S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         3850

                              2009-2010 Regular Sessions

                                   I N  S E N A T E

                                     April 2, 2009
                                      ___________

       Introduced  by  Sens.  KRUEGER, DUANE, HUNTLEY, MONSERRATE -- read twice
         and ordered printed, and when printed to be committed to the Committee
         on Housing, Construction and Community Development

       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    S 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    S  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.
                                                                  LBD00294-01-9