New York Laws
Title 1 - New York City Housing Authority
402-B - Power of Authority to Enter Into Mixed-Finance Transactions to Continue Viability of Public Housing.

(b) All units in projects listed in subdivision two of this section
where there has been an allocation of federal low-income housing tax
credits, during the required federal regulatory compliance periods
applicable to such federal low-income housing tax credits, shall upon
vacancy be rented by persons or families whose income does not exceed
sixty percent of area median income at a rent, including utilities, not
to exceed thirty percent of the household's adjusted gross income. All
other units shall upon vacancy be rented by persons or families whose
income does not exceed eighty percent of area median income at a rent,
including utilities, not to exceed thirty percent of the household's
adjusted gross income. All income guidelines applicable to federal
public housing projects shall apply to projects listed in subdivision
two of this section. Each such tenant shall enjoy the same rights and
obligations as other tenants with public housing leases occupying
dwelling units in the housing projects owned and operated by the New
York city housing authority that are not listed in subdivision two of
this section, or pursuant to Section 8 leases supported by Section 8
vouchers, except as provided by this paragraph.
(c) All tenants who reside in the housing projects listed in
subdivision two of this section prior to the sale or lease of such
project shall be entitled to remain in their current apartments,
provided that such tenant or tenants comply with the terms and
conditions of their leases and meet all applicable federal income
guidelines. Each such tenant shall enjoy the same rights and obligations
as other tenants with public housing leases occupying dwelling units in
the housing projects owned and operated by the New York city housing
authority that are not listed in subdivision two of this section, or
pursuant to Section 8 leases supported by Section 8 vouchers, except as
provided by paragraph (b) of this subdivision.
(d) For each project listed in subdivision two of this section, all
units occupied by persons of low income shall be physically integrated
with all other units in the project. They shall share common means of
access, services and amenities equally with all other units and shall in
no way be physically or otherwise set apart from all other units in the
project.
(e) All prospective public housing and Section 8 tenants shall be
selected from a waiting list which shall be maintained by the New York
city housing authority in compliance with the federal public housing and
Section 8 laws and all applicable rules and regulations. The New York
city housing authority and each respective project owner shall screen
tenants and jointly have final approval over tenant selection all in
accordance with aforementioned laws, rules and regulations. All
prospective public housing tenants shall be taken from the waiting list
in the order in which they applied for the size appropriate unit,
subject however to preferences and priorities provided for in the public
housing law and all applicable rules and regulations.
(f) The entity that acts as the managing member or general partner of
the respective owner of each project listed in subdivision two of this
section following transfer of such project, shall at all times be a
not-for-profit housing development fund corporation wholly owned by the
New York city housing authority and shall be established under article
eleven of the private housing finance law. The board of directors of
such housing development fund corporation shall be composed of the
chairperson of the New York city housing authority and the duly
appointed members of such authority.
(g) The entity that owns any project or assists in the management of
any project may include an entity exempt from federal income taxes under
section 501(c)3 of the Internal Revenue Code of 1986 as amended, or its
wholly owned subsidiary.
(h) The provisions of this section may be enforced by any party
aggrieved by a violation of such provisions.
(i) In the case where there is an allocation of federal low income
housing tax credits in connection with a sale or lease of the project,
the fee payable to the project developer shall not exceed twelve percent
of the total development cost, provided however, that the fee payable to
such developer may be increased to the maximum percentage permitted
under regulations promulgated by the division of housing and community
renewal if the developer assumes additional financial risk. Such
increase shall not be granted (i) for risk the developer is customarily
required to assume or guarantees which the developer is customarily
required to provide by industry practice, (ii) for any risks or
guarantees which parties other than the developer would ultimately bear,
or (iii) if the cost of such risks or guarantees would be paid from
governmental grants, loans, subsidies or other governmental funds. The
foregoing limitation shall not apply to any portion of a developer fee
paid to the housing authority.
(j) The provisions of this section shall be applicable to each of the
projects delineated in subdivision two of this section commencing on the
closing date of the sale or lease of each respective project in
compliance with applicable law and shall be binding on all owners and
operators of such project.
4. State subsidies available to the projects listed in subdivision two
of this section in connection with the bonds, notes or other obligations
heretofore issued to finance the cost thereof may, subject to annual
appropriation and upon compliance with the provisions of this section,
continue to be used to pay the debt service on such bonds, notes or
other obligations, subject to such terms and conditions as the
commissioner of the division of housing and community renewal may deem
appropriate.
5. The New York city housing authority shall be required to develop
and circulate a notice to all tenants of public housing projects listed
in subdivisions one and two of this section. The notice shall contain
information regarding the transfer and federalization process, as well
as notice that tenants' rights to occupancy and due process shall
continue as they existed prior to the transfer.
6. The New York city housing authority, shall provide the commissioner
of the division of housing and community renewal, the speaker of the
assembly, the temporary president of the senate, the minority leader of
the assembly, the minority leader of the senate, the chair of the
assembly housing committee, and the chair of the senate housing,
construction, and community development committee copies of the annual
project activity report or any substantially similar annual report that
it is required to submit to the United States department of housing and
urban development that is related to the projects listed in subdivisions
one and two of this section.