§ 85-A — Selection of tenants and occupants

New York § 85-A

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 4: Limited Dividend Housing Companies

Text

§ 85-a. Selection of tenants and occupants. 1. The dwellings in a\nhousing company project, other than a mutual project, shall be available\n (a) If such project was completed or acquired on or after July first,\nnineteen hundred fifty-five, for persons or families whose probable\naggregate annual income at the time of admission does not exceed seven\ntimes the rental (including the value or cost to them of heat, light,\nwater and cooking fuel) of the dwellings to be furnished such persons or\nfamilies, except that in the case of persons or families with three or\nmore dependents, such ratio shall not exceed eight to one;\n (b) If such project was completed prior to July first, nineteen\nhundred fifty-five, for persons or families whose probable aggregate\nannual income at the time of admission does not exceed seven times the\nrental (including the value or cost to them of heat, light, water and\ncooking fuel) of the dwellings to be furnished such persons or families,\nexcept that in the case of persons or families with three or more\ndependents, such ratio shall not exceed eight to one;\n (c) In the event that the income of a person or family residing in a\nproject increases and the ratio to the rental of the dwelling becomes\ngreater than prescribed by law for admission or in this subdivision,\nwhichever is greater, and the income is not more than fifty per centum\nabove the income so prescribed for admission to the dwelling and such\nincreased income continues for a period of three months or more, the\nhousing company may permit such person or family to continue to remain\nin occupancy provided the housing company is convinced that such person\nor family cannot secure other safe and sanitary dwelling accommodations,\nor by reason of other facts the removal of such person or family from\nthe project would occasion other undue hardship to such person or\nfamily. However, such person or family shall pay a rental surcharge in\naccordance with a schedule of surcharges promulgated by the company with\nthe approval of the commissioner and in no event shall such removal be\neffected against any person or family which was in occupancy prior to\nJuly first, nineteen hundred eighty-three;\n (d) In the event that the ratio of the income of a person or family to\nthe rental of the dwelling becomes greater than that prescribed by law\nfor admission or in this subdivision, whichever is greater, and is more\nthan fifty per centum above the income so prescribed for admission to\nthe dwelling and such increased income continues for a period of three\nmonths, the housing company shall require such person or family to\nremove from the dwelling and may take such steps, including summary\nproceedings, as are necessary to effect the removal of the person or\nfamily. A three months' period shall be given such person or family to\nfind new accommodations. Pending removal from the dwelling, such person\nor family shall pay a rental surcharge in accordance with a schedule\npromulgated by the company with the approval of the commissioner. In no\nevent shall a removal otherwise authorized by this paragraph be effected\nagainst any person or family which was in occupancy prior to July first,\nnineteen hundred eighty-three.\n 2. The dwellings in any mutual housing company project shall be\navailable\n (a) In the case of such projects constructed or acquired on or after\nJuly first, nineteen hundred fifty-five, for such persons or families\nwhose probable aggregate annual income during the period of occupancy\ndoes not exceed, the greater of (i) the median income for such persons\nor families for the metropolitan statistical area in which the project\nis located, or if a project is located outside a metropolitan\nstatistical area, the median income for such persons or families for the\ncounty in which the project is located, as most recently determined by\nthe United States department of housing and urban development, in which\ncase any person or family becoming eligible for admission pursuant to\nthis subparagraph shall pay, from the time of admission, a rental\nsurcharge as provided for in subdivision three of this section, computed\non the basis of the income limitations applicable to such persons or\nfamilies in the absence of this subparagraph, or (ii) seven times the\nrental (including the value or cost to them of heat, light, water and\ncooking fuel) of the dwellings to be furnished such persons or families,\nexcept that in the case of persons or families with three or more\ndependents, such ratio shall not exceed eight to one. For the purpose of\ndetermining the eligibility of tenant cooperators in a mutual housing\ncompany project, there shall 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, 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 the replacement\nof fixtures and appliances;\n (b) In the case of such projects constructed prior to July first,\nnineteen hundred fifty-five, for such persons or families whose probable\naggregate annual income during the period of occupancy does not exceed,\nthe greater of (i) the median income for such persons or families for\nthe metropolitan statistical area in which the project is located, or if\na project is located outside a metropolitan statistical area, the median\nincome for such persons or families for the county in which the project\nis located, as most recently determined by the United States department\nof housing and urban development, in which case any person or family\nbecoming eligible for admission pursuant to this subparagraph shall pay,\nfrom the time of admission, a rental surcharge as provided for in\nsubdivision three of this section, computed on the basis of the income\nlimitations applicable to such persons or families in the absence of\nthis subparagraph, or (ii) seven times the rental (including the value\nor cost to them of heat, light, water and cooking fuel) of the dwellings\nto be furnished such persons or families, except that in the case of\npersons or families with three or more dependents, such ratio shall not\nexceed eight to one; provided, however, that, in the discretion of the\ncommissioner upon application of the mutual housing company, the income\nlimitations set forth in paragraph (a) of this subdivision shall be\napplicable to such projects, and, in such case, investment in the equity\nobligations of such housing companies shall include: the value of the\nstock of said housing company at time of purchase; all moneys paid\ntowards the rental of the dwellings which are allocated to the reduction\nof the principal amount of the mortgage loan secured by a mortgage lien\non the real property of the housing company; and all accruals to equity,\napproved by the commissioner, resulting from capital improvements;\n (c) The limitations as to income contained hereinabove in paragraphs\n(a) and (b) of this subsection shall not apply in mutual housing company\nprojects after the period of municipal tax exemption of such project has\nexpired, and provided the commissioner has waived his rights over the\ncontrol of rentals and selection of tenants under this article;\n (d) No occupant whose income