In Mother Zion Tenant Assn. v. Donovan (55 AD3d 333 [1st Dept 2008]) the First Department found that the federal law preempted a New York City law, known as Local Law 79 [2005] of the City of New York. In that case, the federal law allowed a landlord, who received below-market interest rates and mortgage insurance for 40-year mortgages, to exit Section 8 after 20 years if the mortgage was repaid. Local Law 79 provided that a landlord who wished to exercise its right under the federal law to exit Section 8, was required under Local Law 79 to sell its building to its tenants at a rate set by an appraiser.