NY Priv Hous Fin L § 31 (2021)
2021 New York Laws PVH - Private Housing Finance Article 2 - Limited-Profit Housing Companies 31 - Rentals and Selection of Tenants.

§ 31. Rentals and selection of tenants. 1. (a) A company may, with the approval  of the commissioner or the supervising agency, as the case may be, fix maximum rentals per room to be charged tenants of the dwellings, the average of the rentals for the  dwellings  in  any  project  not  to exceed the maximum average rentals determined by the commissioner or the supervising  agency, as the case may be, before any commitments are made by the company for the construction of the project. The commissioner  or the  supervising agency, upon his or its own motion, or upon application by the company or of  a  stockholder,  lienholder,  a  creditor,  or  of holders  of  at  least ten per centum of the bonds of the company, or by the federal government where the mortgage loan of the company is insured or held by the federal government, may vary such rental rate  from  time to  time so as to secure, together with all other income of the company, sufficient income for it to meet within reasonable limits all  necessary payments  to  be made or projected to be made during the term of a lease by the said company, of all expenses including  fixed  charges,  sinking funds,  reserves and dividends on outstanding stock as authorized by the commissioner or the supervising agency, as the  case  may  be.  Letting, subletting or assignment of leases of apartments at greater rentals than those  approved  by  the commissioner or the supervising agency shall be unlawful. Where the mortgage loan of a company is insured or held by the federal  government  or  where  a  project  is  owned  by  the   federal government,   rental  rates  shall  be  varied  without  regard  to  the provisions of any general, special or local law  which  would  otherwise limit  or  control  such  rental rates or the determination or variation thereof for so long as such mortgage loan  remains  outstanding  or  the project  financed  by  such  a  mortgage  loan  is  owned by the federal government. No variation of a rental rate in a  project  financed  by  a mortgage  loan  insured  or  held by, or owned by the federal government shall be effective unless approved by the federal government.  (b) Unless any applicable regulation of or regulatory  agreement  with the  federal  government  shall  otherwise provide, (i) the tenants in a project financed by a mortgage loan  insured  or  held  by  the  federal government  shall  be  entitled  and may elect to enter in a lease for a term of up to three years at such rental rates as may be established  by the commissioner or the supervising agency, as the case may be, pursuant to  paragraph  (a)  of  subdivision one of this section, (ii) the rental rates to be charged under any such  lease  shall  be  established  after consideration  of  the term of such lease and may differ from the rental rates to be charged under any other lease of a different term and  (iii) the commissioner or the supervising agency, as the case may be, shall in establishing  such  rental rates consider the obligations of the company under any instruments evidencing or securing any residual  indebtedness. Such  leases  shall contain a provision authorizing the variation of the rental rates during the term of such leases upon an application made  by the  federal  government pursuant to paragraph (a) of subdivision one of this section.   * (c) A company may, with the approval  of  the  commissioner  or  the supervising  agency,  as the case may be, fix maximum charges to be paid by each occupant for  the  non-housekeeping  accommodations,  aged  care accommodations   or   non-housekeeping  accommodations  for  handicapped persons, which charges may include payment  for  board  and  such  other services  as may be provided as an incident to occupancy, the average of such charges for all  the  non-housekeeping  accommodations,  aged  care accommodations   or   non-housekeeping  accommodations  for  handicapped persons in any project not to exceed the maximum average charges for all such  non-housekeeping  accommodations,  aged  care  accommodations   or non-housekeeping  accommodations  for  handicapped persons determined by  the commissioner or the supervising agency as the case  may  be,  before any  commitments  are  made  by  the company for the construction of the project. The commissioner or the supervising agency upon his or its  own motion,  or  upon  application  by the company or of a stockholder, lien holder, a creditor or of holders of at least ten (10%) per centum of the bonds of the company, may vary such charges from time to time so  as  to secure, together with all other income of the company, sufficient income for  it  to  meet  within reasonable limits all necessary payments to be made by said company, of all expenses including fixed  charges,  sinking funds,  reserves and dividends on outstanding stock as authorized by the commissioner or supervising agency as the  case  may  be.  It  shall  be unlawful    to   make   non-housekeeping   accommodations,   aged   care accommodations  or  non-housekeeping  accommodations   for   handicapped persons  available  at  greater  charges  than  those  approved  by  the commissioner or the supervising agency.   * NB There are 2 (c)'s   * (c)  Disclosure  of  bases.  The  commissioner,   administrator   or supervising  agency,  as  the  case  may  be,  shall  make available for inspection and copying by the residents in any affected development, all items and data and recommendations utilized as the various bases for the decision on increases in rental or carrying charges,  upon  notification of the decision to the applicant of the action taken.   * NB There are 2 (c)'s   2.  (a)  The dwelling or non-housekeeping accommodations without board in a company project shall be available for persons or families  of  low income  whose  probable aggregate annual income at the time of admission and during the period of occupancy does not exceed, the greater  of  (i) the  median  income  for  such  persons or families for the metropolitan statistical area in which the project is located, or  if  a  project  is located  outside  a metropolitan statistical area, the median income for such persons or families for the county in which the project is located, as most recently determined by the United States department  of  housing and  urban  development,  in  which  case  any person or family becoming eligible for admission pursuant to this subparagraph shall pay, from the time of admission, a rental surcharge as  provided  for  in  subdivision three  of  this section, computed on the basis of the income limitations applicable  to  such  persons  or  families  in  the  absence  of   this subparagraph,  or  (ii)  eight  times the rental, including the value or cost to them of heat, light, water and cooking fuel,  of  the  dwellings that  may  be  furnished to such persons or families, except that in the case of families with three or more dependents,  such  ratio  shall  not exceed  nine  to  one.  Persons  or families with two or less dependents eligible for admission or continued occupancy pursuant  to  subparagraph (ii)  of  this paragraph or subparagraph (ii) of this paragraph prior to the effective date of a chapter of the laws  of  two  thousand  nineteen that  amended  subparagraph  (ii)  of this paragraph, shall pay a rental surcharge computed on the basis of an income limitation of  seven  times the  rental  and  families  with  three  or more dependents eligible for admission or continued occupancy pursuant to subparagraph (ii)  of  this paragraph  or subparagraph (ii) of this paragraph prior to the effective date of a chapter of the laws of  two  thousand  nineteen  that  amended subparagraph  (ii)  of  this  paragraph,  shall  pay  a rental surcharge computed on the basis of an income limitation of eight times the cost of the rental, including in each instance the value or cost to the  persons or  families  of  heat,  light, water and cooking fuel, of the dwellings furnished to such persons or families.   The "probable  aggregate  annual  income"  in  the  case  of  dwelling accommodations  means  the annual income of the chief wage earner of the  family, plus all other income of other members of the  family  over  the age  of  twenty-one  years,  plus  a  proportion  of income of gainfully employed members under the age of twenty-one years, the proportion to be determined  by  the  company  as  approved  by  the  commissioner or the supervising agency, as the case may be, excluding therefrom a  deduction of fifteen thousand dollars from the income of secondary wage earners of the  family or a larger deduction if approved by the commissioner or the supervising agency, as the case may be,  except  that  the  company,  as approved  by the commissioner or the supervising agency, as the case may be, may exclude a proportion of the  income  of  other  members  of  the family  over  the age of twenty-one years for the purpose of determining eligibility for admission or continued occupancy,  or  for  establishing the rental of such family, or for all such purposes; in the case of such non-housekeeping  accommodations  it  means  the  annual  income  of the occupant, provided that the commissioner or supervising agency,  as  the case  may  be, may make rules and regulations relative to the allocation of the income of a family among the members thereof for the  purpose  of determining the income attributable to such occupant.  (b)  For  the  purpose  of  determining  maximum  income  to establish eligibility for admission or continued occupancy of, or  the  imposition of  surcharges  upon, tenant-cooperators in a mutual company project, or for all such purposes, there may be added to the total  annual  carrying charges  an amount equal to six per centum of the investment of a person or family in the equity obligations of such housing company  and,  where not  included in the carrying charges payable to such company, the value or cost to them of heat, light, water  and  cooking  fuel  and,  to  the extent  authorized  by the commissioner or the supervising agency as the case may be, the value or cost to them of repainting and replacement  of fixtures and appliances.  (c)  The  non-housekeeping  accommodations  with  board  in  a company project including non-housekeeping accommodations  with  board  designed for  the occupancy of handicapped persons shall be available for persons of low income whose probable aggregate annual  income  at  the  time  of admission  and during the period of occupancy does not exceed four times the annual charges to be paid by such persons and in the  case  of  aged care  accommodations  two  times  the  annual charges to be paid by such persons.  The "probable aggregate annual income" means the annual income of the person occupying such non-housekeeping accommodations, aged  care accommodations   or   non-housekeeping  accommodations  for  handicapped persons, provided that the commissioner or supervising  agency,  as  the case  may  be, may make rules and regulations relating to the allocation of the income of a family among the members thereof for the  purpose  of determining the income attributable to such occupant.  (d)  A  company  may,  with  the  approval  of the commissioner or the supervising agency, as the case may be, lease dwellings in a project  to an  authority,  at  rentals  fixed  for  such  dwellings pursuant to the provisions of subdivision  one  of  this  section  less  an  appropriate adjustment for the increased tax exemption, if any, attributable to such dwellings  pursuant to subdivision three of section thirty-three of this chapter, for occupancy by persons and families of  low  income  who  are eligible and pay rents therefor pursuant to the provisions of the public housing law.  (e) Notwithstanding the provisions of this subdivision, families whose probable aggregate annual income does not exceed one hundred twenty-five percent  of  the  limitations  as  to  income  as determined pursuant to paragraphs (a) and (b) of this subdivision, shall also be  eligible  for admission  to  the  dwelling  or non-housekeeping accommodations without board of a  project  on  the  understanding  that  any  family  becoming  eligible  for  admission  by  reason  hereof shall pay, from the time of admission, a rental surcharge as provided for in  subdivision  three  of this section, computed on the basis of the income limitations applicable to  such  family  in  the  absence  of this subdivision. In applying the provisions of subdivision three of this section  to  a  family  becoming eligible by reason of this section, the maximum income prescribed by law for  admission  or  occupancy shall for all purposes be computed without reference to this paragraph.   2-a. Notwithstanding any other provision of law, the  commissioner  or supervising  agency  shall  authorize  and  make  provision in rules and regulations for an immediate downward adjustment  in  surcharge  upon  a showing  of  substantial  decrease in income caused by events including, but not limited to death, disability or illness.   3. In the event that the income of a person  or  family  in  occupancy should  increase  and exceed the maximum prescribed by law for admission or for continued occupancy, based on the latest existing rent,  by  more than  twenty-five  per centum, such person or family shall be subject to removal from the dwelling, non-housekeeping, aged care accommodations or non-housekeeping  accommodations  for  handicapped   persons   provided, however,  that  such  person  or  family  may  be permitted to remain in occupancy until such income exceeds the maximum  prescribed  by  law  by more  than  fifty  per  centum, if the company, with the approval of the commissioner or the supervising agency,  shall  determine  that  removal would  cause  hardship to such person or family. Any person or family in occupancy whose income exceeds the maximum prescribed by law shall pay a rental surcharge in accordance with  a  schedule  of  surcharges  to  be promulgated  by the company with the approval of the commissioner or the supervising agency, as the case may be, provided, however,  such  rental surcharge  shall  in  no  event  exceed fifty per centum of the existing rent.   4. Twenty-five per cent of rental  surcharges  collected  pursuant  to this section on account of rentals payable prior to July first, nineteen hundred  eighty-one  shall  be  paid  by the company to the municipality which has granted tax exemption pursuant to section thirty-three of this article as a credit against the grant of tax  exemption,  the  value  of such  tax exemption and of such credit to be determined on an individual dwelling, non-housekeeping, aged care accommodation or  non-housekeeping accommodations  for  handicapped  persons  unit basis. In the event that such tax exemption has not been granted, or in  the  event  that  a  sum equal  to  the  total  of  all  accrued taxes as to individual dwelling, non-housekeeping,   aged   care   accommodation   or    non-housekeeping accommodations  for  handicapped  persons units where such tax exemption was granted have been paid to the municipality, the excess  if  any,  of surcharges  and  all  surcharges  imposed after June thirtieth, nineteen hundred eighty-one shall be applied to the  expenses  of  operation  and management as approved by the commissioner or the supervising agency.   5.  Notwithstanding  the  provisions  of  this section or of any other general, special or local law, persons or families living in  a  project under  a  lease for ninety-nine years renewable, or in perpetuity, or by reason of ownership of stock in such company may, with the  approval  of the  commissioner  or  of the supervising agency, as the case may be, be permitted to remain in occupancy for not more  than  three  years  after such  increase  in  income exceeds the maximum prescribed by law by more than fifty per  centum  unless  such  occupancy  is  extended  with  the approval  of  the commissioner or of the supervising agency, as the case may be. Any such occupant required to remove from the project because of excessive income as herein provided shall be discharged  from  liability on any note, bond or other evidence of indebtedness relating thereto and  shall be reimbursed for all sums paid by such occupant to the company on account  of the purchase of stock or income debentures as a condition of such occupancy.   6.  Preference  in  admission  to a project shall be given to families displaced by a limited-profit housing project.   7. Preference in admission to a project with an open waiting list,  as determined by the commissioner or the supervising agency, shall be given by  a mutual company or an urban rental company or by the New York state housing finance agency when subleasing dwellings  in  projects  of  such companies  pursuant  to section forty-four-a of this chapter, to persons or surviving spouses of persons who are veterans as such term is defined pursuant to section eighty-five of the civil service law.  