|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2014||referred to housing, construction and community development|
|Jan 31, 2013||referred to housing, construction and community development|
senate Bill S3167
Archive: Last Bill Status -
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S3167 - Details
S3167 - Summary
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.
S3167 - Sponsor Memo
BILL NUMBER:S3167 TITLE OF BILL: An act to amend the private housing finance law, in relation to the sale of limited-profit housing projects PURPOSE OR GENERAL IDEA OF BILL: This bill provides that upon sale of a limited-profit housing company project, reserve and surplus funds must be held in escrow and dedicated to major capital improvements. SUMMARY OF SPECIFIC PROVISIONS: The bill amends the Private Housing Finance Law (PHFL) by adding a new section 36-b. That new section provides that if a limited profit housing company incorporated under Article II of the PHFL sells a project to any entity other than a limit- ed-profit housing company, then all reserve and surplus funds trans- ferred to the new owner must be held in escrow for the purpose of making major capital improvements to the project. The bill further provides that the new owner may not increase rents or other charges, based on new capital improvements, until after the reserve and surplus funds held in escrow have been exhausted. JUSTIFICATION: The Mitchell-Lama program was established to create affordable housing and guarantee developer profits of 6% on investments. In the event of buyouts by owners of Mitchell-Lama developments, owners of limited profit housing companies might transfer reserve or surplus monies to the private sector, and those funds could - without the provisions contained in this bill- be used in a manner contrary to the
S3167 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3167 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 Community 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: 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. LBD00805-01-3
Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.
By contributing or voting you agree to the Terms of Participation and verify you are over 13.