§ 44-a. Low rent dwelling accommodations. 1. Subject to the approval
of the commissioner and to the provisions of any contract with
noteholders and bondholders, the agency shall have the power to lease
dwellings in a project, not to exceed twenty per centum of the dwellings
in such project, from a company, except that in the case of a project
located in an area in which the commissioner finds that unusually
difficult housing conditions exist, the number of dwellings which may be
leased by the agency shall not exceed fifty per centum, and except that
the agency may lease all or any portion of the dwellings in a non-profit
company project designed or intended for occupancy by aged persons, at
such rentals as may be fixed therefor by such company and approved by
the commissioner or the supervising agency, as the case may be, pursuant
to the provisions of subdivision one of section thirty-one of this
chapter less an appropriate adjustment for the increased tax exemption,
if any, attributable to such dwellings pursuant to subdivision two of
section thirty-three of this chapter; and to sublet such dwellings, in
accordance with subdivision two of this section, to persons or families
eligible therefor in accordance with the provisions of paragraph (a) of
subdivision two of section thirty-one of this chapter, except that
dwellings in a non-profit company project designed or intended for
occupancy by the aged shall be sublet only to aged persons, and except
that in the case of mutual companies, dwellings may be leased only when
the agency shall purchase the shares appertaining to such dwellings.

2. The rental of any dwelling sublet in accordance with subdivision
one of this section shall be fixed at an amount equal to twenty per
centum of the probable aggregate annual income of the occupants thereof,
determined in accordance with section thirty-one of this chapter, at the
time of the execution of such sublease and at a time thereafter
proximate to each anniversary date of the execution of such sublease and
at the time of any renewal or extension of such sublease, provided that
no such dwelling shall be sublet (a) at an average rental of less than
fifteen dollars per room per month or at a rental less than that of
comparable dwellings in new state-aided public housing projects in the
community, whichever is greater, or (b) to a person or family whose
probable aggregate annual income exceeds five times the rental fixed
therefor by the company pursuant to subdivision one of section
thirty-one of this chapter, provided however, such person or family may
continue to occupy such dwelling and pay to the agency such fixed
rental, including any surcharges which would otherwise be authorized if
such person or family were a tenant of the company, until the company
shall have entered into a lease with such person or family or until such
person or family has vacated or has been caused to vacate such dwelling.

3. Subject to the approval of the commissioner and to the provisions
of any contract with noteholders and bondholders, the agency shall have
the power to lease dwellings, within areas designated to receive
benefits under the federal demonstration cities and metropolitan
development act of nineteen hundred sixty-six, in a multiple dwelling
receiving benefits and subject to control of its rents under article
eight of this chapter from the owner thereof at such rentals as may be
approved by the governmental agency having jurisdiction pursuant to the
provisions of section four hundred five of this chapter; and to sublet
such dwellings to persons or families eligible therefor in accordance
with the provisions of subdivision three of section four hundred one of
this chapter. The rental of any dwelling sublet pursuant to this
subdivision shall be fixed at an amount equal to twenty per centum of
the probable aggregate annual income of the occupants thereof,
determined in accordance with subdivision three of section four hundred
one of this chapter, at the time of the execution of such sublease and
at the time of each anniversary of the execution of such sublease and at
the time of any renewal or extension of such sublease, provided that no
such dwelling shall be sublet (a) at an average rental of less than
fifteen dollars per room per month or at a rental less than that of
comparable dwellings in new state-aided public housing projects in the
community, whichever is greater, or (b) to a person or family whose
probable aggregate annual income exceeds five times the rental fixed
therefor pursuant to section four hundred five of this chapter.

4. The agency shall create and establish a special account, to be
known as the low rent housing assistance account, and shall pay into
such account all monies appropriated and made available by the state for
the purposes of such account and any other monies which may be made
available to the agency for the purposes of such account from any other
source or sources. All monies held in the low rent housing assistance
accounts shall be used by the agency (a) to meet, together with rentals
received therefor from the occupants, the agency's rent obligation to
the company or owner of a multiple dwelling with respect to dwellings
leased pursuant to this section; (b) to make housing assistance payments
pursuant to subdivision five of this section; (c) for the payment of
administrative and other expenses of the agency allocable to its
activities pursuant to this section, and (d) to reimburse the division
of housing and community renewal the reasonable costs of services
performed by the commissioner of housing and community renewal and the
division of housing and community renewal in carrying out the provisions
of this section pursuant to section fifty-five of this article. Any
monies held in the low rent housing assistance account not required for
immediate disbursement may be invested in the manner permitted by
subdivision eight of section forty-four of this article. Any income or
interest earned by, or increment to such account shall be added to the
monies held in such account for the purposes herein provided.

5. (a) In lieu of leasing and subleasing housing accommodations
pursuant to subdivisions one through three of this section, the agency
may provide housing for persons and families of low income by making
housing assistance payments to the company owning a project.

(b) A housing assistance payment pursuant to this subdivision may be
made only with respect to occupants of a dwelling in a project who would
be eligible for a sublease under the provisions of this section.

(c) Tenants receiving housing assistance payments shall pay a rent to
the company equal to the rent they would pay under a sublease pursuant
to this section. Housing assistance payments equal to the difference
between such rent and the rental fixed for the dwelling pursuant to
section thirty-one of this chapter shall be made by or on behalf of the
agency to the company.

(d) The agency and the division of housing and community renewal may
make such regulations, not inconsistent with the provisions of this
section, and enter into such agreements with the owners of projects as
may be necessary or proper to carry out the provisions of this
subdivision. Such agreements may, in the case of a project the mortgage
on which is held by the agency, provide for the making of housing
assistance payments in the form of a credit against the company's
payments thereon.