N.Y. Private Housing Finance Law § 1106-g: Adjustment of rents; income verification

§ 1106-g. Adjustment of rents; income verification. Notwithstanding

any other provision of law, no grants or loans shall be provided

pursuant to this article unless an eligible owner has agreed to require

the tenants and occupants residing in the housing project or projects to

submit an annual income affidavit as prescribed by the corporation,

together with proper documentation as and if prescribed by the

corporation, as the case may be. Upon submission of such affidavit and

documentation, if any, the eligible owner shall adjust the rent of a

tenant pursuant to a procedure established by the corporation by

regulation which procedure shall, to the extent economically feasible,

maintain the affordability of such project to such tenants. If the

tenant or occupant shall fail to submit such affidavit and

documentation, or if such verification as prescribed by the corporation

shall result in a disagreement caused by understatement of income and

the tenant shall have failed to correct such original affidavit and

documentation on forms specified by the corporation within sixty days of

notification by certified mail by the eligible owner addressed to the

tenant, the eligible owner shall in addition to the last rent assess

such tenant or occupant a surcharge which shall equal the difference

between the tenant's last rent and the rent the tenant would otherwise

have to pay had the grant or loan provided under this article been made

as a loan at the prevailing market rate of interest and requiring thirty

year amortization at the time the grant or loan was made. The provisions

of any other law to the contrary notwithstanding, solely for the purpose

of verification of income, the corporation may contract with the

department of taxation and finance for services performed by such

department in verifying income information forwarded by the corporation

or the eligible owner to such department. Nothing contained herein shall

be construed to authorize the corporation to contract with such

department to provide any income information whatsoever and such

agreement shall be limited solely to the verification of income

information. No officer or employee of the corporation, the New York

state housing finance agency, the division of housing and community

renewal or the eligible owner shall be subject to any civil or criminal

liability by reason of his forwarding to the department of taxation and

finance of any income information pursuant to this section, unless (i)

such information is knowingly and willfully materially misrepresented by

such officer or employee or (ii) such information is knowingly and

willfully divulged to any person, except in the discharge of such

officer's or employee's duties solely for the purpose of verification of

income, for any reason whatsoever. The corporation shall promulgate

rules and regulations to effect the provisions of this section provided

however that the corporation need not promulgate rules and regulations

in the event the corporation adopts procedures which are substantially

similar to the rules and regulations adopted by the commissioner

pursuant to section sixty of this chapter. The provisions of the state

freedom of information act shall not apply to any income information

obtained by an eligible owner, division of housing and community

renewal, New York state housing finance agency or the corporation,

pursuant to the provisions of this section.