increases shall be compelled to vacate\nthe project unless the ratio of his income to rental of the dwelling\nbecomes greater by fifty per centum or more than is prescribed by law at\nthe time of admission or in this subdivision, whichever is greater, and\nunless at the same time he shall be discharged from all liability on any\nnote, bond or other evidence of indebtedness relating thereto, and there\nshall be repaid to such person by the housing company all sums paid to\nsuch company for or on account of the purchase of stock or income\ndebentures as a condition of such occupancy. The housing company may,\nwith the approval of the commissioner, permit such occupant whose income\nincreases and the ratio of income to rental of the dwelling becomes\ngreater by fifty per centum or more than is prescribed by law at the\ntime of admission or in this subdivision, whichever is greater, to\noccupy the dwelling for not more than three years from the time such\nincrease in income first accrues unless such occupancy is extended with\nthe approval of the commissioner. In no event shall a removal otherwise\nauthorized by this paragraph be effected against any person or family\nwhich has been in occupancy prior to July first, nineteen hundred\neighty-three. However, such occupant shall pay a rental surcharge in\naccordance with a schedule of surcharges promulgated by the company with\nthe approval of the commissioner.\n 3. Twenty-five per centum of rental surcharges collected pursuant to\nthis section on account of rentals payable prior to July first, nineteen\nhundred eighty-three shall be paid by the company to the municipality\nwhich has granted tax exemption pursuant to section ninety-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 unit basis. In the event that such tax exemption has not been\ngranted, or in the event the period of tax exemption has expired, or in\nthe event that a sum equal to the total of all accrued taxes as to\nindividual dwelling units where such tax exemption was granted have been\npaid to the municipality, the excess, if any, of surcharges and all\nsurcharges imposed after June thirtieth, nineteen hundred eighty-three\nshall be applied to the expenses of operation and management as approved\nby the commissioner.\n 4. The commissioner may approve or disapprove an application for a\nlease in accordance with the income limits prescribed herein and, where\nthere is discrimination in violation of section six hundred two of this\nchapter, may compel a housing company to grant a lease or renewal\nthereof to a person or family as a tenant in the project.\n 5. The "probable aggregate annual income" means the annual income of\nthe chief wage earner of the family plus all other income of members of\nthe family over the age of twenty-one years, plus a proportion of the\nincome of members under the age of twenty-one years to be determined by\nthe commissioner, excluding therefrom a deduction of fifteen thousand\ndollars from the income of secondary wage earners of the family or a\nlarger deduction if approved by the commissioner or the supervising\nagency, as the case may be, except that the company, as approved by the\ncommissioner, may exclude a proportion of the income of other members of\nthe family over the age of twenty-one years for the purpose of\ndetermining eligibility for admission or continued occupancy, or for\nestablishing the rental of such family, or for all such purposes.\n 6. A company may rent one or more dwelling units to a social services\nofficial or duly authorized agency, as defined in section three hundred\nseventy-one of the social services law, for the operation of agency\nboarding homes or group homes or to any public agency as defined in\nsection four hundred sixty-one of the general municipal law, which\nprovides residences and social services to dependent aged persons.\n 7. (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\nnine of section thirty-one, section one hundred twenty-six and section\nfive hundred seventy-seven-a of this chapter shall not exceed the\naggregate amount of all real property taxes paid or payable during such\nfiscal year by all companies organized pursuant to this article, article\nII, article V and article XI of this chapter and the aggregate estimated\nreceipts 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 annual\nincome as used in this subdivision shall mean annual income of family\nmembers from all sources after deduction of federal, state and city\nincome taxes; provided that any municipality may provide that increases\nin benefits under the social security act which take effect after such\nperson or family has assumed occupancy shall not be taken into 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 8. Notwithstanding the provisions of this section, persons or families\nwith two or more dependents whose probable aggregate annual income does\nnot exceed one hundred twenty-five percent of the limitations as to\nincome applicable without reference to this subdivision, shall also be\neligible for admission to the project on the understanding that any\nperson or family becoming eligible by reason hereof, shall pay from the\ntime of admission a rental surcharge computed on the basis of the income\nratios applicable to such person or family in the absence of this\nsubdivision. In applying the provisions of paragraphs (c) and (d) of\nsubdivision one and of paragraph (d) of subdivision two of this section\nto a family becoming eligible by reason of this subdivision, the "ratio\nprescribed by law" shall mean such ratio as would be prescribed in the\nabsence of this subdivision.\n 9. Notwithstanding the provisions of this section or any law to the\ncontrary, any limited dividend mutual housing company which:\n (a) owns or operates a project or projects that are located in the\ncounty of Queens and were constructed or acquired prior to July first,\nnineteen hundred sixty-five; and\n (b) did not receive a loan, construction subsidy, mortgage, mortgage\nguarantee or any other form of financial assistance from the state of\nNew York or from any state agency, authority or public benefit\ncorporation created by the state; and\n (c) is no longer required to pay rental surcharges to the municipality\nin which it is located; and\n (d) has commenced paying real property taxes on the value of the land\nand improvements pursuant to a resolution adopted by the governing body\nof the municipality in which it is located; and\n (e) has determined, by a two-thirds vote of the directors of the\nhousing company taken on or before July first of each year that rental\nsurcharges based on incomes of persons or families residing in the\nproject, as specified in this article or any other provision of law, are\nnot required for the purpose of maintaining or operating said project or\nprojects. Any such vote shall be preceded by a timely notice to the\nproject's shareholders that such vote will take place;\nshall be excused from undertaking a survey of the aggregate and\nindividual annual incomes of persons or families residing in such\nproject or projects constructed or acquired by such housing company, and\nshall not be required to impose rental surcharges based on the incomes\nof such persons or families.\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