§ 87 — Increase of rentals in housing company projects

§ 87. Increase of rentals in housing company projects. Whenever it\nshall appear that the interests of lienholders, creditors, debenture\nholders, shareholders, partners or beneficiaries cannot otherwise be\nsafeguarded, the commissioner shall, notwithstanding the limitation\nprescribed in this article upon maximum average rental, have power by\nhis order made upon written application of a housing company or of a\nlienholder, a creditor, or of holders of ten per centum of the income\ndebentures of the housing company, or, in the case of a housing company\nwhich is a corporation, the holders of ten per centum of the shares, or,\nin the case of a housing company which is a partnership, the partners\nhaving an interest in capital equal to ten per centum thereof, or, in\nthe case of a housing company which is a trust, the beneficiaries having\na beneficial interest in capital equal to ten per centum thereof, to\nauthorize such housing company to increase rentals beyond the maximum\nprovided in this article as follows:\n (a) If the application is made before occupancy of the dwellings\nembraced in the project and it is shown to the satisfaction of the\ncommissioner that owing to causes beyond the control of the housing\ncompany or contingencies which in the opinion of the commissioner could\nnot reasonably have been anticipated, the maximum rentals are\ninsufficient to meet the payments authorized in section eighty-five in\nwhich event the commissioner may authorize an increase in the minimum\namount necessary to enable such housing company to make such payments.\n (b) If the application is made after occupancy the order shall be made\nonly after a public hearing. Said hearing shall be held upon no less\nthan twenty days' written notice to the tenants and such notice shall\nhave annexed thereto a copy of the application for increase in rentals.\nNo such order or authorization shall be made or given unless the\ncommissioner shall find that because of changes in economic conditions\nin their application to the project with respect to which request for\nincreased rentals shall have been made or because of special assessments\nor causes or contingencies beyond the control of the housing company,\naffecting such project, the maximum rentals fixed as herein provided are\ninsufficient to meet the payments authorized in section eighty-five of\nthis article and unless the commissioner shall find that such\ninsufficiency cannot be corrected by reasonable economies in management\nand operation of said project. The commissioner shall not authorize any\nincrease in rentals in excess of the minimum amount necessary to enable\nthe said housing company to make the said payments authorized in section\neighty-five. Any order by the commissioner shall be final and conclusive\nupon all questions within his jurisdiction, with respect to the project\naffected thereby, unless reversed or modified on appeal therefrom as\nhereinafter provided. Within thirty days after notice of the filing of\nthe order of the commissioner has been sent to the said housing company\nand served upon the said tenants affected thereby in such manner as the\ncommissioner shall prescribe, an appeal may be taken to the appellate\ndivision of the supreme court in the department in which the project\naffected by the order is located, from such order of the commissioner by\nany party in interest. If notice of such appeal is served upon the\ncommissioner, he shall, within thirty days thereafter, serve upon the\nparties in interest a statement of his conclusions of fact and rulings\nof law in such case. The commissioner may also in his discretion certify\nto such appellate division of the supreme court questions of law\ninvolved in his order. Such appeal and the questions so certified shall\nbe heard in a summary manner and shall have precedence over all other\ncivil cases in such court. The commissioner shall be deemed a party to\nevery such appeal.\n An appeal may also be taken by the commissioner or by any party in\ninterest to the court of appeals in the same manner and subject to the\nsame limitations as is now provided in civil actions. It shall not be\nnecessary to file exceptions to the rulings of the commissioner. The\ncommissioner shall not be required to file a bond upon an appeal by him\nto the court of appeals. Upon final determination of such an appeal, the\ncommissioner shall enter an order in accordance therewith.\n