§ 44-a. Low rent dwelling accommodations. 1. Subject to the approval of the commissioner and to the provisions of any contract with noteholders and bondholders, the agency shall have the power to lease dwellings in a project, not to exceed twenty per centum of the dwellings in such project, from a company, except that in the case of a project located in an area in which the commissioner finds that unusually difficult housing conditions exist, the number of dwellings which may be leased by the agency shall not exceed fifty per centum, and except that the agency may lease all or any portion of the dwellings in a non-profit company project designed or intended for occupancy by aged persons, at such rentals as may be fixed therefor by such company and approved by the commissioner or the supervising agency, as the case may be, pursuant to the provisions of subdivision one of section thirty-one of this chapter less an appropriate adjustment for the increased tax exemption, if any, attributable to such dwellings pursuant to subdivision two of section thirty-three of this chapter; and to sublet such dwellings, in accordance with subdivision two of this section, to persons or families eligible therefor in accordance with the provisions of paragraph (a) of subdivision two of section thirty-one of this chapter, except that dwellings in a non-profit company project designed or intended for occupancy by the aged shall be sublet only to aged persons, and except that in the case of mutual companies, dwellings may be leased only when the agency shall purchase the shares appertaining to such dwellings. 2. The rental of any dwelling sublet in accordance with subdivision one of this section shall be fixed at an amount equal to twenty per centum of the probable aggregate annual income of the occupants thereof, determined in accordance with section thirty-one of this chapter, at the time of the execution of such sublease and at a time thereafter proximate to each anniversary date of the execution of such sublease and at the time of any renewal or extension of such sublease, provided that no such dwelling shall be sublet (a) at an average rental of less than fifteen dollars per room per month or at a rental less than that of comparable dwellings in new state-aided public housing projects in the community, whichever is greater, or (b) to a person or family whose probable aggregate annual income exceeds five times the rental fixed therefor by the company pursuant to subdivision one of section thirty-one of this chapter, provided however, such person or family may continue to occupy such dwelling and pay to the agency such fixed rental, including any surcharges which would otherwise be authorized if such person or family were a tenant of the company, until the company shall have entered into a lease with such person or family or until such person or family has vacated or has been caused to vacate such dwelling. 3. Subject to the approval of the commissioner and to the provisions of any contract with noteholders and bondholders, the agency shall have the power to lease dwellings, within areas designated to receive benefits under the federal demonstration cities and metropolitan development act of nineteen hundred sixty-six, in a multiple dwelling receiving benefits and subject to control of its rents under article eight of this chapter from the owner thereof at such rentals as may be approved by the governmental agency having jurisdiction pursuant to the provisions of section four hundred five of this chapter; and to sublet such dwellings to persons or families eligible therefor in accordance with the provisions of subdivision three of section four hundred one of this chapter. The rental of any dwelling sublet pursuant to this subdivision shall be fixed at an amount equal to twenty per centum of the probable aggregate annual income of the occupants thereof, determined in accordance with subdivision three of section four hundred one of this chapter, at the time of the execution of such sublease and at the time of each anniversary of the execution of such sublease and at the time of any renewal or extension of such sublease, provided that no such dwelling shall be sublet (a) at an average rental of less than fifteen dollars per room per month or at a rental less than that of comparable dwellings in new state-aided public housing projects in the community, whichever is greater, or (b) to a person or family whose probable aggregate annual income exceeds five times the rental fixed therefor pursuant to section four hundred five of this chapter. 4. The agency shall create and establish a special account, to be known as the low rent housing assistance account, and shall pay into such account all monies appropriated and made available by the state for the purposes of such account and any other monies which may be made available to the agency for the purposes of such account from any other source or sources. All monies held in the low rent housing assistance accounts shall be used by the agency (a) to meet, together with rentals received therefor from the occupants, the agency's rent obligation to the company or owner of a multiple dwelling with respect to dwellings leased pursuant to this section; (b) to make housing assistance payments pursuant to subdivision five of this section; (c) for the payment of administrative and other expenses of the agency allocable to its activities pursuant to this section, and (d) to reimburse the division of housing and community renewal the reasonable costs of services performed by the commissioner of housing and community renewal and the division of housing and community renewal in carrying out the provisions of this section pursuant to section fifty-five of this article. Any monies held in the low rent housing assistance account not required for immediate disbursement may be invested in the manner permitted by subdivision eight of section forty-four of this article. Any income or interest earned by, or increment to such account shall be added to the monies held in such account for the purposes herein provided. 5. (a) In lieu of leasing and subleasing housing accommodations pursuant to subdivisions one through three of this section, the agency may provide housing for persons and families of low income by making housing assistance payments to the company owning a project.

(b) A housing assistance payment pursuant to this subdivision may be made only with respect to occupants of a dwelling in a project who would be eligible for a sublease under the provisions of this section.

(c) Tenants receiving housing assistance payments shall pay a rent to the company equal to the rent they would pay under a sublease pursuant to this section. Housing assistance payments equal to the difference between such rent and the rental fixed for the dwelling pursuant to section thirty-one of this chapter shall be made by or on behalf of the agency to the company.

(d) The agency and the division of housing and community renewal may make such regulations, not inconsistent with the provisions of this section, and enter into such agreements with the owners of projects as may be necessary or proper to carry out the provisions of this subdivision. Such agreements may, in the case of a project the mortgage on which is held by the agency, provide for the making of housing assistance payments in the form of a credit against the company's payments thereon.