New York Laws
Article 8 - Loans to Owners of Existing Multiple Dwellings
403 - Occupancy.

ยง 403. Occupancy. 1. The dwelling units in any existing multiple
dwelling aided by a loan pursuant to this article shall be available
solely for persons or families of low income during the period in which
any part of such loan remains unpaid, any exemption and abatement from
taxation on the property resulting from the installations, alterations
or improvements made with such loan remains in effect or for a period of
at least ten years from the occupancy date, whichever is the later.

2. In the event that after any person or family included within the
provisions of paragraph a of subdivision three of section four hundred
one of this article, but not included within the provisions of paragraph
b of such subdivision three, begins occupancy of any dwelling unit in
any multiple dwelling aided by a loan pursuant to this article, and
during the period while such dwelling unit is subject to a maximum rent
prescribed pursuant to this article, the income of such person or family
increases so as to exceed the applicable maximum prescribed by such
paragraph a by more than fifty per centum, such person shall be subject
to removal from such dwelling with the approval of the agency.

3. a. In the event that on the date on which a contract for a loan is
made with respect to a multiple dwelling aided by a loan pursuant to
this article, any person or family occupying a dwelling unit in such
multiple dwelling and included within the provisions of paragraph b of
subdivision three of section four hundred one of this article, has a
probable aggregate annual income, as determined in accordance with the
provisions of paragraph a of such subdivision three, which exceeds the
income limits specified in such paragraph a by more than fifty per cent,
such person or family shall be subject to removal from such dwelling
unit with the approval of the agency upon the expiration of a period of
two years after the date on which such contract is entered into.

b. In the event that at any time within a period of two years after
any such contract is entered into, the income of any such person or
family increases so as to exceed the income limits specified in such
paragraph a by more than fifty per cent, such person or family shall be
subject to removal from such dwelling unit with the approval of the
agency upon the expiration of such period of two years.

c. If, at any time subsequent to the expiration of a period of two
years after any such contract is entered into, and during the period
while the dwelling unit occupied by any such person or family is subject
to a maximum rent prescribed pursuant to this article, the income of
such person or family increases so as to exceed the income limits
specified in such paragraph a by more than fifty per cent, such person
or family shall be subject to removal from such dwelling unit with the
approval of the agency.

4. Any person or family in occupancy, whether included within the
provisions of paragraph a or paragraph b of subdivision three of section
four hundred one of this article, whose income exceeds the maximum
prescribed by the provisions of such paragraph a with respect to the
time of beginning of occupancy, shall pay a rental surcharge in
accordance with a schedule of surcharges to be promulgated by the
agency. Rental surcharges collected pursuant to this section shall be
paid by the owner to the municipality which has granted such owner tax
exemption or tax abatement pursuant to any law authorizing the granting
of same, as reimbursement to such municipality therefor. In the event
that such tax exemption and tax abatement have not been granted, or in
the event that a sum equal to the total amount of tax exemption and tax
abatement granted to the owner has been paid to the municipality, the
excess, if any, of surcharges shall be paid to the municipality in
reduction of the loan.


5. Any person or family whose removal is required by any provision of
this article shall be subject to removal by summary proceedings.