31 - Rentals and selection of tenants.
§ 31. Rentals and selection of tenants. 1. (a) A company may, with the approval of the commissioner or the supervising agency, as the case may be, fix maximum rentals per room to be charged tenants of the dwellings, the average of the rentals for the dwellings in any project not to exceed the maximum average rentals determined by the commissioner or the supervising agency, as the case may be, before any commitments are made by the company for the construction of the project. The commissioner or the supervising agency, upon his or its own motion, or upon application by the company or of a stockholder, lienholder, a creditor, or of holders of at least ten per centum of the bonds of the company, or by the federal government where the mortgage loan of the company is insured or held by the federal government, may vary such rental rate from time to time so as to secure, together with all other income of the company, sufficient income for it to meet within reasonable limits all necessary payments to be made or projected to be made during the term of a lease by the said company, of all expenses including fixed charges, sinking funds, reserves and dividends on outstanding stock as authorized by the commissioner or the supervising agency, as the case may be. Letting, subletting or assignment of leases of apartments at greater rentals than those approved by the commissioner or the supervising agency shall be unlawful. Where the mortgage loan of a company is insured or held by the federal government or where a project is owned by the federal government, rental rates shall be varied without regard to the provisions of any general, special or local law which would otherwise limit or control such rental rates or the determination or variation thereof for so long as such mortgage loan remains outstanding or the project financed by such a mortgage loan is owned by the federal government. No variation of a rental rate in a project financed by a mortgage loan insured or held by, or owned by the federal government shall be effective unless approved by the federal government. (b) Unless any applicable regulation of or regulatory agreement with the federal government shall otherwise provide, (i) the tenants in a project financed by a mortgage loan insured or held by the federal government shall be entitled and may elect to enter in a lease for a term of up to three years at such rental rates as may be established by the commissioner or the supervising agency, as the case may be, pursuant to paragraph (a) of subdivision one of this section, (ii) the rental rates to be charged under any such lease shall be established after consideration of the term of such lease and may differ from the rental rates to be charged under any other lease of a different term and (iii) the commissioner or the supervising agency, as the case may be, shall in establishing such rental rates consider the obligations of the company under any instruments evidencing or securing any residual indebtedness. Such leases shall contain a provision authorizing the variation of the rental rates during the term of such leases upon an application made by the federal government pursuant to paragraph (a) of subdivision one of this section. * (c) A company may, with the approval of the commissioner or the supervising agency, as the case may be, fix maximum charges to be paid by each occupant for the non-housekeeping accommodations, aged care accommodations or non-housekeeping accommodations for handicapped persons, which charges may include payment for board and such other services as may be provided as an incident to occupancy, the average of such charges for all the non-housekeeping accommodations, aged care accommodations or non-housekeeping accommodations for handicapped persons in any project not to exceed the maximum average charges for all such non-housekeeping accommodations, aged care accommodations or non-housekeeping accommodations for handicapped persons determined bythe commissioner or the supervising agency as the case may be, before any commitments are made by the company for the construction of the project. The commissioner or the supervising agency upon his or its own motion, or upon application by the company or of a stockholder, lien holder, a creditor or of holders of at least ten (10%) per centum of the bonds of the company, may vary such charges from time to time so as to secure, together with all other income of the company, sufficient income for it to meet within reasonable limits all necessary payments to be made by said company, of all expenses including fixed charges, sinking funds, reserves and dividends on outstanding stock as authorized by the commissioner or supervising agency as the case may be. It shall be unlawful to make non-housekeeping accommodations, aged care accommodations or non-housekeeping accommodations for handicapped persons available at greater charges than those approved by the commissioner or the supervising agency. * NB There are 2