Mayor Zohran Mamdani is seeking a legal mechanism to take control of apartment buildings from landlords deemed negligent, a strategy that could soon face a critical test in the City Council. The fate of the proposal remains uncertain, hinging on the support of the Council speaker.
A Second Chance for Building Seizures
On Monday, the Council held a hearing on legislation that would empower the Department of Housing Preservation and Development to seize properties from landlords with significant housing code violations and unpaid debts – including taxes and fines – and transfer ownership to more responsible parties. A previous version of this program, known as “third-party transfer,” was suspended in 2019 after concerns arose that it disproportionately impacted smaller, low-income owners of color.
Councilmember Pierina Sanchez, chair of the housing committee, sponsored the new legislation, stating it will focus on “the worst of the worst” landlords while protecting smaller owners. According to Sanchez, “If you are a chronically negligent actor who has your tenants living in dangerous conditions, you do not deserve to be in ownership and you, after a fair process, will have your property taken from you.”
The proposed legislation targets buildings with unpaid taxes equaling at least a quarter of the property’s value, or 15% if they likewise have an average of five or more housing code violations per unit, or at least $1,000 in city-paid emergency repairs. The city’s housing agency would then rank the most distressed properties.
A History of Controversy
The program’s revival aims to address issues that plagued the original third-party transfer program, enacted in 1996 under Mayor Rudolph Giuliani. The city struggled to manage thousands of abandoned properties acquired through foreclosure starting in the 1960s, and the program was intended to transfer these buildings to new owners. However, a “block pick-up” provision, which allowed for the foreclosure of properties near targeted buildings, was particularly criticized and ultimately condemned in 2019.
The current proposal has garnered 34 sponsors, a majority of the 51-member Council. However, the crucial support of Council Speaker Julie Menin remains absent. Menin’s spokesperson stated she “has not taken a position on the bill.” She also previously blocked a different housing bill backed by Mamdani and a majority of councilmembers late last year.
While some landlord groups, like Small Property Owners of New York, oppose the measure, the Real Estate Board of New York (REBNY) has expressed support, citing the legislation’s focus on extreme cases and the elimination of the problematic “block pick-up” provision.
Frequently Asked Questions
What is the Safer Homes Act?
The Safer Homes Act is legislation that would allow the city’s Department of Housing Preservation and Development to seize buildings from landlords with significant housing code violations and unpaid debts and transfer ownership to more responsible parties.
Why was the previous “third-party transfer” program suspended?
Lawmakers suspended the previous iteration of the program in 2019 after finding that it disproportionately stripped homes from smaller, low-income owners of color without compensation.
What is the role of Council Speaker Julie Menin in this process?
The Council Speaker decides whether the legislation is brought forward for a vote. As of March 4, 2026, Speaker Menin has not taken a position on the bill.
Will this legislation ultimately empower Mayor Mamdani to address substandard housing conditions as he promised during his campaign, or will it stall in the Council?