A01712 Summary:

BILL NO    A01712 

SAME AS    SAME AS S02870

SPONSOR    Wright (MS)

COSPNSR    

MLTSPNSR   Colton

Add S36-b, Priv Hous Fin L

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; further 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.
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A01712 Actions:

BILL NO    A01712 

01/12/2015 referred to housing
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A01712 Text:

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

                                         1712

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   January 12, 2015
                                      ___________

       Introduced  by  M. of A. WRIGHT -- Multi-Sponsored by -- M. of A. COLTON
         -- 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    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.
                                                                  LBD03730-01-5
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