§ 577-a. Adjusting fair rental equalization 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
housing development fund 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 one hundred twenty-six 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 V 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 over-income tenants are
required to pay surcharges to the municipality.

(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 as used in this subdivision shall mean the annual income
of family members from all sources after deduction 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.