A01712 Summary:

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:

01/12/2015referred to housing
01/06/2016referred to housing
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A01712 Text:

                STATE OF NEW YORK
                               2015-2016 Regular Sessions
                   IN ASSEMBLY
                                    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    § 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.
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