Bill Text: NY A09628 | 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 (Democrat 2-0)

Status: (Introduced) 2024-04-10 - print number 9628a [A09628 Detail]

Download: New_York-2023-A09628-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9628--A

                   IN ASSEMBLY

                                     March 26, 2024
                                       ___________

        Introduced  by  M.  of  A.  BUTTENSCHON -- read once and referred to the
          Committee on Housing -- 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.
                                                                   LBD14921-03-4
        A. 9628--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.