§ 31 — Rentals and selection of tenants

New York § 31

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 2: Limited-profit Housing Companies

Text

§ 31. Rentals and selection of tenants. 1. (a) A company may, with the\napproval of the commissioner or the supervising agency, as the case may\nbe, fix maximum rentals per room to be charged tenants of the dwellings,\nthe average of the rentals for the dwellings in any project not to\nexceed the maximum average rentals determined by the commissioner or the\nsupervising agency, as the case may be, before any commitments are made\nby the company for the construction of the project. The commissioner or\nthe supervising agency, upon his or its own motion, or upon application\nby the company or of a stockholder, lienholder, a creditor, or of\nholders of at least ten per centum of the bonds of the company, or by\nthe federal government where the mortgage loan of the company is insured\nor held by the federal government, may vary such rental rate from time\nto time so as to secure, together with all other income of the company,\nsufficient income for it to meet within reasonable limits all necessary\npayments to be made or projected to be made during the term of a lease\nby the said company, of all expenses including fixed charges, sinking\nfunds, reserves and dividends on outstanding stock as authorized by the\ncommissioner or the supervising agency, as the case may be. Letting,\nsubletting or assignment of leases of apartments at greater rentals than\nthose approved by the commissioner or the supervising agency shall be\nunlawful. Where the mortgage loan of a company is insured or held by the\nfederal government or where a project is owned by the federal\ngovernment, rental rates shall be varied without regard to the\nprovisions of any general, special or local law which would otherwise\nlimit or control such rental rates or the determination or variation\nthereof for so long as such mortgage loan remains outstanding or the\nproject financed by such a mortgage loan is owned by the federal\ngovernment. No variation of a rental rate in a project financed by a\nmortgage loan insured or held by, or owned by the federal government\nshall be effective unless approved by the federal government.\n (b) Unless any applicable regulation of or regulatory agreement with\nthe federal government shall otherwise provide, (i) the tenants in a\nproject financed by a mortgage loan insured or held by the federal\ngovernment shall be entitled and may elect to enter in a lease for a\nterm of up to three years at such rental rates as may be established by\nthe commissioner or the supervising agency, as the case may be, pursuant\nto paragraph (a) of subdivision one of this section, (ii) the rental\nrates to be charged under any such lease shall be established after\nconsideration of the term of such lease and may differ from the rental\nrates to be charged under any other lease of a different term and (iii)\nthe commissioner or the supervising agency, as the case may be, shall in\nestablishing such rental rates consider the obligations of the company\nunder any instruments evidencing or securing any residual indebtedness.\nSuch leases shall contain a provision authorizing the variation of the\nrental rates during the term of such leases upon an application made by\nthe federal government pursuant to paragraph (a) of subdivision one of\nthis section.\n * (c) A company may, with the approval of the commissioner or the\nsupervising agency, as the case may be, fix maximum charges to be paid\nby each occupant for the non-housekeeping accommodations, aged care\naccommodations or non-housekeeping accommodations for handicapped\npersons, which charges may include payment for board and such other\nservices as may be provided as an incident to occupancy, the average of\nsuch charges for all the non-housekeeping accommodations, aged care\naccommodations or non-housekeeping accommodations for handicapped\npersons in any project not to exceed the maximum average charges for all\nsuch non-housekeeping accommodations, aged care accommodations or\nnon-housekeeping accommodations for handicapped persons determined by\nthe commissioner or the supervising agency as the case may be, before\nany commitments are made by the company for the construction of the\nproject. The commissioner or the supervising agency upon his or its own\nmotion, or upon application by the company or of a stockholder, lien\nholder, a creditor or of holders of at least ten (10%) per centum of the\nbonds of the company, may vary such charges from time to time so as to\nsecure, together with all other income of the company, sufficient income\nfor it to meet within reasonable limits all necessary payments to be\nmade by said company, of all expenses including fixed charges, sinking\nfunds, reserves and dividends on outstanding stock as authorized by the\ncommissioner or supervising agency as the case may be. It shall be\nunlawful to make non-housekeeping accommodations, aged care\naccommodations or non-housekeeping accommodations for handicapped\npersons available at greater charges than those approved by the\ncommissioner or the supervising agency.