Section 85-A. Selection of tenants and occupants

1. The dwellings in a
  housing company project, other than a mutual project, shall be available
    (a) If such project was completed or acquired on or after July  first,
  nineteen  hundred  fifty-five,  for  persons  or families whose probable
  aggregate annual income at the time of admission 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  three  or
  more dependents, such ratio shall not exceed eight to one;
    (b)  If  such  project  was  completed  prior  to July first, nineteen
  hundred fifty-five, for persons or  families  whose  probable  aggregate
  annual  income  at the time of admission 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 three or more
  dependents, such ratio shall not exceed eight to one;
    (c) In the event that the income of a person or family residing  in  a
  project  increases  and  the ratio to the rental of the dwelling becomes
  greater than prescribed by law for admission  or  in  this  subdivision,
  whichever  is  greater, and the income is not more than fifty per centum
  above the income so prescribed for admission to the  dwelling  and  such
  increased  income  continues  for  a period of three months or more, the
  housing company may permit such person or family to continue  to  remain
  in  occupancy provided the housing company is convinced that such person
  or family cannot secure other safe and sanitary dwelling accommodations,
  or by reason of other facts the removal of such person  or  family  from
  the  project  would  occasion  other  undue  hardship  to such person or
  family. However, such person or family shall pay a rental  surcharge  in
  accordance with a schedule of surcharges promulgated by the company with
  the  approval  of the commissioner and in no event shall such removal be
  effected against any person or family which was in  occupancy  prior  to
  July first, nineteen hundred eighty-three;
    (d) In the event that the ratio of the income of a person or family to
  the  rental  of the dwelling becomes greater than that prescribed by law
  for admission or in this subdivision, whichever is greater, and is  more
  than  fifty  per  centum above the income so prescribed for admission to
  the dwelling and such increased income continues for a period  of  three
  months,  the  housing  company  shall  require  such person or family to
  remove from the dwelling and may  take  such  steps,  including  summary
  proceedings,  as  are  necessary  to effect the removal of the person or
  family. A three months' period shall be given such person or  family  to
  find  new accommodations. Pending removal from the dwelling, such person
  or family shall pay a rental surcharge in  accordance  with  a  schedule
  promulgated  by the company with the approval of the commissioner. In no
  event shall a removal otherwise authorized by this paragraph be effected
  against any person or family which was in occupancy prior to July first,
  nineteen hundred eighty-three.
    2. The dwellings in  any  mutual  housing  company  project  shall  be
  available
    (a)  In  the case of such projects constructed or acquired on or after
  July first, nineteen hundred fifty-five, for such  persons  or  families
  whose  probable  aggregate  annual income 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 to be furnished such persons or families,
  except that in the case of  persons  or  families  with  three  or  more
  dependents, such ratio shall not exceed eight to one. For the purpose of
  determining  the  eligibility  of tenant cooperators in a mutual housing
  company project, there shall 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, 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 the replacement
  of fixtures and appliances;
    (b) In the case of such projects  constructed  prior  to  July  first,
  nineteen hundred fifty-five, for such persons or families whose probable
  aggregate  annual income 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
  to be furnished such persons or families, except that  in  the  case  of
  persons  or families with three or more dependents, such ratio shall not
  exceed eight to one; provided, however, that, in the discretion  of  the
  commissioner  upon application of the mutual housing company, the income
  limitations set forth in paragraph (a)  of  this  subdivision  shall  be
  applicable to such projects, and, in such case, investment in the equity
  obligations  of  such housing companies shall include:  the value of the
  stock of said housing company at  time  of  purchase;  all  moneys  paid
  towards the rental of the dwellings which are allocated to the reduction
  of  the principal amount of the mortgage loan secured by a mortgage lien
  on the real property of the housing company; and all accruals to equity,
  approved by the commissioner, resulting from capital improvements;
    (c) The limitations as to income contained hereinabove  in  paragraphs
  (a) and (b) of this subsection shall not apply in mutual housing company
  projects after the period of municipal tax exemption of such project has
  expired,  and  provided  the commissioner has waived his rights over the
  control of rentals and selection of tenants under this article;
    (d) No occupant whose income increases shall be  compelled  to  vacate
  the  project  unless  the  ratio of his income to rental of the dwelling
  becomes greater by fifty per centum or more than is prescribed by law at
  the time of admission or in this subdivision, whichever is greater,  and
  unless at the same time he shall be discharged from all liability on any
  note, bond or other evidence of indebtedness relating thereto, and there
  shall  be  repaid to such person by the housing company all sums paid to
  such company for or on account  of  the  purchase  of  stock  or  income
  debentures  as  a  condition of such occupancy. The housing company may,
  with the approval of the commissioner, permit such occupant whose income

