Relates to rentals and selection of tenants in projects owned by limited-profit housing companies; repeals provisions relating to continued occupancy by certain tenants in such projects.
STATE OF NEW YORK
________________________________________________________________________
7723
IN SENATE
June 15, 2012
___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the private housing finance law, in relation to rentals
and selection of tenants in projects owned by limited-profit housing
companies; and to repeal subdivision 5 of section 31 of such law
relating to continued occupancy by certain tenants in such projects
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 31 of the private housing finance
2 law is amended by adding a new paragraph (a-1) to read as follows:
3 (a-1) Notwithstanding any inconsistent provision of any other general,
4 special or local law, with respect to municipally-aided projects in a
5 city with a population of one million or more, unless the company noti-
6 fies the supervising agency in accordance with procedures established by
7 rule of such agency that it does not want an increase in its rental rate
8 or is making application for a project-specific increase in its rental
9 rate, the rental rate for the dwellings in any such project shall be
10 increased annually on July first in an amount equal to the one year
11 renewal lease guideline promulgated by the rent guidelines board of the
12 city of New York then in effect, and no further procedures shall be
13 required to effectuate such rental rate increases. With respect to such
14 municipally-aided projects, where the company has notified the supervis-
15 ing agency in accordance with such established procedures that it does
16 not require any increase in its rental rate or is making application for
17 a project-specific increase in its rental rate or if the supervising
18 agency determines that such project needs an increase in rental rate
19 other than the one year renewal lease guidelines promulgated by the rent
20 guidelines board of the city of New York, the supervising agency may
21 vary such rental rate for such project from such guideline on no more
22 than an annual basis provided that the alternative rental rate will
23 secure, together with all other income of such company, sufficient
24 income for it to meet within reasonable limits all necessary payments,
25 to be made or projected to be made, of all expenses including fixed
26 charges, sinking funds, reserves and dividends on outstanding stock as
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16062-01-2
S. 7723 2
1 authorized by the supervising agency, and no further procedures shall be
2 required to effectuate such alternative rental rate. Letting, subletting
3 or assignment of leases of apartments at greater rentals than those
4 established pursuant to this paragraph shall be unlawful. Notwithstand-
5 ing the foregoing, the provisions of this paragraph shall not apply to
6 any project (i) that is owned by the federal government; (ii) for which
7 the mortgage loan of the company is insured or held by the federal
8 government; or (iii) that has an interest reduction contract pursuant to
9 section two hundred thirty-six of the national housing act (12 U.S.C. §
10 1715z-1).
11 § 2. Paragraph (e) of subdivision 2 of section 31 of the private hous-
12 ing finance law, as added by chapter 729 of the laws of 1974, is amended
13 to read as follows:
14 (e) Notwithstanding the provisions of this subdivision, persons or
15 families [with two or more dependents] whose probable aggregate annual
16 income does not exceed one hundred twenty-five percent of the limita-
17 tions as to income as determined pursuant to paragraphs (a) and (b) of
18 this subdivision, shall also be eligible for admission to the dwelling
19 or non-housekeeping accommodations without board of a project on the
20 understanding that any person or family becoming eligible for admission
21 by reason hereof shall pay, from the time of admission, a rental
22 surcharge as provided for in subdivision three of this section, computed
23 on the basis of the income limitations applicable to such person or
24 family in the absence of this subdivision. In applying the provisions of
25 subdivision three to a person or family becoming eligible by reason of
26 this section, the maximum income prescribed by law for admission or
27 occupancy shall for all purposes be computed without reference to this
28 paragraph.
