§ 126. Reduced rentals for the elderly. (a) For the purpose of
enabling lower income elderly persons to continue in occupancy without
paying rentals in excess of a fair proportion of their income, any
municipality having a population of less than one million is authorized
to make and to contract to make periodic payments to a redevelopment
company in an amount not exceeding the difference between the rent or
carrying charges for the dwellings occupied by such lower income persons
and one-third of their net probable aggregate annual income, where such
rent or carrying charges exceed such one-third of income; provided that
the aggregate amount of periodic payments to be made in accordance with
contracts entered into by the municipality during any fiscal year
thereof pursuant to this section, subdivision nine of section
thirty-one, subdivision seven of section eighty-five-a, and section five
hundred seventy-seven-a of this chapter shall not exceed the aggregate
amount of all real property taxes paid or payable during such fiscal
year by all companies organized pursuant to this article, article II,
article IV, and article XI of this chapter and the aggregate estimated
receipts of all such companies in such fiscal year from rental
surcharges collected or to be collected pursuant to this chapter.

(b) Such payments shall be made only where the contract between the
municipality and the company pursuant to section one hundred fourteen
imposes income limitations on admission and on continued occupancy and
requires the payment of surcharges to the municipality by over-income
occupants.

(c) Such payments shall be made only on account of a person or family
in occupancy where the head of the household is sixty-two years of age
or older and is not a recipient of public assistance pursuant to the
social services law, and where the net probable aggregate annual income
of the person or family in occupancy does not exceed six thousand five
hundred dollars a year.

Notwithstanding the provisions of subdivision twenty-nine of section
two of this chapter, net probable aggregate annual income shall mean the
annual income of family members from all sources after deductions of
federal, state and city income taxes; provided that any municipality may
provide that increases in benefits under the social security act which
take effect after such person or family has assumed occupancy shall not
be taken into account.

(d) A company having a contract with the municipality pursuant to this
subdivision may not collect from persons or families in occupancy on
whose account such payments are made any rentals in excess of the
amounts specified in such contract.