§ 1106-f. Project operation and management; rent structure; tenant
selection. The eligible owner shall enter into an agreement with the
corporation which provides that the eligible owner of such project
shall:

1. operate and manage such project as a rental building which is used
for other than transient occupancy;

2. structure rent levels in such project to be: (a) affordable to the
tenants as specified in subdivision four of this section to the extent
economically feasible and (b) when added to any other sources of funds
available for the project's operation not in excess of the costs of
operating and maintaining the project including a reserve fund;

3. not borrow any funds for the project without the prior approval of
the corporation;

4. to the extent economically feasible, select tenants who move into
such project and maintain a mix of tenants so that (a) at least thirty
percent and no more than seventy percent of such tenants are receiving
benefits pursuant to section one hundred thirty-one-a of the social
services law or could only afford rents no greater than those paid by
persons receiving benefits pursuant to such section, provided, however,
that of such tenants preference shall be given to persons who have been
referred from hotels, motels or shelters operated by a social services
district or receiving payment directly or indirectly from such district,
or any other philanthropic or charitable facility providing such
accommodations; and (b) the remaining tenants have incomes which do not
exceed eighty percent of the median income for the metropolitan
statistical area in which such project is located or if a project is
located outside such area, those persons or families whose incomes do
not exceed eighty percent of the median income for the county in which a
project is located; and

5. provide such other information as may be necessary to carry out the
provisions of this article.