New York Laws
Article 18-A - Low Income Turnkey/enhanced Housing Trust Fund Program
1106-G - Adjustment of Rents; Income Verification.

§ 1106-g. Adjustment of rents; income verification. Notwithstanding
any other provision of law, no grants or loans shall be provided
pursuant to this article unless an eligible owner has agreed to require
the tenants and occupants residing in the housing project or projects to
submit an annual income affidavit as prescribed by the corporation,
together with proper documentation as and if prescribed by the
corporation, as the case may be. Upon submission of such affidavit and
documentation, if any, the eligible owner shall adjust the rent of a
tenant pursuant to a procedure established by the corporation by
regulation which procedure shall, to the extent economically feasible,
maintain the affordability of such project to such tenants. If the
tenant or occupant shall fail to submit such affidavit and
documentation, or if such verification as prescribed by the corporation
shall result in a disagreement caused by understatement of income and
the tenant shall have failed to correct such original affidavit and
documentation on forms specified by the corporation within sixty days of
notification by certified mail by the eligible owner addressed to the
tenant, the eligible owner shall in addition to the last rent assess
such tenant or occupant a surcharge which shall equal the difference
between the tenant's last rent and the rent the tenant would otherwise
have to pay had the grant or loan provided under this article been made
as a loan at the prevailing market rate of interest and requiring thirty
year amortization at the time the grant or loan was made. The provisions
of any other law to the contrary notwithstanding, solely for the purpose
of verification of income, the corporation may contract with the
department of taxation and finance for services performed by such
department in verifying income information forwarded by the corporation
or the eligible owner to such department. Nothing contained herein shall
be construed to authorize the corporation to contract with such
department to provide any income information whatsoever and such
agreement shall be limited solely to the verification of income
information. No officer or employee of the corporation, the New York
state housing finance agency, the division of housing and community
renewal or the eligible owner shall be subject to any civil or criminal
liability by reason of his forwarding to the department of taxation and
finance of any income information pursuant to this section, unless (i)
such information is knowingly and willfully materially misrepresented by
such officer or employee or (ii) such information is knowingly and
willfully divulged to any person, except in the discharge of such
officer's or employee's duties solely for the purpose of verification of
income, for any reason whatsoever. The corporation shall promulgate
rules and regulations to effect the provisions of this section provided
however that the corporation need not promulgate rules and regulations
in the event the corporation adopts procedures which are substantially
similar to the rules and regulations adopted by the commissioner
pursuant to section sixty of this chapter. The provisions of the state
freedom of information act shall not apply to any income information
obtained by an eligible owner, division of housing and community
renewal, New York state housing finance agency or the corporation,
pursuant to the provisions of this section.