\n * NB There are 2 (c)'s\n * (c) Disclosure of bases. The commissioner, administrator or\nsupervising agency, as the case may be, shall make available for\ninspection and copying by the residents in any affected development, all\nitems and data and recommendations utilized as the various bases for the\ndecision on increases in rental or carrying charges, upon notification\nof the decision to the applicant of the action taken.\n * NB There are 2 (c)'s\n 2. (a) The dwelling or non-housekeeping accommodations without board\nin a company project shall be available for persons or families of low\nincome whose probable aggregate annual income at the time of admission\nand during the period of occupancy does not exceed, the greater of (i)\nthe median income for such persons or families for the metropolitan\nstatistical area in which the project is located, or if a project is\nlocated outside a metropolitan statistical area, the median income for\nsuch persons or families for the county in which the project is located,\nas most recently determined by the United States department of housing\nand urban development, in which case any person or family becoming\neligible for admission pursuant to this subparagraph shall pay, from the\ntime of admission, a rental surcharge as provided for in subdivision\nthree of this section, computed on the basis of the income limitations\napplicable to such persons or families in the absence of this\nsubparagraph, or (ii) eight times the rental, including the value or\ncost to them of heat, light, water and cooking fuel, of the dwellings\nthat may be furnished to such persons or families, except that in the\ncase of families with three or more dependents, such ratio shall not\nexceed nine to one. Persons or families with two or less dependents\neligible for admission or continued occupancy pursuant to subparagraph\n(ii) of this paragraph or subparagraph (ii) of this paragraph prior to\nthe effective date of a chapter of the laws of two thousand nineteen\nthat amended subparagraph (ii) of this paragraph, shall pay a rental\nsurcharge computed on the basis of an income limitation of seven times\nthe rental and families with three or more dependents eligible for\nadmission or continued occupancy pursuant to subparagraph (ii) of this\nparagraph or subparagraph (ii) of this paragraph prior to the effective\ndate of a chapter of the laws of two thousand nineteen that amended\nsubparagraph (ii) of this paragraph, shall pay a rental surcharge\ncomputed on the basis of an income limitation of eight times the cost of\nthe rental, including in each instance the value or cost to the persons\nor families of heat, light, water and cooking fuel, of the dwellings\nfurnished to such persons or families.\n The "probable aggregate annual income" in the case of dwelling\naccommodations means the annual income of the chief wage earner of the\nfamily, plus all other income of other members of the family over the\nage of twenty-one years, plus a proportion of income of gainfully\nemployed members under the age of twenty-one years, the proportion to be\ndetermined by the company as approved by the commissioner or the\nsupervising agency, as the case may be, excluding therefrom a deduction\nof fifteen thousand dollars from the income of secondary wage earners of\nthe family or a larger deduction if approved by the commissioner or the\nsupervising agency, as the case may be, except that the company, as\napproved by the commissioner or the supervising agency, as the case may\nbe, may exclude a proportion of the income of other members of the\nfamily over the age of twenty-one years for the purpose of determining\neligibility for admission or continued occupancy, or for establishing\nthe rental of such family, or for all such purposes; in the case of such\nnon-housekeeping accommodations it means the annual income of the\noccupant, provided that the commissioner or supervising agency, as the\ncase may be, may make rules and regulations relative to the allocation\nof the income of a family among the members thereof for the purpose of\ndetermining the income attributable to such occupant.\n (b) For the purpose of determining maximum income to establish\neligibility for admission or continued occupancy of, or the imposition\nof surcharges upon, tenant-cooperators in a mutual company project, or\nfor all such purposes, there may be added to the total annual carrying\ncharges an amount equal to six per centum of the investment of a person\nor family in the equity obligations of such housing company and, where\nnot included in the carrying charges payable to such company, the value\nor cost to them of heat, light, water and cooking fuel and, to the\nextent authorized by the commissioner or the supervising agency as the\ncase may be, the value or cost to them of repainting and replacement of\nfixtures and appliances.