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.
STATE OF NEW YORK
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1734
2023-2024 Regular Sessions
IN SENATE
January 13, 2023
___________
Introduced by Sens. KRUEGER, BAILEY, HOYLMAN-SIGAL, LIU, RIVERA,
SEPULVEDA, SERRANO -- read twice and ordered printed, and when printed
to be committed to the Committee on Housing, Construction and Communi-
ty 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 § 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.
LBD03712-01-3
