(b) All units in projects listed in subdivision two of this section where there has been an allocation of federal low-income housing tax credits, during the required federal regulatory compliance periods applicable to such federal low-income housing tax credits, shall upon vacancy be rented by persons or families whose income does not exceed sixty percent of area median income at a rent, including utilities, not to exceed thirty percent of the household's adjusted gross income. All other units shall upon vacancy be rented by persons or families whose income does not exceed eighty percent of area median income at a rent, including utilities, not to exceed thirty percent of the household's adjusted gross income. All income guidelines applicable to federal public housing projects shall apply to projects listed in subdivision two of this section. Each such tenant shall enjoy the same rights and obligations as other tenants with public housing leases occupying dwelling units in the housing projects owned and operated by the New York city housing authority that are not listed in subdivision two of this section, or pursuant to Section 8 leases supported by Section 8 vouchers, except as provided by this paragraph.

(c) All tenants who reside in the housing projects listed in subdivision two of this section prior to the sale or lease of such project shall be entitled to remain in their current apartments, provided that such tenant or tenants comply with the terms and conditions of their leases and meet all applicable federal income guidelines. Each such tenant shall enjoy the same rights and obligations as other tenants with public housing leases occupying dwelling units in the housing projects owned and operated by the New York city housing authority that are not listed in subdivision two of this section, or pursuant to Section 8 leases supported by Section 8 vouchers, except as provided by paragraph (b) of this subdivision.

(d) For each project listed in subdivision two of this section, all units occupied by persons of low income shall be physically integrated with all other units in the project. They shall share common means of access, services and amenities equally with all other units and shall in no way be physically or otherwise set apart from all other units in the project.

(e) All prospective public housing and Section 8 tenants shall be selected from a waiting list which shall be maintained by the New York city housing authority in compliance with the federal public housing and Section 8 laws and all applicable rules and regulations. The New York city housing authority and each respective project owner shall screen tenants and jointly have final approval over tenant selection all in accordance with aforementioned laws, rules and regulations. All prospective public housing tenants shall be taken from the waiting list in the order in which they applied for the size appropriate unit, subject however to preferences and priorities provided for in the public housing law and all applicable rules and regulations.

(f) The entity that acts as the managing member or general partner of the respective owner of each project listed in subdivision two of this section following transfer of such project, shall at all times be a not-for-profit housing development fund corporation wholly owned by the New York city housing authority and shall be established under article eleven of the private housing finance law. The board of directors of such housing development fund corporation shall be composed of the chairperson of the New York city housing authority and the duly appointed members of such authority.

(g) The entity that owns any project or assists in the management of any project may include an entity exempt from federal income taxes under section 501(c)3 of the Internal Revenue Code of 1986 as amended, or its wholly owned subsidiary.

(h) The provisions of this section may be enforced by any party aggrieved by a violation of such provisions.

(i) In the case where there is an allocation of federal low income housing tax credits in connection with a sale or lease of the project, the fee payable to the project developer shall not exceed twelve percent of the total development cost, provided however, that the fee payable to such developer may be increased to the maximum percentage permitted under regulations promulgated by the division of housing and community renewal if the developer assumes additional financial risk. Such increase shall not be granted (i) for risk the developer is customarily required to assume or guarantees which the developer is customarily required to provide by industry practice, (ii) for any risks or guarantees which parties other than the developer would ultimately bear, or (iii) if the cost of such risks or guarantees would be paid from governmental grants, loans, subsidies or other governmental funds. The foregoing limitation shall not apply to any portion of a developer fee paid to the housing authority.

(j) The provisions of this section shall be applicable to each of the projects delineated in subdivision two of this section commencing on the closing date of the sale or lease of each respective project in compliance with applicable law and shall be binding on all owners and operators of such project. 4. State subsidies available to the projects listed in subdivision two of this section in connection with the bonds, notes or other obligations heretofore issued to finance the cost thereof may, subject to annual appropriation and upon compliance with the provisions of this section, continue to be used to pay the debt service on such bonds, notes or other obligations, subject to such terms and conditions as the commissioner of the division of housing and community renewal may deem appropriate. 5. The New York city housing authority shall be required to develop and circulate a notice to all tenants of public housing projects listed in subdivisions one and two of this section. The notice shall contain information regarding the transfer and federalization process, as well as notice that tenants' rights to occupancy and due process shall continue as they existed prior to the transfer. 6. The New York city housing authority, shall provide the commissioner of the division of housing and community renewal, the speaker of the assembly, the temporary president of the senate, the minority leader of the assembly, the minority leader of the senate, the chair of the assembly housing committee, and the chair of the senate housing, construction, and community development committee copies of the annual project activity report or any substantially similar annual report that it is required to submit to the United States department of housing and urban development that is related to the projects listed in subdivisions one and two of this section.