\n (c) The non-housekeeping accommodations with board in a company\nproject including non-housekeeping accommodations with board designed\nfor the occupancy of handicapped persons shall be available for persons\nof low income whose probable aggregate annual income at the time of\nadmission and during the period of occupancy does not exceed four times\nthe annual charges to be paid by such persons and in the case of aged\ncare accommodations two times the annual charges to be paid by such\npersons. The "probable aggregate annual income" means the annual income\nof the person occupying such non-housekeeping accommodations, aged care\naccommodations or non-housekeeping accommodations for handicapped\npersons, provided that the commissioner or supervising agency, as the\ncase may be, may make rules and regulations relating to the allocation\nof the income of a family among the members thereof for the purpose of\ndetermining the income attributable to such occupant.\n (d) A company may, with the approval of the commissioner or the\nsupervising agency, as the case may be, lease dwellings in a project to\nan authority, at rentals fixed for such dwellings pursuant to the\nprovisions of subdivision one of this section less an appropriate\nadjustment for the increased tax exemption, if any, attributable to such\ndwellings pursuant to subdivision three of section thirty-three of this\nchapter, for occupancy by persons and families of low income who are\neligible and pay rents therefor pursuant to the provisions of the public\nhousing law.\n (e) Notwithstanding the provisions of this subdivision, families whose\nprobable aggregate annual income does not exceed one hundred twenty-five\npercent of the limitations as to income as determined pursuant to\nparagraphs (a) and (b) of this subdivision, shall also be eligible for\nadmission to the dwelling or non-housekeeping accommodations without\nboard of a project on the understanding that any family becoming\neligible for admission by reason hereof shall pay, from the time of\nadmission, a rental surcharge as provided for in subdivision three of\nthis section, computed on the basis of the income limitations applicable\nto such family in the absence of this subdivision. In applying the\nprovisions of subdivision three of this section to a family becoming\neligible by reason of this section, the maximum income prescribed by law\nfor admission or occupancy shall for all purposes be computed without\nreference to this paragraph.\n 2-a. Notwithstanding any other provision of law, the commissioner or\nsupervising agency shall authorize and make provision in rules and\nregulations for an immediate downward adjustment in surcharge upon a\nshowing of substantial decrease in income caused by events including,\nbut not limited to death, disability or illness.\n 3. In the event that the income of a person or family in occupancy\nshould increase and exceed the maximum prescribed by law for admission\nor for continued occupancy, based on the latest existing rent, by more\nthan twenty-five per centum, such person or family shall be subject to\nremoval from the dwelling, non-housekeeping, aged care accommodations or\nnon-housekeeping accommodations for handicapped persons provided,\nhowever, that such person or family may be permitted to remain in\noccupancy until such income exceeds the maximum prescribed by law by\nmore than fifty per centum, if the company, with the approval of the\ncommissioner or the supervising agency, shall determine that removal\nwould cause hardship to such person or family. Any person or family in\noccupancy whose income exceeds the maximum prescribed by law shall pay a\nrental surcharge in accordance with a schedule of surcharges to be\npromulgated by the company with the approval of the commissioner or the\nsupervising agency, as the case may be, provided, however, such rental\nsurcharge shall in no event exceed fifty per centum of the existing\nrent.\n 4. Twenty-five per cent of rental surcharges collected pursuant to\nthis section on account of rentals payable prior to July first, nineteen\nhundred eighty-one shall be paid by the company to the municipality\nwhich has granted tax exemption pursuant to section thirty-three of this\narticle as a credit against the grant of tax exemption, the value of\nsuch tax exemption and of such credit to be determined on an individual\ndwelling, non-housekeeping, aged care accommodation or non-housekeeping\naccommodations for handicapped persons unit basis. In the event that\nsuch tax exemption has not been granted, or in the event that a sum\nequal to the total of all accrued taxes as to individual dwelling,\nnon-housekeeping, aged care accommodation or non-housekeeping\naccommodations for handicapped persons units where such tax exemption\nwas granted have been paid to the municipality, the excess if any, of\nsurcharges and all surcharges imposed after June thirtieth, nineteen\nhundred eighty-one shall be applied to the expenses of operation and\nmanagement as approved by the commissioner or the supervising agency.