§ 405. Rent control; tax exemption. 1. Notwithstanding the provisions
of, or any regulations promulgated pursuant to, the emergency housing
rent control law, the local emergency housing rent control act or local
law enacted pursuant thereto: (1) housing accommodations in any multiple
dwelling aided by a loan pursuant to this article shall have maximum
rents prescribed in accordance with and shall be fully subject to the
provisions of said laws and regulations during the life of the loan or
during any period in which any exemption and abatement from taxation on
the property resulting from the installations, alterations or
improvements made with such loan remain in effect or for a period of at
least ten years from the occupancy date, whichever is later; (2) upon
payment of the loan or the expiration of the said tax exemption and tax
abatement or of the said ten year period, whichever is later, housing
accommodations in any such multiple dwelling shall, upon application, be
decontrolled, unless immediately prior to such payment or expiration the
rents of such housing accommodations would have been controlled by the
provisions of said laws and regulations, other than pursuant to this
article, in which event such housing accommodations shall continue
subject to the provisions of said laws and regulations to the same
extent and in the same manner as if this article had never applied to
such accommodations; (3) should the provisions of said laws and
regulations expire while any loan made pursuant to this article remains
unpaid or before the expiration of the said tax exemption and tax
abatement or of the said ten year period, whichever is later, then
housing accommodations in multiple dwellings aided by such loans shall
be subject to control by the agency to the same extent and in the same
manner as they were subject to control by the temporary state housing
rent commission or by the city housing rent agency created pursuant to
the local emergency housing rent control act. However, the maximum rent
for any such housing accommodations shall be the rent last established
by the said rent commission or by the said city housing rent agency
subject to adjustment by the agency pursuant to the provisions of this
article and regulations of the agency promulgated pursuant thereto and
(4) should the provisions of said laws and regulations not be applicable
in a municipality prior to the making of a loan pursuant to this
article, then rents in housing accommodations in multiple dwellings
aided by such loans shall be subject to regulation by the agency in a
manner calculated to assure compliance with the policy and purposes of
this article.

1-a. Notwithstanding the provisions of subdivision one of this
section, and subject to the provisions of subdivision twenty of section
six hundred fifty-four of this chapter, where the housing accommodations
in any multiple dwelling are aided pursuant to this article by a loan
made by the New York city housing development corporation, maximum rents
during the life of such loan shall be prescribed by the agency and the
rental rate may be varied by the agency from time to time upon
application by the owner or by the New York city housing development
corporation so as to secure, together with all other income from such
property, sufficient income to meet within reasonable limits, all
necessary payments to be made by the owner of all expenses including
fixed charges, sinking funds, reserves and dividends.

* 1-b. Notwithstanding the provisions of subdivision one of this
section, where the housing accommodations in any multiple dwelling are
aided by a loan pursuant to this article made by the municipality on or
after September first, nineteen hundred eighty-four, and provided that
such housing accommodations were vacant at the time of the making of the
loan, maximum rents during the life of such loan shall be prescribed by
the agency and the rental rate may be varied by the agency from time to
time upon application by the owner or by the agency so as to secure,
together with all other income from such property, sufficient income to
meet within reasonable limits, all necessary payments to be made by the
owner of all expenses, including fixed charges, sinking funds, reserves
and dividends.

* NB Effective until July 1, 2027

* 1-b. Notwithstanding the provisions of subdivision one of this
section, where the housing accommodations in any multiple dwelling are
aided by a loan pursuant to this article made by the municipality on or
after September first, nineteen hundred eighty-four, and provided that
such housing accommodations were vacant at the time of the making of the
loan, maximum rents during the life of such loan shall be prescribed by
the agency and the rental rate may be varied by the agency from time to
time upon application by the owner or by the agency so as to secure,
together with all other income from such property, sufficient income to
meet within reasonable limits, all necessary payments to be made by the
owner of all expenses, including fixed charges, sinking funds, reserves
and dividends.

* NB Effective July 1, 2027

* 1-c. Except with respect to dwelling accommodations subject to
subdivision one-a or one-b of this section, notwithstanding the
provisions of subdivision one of this section or any regulation
promulgated pursuant to the emergency housing rent control law, the
local emergency housing rent control act, the emergency tenant
protection act of nineteen seventy-four, or any local law enacted
pursuant thereto, upon completion of the rehabilitation of a multiple
dwelling which is aided by a loan pursuant to this article made by the
municipality on or after September first, nineteen hundred eighty-six,
the agency shall establish the initial rent for each rental dwelling
unit within the multiple dwelling. All dwelling units within the
multiple dwelling subsequent to establishment of initial rents by the
agency shall be subject to the rent stabilization law of nineteen
hundred sixty-nine. The occupant in possession of such a dwelling unit
when it is made subject to the rent stabilization law of nineteen
hundred sixty-nine shall be offered a choice of a one or two year lease
at the initial rents established by the agency notwithstanding any
contrary provisions of, or regulations adopted pursuant to, the rent
stabilization law of nineteen hundred sixty-nine and the emergency
tenant protection act of nineteen seventy-four. The agency shall cause
all tenants in occupancy of each dwelling unit affected by the
provisions of this section to be notified of and have an opportunity to
comment on the contemplated rehabilitation. Such notification shall
advise such tenants of the approximate expected rent increase and the
subsequent availability of a one or two year lease. Such notification
and opportunity to comment shall be provided before the rehabilitation
and again after the construction is completed and before the
establishment of the initial rents.

* NB Expires July 1, 2027

2. The municipality may, by local law, provide for exemption from
taxation of any increase in valuation resulting from the installation,
alterations or improvements performed with the aid of such loans or for
abatement of taxation on such property, including the land, or for both
such exemption and abatement, to the same extent, for the same period,
and under the same terms and conditions as such exemption or abatement,
or both, may be provided by local law enacted under the terms of any
currently effective statute authorizing the granting of tax exemption or
tax abatement, or both, in aid of the rehabilitation, alteration or
improvement of multiple dwellings or the elimination of unhealthful or
dangerous conditions therein. Notwithstanding any contrary provisions of
any general, special or local law, a property aided by a loan pursuant
to this article shall not be ineligible for tax exemption or tax
abatement or both, as provided by local law enacted pursuant to statute,
solely because such property is not subject to control of rents under
the emergency housing rent control law or local law enacted pursuant to
the local emergency housing rent control act, but such tax exemption and
tax abatement shall terminate if and when such property is subject to
control of rents neither under the emergency housing rent control law,
local law enacted pursuant to the local emergency housing rent control
act or this article.