other grant applications.

Ending

Council members from across the dais expressed general support for preventing displacement of long‑time residents and creating incentives for owners to repair small multifamily properties. Staff will deliver formal draft text and an implementation timeline for council consideration at an upcoming meeting.