Selection of Tenants and Occupants.

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§ 85-a. Selection of tenants and occupants. 1. The dwellings in a housing company project, other than a mutual project, shall be available

(a) If such project was completed or acquired on or after July first, nineteen hundred fifty-five, for persons or families whose probable aggregate annual income at the time of admission does not exceed seven times the rental (including the value or cost to them of heat, light, water and cooking fuel) of the dwellings to be furnished such persons or families, except that in the case of persons or families with three or more dependents, such ratio shall not exceed eight to one;

(b) If such project was completed prior to July first, nineteen hundred fifty-five, for persons or families whose probable aggregate annual income at the time of admission does not exceed seven times the rental (including the value or cost to them of heat, light, water and cooking fuel) of the dwellings to be furnished such persons or families, except that in the case of persons or families with three or more dependents, such ratio shall not exceed eight to one;

(c) In the event that the income of a person or family residing in a project increases and the ratio to the rental of the dwelling becomes greater than prescribed by law for admission or in this subdivision, whichever is greater, and the income is not more than fifty per centum above the income so prescribed for admission to the dwelling and such increased income continues for a period of three months or more, the housing company may permit such person or family to continue to remain in occupancy provided the housing company is convinced that such person or family cannot secure other safe and sanitary dwelling accommodations, or by reason of other facts the removal of such person or family from the project would occasion other undue hardship to such person or family. However, such person or family shall pay a rental surcharge in accordance with a schedule of surcharges promulgated by the company with the approval of the commissioner and in no event shall such removal be effected against any person or family which was in occupancy prior to July first, nineteen hundred eighty-three;

(d) In the event that the ratio of the income of a person or family to the rental of the dwelling becomes greater than that prescribed by law for admission or in this subdivision, whichever is greater, and is more than fifty per centum above the income so prescribed for admission to the dwelling and such increased income continues for a period of three months, the housing company shall require such person or family to remove from the dwelling and may take such steps, including summary proceedings, as are necessary to effect the removal of the person or family. A three months' period shall be given such person or family to find new accommodations. Pending removal from the dwelling, such person or family shall pay a rental surcharge in accordance with a schedule promulgated by the company with the approval of the commissioner. In no event shall a removal otherwise authorized by this paragraph be effected against any person or family which was in occupancy prior to July first, nineteen hundred eighty-three. 2. The dwellings in any mutual housing company project shall be available

(a) In the case of such projects constructed or acquired on or after July first, nineteen hundred fifty-five, for such persons or families whose probable aggregate annual income 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) seven times the rental (including the value or cost to them of heat, light, water and cooking fuel) of the dwellings to be furnished such persons or families, except that in the case of persons or families with three or more dependents, such ratio shall not exceed eight to one. For the purpose of determining the eligibility of tenant cooperators in a mutual housing company project, there shall 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, 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 the replacement of fixtures and appliances;

(b) In the case of such projects constructed prior to July first, nineteen hundred fifty-five, for such persons or families whose probable aggregate annual income 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) seven times the rental (including the value or cost to them of heat, light, water and cooking fuel) of the dwellings to be furnished such persons or families, except that in the case of persons or families with three or more dependents, such ratio shall not exceed eight to one; provided, however, that, in the discretion of the commissioner upon application of the mutual housing company, the income limitations set forth in paragraph (a) of this subdivision shall be applicable to such projects, and, in such case, investment in the equity obligations of such housing companies shall include: the value of the stock of said housing company at time of purchase; all moneys paid towards the rental of the dwellings which are allocated to the reduction of the principal amount of the mortgage loan secured by a mortgage lien on the real property of the housing company; and all accruals to equity, approved by the commissioner, resulting from capital improvements;

(c) The limitations as to income contained hereinabove in paragraphs (a) and (b) of this subsection shall not apply in mutual housing company projects after the period of municipal tax exemption of such project has expired, and provided the commissioner has waived his rights over the control of rentals and selection of tenants under this article;

