N.Y. Private Housing Finance Law § 577-a: Adjusting fair rental equalization for the elderly

§ 577-a. Adjusting fair rental equalization 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

housing development fund 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 one hundred twenty-six 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 V 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 over-income tenants are

required to pay surcharges to the municipality.

(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 as used in this subdivision shall mean the annual income

of family members from all sources after deduction 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.