Section 126. Reduced rentals for the elderly

(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 redevelopment
  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  section,  subdivision  nine  of  section
  thirty-one, subdivision seven of section eighty-five-a, 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  IV,  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 where the contract between the
  municipality and the company pursuant to section  one  hundred  fourteen
  imposes  income  limitations on admission and on continued occupancy and
  requires the payment of surcharges to the  municipality  by  over-income
  occupants.
    (c)  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 shall mean the
  annual  income  of  family  members from all sources after deductions 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.
    (d) 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.