Bill Text: NY S08828 | 2023-2024 | General Assembly | Amended

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Bill Title: Requires out-of-state affordable housing owners to maintain an escrow account for the purpose of financing utility costs, property tax obligations, fire services, and regular maintenance costs for affordable housing rental units located in New York state.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-11 - PRINT NUMBER 8828A [S08828 Detail]

Download: New_York-2023-S08828-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         8828--A

                    IN SENATE

                                     March 19, 2024
                                       ___________

        Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community  Development  -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the private housing finance law, in relation to  requir-
          ing  certain  out-of-state  affordable  housing  owners to maintain an
          escrow account for affordable housing rental units located in New York
          state

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The private housing finance law is amended by adding a new
     2  section 615 to read as follows:
     3    § 615. Out-of-state affordable housing owner escrow account. 1.    For
     4  the purposes of this section, the following terms shall have the follow-
     5  ing meanings:
     6    (a)  "HUD"  shall  mean  the  federal  department of housing and urban
     7  development.
     8    (b) "Out-of-state affordable housing owner" shall mean  an  affordable
     9  housing development company that:
    10    (i) is located outside of New York state;
    11    (ii)  owns  twenty  or more affordable housing rental units located in
    12  New York state; and
    13    (iii) receives federal funding pursuant to a HUD-administered  program
    14  or initiative.
    15    2.  (a)  Every out-of-state affordable housing owner shall maintain an
    16  escrow account, held by a bank or licensed lender,  as  such  terms  are
    17  defined  by section two of the banking law, for the purpose of financing
    18  utility costs, tax obligations, fire services, and  regular  maintenance
    19  costs for affordable housing rental units located in New York state.
    20    (b) Such escrow account shall contain:
    21    (i) fifty percent of such owner's property tax obligations for afford-
    22  able  housing  rental  units located in New York state for the prior tax
    23  year;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14921-04-4
        S. 8828--A                          2

     1    (ii) fifty percent of utility costs and regular maintenance costs  for
     2  affordable housing rental units located in New York state for the previ-
     3  ous twelve months; and
     4    (iii)  an  amount  sufficient to cover any potential fire services, as
     5  determined by the commissioner.
     6    § 2. This act shall take effect on the sixtieth  day  after  it  shall
     7  have become a law.