N.Y. Private Housing Finance Law § 126: Reduced rentals for the elderly

§ 126. Reduced rentals for the elderly. (a) For the purpose of

enabling lower income elderly persons to continue in occupancy without

paying rentals in excess of a fair proportion of their income, any

municipality having a population of less than one million is authorized

to make and to contract to make periodic payments to a redevelopment

company in an amount not exceeding the difference between the rent or

carrying charges for the dwellings occupied by such lower income persons

and one-third of their net probable aggregate annual income, where such

rent or carrying charges exceed such one-third of income; provided that

the aggregate amount of periodic payments to be made in accordance with

contracts entered into by the municipality during any fiscal year

thereof pursuant to this section, subdivision nine of section

thirty-one, subdivision seven of section eighty-five-a, and section five

hundred seventy-seven-a of this chapter shall not exceed the aggregate

amount of all real property taxes paid or payable during such fiscal

year by all companies organized pursuant to this article, article II,

article IV, and article XI of this chapter and the aggregate estimated

receipts of all such companies in such fiscal year from rental

surcharges collected or to be collected pursuant to this chapter.

(b) Such payments shall be made only where the contract between the

municipality and the company pursuant to section one hundred fourteen

imposes income limitations on admission and on continued occupancy and

requires the payment of surcharges to the municipality by over-income

occupants.

(c) Such payments shall be made only on account of a person or family

in occupancy where the head of the household is sixty-two years of age

or older and is not a recipient of public assistance pursuant to the

social services law, and where the net probable aggregate annual income

of the person or family in occupancy does not exceed six thousand five

hundred dollars a year.

Notwithstanding the provisions of subdivision twenty-nine of section

two of this chapter, net probable aggregate annual income shall mean the

annual income of family members from all sources after deductions of

federal, state and city income taxes; provided that any municipality may

provide that increases in benefits under the social security act which

take effect after such person or family has assumed occupancy shall not

be taken into account.

(d) A company having a contract with the municipality pursuant to this

subdivision may not collect from persons or families in occupancy on

whose account such payments are made any rentals in excess of the

amounts specified in such contract.