Section 31. Rentals and selection of tenants

1. (a) A company may, with the
  approval  of the commissioner or the supervising agency, as the case may
  be, fix maximum rentals per room to be charged tenants of the dwellings,
  the average of the rentals for the  dwellings  in  any  project  not  to
  exceed the maximum average rentals determined by the commissioner or the
  supervising  agency, as the case may be, before any commitments are made
  by the company for the construction of the project. The commissioner  or
  the  supervising agency, upon his or its own motion, or upon application
  by the company or of  a  stockholder,  lienholder,  a  creditor,  or  of
  holders  of  at  least ten per centum of the bonds of the company, or by
  the federal government where the mortgage loan of the company is insured
  or held by the federal government, may vary such rental rate  from  time
  to  time so as to secure, together with all other income of the company,
  sufficient income for it to meet within reasonable limits all  necessary
  payments  to  be made or projected to be made during the term of a lease
  by the said company, of all expenses including  fixed  charges,  sinking
  funds,  reserves and dividends on outstanding stock as authorized by the
  commissioner or the supervising agency, as the  case  may  be.  Letting,
  subletting or assignment of leases of apartments at greater rentals than
  those  approved  by  the commissioner or the supervising agency shall be
  unlawful. Where the mortgage loan of a company is insured or held by the
  federal  government  or  where  a  project  is  owned  by  the   federal
  government,   rental  rates  shall  be  varied  without  regard  to  the
  provisions of any general, special or local law  which  would  otherwise
  limit  or  control  such  rental rates or the determination or variation
  thereof for so long as such mortgage loan  remains  outstanding  or  the
  project  financed  by  such  a  mortgage  loan  is  owned by the federal
  government. No variation of a rental rate in a  project  financed  by  a
  mortgage  loan  insured  or  held by, or owned by the federal government
  shall be effective unless approved by the federal government.
    (b) Unless any applicable regulation of or regulatory  agreement  with
  the  federal  government  shall  otherwise provide, (i) the tenants in a
  project financed by a mortgage loan  insured  or  held  by  the  federal
  government  shall  be  entitled  and may elect to enter in a lease for a
  term of up to three years at such rental rates as may be established  by
  the commissioner or the supervising agency, as the case may be, pursuant
  to  paragraph  (a)  of  subdivision one of this section, (ii) the rental
  rates to be charged under any such  lease  shall  be  established  after
  consideration  of  the term of such lease and may differ from the rental
  rates to be charged under any other lease of a different term and  (iii)
  the commissioner or the supervising agency, as the case may be, shall in
  establishing  such  rental rates consider the obligations of the company
  under any instruments evidencing or securing any residual  indebtedness.
  Such  leases  shall contain a provision authorizing the variation of the
  rental rates during the term of such leases upon an application made  by
  the  federal  government pursuant to paragraph (a) of subdivision one of
  this section.
    * (c) A company may, with the approval  of  the  commissioner  or  the
  supervising  agency,  as the case may be, fix maximum charges to be paid
  by each occupant for  the  non-housekeeping  accommodations,  aged  care
  accommodations   or   non-housekeeping  accommodations  for  handicapped
  persons, which charges may include payment  for  board  and  such  other
  services  as may be provided as an incident to occupancy, the average of
  such charges for all  the  non-housekeeping  accommodations,  aged  care
  accommodations   or   non-housekeeping  accommodations  for  handicapped
  persons in any project not to exceed the maximum average charges for all
  such  non-housekeeping  accommodations,  aged  care  accommodations   or
  non-housekeeping  accommodations  for  handicapped persons determined by

  the commissioner or the supervising agency as the case  may  be,  before
  any  commitments  are  made  by  the company for the construction of the
  project. The commissioner or the supervising agency upon his or its  own
  motion,  or  upon  application  by the company or of a stockholder, lien
  holder, a creditor or of holders of at least ten (10%) per centum of the
  bonds of the company, may vary such charges from time to time so  as  to
  secure, together with all other income of the company, sufficient income
  for  it  to  meet  within reasonable limits all necessary payments to be
  made by said company, of all expenses including fixed  charges,  sinking
  funds,  reserves and dividends on outstanding stock as authorized by the
  commissioner or supervising agency as the  case  may  be.  It  shall  be
  unlawful    to   make   non-housekeeping   accommodations,   aged   care
  accommodations  or  non-housekeeping  accommodations   for   handicapped
  persons  available  at  greater  charges  than  those  approved  by  the
  commissioner or the supervising agency.
