N.Y.C. Admin. Code § 26-603: § 26-603 Reimbursement for rent exemptions; rent increase exemption fund established.

a. In the event that the real property of a housing company or applicable battery park city property containing one or more dwelling units shall be totally exempt from local and municipal real property taxes or PILOT for any fiscal year as a result of the exemptions from maximum rent credited pursuant to this chapter or otherwise, the supervising agency may make or contract to make payments to a housing company or landlord in an amount not exceeding the amount necessary to reimburse the housing company or landlord for the total dollar amount of all exemptions from the payment of maximum rent accorded pursuant to this chapter to eligible heads of the household residing in dwelling units in such real property.

b. A fund to be known as the rent increase exemption fund shall be created and established in order to provide for the payments made pursuant to this section. There may be paid into such fund (1) all of the rental surcharges collected from the housing companies organized and existing pursuant to articles II, IV, V and XI of the private housing finance law and (2) any moneys appropriated or otherwise made available for the purpose of such fund.