§ 405. Rent control; tax exemption. 1. Notwithstanding the provisions of, or any regulations promulgated pursuant to, the emergency housing rent control law, the local emergency housing rent control act or local law enacted pursuant thereto: (1) housing accommodations in any multiple dwelling aided by a loan pursuant to this article shall have maximum rents prescribed in accordance with and shall be fully subject to the provisions of said laws and regulations during the life of the loan or during any period in which any exemption and abatement from taxation on the property resulting from the installations, alterations or improvements made with such loan remain in effect or for a period of at least ten years from the occupancy date, whichever is later; (2) upon payment of the loan or the expiration of the said tax exemption and tax abatement or of the said ten year period, whichever is later, housing accommodations in any such multiple dwelling shall, upon application, be decontrolled, unless immediately prior to such payment or expiration the rents of such housing accommodations would have been controlled by the provisions of said laws and regulations, other than pursuant to this article, in which event such housing accommodations shall continue subject to the provisions of said laws and regulations to the same extent and in the same manner as if this article had never applied to such accommodations; (3) should the provisions of said laws and regulations expire while any loan made pursuant to this article remains unpaid or before the expiration of the said tax exemption and tax abatement or of the said ten year period, whichever is later, then housing accommodations in multiple dwellings aided by such loans shall be subject to control by the agency to the same extent and in the same manner as they were subject to control by the temporary state housing rent commission or by the city housing rent agency created pursuant to the local emergency housing rent control act. However, the maximum rent for any such housing accommodations shall be the rent last established by the said rent commission or by the said city housing rent agency subject to adjustment by the agency pursuant to the provisions of this article and regulations of the agency promulgated pursuant thereto and (4) should the provisions of said laws and regulations not be applicable in a municipality prior to the making of a loan pursuant to this article, then rents in housing accommodations in multiple dwellings aided by such loans shall be subject to regulation by the agency in a manner calculated to assure compliance with the policy and purposes of this article.

1-a. Notwithstanding the provisions of subdivision one of this section, and subject to the provisions of subdivision twenty of section six hundred fifty-four of this chapter, where the housing accommodations in any multiple dwelling are aided pursuant to this article by a loan made by the New York city housing development corporation, maximum rents during the life of such loan shall be prescribed by the agency and the rental rate may be varied by the agency from time to time upon application by the owner or by the New York city housing development corporation so as to secure, together with all other income from such property, sufficient income to meet within reasonable limits, all necessary payments to be made by the owner of all expenses including fixed charges, sinking funds, reserves and dividends.

* 1-b. Notwithstanding the provisions of subdivision one of this section, where the housing accommodations in any multiple dwelling are aided by a loan pursuant to this article made by the municipality on or after September first, nineteen hundred eighty-four, and provided that such housing accommodations were vacant at the time of the making of the loan, maximum rents during the life of such loan shall be prescribed by the agency and the rental rate may be varied by the agency from time to time upon application by the owner or by the agency so as to secure, together with all other income from such property, sufficient income to meet within reasonable limits, all necessary payments to be made by the owner of all expenses, including fixed charges, sinking funds, reserves and dividends.

* NB Effective until July 1, 2024

* 1-b. Notwithstanding the provisions of subdivision one of this section, where the housing accommodations in any multiple dwelling are aided by a loan pursuant to this article made by the municipality on or after September first, nineteen hundred eighty-four, and provided that such housing accommodations were vacant at the time of the making of the loan, maximum rents during the life of such loan shall be prescribed by the agency and the rental rate may be varied by the agency from time to time upon application by the owner or by the agency so as to secure, together with all other income from such property, sufficient income to meet within reasonable limits, all necessary payments to be made by the owner of all expenses, including fixed charges, sinking funds, reserves and dividends.

* NB Effective July 1, 2024

* 1-c. Except with respect to dwelling accommodations subject to subdivision one-a or one-b of this section, notwithstanding the provisions of subdivision one of this section or any regulation promulgated pursuant to the emergency housing rent control law, the local emergency housing rent control act, the emergency tenant protection act of nineteen seventy-four, or any local law enacted pursuant thereto, upon completion of the rehabilitation of a multiple dwelling which is aided by a loan pursuant to this article made by the municipality on or after September first, nineteen hundred eighty-six, the agency shall establish the initial rent for each rental dwelling unit within the multiple dwelling. All dwelling units within the multiple dwelling subsequent to establishment of initial rents by the agency shall be subject to the rent stabilization law of nineteen hundred sixty-nine. The occupant in possession of such a dwelling unit when it is made subject to the rent stabilization law of nineteen hundred sixty-nine shall be offered a choice of a one or two year lease at the initial rents established by the agency notwithstanding any contrary provisions of, or regulations adopted pursuant to, the rent stabilization law of nineteen hundred sixty-nine and the emergency tenant protection act of nineteen seventy-four. The agency shall cause all tenants in occupancy of each dwelling unit affected by the provisions of this section to be notified of and have an opportunity to comment on the contemplated rehabilitation. Such notification shall advise such tenants of the approximate expected rent increase and the subsequent availability of a one or two year lease. Such notification and opportunity to comment shall be provided before the rehabilitation and again after the construction is completed and before the establishment of the initial rents.

* NB Expires July 1, 2024

2. The municipality may, by local law, provide for exemption from taxation of any increase in valuation resulting from the installation, alterations or improvements performed with the aid of such loans or for abatement of taxation on such property, including the land, or for both such exemption and abatement, to the same extent, for the same period, and under the same terms and conditions as such exemption or abatement, or both, may be provided by local law enacted under the terms of any currently effective statute authorizing the granting of tax exemption or tax abatement, or both, in aid of the rehabilitation, alteration or improvement of multiple dwellings or the elimination of unhealthful or dangerous conditions therein. Notwithstanding any contrary provisions of any general, special or local law, a property aided by a loan pursuant to this article shall not be ineligible for tax exemption or tax abatement or both, as provided by local law enacted pursuant to statute, solely because such property is not subject to control of rents under the emergency housing rent control law or local law enacted pursuant to the local emergency housing rent control act, but such tax exemption and tax abatement shall terminate if and when such property is subject to control of rents neither under the emergency housing rent control law, local law enacted pursuant to the local emergency housing rent control act or this article.