\n 5. Notwithstanding the provisions of this section or of any other\ngeneral, special or local law, persons or families living in a project\nunder a lease for ninety-nine years renewable, or in perpetuity, or by\nreason of ownership of stock in such company may, with the approval of\nthe commissioner or of the supervising agency, as the case may be, be\npermitted to remain in occupancy for not more than three years after\nsuch increase in income exceeds the maximum prescribed by law by more\nthan fifty per centum unless such occupancy is extended with the\napproval of the commissioner or of the supervising agency, as the case\nmay be. Any such occupant required to remove from the project because of\nexcessive income as herein provided shall be discharged from liability\non any note, bond or other evidence of indebtedness relating thereto and\nshall be reimbursed for all sums paid by such occupant to the company on\naccount of the purchase of stock or income debentures as a condition of\nsuch occupancy.\n 6. Preference in admission to a project shall be given to families\ndisplaced by a limited-profit housing project.\n 7. Preference in admission to a project with an open waiting list, as\ndetermined by the commissioner or the supervising agency, shall be given\nby a mutual company or an urban rental company or by the New York state\nhousing finance agency when subleasing dwellings in projects of such\ncompanies pursuant to section forty-four-a of this chapter, to persons\nor surviving spouses of persons who are veterans as such term is defined\npursuant to section eighty-five of the civil service law. The number of\npersons given preference as a veteran or a surviving spouse of a veteran\nshall be published adjacent to the application to be on such waiting\nlist. For projects with a closed list, as determined by the commissioner\nor the supervising agency, such preference shall be given upon the\nopening of the waiting list. Notwithstanding the foregoing, persons who\nare residing in a limited-profit housing project shall be given first\npriority for an internal transfer in the project in which they are\nresiding in accordance with rules and regulations promulgated by the\ncommissioner or the supervising agency.\n 7-b. Preference in admission to projects located in a city with a\npopulation of one hundred thousand or more shall be given to members of\na police force of such city, provided such members otherwise qualify for\nadmission and provided, further, that such city has adopted a local law\nauthorizing such program.\n 8. Preference in admission to any project or to such portion of any\nproject which has been specifically designed for occupancy by aged or\nhandicapped persons, as the case may be, shall be given to such persons.\n 8-a. A company may rent one or more dwelling units to a social\nservices official or duly authorized agency, as defined in section three\nhundred seventy-one of the social services law, for the operation of\nagency boarding homes or group homes or to any public agency as defined\nin section four hundred sixty-one of the general municipal law which\nprovides residences and social services to dependent aged persons.\n 9. (a) For the purpose of enabling lower income elderly persons to\ncontinue in occupancy without paying rentals in excess of a fair\nproportion of their income, any municipality having a population of less\nthan one million is authorized to make and to contract to make periodic\npayments to a company in an amount not exceeding the difference between\nthe rent or carrying charges for the dwellings occupied by such lower\nincome persons and one-third of their net probable aggregate annual\nincome, where such rent or carrying charges exceed such one-third of\nincome; provided that the aggregate amount of periodic payments to be\nmade in accordance with contracts entered into by the municipality\nduring any fiscal year thereof pursuant to this subdivision, subdivision\nseven of section eighty-five-a, section one hundred twenty-six and\nsection five hundred seventy-seven-a of this chapter shall not exceed\nthe aggregate amount of all real property taxes paid or payable during\nsuch fiscal year by all companies organized pursuant to this article,\narticle IV, article V, and article XI of this chapter and the aggregate\nestimated receipts of all such companies in such fiscal year from rental\nsurcharges collected or to be collected pursuant to this chapter.