    * NB There are 2 š(c)'s
    * (c)  Disclosure  of  bases.  The  commissioner,   administrator   or
  supervising  agency,  as  the  case  may  be,  shall  make available for
  inspection and copying by the residents in any affected development, all
  items and data and recommendations utilized as the various bases for the
  decision on increases in rental or carrying charges,  upon  notification
  of the decision to the applicant of the action taken.
    * NB There are 2 š(c)'s
    2.  (a)  The dwelling or non-housekeeping accommodations without board
  in a company project shall be available for persons or families  of  low
  income  whose  probable aggregate annual income at the time of admission
  and during the period of occupancy does not exceed, the greater  of  (i)
  the  median  income  for  such  persons or families for the metropolitan
  statistical area in which the project is located, or  if  a  project  is
  located  outside  a metropolitan statistical area, the median income for
  such persons or families for the county in which the project is located,
  as most recently determined by the United States department  of  housing
  and  urban  development,  in  which  case  any person or family becoming
  eligible for admission pursuant to this subparagraph shall pay, from the
  time of admission, a rental surcharge as  provided  for  in  subdivision
  three  of  this section, computed on the basis of the income limitations
  applicable  to  such  persons  or  families  in  the  absence  of   this
  subparagraph,  or  (ii)  seven  times the rental, including the value or
  cost to them of heat, light, water and cooking fuel,  of  the  dwellings
  that  may  be  furnished to such persons or families, except that in the
  case of families with three or more dependents,  such  ratio  shall  not
  exceed  eight to one. The "probable aggregate annual income" in the case
  of dwelling accommodations 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 income  of
  gainfully  employed  members  under  the  age  of  twenty-one years, the
  proportion  to  be  determined  by  the  company  as  approved  by   the
  commissioner  or  the  supervising agency, as the case may be, excluding
  therefrom a deduction of fifteen thousand dollars  from  the  income  of
  secondary  wage  earners of the family or a larger deduction if approved
  by the commissioner or the supervising  agency,  as  the  case  may  be,
  except  that  the  company,  as  approved  by  the  commissioner  or the
  supervising agency, as the case may be, 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  the rental of such family, or for all
  such purposes; in the case of such  non-housekeeping  accommodations  it
  means  the annual income of the occupant, provided that the commissioner

  or  supervising  agency,  as  the  case  may  be,  may  make  rules  and
  regulations  relative  to the allocation of the income of a family among
  the  members  thereof  for  the  purpose  of  determining   the   income
  attributable to such occupant.
    (b)  For  the  purpose  of  determining  maximum  income  to establish
  eligibility for admission or continued occupancy of, or  the  imposition
  of  surcharges  upon, tenant-cooperators in a mutual company project, or
  for all such purposes, there may be added to the total  annual  carrying
  charges  an amount equal to six per centum of the investment of a person
  or family in the equity obligations of such housing company  and,  where
  not  included in the carrying charges payable to such company, the value
  or cost to them of heat, light, water  and  cooking  fuel  and,  to  the
  extent  authorized  by the commissioner or the supervising agency as the
  case may be, the value or cost to them of repainting and replacement  of
  fixtures and appliances.
    (c)  The  non-housekeeping  accommodations  with  board  in  a company
  project including non-housekeeping accommodations  with  board  designed
  for  the occupancy of handicapped persons shall be available for persons
  of low income whose probable aggregate annual  income  at  the  time  of
  admission  and during the period of occupancy does not exceed four times
  the annual charges to be paid by such persons and in the  case  of  aged
  care  accommodations  two  times  the  annual charges to be paid by such
  persons.  The "probable aggregate annual income" means the annual income
  of the person occupying such non-housekeeping accommodations, aged  care
  accommodations   or   non-housekeeping  accommodations  for  handicapped
  persons, provided that the commissioner or supervising  agency,  as  the
  case  may  be, may make rules and regulations relating to the allocation
  of the income of a family among the members thereof for the  purpose  of
  determining the income attributable to such occupant.
    (d)  A  company  may,  with  the  approval  of the commissioner or the
  supervising agency, as the case may be, lease dwellings in a project  to
  an  authority,  at  rentals  fixed  for  such  dwellings pursuant to the
  provisions of subdivision  one  of  this  section  less  an  appropriate
  adjustment for the increased tax exemption, if any, attributable to such
  dwellings  pursuant to subdivision three of section thirty-three of this
  chapter, for occupancy by persons and families of  low  income  who  are
  eligible and pay rents therefor pursuant to the provisions of the public
  housing law.