  increases and the ratio of income to  rental  of  the  dwelling  becomes
  greater  by  fifty  per  centum or more than is prescribed by law at the
  time of admission or in  this  subdivision,  whichever  is  greater,  to
  occupy  the  dwelling  for  not more than three years from the time such
  increase in income first accrues unless such occupancy is extended  with
  the  approval of the commissioner. In no event shall a removal otherwise
  authorized by this paragraph be effected against any  person  or  family
  which  has  been  in  occupancy  prior  to  July first, nineteen hundred
  eighty-three. However, such occupant shall pay  a  rental  surcharge  in
  accordance with a schedule of surcharges promulgated by the company with
  the approval of the commissioner.
    3.  Twenty-five  per centum of rental surcharges collected pursuant to
  this section on account of rentals payable prior to July first, nineteen
  hundred eighty-three shall be paid by the company  to  the  municipality
  which has granted tax exemption pursuant to section ninety-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  unit  basis. In the event that such tax exemption has not been
  granted, or in the event the period of tax exemption has expired, or  in
  the  event  that  a  sum  equal  to the total of all accrued taxes as to
  individual dwelling 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-three
  shall be applied to the expenses of operation and management as approved
  by the commissioner.
    4. The commissioner may approve or disapprove  an  application  for  a
  lease  in accordance with the income limits prescribed herein and, where
  there is discrimination in violation of section six hundred two of  this
  chapter,  may  compel  a  housing  company  to  grant a lease or renewal
  thereof to a person or family as a tenant in the project.
    5. The "probable aggregate annual income" means the annual  income  of
  the  chief wage earner of the family plus all other income of 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 commissioner, 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, 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.
    6. 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.
    7.  (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
  nine of section thirty-one, 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
  II, 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.
    8. Notwithstanding the provisions of this section, persons or 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  applicable  without reference to this subdivision, shall also be
  eligible for admission to the project  on  the  understanding  that  any
  person  or family becoming eligible by reason hereof, shall pay from the
  time of admission a rental surcharge computed on the basis of the income
  ratios applicable to such person  or  family  in  the  absence  of  this
  subdivision.  In  applying  the  provisions of paragraphs (c) and (d) of
  subdivision one and of paragraph (d) of subdivision two of this  section
  to  a family becoming eligible by reason of this subdivision, the "ratio
  prescribed by law" shall mean such ratio as would be prescribed  in  the
  absence of this subdivision.
    9.  Notwithstanding  the  provisions of this section or any law to the
  contrary, any limited dividend mutual housing company which:
    (a) owns or operates a project or projects that  are  located  in  the
  county  of  Queens and were constructed or acquired prior to July first,
  nineteen hundred sixty-five; and
    (b) did not receive a loan, construction subsidy,  mortgage,  mortgage
  guarantee  or  any  other form of financial assistance from the state of
  New  York  or  from  any  state  agency,  authority  or  public  benefit
  corporation created by the state; and
    (c) is no longer required to pay rental surcharges to the municipality
  in which it is located; and
    (d)  has commenced paying real property taxes on the value of the land
  and improvements pursuant to a resolution adopted by the governing  body
  of the municipality in which it is located; and
    (e)  has  determined,  by  a  two-thirds  vote of the directors of the
  housing company taken on or before July first of each year  that  rental
  surcharges  based  on  incomes  of  persons  or families residing in the
  project, as specified in this article or any other provision of law, are
  not required for the purpose of maintaining or operating said project or
  projects. Any such vote shall be preceded by  a  timely  notice  to  the
  project's shareholders that such vote will take place;

    shall  be  excused  from  undertaking  a  survey  of the aggregate and
  individual annual incomes  of  persons  or  families  residing  in  such
  project or projects constructed or acquired by such housing company, and
  shall  not  be required to impose rental surcharges based on the incomes
  of such persons or families.
    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.