§ 577-b. Payment of arrears for certain taxes. 1. The term eligible\nproperty as used in this section shall mean a multiple dwelling located\nin a city with a population of one million or more and owned by a\ncompany established pursuant to this article which:\n (a) is controlled by and provides housing accommodations to its\nresident shareholders or members or agrees, on terms approved by the\nsupervising agency, to offer to the residents of the multiple dwelling\nthe opportunity to acquire ownership and control of the company; and\n (b) on January first, two thousand two, had outstanding municipal real\nestate taxes relating to any period prior to January first, two thousand\none.\n 2.
(a)The supervising agency may offer to each company that owns an\neligible property an opportunit
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§ 577-b. Payment of arrears for certain taxes. 1. The term eligible\nproperty as used in this section shall mean a multiple dwelling located\nin a city with a population of one million or more and owned by a\ncompany established pursuant to this article which:\n (a) is controlled by and provides housing accommodations to its\nresident shareholders or members or agrees, on terms approved by the\nsupervising agency, to offer to the residents of the multiple dwelling\nthe opportunity to acquire ownership and control of the company; and\n (b) on January first, two thousand two, had outstanding municipal real\nestate taxes relating to any period prior to January first, two thousand\none.\n 2. (a) The supervising agency may offer to each company that owns an\neligible property an opportunity to enter into a regulatory agreement\npursuant to which the obligation to pay arrears of real estate taxes\nattributable to such property, including interest and penalties if any,\nshall be dealt with as provided in such agreement.\n (b) The regulatory agreement shall include the following provisions:\n (1) a term of thirty years;\n (2) that the suspension of the obligation to pay arrears shall\ncontinue provided that the company complies with the terms of the\nregulatory agreement;\n (3) that all suspended arrears including interest and penalties shall\nbe forgiven provided that the company complies with the regulatory\nagreement for an initial period of ten years;\n (4) that portions of the suspended arrears may be forgiven during the\ninitial ten year period pursuant to a schedule established in the\nregulatory agreement;\n (5) that any suspended obligations which have not been forgiven may be\nreinstated if the company fails to comply with the regulatory agreement;\n (6) that all new municipal charges must be paid in a timely fashion;\n (7) that the supervising agency shall be authorized to assume control\nof the company if the company fails to comply with the agreement;\n (8) that the company must comply with customary financial and other\nreporting requirements; and\n (9) that the company shall be required to increase maintenance charges\nor impose assessments to insure that the company can provide for its\nobligations.\n (c) The regulatory agreement shall also include terms to address the\nfollowing matters as well as any other issues that the supervising\nagency deems appropriate:\n (1) establishment of a structured reserve fund;\n (2) restrictions to insure sales and rentals only to low income\nindividuals and families;\n (3) establishment of a transfer fee payable to the company's reserve\nfund upon the sale of any units;\n (4) restrictions on subletting;\n (5) primary residence requirements; and\n (6) certification of annual elections.\n (d) The regulatory agreement may contain such alterations to the terms\nof the original disposition as the supervisory agency deems necessary.\n