    (e)  Notwithstanding the provisions of this subdivision, families with
  two or more dependents whose probable aggregate annual income  does  not
  exceed  one  hundred twenty-five percent of the limitations as to income
  as determined pursuant to paragraphs (a) and (b)  of  this  subdivision,
  shall also be eligible for admission to the dwelling or non-housekeeping
  accommodations  without board of a project on the understanding that any
  family becoming eligible for admission by reason hereof shall pay,  from
  the time of admission, a rental surcharge as provided for in subdivision
  three  of  this section, computed on the basis of the income limitations
  applicable to such  family  in  the  absence  of  this  subdivision.  In
  applying  the  provisions  of  subdivision  three  to  a family becoming
  eligible by reason of this section, the maximum income prescribed by law
  for admission or occupancy shall for all purposes  be  computed  without
  reference to this paragraph.
    2-a.  Notwithstanding  any other provision of law, the commissioner or
  supervising agency shall authorize  and  make  provision  in  rules  and
  regulations  for  an  immediate  downward adjustment in surcharge upon a
  showing of substantial decrease in income caused  by  events  including,
  but not limited to death, disability or illness.

    3.  In  the  event  that the income of a person or family in occupancy
  should increase and exceed the maximum prescribed by law  for  admission
  or  for  continued occupancy, based on the latest existing rent, by more
  than twenty-five per centum, such person or family shall be  subject  to
  removal from the dwelling, non-housekeeping, aged care accommodations or
  non-housekeeping   accommodations   for  handicapped  persons  provided,
  however, that such person or  family  may  be  permitted  to  remain  in
  occupancy  until  such  income  exceeds the maximum prescribed by law by
  more than fifty per centum, if the company, with  the  approval  of  the
  commissioner  or  the  supervising  agency, shall determine that removal
  would cause hardship to such person or family. Any person or  family  in
  occupancy whose income exceeds the maximum prescribed by law shall pay a
  rental  surcharge  in  accordance  with  a  schedule of surcharges to be
  promulgated by the company with the approval of the commissioner or  the
  supervising  agency,  as the case may be, provided, however, such rental
  surcharge shall in no event exceed fifty  per  centum  of  the  existing
  rent.
    4.  Twenty-five  per  cent  of rental surcharges collected pursuant to
  this section on account of rentals payable prior to July first, nineteen
  hundred eighty-one shall be paid by  the  company  to  the  municipality
  which has granted tax exemption pursuant to section thirty-three of this
  article  as  a  credit  against the grant of tax exemption, the value of
  such tax exemption and of such credit to be determined on an  individual
  dwelling,  non-housekeeping, aged care accommodation or non-housekeeping
  accommodations for handicapped persons unit basis.  In  the  event  that
  such  tax  exemption  has  not  been granted, or in the event that a sum
  equal to the total of all  accrued  taxes  as  to  individual  dwelling,
  non-housekeeping,    aged   care   accommodation   or   non-housekeeping
  accommodations for handicapped persons units where  such  tax  exemption
  was  granted  have  been paid to the municipality, the excess if any, of
  surcharges and all surcharges imposed  after  June  thirtieth,  nineteen
  hundred  eighty-one  shall  be  applied to the expenses of operation and
  management as approved by the commissioner or the supervising agency.
    5. Notwithstanding the provisions of this  section  or  of  any  other
  general,  special  or local law, persons or families living in a project
  under a lease for ninety-nine years renewable, or in perpetuity,  or  by
  reason  of  ownership of stock in such company may, with the approval of
  the commissioner or of the supervising agency, as the case  may  be,  be
  permitted  to  remain  in  occupancy for not more than three years after
  such increase in income exceeds the maximum prescribed by  law  by  more
  than  fifty  per  centum  unless  such  occupancy  is  extended with the
  approval of the commissioner or of the supervising agency, as  the  case
  may be. Any such occupant required to remove from the project because of
  excessive  income  as herein provided shall be discharged from liability
  on any note, bond or other evidence of indebtedness relating thereto and
  shall be reimbursed for all sums paid by such occupant to the company on
  account of the purchase of stock or income debentures as a condition  of
  such occupancy.
    6.  Preference  in  admission  to a project shall be given to families
  displaced by a limited-profit housing project.
