Section 87 - Increase of rentals in housing company projectsWhenever 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.
N.Y. Priv. Hous. Fin. Law § 87