N.Y. Private Housing Finance Law § 405: Rent control; tax exemption

§ 405. Rent control; tax exemption. 1. Notwithstanding the provisions

of, or any regulations promulgated pursuant to, the emergency housing

rent control law, the local emergency housing rent control act or local

law enacted pursuant thereto: (1) housing accommodations in any multiple

dwelling aided by a loan pursuant to this article shall have maximum

rents prescribed in accordance with and shall be fully subject to the

provisions of said laws and regulations during the life of the loan or

during any period in which any exemption and abatement from taxation on

the property resulting from the installations, alterations or

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

least ten years from the occupancy date, whichever is later; (2) upon

payment of the loan or the expiration of the said tax exemption and tax

abatement or of the said ten year period, whichever is later, housing

accommodations in any such multiple dwelling shall, upon application, be

decontrolled, unless immediately prior to such payment or expiration the

rents of such housing accommodations would have been controlled by the

provisions of said laws and regulations, other than pursuant to this

article, in which event such housing accommodations shall continue

subject to the provisions of said laws and regulations to the same

extent and in the same manner as if this article had never applied to

such accommodations; (3) should the provisions of said laws and

regulations expire while any loan made pursuant to this article remains

unpaid or before the expiration of the said tax exemption and tax

abatement or of the said ten year period, whichever is later, then

housing accommodations in multiple dwellings aided by such loans shall

be subject to control by the agency to the same extent and in the same

manner as they were subject to control by the temporary state housing

rent commission or by the city housing rent agency created pursuant to

the local emergency housing rent control act. However, the maximum rent

for any such housing accommodations shall be the rent last established

by the said rent commission or by the said city housing rent agency

subject to adjustment by the agency pursuant to the provisions of this

article and regulations of the agency promulgated pursuant thereto and

(4) should the provisions of said laws and regulations not be applicable

in a municipality prior to the making of a loan pursuant to this

article, then rents in housing accommodations in multiple dwellings

aided by such loans shall be subject to regulation by the agency in a

manner calculated to assure compliance with the policy and purposes of

this article.

1-a. Notwithstanding the provisions of subdivision one of this

section, and subject to the provisions of subdivision twenty of section

six hundred fifty-four of this chapter, where the housing accommodations

in any multiple dwelling are aided pursuant to this article by a loan

made by the New York city housing development corporation, maximum rents

during the life of such loan shall be prescribed by the agency and the

rental rate may be varied by the agency from time to time upon

application by the owner or by the New York city housing development

corporation so as to secure, together with all other income from such

property, sufficient income to meet within reasonable limits, all

necessary payments to be made by the owner of all expenses including

fixed charges, sinking funds, reserves and dividends.

* 1-b. Notwithstanding the provisions of subdivision one of this

section, where the housing accommodations in any multiple dwelling are

aided by a loan pursuant to this article made by the municipality on or

after September first, nineteen hundred eighty-four, and provided that

such housing accommodations were vacant at the time of the making of the

loan, maximum rents during the life of such loan shall be prescribed by

the agency and the rental rate may be varied by the agency from time to

time upon application by the owner or by the agency so as to secure,

together with all other income from such property, sufficient income to

meet within reasonable limits, all necessary payments to be made by the

owner of all expenses, including fixed charges, sinking funds, reserves

and dividends.

* NB Effective until July 1, 2027

* 1-b. Notwithstanding the provisions of subdivision one of this

section, where the housing accommodations in any multiple dwelling are

aided by a loan pursuant to this article made by the municipality on or

after September first, nineteen hundred eighty-four, and provided that

such housing accommodations were vacant at the time of the making of the

loan, maximum rents during the life of such loan shall be prescribed by

the agency and the rental rate may be varied by the agency from time to

time upon application by the owner or by the agency so as to secure,

together with all other income from such property, sufficient income to

meet within reasonable limits, all necessary payments to be made by the

owner of all expenses, including fixed charges, sinking funds, reserves

and dividends.

* NB Effective July 1, 2027

* 1-c. Except with respect to dwelling accommodations subject to

subdivision one-a or one-b of this section, notwithstanding the

provisions of subdivision one of this section or any regulation

promulgated pursuant to the emergency housing rent control law, the

local emergency housing rent control act, the emergency tenant

protection act of nineteen seventy-four, or any local law enacted

pursuant thereto, upon completion of the rehabilitation of a multiple

dwelling which is aided by a loan pursuant to this article made by the

municipality on or after September first, nineteen hundred eighty-six,

the agency shall establish the initial rent for each rental dwelling

unit within the multiple dwelling. All dwelling units within the

multiple dwelling subsequent to establishment of initial rents by the

agency shall be subject to the rent stabilization law of nineteen

hundred sixty-nine. The occupant in possession of such a dwelling unit

when it is made subject to the rent stabilization law of nineteen

hundred sixty-nine shall be offered a choice of a one or two year lease

at the initial rents established by the agency notwithstanding any

contrary provisions of, or regulations adopted pursuant to, the rent

stabilization law of nineteen hundred sixty-nine and the emergency

tenant protection act of nineteen seventy-four. The agency shall cause

all tenants in occupancy of each dwelling unit affected by the

provisions of this section to be notified of and have an opportunity to

comment on the contemplated rehabilitation. Such notification shall

advise such tenants of the approximate expected rent increase and the

subsequent availability of a one or two year lease. Such notification

and opportunity to comment shall be provided before the rehabilitation

and again after the construction is completed and before the

establishment of the initial rents.

* NB Expires July 1, 2027

2. The municipality may, by local law, provide for exemption from

taxation of any increase in valuation resulting from the installation,

alterations or improvements performed with the aid of such loans or for

abatement of taxation on such property, including the land, or for both

such exemption and abatement, to the same extent, for the same period,

and under the same terms and conditions as such exemption or abatement,

or both, may be provided by local law enacted under the terms of any

currently effective statute authorizing the granting of tax exemption or

tax abatement, or both, in aid of the rehabilitation, alteration or

improvement of multiple dwellings or the elimination of unhealthful or

dangerous conditions therein. Notwithstanding any contrary provisions of

any general, special or local law, a property aided by a loan pursuant

to this article shall not be ineligible for tax exemption or tax

abatement or both, as provided by local law enacted pursuant to statute,

solely because such property is not subject to control of rents under

the emergency housing rent control law or local law enacted pursuant to

the local emergency housing rent control act, but such tax exemption and

tax abatement shall terminate if and when such property is subject to

control of rents neither under the emergency housing rent control law,

local law enacted pursuant to the local emergency housing rent control

act or this article.