    7. Preference in admission to a project shall be  given  by  a  mutual
  company  or  an  urban  rental  company or by the New York state housing
  finance agency when subleasing dwellings in projects of  such  companies
  pursuant  to  section  forty-four-a  of  this  chapter,  to  persons  or
  surviving spouses of persons who
    (a) 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
    (b)  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.
    7-a. Preference in admission to a project with an open  waiting  list,
  as  determined  by  the commissioner or the supervising agency, shall be
  given to disabled veterans as such term is defined pursuant  to  section
  eighty-five  of  the civil service law. For projects with a closed list,
  as determined by  the  commissioner  or  the  supervising  agency,  such
  preference  shall  be  given  upon  the  opening  of  the  waiting list.
  Notwithstanding  the  foregoing,  persons  who   are   residing   in   a
  limited-profit  housing  project  shall  be  given first priority for an
  internal  transfer  in  the  project  in  which  they  are  residing  in
  accordance with rules and regulations promulgated by the commissioner or
  the supervising agency.
    7-b.  Preference  in  admission  to  projects located in a city with a
  population of one hundred thousand or more shall be given to members  of
  a police force of such city, provided such members otherwise qualify for
  admission  and provided, further, that such city has adopted a local law
  authorizing such program.
    8. Preference in admission to any project or to such  portion  of  any
  project  which  has  been specifically designed for occupancy by aged or
  handicapped persons, as the case may be, shall be given to such persons.
    8-a. A company may rent  one  or  more  dwelling  units  to  a  social
  services official or 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 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.
    9. (a) For the purpose of enabling lower  income  elderly  persons  to
  continue  in  occupancy  without  paying  rentals  in  excess  of a fair
  proportion of their income, any municipality having a population of less
  than one million is authorized to make and to contract to make  periodic
  payments  to a company in an amount not exceeding the difference between
  the rent or carrying charges for the dwellings occupied  by  such  lower
  income  persons  and  one-third  of  their net probable aggregate annual
  income, where such rent or carrying charges  exceed  such  one-third  of
  income;  provided  that  the aggregate amount of periodic payments to be
  made in accordance with  contracts  entered  into  by  the  municipality
  during any fiscal year thereof pursuant to this subdivision, subdivision
  seven  of  section  eighty-five-a,  section  one  hundred twenty-six and
  section five hundred seventy-seven-a of this chapter  shall  not  exceed
  the  aggregate  amount of all real property taxes paid or payable during
  such fiscal year by all companies organized pursuant  to  this  article,
  article  IV, article V, and article XI of this chapter and the aggregate
  estimated receipts of all such companies in such fiscal year from rental
  surcharges collected or to be collected pursuant to this chapter.
    (b) Such payments shall be made only on account of a person or  family
  in  occupancy  where the head of the household is sixty-two years of age
  or older and is not a recipient of public  assistance  pursuant  to  the
  social  services law, and where the net probable aggregate annual income
  of the person or family in occupancy does not exceed six  thousand  five
  hundred  dollars  a  year. Notwithstanding the provisions of subdivision
  twenty-nine of section two  of  this  chapter,  net  probable  aggregate
  annual  income  as  used in this subdivision shall mean annual income of

  family members from all sources after deduction of  federal,  state  and
  city  income  taxes;  provided  that  any  municipality may provide that
  increases in benefits under the social security act  which  take  effect
  after  such  person  or  family has assumed occupancy shall not be taken
  into account.
    (c) A company having a contract with the municipality pursuant to this
  subdivision may not collect from persons or  families  in  occupancy  on
  whose  account  such  payments  are  made  any  rentals in excess of the
  amounts specified in such contract.
    10. A housing company shall accept federal reimbursement under section
  eight of the Housing and Community Development Act of 1974  in  lieu  of
  such  amount  in rent payment for a person qualifying under such act and
  residing in a project of such  company.  A  housing  company  shall  not
  reject  an  applicant  for  an apartment solely on the basis that all or
  part of the rent shall be paid under section eight of  the  Housing  and
  Community Development Act of 1974.
    11. Every company subject to the provisions of this article shall on a
  form  prescribed  by  the  commissioner  or  supervising agency annually
  certify to such commissioner or supervising agency  that  all  necessary
  steps are being undertaken to ensure that all surcharges due pursuant to
  this section are being properly billed, collected and remitted.
    12. All municipally-aided projects shall post the first and last names
  of  all  persons  on  each  waiting  list maintained by such project, in
  chronological order, by such project's management office, or,  if  there
  is  no  management office on the site of such municipally-aided project,
  in such project's lobby.