For  projects with a closed list, as determined by the commissioner or the supervising agency,  such  preference shall be given upon the opening of the waiting list. Notwithstanding the foregoing,  persons  who  are  residing  in  a limited-profit  housing  project  shall  be  given first priority for an internal  transfer  in  the  project  in  which  they  are  residing  in accordance with rules and regulations promulgated by the commissioner or the supervising agency.   7-b.  Preference  in  admission  to  projects located in a city with a population of one hundred thousand or more shall be given to members  of a police force of such city, provided such members otherwise qualify for admission  and provided, further, that such city has adopted a local law authorizing such program.   8. Preference in admission to any project or to such  portion  of  any project  which  has  been specifically designed for occupancy by aged or handicapped persons, as the case may be, shall be given to such persons.   8-a. A company may rent  one  or  more  dwelling  units  to  a  social services official or duly authorized agency, as defined in section three hundred  seventy-one  of  the  social services law, for the operation of agency boarding homes or group homes or to any public agency as  defined in  section  four  hundred  sixty-one of the general municipal law which provides residences and social services to dependent aged persons.   9. (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 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 subdivision, subdivision seven  of  section  eighty-five-a,  section  one  hundred twenty-six and section five hundred seventy-seven-a 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  IV, article V, and article XI 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 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 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.  (c) 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.   10. A housing company shall accept federal reimbursement under section eight  of  the  Housing and Community Development Act of 1974 in lieu of such amount in rent payment for a person qualifying under such  act  and residing  in  a  project  of  such  company. A housing company shall not reject an applicant for an apartment solely on the  basis  that  all  or part  of  the  rent shall be paid under section eight of the Housing and Community Development Act of 1974.   11. Every company subject to the provisions of this article shall on a form prescribed by  the  commissioner  or  supervising  agency  annually certify  to  such  commissioner or supervising agency that all necessary steps are being undertaken to ensure that all surcharges due pursuant to this section are being properly billed, collected and remitted.   12. All municipally-aided projects shall post the first and last names of all persons on each waiting  list  maintained  by  such  project,  in chronological  order,  by such project's management office, or, if there is no management office on the site of such  municipally-aided  project, in such project's lobby.   13.  The  commissioner  or  supervising agency shall develop a written procedure with regard to how applications for admission to a company are processed and numbered, and how tenants  are  selected.  Such  procedure shall   be  implemented  and  followed  by  all  limited-profit  housing companies subject to the provisions of this article; provided,  however, that  any limited-profit housing company may elect additional procedures so long as such procedures are  not  inconsistent  with  the  procedures developed  by  the  commissioner  or  supervising  agency  and any other requirements set forth in this article.   14. The commissioner or supervising agency shall develop  a  procedure whereby  applicants  are  notified in the case that their application is rejected by a limited-profit housing company subject to  the  provisions of  this  article,  and  such  procedure shall also include the appeal's process available to the rejected applicant. The notification that shall be sent to the applicant shall be in written form, include  reasons  why the  applicant  was  rejected,  the appeal's process, and be sent to the applicant within sixty days after  the  limited-profit  housing  company decided to reject such applicant. Any limited-profit housing company may elect   additional  procedures  so  long  as  such  procedures  are  not inconsistent with  the  procedures  developed  by  the  commissioner  or supervising agency and any other requirements set forth in this article. For  purposes  of  this  subdivision,  an  applicant shall not be deemed rejected if their application is  still  active  on  the  limited-profit housing  company's  waiting list and such waiting list is still open and accepting applications.   15. The commissioner or  the  supervising  agency  shall  develop  and require  the use of a publicly available electronic automated system for limited-profit  housing  companies  to  store,  process,  and   maintain applications  and  waiting  lists. Waiting lists maintained by each such company shall use a method that  protects  any  personally  identifiable information of applicants from being publicly disclosed or accessible to  the  public. Such electronic automated system shall also include general information about each company, including, but not limited to: the  name and  address  of  the  company;  the  management office and address; the number  and  size  of all units in each building; and information on the status of  each  waiting  list,  including  whether  the  limited-profit housing  company  is  currently  accepting  applications  and  how  long applicants may have to wait.