(d) No occupant whose income increases shall be compelled to vacate the project unless the ratio of his income to rental of the dwelling becomes greater by fifty per centum or more than is prescribed by law at the time of admission or in this subdivision, whichever is greater, and unless at the same time he shall be discharged from all liability on any note, bond or other evidence of indebtedness relating thereto, and there shall be repaid to such person by the housing company all sums paid to such company for or on account of the purchase of stock or income debentures as a condition of such occupancy. The housing company may, with the approval of the commissioner, permit such occupant whose income increases and the ratio of income to rental of the dwelling becomes greater by fifty per centum or more than is prescribed by law at the time of admission or in this subdivision, whichever is greater, to occupy the dwelling for not more than three years from the time such increase in income first accrues unless such occupancy is extended with the approval of the commissioner. In no event shall a removal otherwise authorized by this paragraph be effected against any person or family which has been in occupancy prior to July first, nineteen hundred eighty-three. However, such occupant shall pay a rental surcharge in accordance with a schedule of surcharges promulgated by the company with the approval of the commissioner. 3. Twenty-five per centum of rental surcharges collected pursuant to this section on account of rentals payable prior to July first, nineteen hundred eighty-three shall be paid by the company to the municipality which has granted tax exemption pursuant to section ninety-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 unit basis. In the event that such tax exemption has not been granted, or in the event the period of tax exemption has expired, or in the event that a sum equal to the total of all accrued taxes as to individual dwelling 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-three shall be applied to the expenses of operation and management as approved by the commissioner. 4. The commissioner may approve or disapprove an application for a lease in accordance with the income limits prescribed herein and, where there is discrimination in violation of section six hundred two of this chapter, may compel a housing company to grant a lease or renewal thereof to a person or family as a tenant in the project. 5. The "probable aggregate annual income" means the annual income of the chief wage earner of the family plus all other income of members of the family over the age of twenty-one years, plus a proportion of the income of members under the age of twenty-one years to be determined by the commissioner, 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, 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. 6. 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. 7. (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 nine of section thirty-one, 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 II, 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. 8. Notwithstanding the provisions of this section, persons or families with two or more dependents whose probable aggregate annual income does not exceed one hundred twenty-five percent of the limitations as to income applicable without reference to this subdivision, shall also be eligible for admission to the project on the understanding that any person or family becoming eligible by reason hereof, shall pay from the time of admission a rental surcharge computed on the basis of the income ratios applicable to such person or family in the absence of this subdivision. In applying the provisions of paragraphs (c) and (d) of subdivision one and of paragraph (d) of subdivision two of this section to a family becoming eligible by reason of this subdivision, the "ratio prescribed by law" shall mean such ratio as would be prescribed in the absence of this subdivision. 9. Notwithstanding the provisions of this section or any law to the contrary, any limited dividend mutual housing company which:

(a) owns or operates a project or projects that are located in the county of Queens and were constructed or acquired prior to July first, nineteen hundred sixty-five; and

(b) did not receive a loan, construction subsidy, mortgage, mortgage guarantee or any other form of financial assistance from the state of New York or from any state agency, authority or public benefit corporation created by the state; and

(c) is no longer required to pay rental surcharges to the municipality in which it is located; and

(d) has commenced paying real property taxes on the value of the land and improvements pursuant to a resolution adopted by the governing body of the municipality in which it is located; and

(e) has determined, by a two-thirds vote of the directors of the housing company taken on or before July first of each year that rental surcharges based on incomes of persons or families residing in the project, as specified in this article or any other provision of law, are not required for the purpose of maintaining or operating said project or projects. Any such vote shall be preceded by a timely notice to the project's shareholders that such vote will take place; shall be excused from undertaking a survey of the aggregate and individual annual incomes of persons or families residing in such project or projects constructed or acquired by such housing company, and shall not be required to impose rental surcharges based on the incomes of such persons or families. 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.


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