§ 87. Increase of rentals in housing company projects. Whenever it
shall appear that the interests of lienholders, creditors, debenture
holders, shareholders, partners or beneficiaries cannot otherwise be
safeguarded, the commissioner shall, notwithstanding the limitation
prescribed in this article upon maximum average rental, have power by
his order made upon written application of a housing company or of a
lienholder, a creditor, or of holders of ten per centum of the income
debentures of the housing company, or, in the case of a housing company
which is a corporation, the holders of ten per centum of the shares, or,
in the case of a housing company which is a partnership, the partners
having an interest in capital equal to ten per centum thereof, or, in
the case of a housing company which is a trust, the beneficiaries having
a beneficial interest in capital equal to ten per centum thereof, to
authorize such housing company to increase rentals beyond the maximum
provided in this article as follows:

(a) If the application is made before occupancy of the dwellings
embraced in the project and it is shown to the satisfaction of the
commissioner that owing to causes beyond the control of the housing
company or contingencies which in the opinion of the commissioner could
not reasonably have been anticipated, the maximum rentals are
insufficient to meet the payments authorized in section eighty-five in
which event the commissioner may authorize an increase in the minimum
amount necessary to enable such housing company to make such payments.

(b) If the application is made after occupancy the order shall be made
only after a public hearing. Said hearing shall be held upon no less
than twenty days' written notice to the tenants and such notice shall
have annexed thereto a copy of the application for increase in rentals.
No such order or authorization shall be made or given unless the
commissioner shall find that because of changes in economic conditions
in their application to the project with respect to which request for
increased rentals shall have been made or because of special assessments
or causes or contingencies beyond the control of the housing company,
affecting such project, the maximum rentals fixed as herein provided are
insufficient to meet the payments authorized in section eighty-five of
this article and unless the commissioner shall find that such
insufficiency cannot be corrected by reasonable economies in management
and operation of said project. The commissioner shall not authorize any
increase in rentals in excess of the minimum amount necessary to enable
the said housing company to make the said payments authorized in section
eighty-five. Any order by the commissioner shall be final and conclusive
upon all questions within his jurisdiction, with respect to the project
affected thereby, unless reversed or modified on appeal therefrom as
hereinafter provided. Within thirty days after notice of the filing of
the order of the commissioner has been sent to the said housing company
and served upon the said tenants affected thereby in such manner as the
commissioner shall prescribe, an appeal may be taken to the appellate
division of the supreme court in the department in which the project
affected by the order is located, from such order of the commissioner by
any party in interest. If notice of such appeal is served upon the
commissioner, he shall, within thirty days thereafter, serve upon the
parties in interest a statement of his conclusions of fact and rulings
of law in such case. The commissioner may also in his discretion certify
to such appellate division of the supreme court questions of law
involved in his order. Such appeal and the questions so certified shall
be heard in a summary manner and shall have precedence over all other
civil cases in such court. The commissioner shall be deemed a party to
every such appeal.

An appeal may also be taken by the commissioner or by any party in
interest to the court of appeals in the same manner and subject to the
same limitations as is now provided in civil actions. It shall not be
necessary to file exceptions to the rulings of the commissioner. The
commissioner shall not be required to file a bond upon an appeal by him
to the court of appeals. Upon final determination of such an appeal, the
commissioner shall enter an order in accordance therewith.