What's happening
This bill requires reserve and surplus funds from limited-profit housing projects sold to non-company entities to be used for major capital improvements before any rent increases.
Why it matters
Protects tenants from immediate rent hikes. by ensuring that any reserve and surplus funds transferred during the sale of a limited-profit housing project must be spent on major repairs before landlords can pass those costs onto residents through increased rents.
Creates a legal requirement for new owners. to use existing project reserves for capital improvements, rather than diverting these funds elsewhere or using them to justify higher tenant charges.
Aims to ensure that housing quality is maintained. after ownership changes, by prioritizing necessary upgrades and repairs over profit-taking or non-essential expenditures.
Introduces fiscal oversight and accountability. for reserve funds in limited-profit housing, potentially reducing the risk of neglect or misuse following a sale to private, non-limited-profit entities.
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Who cares
Headline styles
Use Sale Funds for Repairs
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing
- Referred to housing
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect Housing Sale Funds
In Senate Committee · Housing, Construction And Community Development · Sponsor Liz Krueger
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5798
2017-2018 Regular Sessions
IN ASSEMBLY
February 15, 2017
Introduced by M. of A. CYMBROWITZ -- 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 Assembly, do enact as follows:
Section 1. The private housing finance law is amended by adding a new section 36-b to read as follows:
§ 36-b. Sale or other conveyance of project. Notwithstanding any inconsistent provision of law, upon the sale or other conveyance of a project by a company to any entity other than a company, the following requirements shall apply.
1. All reserve and surplus funds transferred by the company to the new owner must be held by such new owner in escrow accounts and may be used by such new owner solely for the purpose of making major capital improvements to the project.
2. No rental or other charge may be increased by the new owner to defray the cost of any major capital improvement unless and until all of such reserve and surplus funds have been expended to defray the cost of major capital improvements.
§ 2. This act shall take effect on the first of January next succeeding 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.
LBD05986-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.