Section 44-A. Low rent dwelling accommodations

1. Subject to the approval
  of  the  commissioner  and  to  the  provisions  of  any  contract  with
  noteholders  and  bondholders,  the agency shall have the power to lease
  dwellings in a project, not to exceed twenty per centum of the dwellings
  in such project, from a company, except that in the case  of  a  project
  located  in  an  area  in  which  the  commissioner finds that unusually
  difficult housing conditions exist, the number of dwellings which may be
  leased by the agency shall not exceed fifty per centum, and except  that
  the agency may lease all or any portion of the dwellings in a non-profit
  company  project  designed or intended for occupancy by aged persons, at
  such rentals as may be fixed therefor by such company  and  approved  by
  the commissioner or the supervising agency, as the case may be, pursuant
  to  the  provisions  of  subdivision  one  of section thirty-one of this
  chapter less an appropriate adjustment for the increased tax  exemption,
  if  any,  attributable  to such dwellings pursuant to subdivision two of
  section thirty-three of this chapter; and to sublet such  dwellings,  in
  accordance  with subdivision two of this section, to persons or families
  eligible therefor in accordance with the provisions of paragraph (a)  of
  subdivision  two  of  section  thirty-one  of  this chapter, except that
  dwellings in a non-profit  company  project  designed  or  intended  for
  occupancy  by  the aged shall be sublet only to aged persons, and except
  that in the case of mutual companies, dwellings may be leased only  when
  the agency shall purchase the shares appertaining to such dwellings.
    2.  The  rental  of any dwelling sublet in accordance with subdivision
  one of this section shall be fixed at an  amount  equal  to  twenty  per
  centum of the probable aggregate annual income of the occupants thereof,
  determined in accordance with section thirty-one of this chapter, at the
  time  of  the  execution  of  such  sublease  and  at  a time thereafter
  proximate to each anniversary date of the execution of such sublease and
  at the time of any renewal or extension of such sublease, provided  that
  no  such  dwelling shall be sublet (a) at an average rental of less than
  fifteen dollars per room per month or at a  rental  less  than  that  of
  comparable  dwellings  in new state-aided public housing projects in the
  community, whichever is greater, or (b) to  a  person  or  family  whose
  probable  aggregate  annual  income  exceeds five times the rental fixed
  therefor  by  the  company  pursuant  to  subdivision  one  of   section
  thirty-one  of this chapter, provided however, such person or family may
  continue to occupy such dwelling  and  pay  to  the  agency  such  fixed
  rental,  including any surcharges which would otherwise be authorized if
  such person or family were a tenant of the company,  until  the  company
  shall have entered into a lease with such person or family or until such
  person or family has vacated or has been caused to vacate such dwelling.
    3.  Subject  to the approval of the commissioner and to the provisions
  of any contract with noteholders and bondholders, the agency shall  have
  the  power  to  lease  dwellings,  within  areas  designated  to receive
  benefits  under  the  federal  demonstration  cities  and   metropolitan
  development  act  of  nineteen hundred sixty-six, in a multiple dwelling
  receiving benefits and subject to control of  its  rents  under  article
  eight  of  this chapter from the owner thereof at such rentals as may be
  approved by the governmental agency having jurisdiction pursuant to  the
  provisions  of  section four hundred five of this chapter; and to sublet
  such dwellings to persons or families eligible  therefor  in  accordance
  with  the provisions of subdivision three of section four hundred one of
  this chapter. The  rental  of  any  dwelling  sublet  pursuant  to  this
  subdivision  shall  be  fixed at an amount equal to twenty per centum of
  the  probable  aggregate  annual  income  of  the   occupants   thereof,
  determined  in accordance with subdivision three of section four hundred
  one of this chapter, at the time of the execution of such  sublease  and

  at the time of each anniversary of the execution of such sublease and at
  the  time of any renewal or extension of such sublease, provided that no
  such dwelling shall be sublet (a) at an  average  rental  of  less  than
  fifteen  dollars  per  room  per  month or at a rental less than that of
  comparable dwellings in new state-aided public housing projects  in  the
  community,  whichever  is  greater,  or  (b) to a person or family whose
  probable aggregate annual income exceeds five  times  the  rental  fixed
  therefor pursuant to section four hundred five of this chapter.
    4.  The  agency  shall  create  and establish a special account, to be
  known as the low rent housing assistance account,  and  shall  pay  into
  such account all monies appropriated and made available by the state for
  the  purposes  of  such  account  and any other monies which may be made
  available to the agency for the purposes of such account from any  other
  source  or  sources.  All monies held in the low rent housing assistance
  accounts shall be used by the agency (a) to meet, together with  rentals
  received  therefor  from  the occupants, the agency's rent obligation to
  the company or owner of a multiple dwelling with  respect  to  dwellings
  leased pursuant to this section; (b) to make housing assistance payments
  pursuant  to  subdivision  five  of this section; (c) for the payment of
  administrative and  other  expenses  of  the  agency  allocable  to  its
  activities  pursuant  to this section, and (d) to reimburse the division
  of housing and  community  renewal  the  reasonable  costs  of  services
  performed  by  the commissioner of housing and community renewal and the
  division of housing and community renewal in carrying out the provisions
  of this section pursuant to section  fifty-five  of  this  article.  Any
  monies  held in the low rent housing assistance account not required for
  immediate disbursement may  be  invested  in  the  manner  permitted  by
  subdivision  eight  of section forty-four of this article. Any income or
  interest earned by, or increment to such account shall be added  to  the
  monies held in such account for the purposes herein provided.
    5.  (a)  In  lieu  of  leasing  and  subleasing housing accommodations
  pursuant to subdivisions one through three of this section,  the  agency
  may  provide  housing  for  persons and families of low income by making
  housing assistance payments to the company owning a project.
    (b) A housing assistance payment pursuant to this subdivision  may  be
  made only with respect to occupants of a dwelling in a project who would
  be eligible for a sublease under the provisions of this section.
    (c)  Tenants receiving housing assistance payments shall pay a rent to
  the company equal to the rent they would pay under a  sublease  pursuant
  to  this  section.  Housing  assistance payments equal to the difference
  between such rent and the rental fixed  for  the  dwelling  pursuant  to
  section  thirty-one of this chapter shall be made by or on behalf of the
  agency to the company.
    (d) The agency and the division of housing and community  renewal  may
  make  such  regulations,  not  inconsistent  with the provisions of this
  section, and enter into such agreements with the owners of  projects  as
  may  be  necessary  or  proper  to  carry  out  the  provisions  of this
  subdivision. Such agreements may, in the case of a project the  mortgage
  on  which  is  held  by  the  agency,  provide for the making of housing
  assistance payments in the  form  of  a  credit  against  the  company's
  payments thereon.