NY State Senate Bill 2023-S8828A

Senate Bill S8828A

2023-2024 Legislative Session

Requires out-of-state affordable housing owners to maintain an escrow account for affordable housing rental units located in New York state

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 11, 2024	print number 8828a
Apr 11, 2024	amend (t) and recommit to housing, construction and community development
Mar 19, 2024	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2023-S8828 - Details

See Assembly Version of this Bill:: A9628
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add §615, Priv Hous Fin L

2023-S8828 - Summary

Requires out-of-state affordable housing owners to maintain an escrow account for the purpose of financing utility costs, property tax obligations, fire services, and regular maintenance costs for affordable housing rental units located in New York state.

2023-S8828 - Sponsor Memo

                                 
BILL NUMBER: S8828

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to requir-
ing certain out-of-state affordable housing owners to maintain an escrow
account for the purpose of financing utility costs and tax obligations
for affordable housing rental units located in New York state

 
PURPOSE OR GENERAL IDEA OF BILL:

Requires out-of-state affordable housing owners to maintain an escrow
account for the purpose of financing utility costs and property tax
obligations for affordable housing rental units located in New York
state.

 
SUMMARY OF PROVISIONS:

Creates Section 615 in the private housing finance law.  Section 1:
defines terms covered in the bill.

Section 2: Creates a requirement for all out-of-state affordable housing
owners to create an escrow account that contains 50' of said owner's
property tax and utility costs.

Section 3: This act shall take effect on the sixtieth day after becoming
law.

 
JUSTIFICATION:

Affordable housing units serve some of our states most vulnerable and in
need citizens. However large businesses that have no relation to New
York State have begun purchasing these units only to leave them in
disrepair and neglect. As seen in a number of cases within'the Oneida
County region an out-of-state organization failed to pay water bills for
a significant period of time resulting in hundreds of residents faced
with a potential water shut off and displaced due to the lack of avail-
able water.

This bill requires all out-of-state organizations with properties in New
York to create an escrow account building a reserves fund to protect
tenants from being displaced from their residences due to the organiza-
tion's carelessness. This fund would allow utility companies and the
State to be compensated for unpaid bills or taxes providing residents of
affordable housing units security.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law

2023-S8828 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8828
 
                             I N  S E N A T E
 
                              March 19, 2024
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- 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 requir-
   ing certain out-of-state affordable  housing  owners  to  maintain  an
   escrow  account  for  the  purpose  of financing utility costs and tax
   obligations for affordable housing rental units located  in  New  York
   state
 
   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 615 to read as follows:
   §  615.  OUT-OF-STATE AFFORDABLE HOUSING OWNER ESCROW ACCOUNT. 1.  FOR
 THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A) "HUD" SHALL MEAN THE  FEDERAL  DEPARTMENT  OF  HOUSING  AND  URBAN
 DEVELOPMENT.
   (B)  "OUT-OF-STATE  AFFORDABLE HOUSING OWNER" SHALL MEAN AN AFFORDABLE
 HOUSING DEVELOPMENT COMPANY THAT:
   (I) IS LOCATED OUTSIDE OF NEW YORK STATE;
   (II) OWNS TWENTY OR MORE AFFORDABLE HOUSING RENTAL  UNITS  LOCATED  IN
 NEW YORK STATE; AND
   (III)  RECEIVES FEDERAL FUNDING PURSUANT TO A HUD-ADMINISTERED PROGRAM
 OR INITIATIVE.
   2. (A) EVERY OUT-OF-STATE AFFORDABLE HOUSING OWNER SHALL  MAINTAIN  AN
 ESCROW  ACCOUNT FOR THE PURPOSE OF FINANCING UTILITY COSTS AND TAX OBLI-
 GATIONS FOR AFFORDABLE HOUSING RENTAL UNITS LOCATED IN NEW YORK STATE.
   (B) SUCH ESCROW ACCOUNT SHALL CONTAIN FIFTY PERCENT OF:
   (I) SUCH OWNER'S  PROPERTY  TAX  OBLIGATIONS  FOR  AFFORDABLE  HOUSING
 RENTAL UNITS LOCATED IN NEW YORK STATE FOR THE PRIOR TAX YEAR; AND
   (II)  UTILITY COSTS FOR AFFORDABLE HOUSING RENTAL UNITS LOCATED IN NEW
 YORK STATE FOR THE PREVIOUS TWELVE MONTHS.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14921-02-4

