2023 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. The number  of
persons given preference as a veteran or a surviving spouse of a veteran
shall  be  published  adjacent  to the application to be on such waiting
list. 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.