S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
January 31, 2013
Introduced by Sen. KRUEGER -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
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:
Section 1. The private housing finance law is amended by adding a new
section 36-b to read as follows:
S 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.
S 2. This act shall take effect on the first of January next succeed-
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.