Section 156. Selection of tenants

Subject  to the terms of any loan or
  subsidy contract with a government, an authority shall have the power to
  select  tenants  for  its  projects.  It  shall  observe  the  following
  standards with respect thereto:
    1.  The  dwellings  in  the  project  shall be available solely a. for
  persons or families of low income whose probable aggregate annual income
  during the period of occupancy does not  exceed  six  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 four or more dependents,
  such ratio shall not exceed seven to one; in calculating annual  income,
  social  security  payments and income received from pension funds by any
  person sixty-two years of age or more shall be excluded up  to  a  total
  maximum amount of seventy-five dollars per month;
    b. also for persons or surviving spouses of persons who
    (1)  have served in the armed forces of the United States for a period
  of at least six months (or any shorter period which  terminated  due  to
  death  or injury incurred in such service), provided some portion of the
  period of  service  was  between  the  twenty-eighth  day  of  February,
  nineteen  hundred  sixty-one to the seventh day of May, nineteen hundred
  seventy-five, and
    (2) have  been  thereafter  discharged  or  released  therefrom  under
  conditions  other  than  dishonorable, or died in such service, not more
  than five years prior to the time of application for admission  to  such
  project, and
    (3)  whose  probable  aggregate  annual  income  during  the period of
  occupancy 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 four or more dependents, such ratio shall not
  exceed eight to one.
    The "probable aggregate annual income" means the annual income of  the
  chief  wage  earner of the family plus all other income of other 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  authority  solely  for  the purpose of establishing rent to be paid
  except that the authority 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 rental of such family, or  for  all  such  purposes,
  subject to approval by the commissioner with respect to state projects.
    2.  The  authority  may rent or lease to a person or family a dwelling
  unit, or to a 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  a  non-profit  corporation
  organized  under the membership corporations law 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 or to a social services  official  for  any  purpose  authorized
  under the social services law and for which the social services official
  has  authority  to  rent  or  lease dwelling units, one or more dwelling
  units, consisting of a room or number of rooms, but  no  greater  number
  than  it  deems necessary to provide safe and sanitary accommodations to
  the proposed occupants thereof, without overcrowding.
    3. In the event that the income of the family residing  in  a  project
  increases  and  the  ratio to the rental of the dwelling becomes greater
  than prescribed by law at the time of their admission or in  subdivision
  one  of  this  section, whichever is greater, and the income is not more

  than fifty  per  centum  above  the  family  income  so  prescribed  for
  admission  to  the  dwelling  and  such increased income continues for a
  period of three months or more, the authority may permit the  tenant  to
  continue to occupy his dwelling provided the authority is convinced that
  the  tenant  cannot  secure  safe  and  sanitary  dwelling  from private
  enterprise or by reason of other facts the removal of  the  family  from
  the  project would occasion other undue hardship to the family. However,
  the rent of such family shall be increased in proportion to its  ability
  to  pay  more, the amount of increase to be ruled upon and prescribed by
  the authority for such cases.
    4. In the event that the ratio of the income  of  the  family  to  the
  rental  of  the  dwelling becomes greater than that prescribed by law at
  the time of their admission or  in  subdivision  one  of  this  section,
  whichever is greater, and is more than fifty per centum above the family
  income  so  prescribed for admission to the dwelling and continues for a
  period of three months, the  authority  shall  require  such  family  to
  remove  from  the  dwelling  and  may take such steps, including summary
  proceedings, as are necessary to effect the removal  of  the  family.  A
  three   months'   period   shall   be  given  the  family  to  find  new
  accommodations. Pending removal from the  dwelling,  the  rent  of  such
  family  shall be increased in proportion to its ability to pay more, the
  amount of increase to be ruled upon and prescribed by the authority  for
  such cases.
    5.  Notwithstanding  the  foregoing  provisions  of  this  section, an
  authority may establish income limits for continued  occupancy  for  any
  project aided by periodic cash subsidies, exceeding the limits otherwise
  authorized  under  this  section but not in excess of the highest income
  limits approved by  the  commissioner  for  any  state  project  in  the
  municipality. The provisions of this subdivision are intended solely for
  the  purpose  of  determining  eligibility  and  not  for the purpose of
  determining rent to be paid.
    6. Notwithstanding any provisions to the contrary  contained  in  this
  chapter,  if  an  authority  determines that any person or family of low
  income residing in any project of the authority whose income exceeds the
  limits for continued occupancy  is  unable  to  find  decent,  safe  and
  sanitary  housing  within  its  financial  reach  within  the  community
  although making every reasonable effort to do so or because  of  special
  circumstance  the  removal of such person or family would occasion undue
  hardship such person or family may be permitted to remain  in  occupancy
  for  the duration of such a situation. The rent of such person or family
  shall be increased in accordance with its ability to pay, the amount  of
  such increase to be prescribed by the authority.
    7. A municipal housing authority created and established for a city of
  one  hundred  thousand or more shall grant a preference in the selection
  of tenants to members of a police force of such city provided that  such
  members  otherwise  qualify  for occupancy in its projects and provided,
  further, that such  city  has  adopted  a  local  law  authorizing  such
  preference.