Bill Text: NY A03675 | 2021-2022 | General Assembly | Introduced

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Bill Title: Provides that upon sale or other conveyance of a limited-profit housing company project to an entity other than a new limited-profit housing company, reserve and surplus funds must be held in escrow by the new owner and dedicated solely to defraying the costs of major capital improvements; provides that no rental may be increased to cover the cost of a major capital improvement until such reserve and surplus funds have been exhausted.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - referred to housing [A03675 Detail]

Download: New_York-2021-A03675-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3675

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 28, 2021
                                       ___________

        Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
          Committee on Housing

        AN ACT to amend the private housing finance law, in relation to the sale
          of limited-profit housing projects

          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 36-b to read as follows:
     3    § 36-b. Sale or  other  conveyance  of  project.  Notwithstanding  any
     4  inconsistent  provision  of  law, upon the sale or other conveyance of a
     5  project by a company to any entity other than a company,  the  following
     6  requirements shall apply.
     7    1. All reserve and surplus funds transferred by the company to the new
     8  owner  must be held by such new owner in escrow accounts and may be used
     9  by such new owner  solely  for  the  purpose  of  making  major  capital
    10  improvements to the project.
    11    2.  No  rental  or  other  charge may be increased by the new owner to
    12  defray the cost of any major capital improvement unless and until all of
    13  such reserve and surplus funds have been expended to defray the cost  of
    14  major capital improvements.
    15    §  2. This act shall take effect on the first of January next succeed-
    16  ing the date on which it shall have become a law.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05750-01-1