N.Y. Private Housing Finance Law § 44-a: Low rent dwelling accommodations

§ 44-a. Low rent dwelling accommodations. 1. Subject to the approval

of the commissioner and to the provisions of any contract with

noteholders and bondholders, the agency shall have the power to lease

dwellings in a project, not to exceed twenty per centum of the dwellings

in such project, from a company, except that in the case of a project

located in an area in which the commissioner finds that unusually

difficult housing conditions exist, the number of dwellings which may be

leased by the agency shall not exceed fifty per centum, and except that

the agency may lease all or any portion of the dwellings in a non-profit

company project designed or intended for occupancy by aged persons, at

such rentals as may be fixed therefor by such company and approved by

the commissioner or the supervising agency, as the case may be, pursuant

to the provisions of subdivision one of section thirty-one of this

chapter less an appropriate adjustment for the increased tax exemption,

if any, attributable to such dwellings pursuant to subdivision two of

section thirty-three of this chapter; and to sublet such dwellings, in

accordance with subdivision two of this section, to persons or families

eligible therefor in accordance with the provisions of paragraph (a) of

subdivision two of section thirty-one of this chapter, except that

dwellings in a non-profit company project designed or intended for

occupancy by the aged shall be sublet only to aged persons, and except

that in the case of mutual companies, dwellings may be leased only when

the agency shall purchase the shares appertaining to such dwellings.

2. The rental of any dwelling sublet in accordance with subdivision

one of this section shall be fixed at an amount equal to twenty per

centum of the probable aggregate annual income of the occupants thereof,

determined in accordance with section thirty-one of this chapter, at the

time of the execution of such sublease and at a time thereafter

proximate to each anniversary date of the execution of such sublease and

at the time of any renewal or extension of such sublease, provided that

no such dwelling shall be sublet (a) at an average rental of less than

fifteen dollars per room per month or at a rental less than that of

comparable dwellings in new state-aided public housing projects in the

community, whichever is greater, or (b) to a person or family whose

probable aggregate annual income exceeds five times the rental fixed

therefor by the company pursuant to subdivision one of section

thirty-one of this chapter, provided however, such person or family may

continue to occupy such dwelling and pay to the agency such fixed

rental, including any surcharges which would otherwise be authorized if

such person or family were a tenant of the company, until the company

shall have entered into a lease with such person or family or until such

person or family has vacated or has been caused to vacate such dwelling.

3. Subject to the approval of the commissioner and to the provisions

of any contract with noteholders and bondholders, the agency shall have

the power to lease dwellings, within areas designated to receive

benefits under the federal demonstration cities and metropolitan

development act of nineteen hundred sixty-six, in a multiple dwelling

receiving benefits and subject to control of its rents under article

eight of this chapter from the owner thereof at such rentals as may be

approved by the governmental agency having jurisdiction pursuant to the

provisions of section four hundred five of this chapter; and to sublet

such dwellings to persons or families eligible therefor in accordance

with the provisions of subdivision three of section four hundred one of

this chapter. The rental of any dwelling sublet pursuant to this

subdivision shall be fixed at an amount equal to twenty per centum of

the probable aggregate annual income of the occupants thereof,

determined in accordance with subdivision three of section four hundred

one of this chapter, at the time of the execution of such sublease and

at the time of each anniversary of the execution of such sublease and at

the time of any renewal or extension of such sublease, provided that no

such dwelling shall be sublet (a) at an average rental of less than

fifteen dollars per room per month or at a rental less than that of

comparable dwellings in new state-aided public housing projects in the

community, whichever is greater, or (b) to a person or family whose

probable aggregate annual income exceeds five times the rental fixed

therefor pursuant to section four hundred five of this chapter.

4. The agency shall create and establish a special account, to be

known as the low rent housing assistance account, and shall pay into

such account all monies appropriated and made available by the state for

the purposes of such account and any other monies which may be made

available to the agency for the purposes of such account from any other

source or sources. All monies held in the low rent housing assistance

accounts shall be used by the agency (a) to meet, together with rentals

received therefor from the occupants, the agency's rent obligation to

the company or owner of a multiple dwelling with respect to dwellings

leased pursuant to this section; (b) to make housing assistance payments

pursuant to subdivision five of this section; (c) for the payment of

administrative and other expenses of the agency allocable to its

activities pursuant to this section, and (d) to reimburse the division

of housing and community renewal the reasonable costs of services

performed by the commissioner of housing and community renewal and the

division of housing and community renewal in carrying out the provisions

of this section pursuant to section fifty-five of this article. Any

monies held in the low rent housing assistance account not required for

immediate disbursement may be invested in the manner permitted by

subdivision eight of section forty-four of this article. Any income or

interest earned by, or increment to such account shall be added to the

monies held in such account for the purposes herein provided.

5. (a) In lieu of leasing and subleasing housing accommodations

pursuant to subdivisions one through three of this section, the agency

may provide housing for persons and families of low income by making

housing assistance payments to the company owning a project.

(b) A housing assistance payment pursuant to this subdivision may be

made only with respect to occupants of a dwelling in a project who would

be eligible for a sublease under the provisions of this section.

(c) Tenants receiving housing assistance payments shall pay a rent to

the company equal to the rent they would pay under a sublease pursuant

to this section. Housing assistance payments equal to the difference

between such rent and the rental fixed for the dwelling pursuant to

section thirty-one of this chapter shall be made by or on behalf of the

agency to the company.

(d) The agency and the division of housing and community renewal may

make such regulations, not inconsistent with the provisions of this

section, and enter into such agreements with the owners of projects as

may be necessary or proper to carry out the provisions of this

subdivision. Such agreements may, in the case of a project the mortgage

on which is held by the agency, provide for the making of housing

assistance payments in the form of a credit against the company's

payments thereon.