N.Y. Private Housing Finance Law § 403: Occupancy

§ 403. Occupancy. 1. The dwelling units in any existing multiple

dwelling aided by a loan pursuant to this article shall be available

solely for persons or families of low income during the period in which

any part of such loan remains unpaid, any exemption and abatement from

taxation on the property resulting from the installations, alterations

or improvements made with such loan remains in effect or for a period of

at least ten years from the occupancy date, whichever is the later.

2. Any person or family in occupancy whose income precludes the

inclusion of such person or family within the definition provided in

paragraph a of subdivision three of section four hundred one of this

article may be required to pay a rental surcharge in accordance with a

schedule of surcharges to be promulgated by the agency. In determining

imposition of any such surcharge, the agency shall consider factors such

as the net operating income and debt service coverage ratio of the

property aided by a loan pursuant to this article. Rental surcharges

collected pursuant to this section shall be paid by the owner to the

municipality which has granted such owner tax exemption or tax abatement

pursuant to any law authorizing the granting of same, as reimbursement

to such municipality therefor. In the event that such tax exemption and

tax abatement have not been granted, or in the event that a sum equal to

the total amount of tax exemption and tax abatement granted to the owner

has been paid to the municipality, the excess, if any, of surcharges

shall be paid to the municipality in reduction of the loan.