N.Y. Private Housing Finance Law § 87: Increase of rentals in housing company projects

§ 87. Increase of rentals in housing company projects. Whenever it

shall appear that the interests of lienholders, creditors, debenture

holders, shareholders, partners or beneficiaries cannot otherwise be

safeguarded, the commissioner shall, notwithstanding the limitation

prescribed in this article upon maximum average rental, have power by

his order made upon written application of a housing company or of a

lienholder, a creditor, or of holders of ten per centum of the income

debentures of the housing company, or, in the case of a housing company

which is a corporation, the holders of ten per centum of the shares, or,

in the case of a housing company which is a partnership, the partners

having an interest in capital equal to ten per centum thereof, or, in

the case of a housing company which is a trust, the beneficiaries having

a beneficial interest in capital equal to ten per centum thereof, to

authorize such housing company to increase rentals beyond the maximum

provided in this article as follows:

(a) If the application is made before occupancy of the dwellings

embraced in the project and it is shown to the satisfaction of the

commissioner that owing to causes beyond the control of the housing

company or contingencies which in the opinion of the commissioner could

not reasonably have been anticipated, the maximum rentals are

insufficient to meet the payments authorized in section eighty-five in

which event the commissioner may authorize an increase in the minimum

amount necessary to enable such housing company to make such payments.

(b) If the application is made after occupancy the order shall be made

only after a public hearing. Said hearing shall be held upon no less

than twenty days' written notice to the tenants and such notice shall

have annexed thereto a copy of the application for increase in rentals.

No such order or authorization shall be made or given unless the

commissioner shall find that because of changes in economic conditions

in their application to the project with respect to which request for

increased rentals shall have been made or because of special assessments

or causes or contingencies beyond the control of the housing company,

affecting such project, the maximum rentals fixed as herein provided are

insufficient to meet the payments authorized in section eighty-five of

this article and unless the commissioner shall find that such

insufficiency cannot be corrected by reasonable economies in management

and operation of said project. The commissioner shall not authorize any

increase in rentals in excess of the minimum amount necessary to enable

the said housing company to make the said payments authorized in section

eighty-five. Any order by the commissioner shall be final and conclusive

upon all questions within his jurisdiction, with respect to the project

affected thereby, unless reversed or modified on appeal therefrom as

hereinafter provided. Within thirty days after notice of the filing of

the order of the commissioner has been sent to the said housing company

and served upon the said tenants affected thereby in such manner as the

commissioner shall prescribe, an appeal may be taken to the appellate

division of the supreme court in the department in which the project

affected by the order is located, from such order of the commissioner by

any party in interest. If notice of such appeal is served upon the

commissioner, he shall, within thirty days thereafter, serve upon the

parties in interest a statement of his conclusions of fact and rulings

of law in such case. The commissioner may also in his discretion certify

to such appellate division of the supreme court questions of law

involved in his order. Such appeal and the questions so certified shall

be heard in a summary manner and shall have precedence over all other

civil cases in such court. The commissioner shall be deemed a party to

every such appeal.

An appeal may also be taken by the commissioner or by any party in

interest to the court of appeals in the same manner and subject to the

same limitations as is now provided in civil actions. It shall not be

necessary to file exceptions to the rulings of the commissioner. The

commissioner shall not be required to file a bond upon an appeal by him

to the court of appeals. Upon final determination of such an appeal, the

commissioner shall enter an order in accordance therewith.