§ 577-b. Payment of arrears for certain taxes. 1. The term eligible
property as used in this section shall mean a multiple dwelling located
in a city with a population of one million or more and owned by a
company established pursuant to this article which:

(a) is controlled by and provides housing accommodations to its
resident shareholders or members or agrees, on terms approved by the
supervising agency, to offer to the residents of the multiple dwelling
the opportunity to acquire ownership and control of the company; and

(b) on January first, two thousand two, had outstanding municipal real
estate taxes relating to any period prior to January first, two thousand
one.

2. (a) The supervising agency may offer to each company that owns an
eligible property an opportunity to enter into a regulatory agreement
pursuant to which the obligation to pay arrears of real estate taxes
attributable to such property, including interest and penalties if any,
shall be dealt with as provided in such agreement.

(b) The regulatory agreement shall include the following provisions:

(1) a term of thirty years;

(2) that the suspension of the obligation to pay arrears shall
continue provided that the company complies with the terms of the
regulatory agreement;

(3) that all suspended arrears including interest and penalties shall
be forgiven provided that the company complies with the regulatory
agreement for an initial period of ten years;

(4) that portions of the suspended arrears may be forgiven during the
initial ten year period pursuant to a schedule established in the
regulatory agreement;

(5) that any suspended obligations which have not been forgiven may be
reinstated if the company fails to comply with the regulatory agreement;

(6) that all new municipal charges must be paid in a timely fashion;

(7) that the supervising agency shall be authorized to assume control
of the company if the company fails to comply with the agreement;

(8) that the company must comply with customary financial and other
reporting requirements; and

(9) that the company shall be required to increase maintenance charges
or impose assessments to insure that the company can provide for its
obligations.

(c) The regulatory agreement shall also include terms to address the
following matters as well as any other issues that the supervising
agency deems appropriate:

(1) establishment of a structured reserve fund;

(2) restrictions to insure sales and rentals only to low income
individuals and families;

(3) establishment of a transfer fee payable to the company's reserve
fund upon the sale of any units;

(4) restrictions on subletting;

(5) primary residence requirements; and

(6) certification of annual elections.

(d) The regulatory agreement may contain such alterations to the terms
of the original disposition as the supervisory agency deems necessary.