\n (b) Such payments shall be made only on account of a person or family\nin occupancy where the head of the household is sixty-two years of age\nor older and is not a recipient of public assistance pursuant to the\nsocial services law, and where the net probable aggregate annual income\nof the person or family in occupancy does not exceed six thousand five\nhundred dollars a year. Notwithstanding the provisions of subdivision\ntwenty-nine of section two of this chapter, net probable aggregate\nannual income as used in this subdivision shall mean annual income of\nfamily members from all sources after deduction of federal, state and\ncity income taxes; provided that any municipality may provide that\nincreases in benefits under the social security act which take effect\nafter such person or family has assumed occupancy shall not be taken\ninto account.\n (c) A company having a contract with the municipality pursuant to this\nsubdivision may not collect from persons or families in occupancy on\nwhose account such payments are made any rentals in excess of the\namounts specified in such contract.\n 10. A housing company shall accept federal reimbursement under section\neight of the Housing and Community Development Act of 1974 in lieu of\nsuch amount in rent payment for a person qualifying under such act and\nresiding in a project of such company. A housing company shall not\nreject an applicant for an apartment solely on the basis that all or\npart of the rent shall be paid under section eight of the Housing and\nCommunity Development Act of 1974.\n 11. Every company subject to the provisions of this article shall on a\nform prescribed by the commissioner or supervising agency annually\ncertify to such commissioner or supervising agency that all necessary\nsteps are being undertaken to ensure that all surcharges due pursuant to\nthis section are being properly billed, collected and remitted.\n 12. All municipally-aided projects shall post the first and last names\nof all persons on each waiting list maintained by such project, in\nchronological order, by such project's management office, or, if there\nis no management office on the site of such municipally-aided project,\nin such project's lobby.\n 13. The commissioner or supervising agency shall develop a written\nprocedure with regard to how applications for admission to a company are\nprocessed and numbered, and how tenants are selected. Such procedure\nshall be implemented and followed by all limited-profit housing\ncompanies subject to the provisions of this article; provided, however,\nthat any limited-profit housing company may elect additional procedures\nso long as such procedures are not inconsistent with the procedures\ndeveloped by the commissioner or supervising agency and any other\nrequirements set forth in this article.\n 14. The commissioner or supervising agency shall develop a procedure\nwhereby applicants are notified in the case that their application is\nrejected by a limited-profit housing company subject to the provisions\nof this article, and such procedure shall also include the appeal's\nprocess available to the rejected applicant. The notification that shall\nbe sent to the applicant shall be in written form, include reasons why\nthe applicant was rejected, the appeal's process, and be sent to the\napplicant within sixty days after the limited-profit housing company\ndecided to reject such applicant. Any limited-profit housing company may\nelect additional procedures so long as such procedures are not\ninconsistent with the procedures developed by the commissioner or\nsupervising agency and any other requirements set forth in this article.\nFor purposes of this subdivision, an applicant shall not be deemed\nrejected if their application is still active on the limited-profit\nhousing company's waiting list and such waiting list is still open and\naccepting applications.\n 15. The commissioner or the supervising agency shall develop and\nrequire the use of a publicly available electronic automated system for\nlimited-profit housing companies to store, process, and maintain\napplications and waiting lists. Waiting lists maintained by each such\ncompany shall use a method that protects any personally identifiable\ninformation of applicants from being publicly disclosed or accessible to\nthe public. Such electronic automated system shall also include general\ninformation about each company, including, but not limited to: the name\nand address of the company; the management office and address; the\nnumber and size of all units in each building; and information on the\nstatus of each waiting list, including whether the limited-profit\nhousing company is currently accepting applications and how long\napplicants may have to wait.\n