29 § 3. Subdivision 3 of section 31 of the private housing finance law,
30 as amended by chapter 778 of the laws of 1971, is amended to read as
31 follows:
32 3. In the event that the income of a person or family in occupancy
33 should increase and exceed the maximum prescribed by law for admission
34 [or for continued occupancy, based on the latest existing rent, by more
35 than twenty-five per centum], such person or family shall be [subject to
36 removal from the dwelling, non-housekeeping, aged care accommodations or
37 non-housekeeping accommodations for handicapped persons provided, howev-
38 er, that such person or family may be] permitted to remain in occupancy
39 [until such income exceeds the maximum prescribed by law by more than
40 fifty per centum, if the company, with the approval of the commissioner
41 or the supervising agency, shall determine that removal would cause
42 hardship to such person or family. Any person or family in occupancy
43 whose income exceeds the maximum prescribed by law] and shall pay a
44 rental surcharge in accordance with a schedule of surcharges to be
45 promulgated by the company with the approval of the commissioner or the
46 supervising agency, as the case may be, provided, however, such rental
47 surcharge shall in no event exceed fifty per centum of the existing
48 rent.
49 § 4. Subdivision 3 of section 31 of the private housing finance law,
50 as amended by section 3 of this act, is amended to read as follows:
51 3. In the event that the income of a person or family in occupancy
52 should increase and exceed the maximum prescribed by law for admission,
53 such person or family shall be permitted to remain in occupancy and
54 shall pay a rental surcharge in accordance with a schedule of surcharges
55 to be promulgated by the company with the approval of the commissioner
56 or the supervising agency, as the case may be, provided, however, such
S. 7723 3
1 rental surcharge shall in no event exceed fifty per centum of the exist-
2 ing rent. Notwithstanding the preceding sentence, any such person or
3 family in occupancy whose income exceeds such maximum in a municipally-
4 aided project in a city with a population of one million or more shall,
5 with the approval of the supervising agency, pay a rental surcharge in
6 accordance with a schedule of surcharges to be promulgated by the super-
7 vising agency, provided, however, that such rental surcharge shall in no
8 event exceed two hundred per centum of the existing rent.
9 § 5. Subdivision 4 of section 31 of the private housing finance law,
10 as amended by chapter 743 of the laws of 1981, is amended to read as
11 follows:
12 4. Twenty-five per cent of rental surcharges collected pursuant to
13 this section on account of rentals payable prior to July first, nineteen
14 hundred eighty-one shall be paid by the company to the municipality
15 which has granted tax exemption pursuant to section thirty-three of this
16 article as a credit against the grant of tax exemption, the value of
17 such tax exemption and of such credit to be determined on an individual
18 dwelling, non-housekeeping, aged care accommodation or non-housekeeping
19 accommodations for handicapped persons unit basis. In the event that
20 such tax exemption has not been granted, or in the event that a sum
21 equal to the total of all accrued taxes as to individual dwelling, non-
22 housekeeping, aged care accommodation or non-housekeeping accommodations
23 for handicapped persons units where such tax exemption was granted have
24 been paid to the municipality, the excess if any, of surcharges and all
25 surcharges imposed after June thirtieth, nineteen hundred eighty-one
26 shall be applied to the expenses of operation and management as approved
27 by the commissioner or the supervising agency. Notwithstanding any
28 inconsistent provision of this article, with respect to municipally-aid-
29 ed projects in a city with a population of one million or more, all
30 surcharges imposed on or after the effective date of a chapter of the
31 laws of two thousand twelve that amended this subdivision shall be
32 placed in the company's capital repair and contingency reserve fund, as
33 provided for by the rules of the supervising agency, unless such agency
34 approves the application of such surcharges to the company's expenses of
35 operation and management.
36 § 6. Subdivision 5 of section 31 of the private housing finance law is
37 REPEALED.
38 § 7. This act shall take effect immediately; provided, however, that:
39 (i) sections one, four and five of this act shall take effect July 1,
40 2013; and (ii) effective immediately, any rule or regulation necessary
41 for the timely implementation of any provision of this act may be
42 promulgated, any procedures, forms, or instructions necessary for such
43 implementation may be adopted and issued, and any other acts by any
44 governmental agency necessary for such implementation may be taken, on
45 or after such effective date.