2023-S8828A (ACTIVE) - Details

See Assembly Version of this Bill:: A9628
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add §615, Priv Hous Fin L

2023-S8828A (ACTIVE) - Summary

2023-S8828A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8828A

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to requir-
ing certain out-of-state affordable housing owners to maintain an escrow
account for affordable housing rental units located in New York state

 
PURPOSE:

Requires out-of-state affordable housing owners to maintain an escrow
account for the purpose of financing utility costs and property tax
obligations for affordable housing rental units located in New York
state.

 
SUMMARY OF PROVISIONS:  Creates Section 615 in the private housing
finance law. Section 1:  defines terms covered in the bill.

Section 2: Creates a requirement for all out-of-state affordable housing
owners to create an escrow account that contains 50% of said owner's
property tax and utility costs.

Section 3: This act shall take effect on the sixtieth day after becoming
law.

 
JUSTIFICATION:

Affordable housing units serve some of our state's most vulnerable and
in need citizens. However large businesses that have no relation to New
York State have begun purchasing these units only to leave them in
disrepair and neglect. As seen in a number of cases within the Oneida
County region an out-of-state organization failed to pay water bills for
a significant period of time resulting in hundreds of residents faced
with a potential water shut off and displaced due to the lack of avail-
able water.

This bill requires all out-of-state organizations with properties in New
York to create an escrow account building a reserves fund to protect
tenants from being displaced from their residences due to the organiza-
tion's carelessness. This fund would allow utility companies and the
State to be compensated for unpaid bills or taxes providing residents of
affordable housing units security.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
LOCAL FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.

2023-S8828A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8828--A
 
                             I N  S E N A T E
 
                              March 19, 2024
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the private housing finance law, in relation to  requir-
   ing  certain  out-of-state  affordable  housing  owners to maintain an
   escrow account for affordable housing rental units located in New York
   state
 
   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 615 to read as follows:
   § 615. OUT-OF-STATE AFFORDABLE HOUSING OWNER ESCROW ACCOUNT. 1.    FOR
 THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A)  "HUD"  SHALL  MEAN  THE  FEDERAL  DEPARTMENT OF HOUSING AND URBAN
 DEVELOPMENT.
   (B) "OUT-OF-STATE AFFORDABLE HOUSING OWNER" SHALL MEAN  AN  AFFORDABLE
 HOUSING DEVELOPMENT COMPANY THAT:
   (I) IS LOCATED OUTSIDE OF NEW YORK STATE;
   (II)  OWNS  TWENTY  OR MORE AFFORDABLE HOUSING RENTAL UNITS LOCATED IN
 NEW YORK STATE; AND
   (III) RECEIVES FEDERAL FUNDING PURSUANT TO A HUD-ADMINISTERED  PROGRAM
 OR INITIATIVE.
   2.  (A)  EVERY OUT-OF-STATE AFFORDABLE HOUSING OWNER SHALL MAINTAIN AN
 ESCROW ACCOUNT, HELD BY A BANK OR LICENSED LENDER,  AS  SUCH  TERMS  ARE
 DEFINED  BY SECTION TWO OF THE BANKING LAW, FOR THE PURPOSE OF FINANCING
 UTILITY COSTS, TAX OBLIGATIONS, FIRE SERVICES, AND  REGULAR  MAINTENANCE
 COSTS FOR AFFORDABLE HOUSING RENTAL UNITS LOCATED IN NEW YORK STATE.
   (B) SUCH ESCROW ACCOUNT SHALL CONTAIN:
   (I) FIFTY PERCENT OF SUCH OWNER'S PROPERTY TAX OBLIGATIONS FOR AFFORD-
 ABLE  HOUSING  RENTAL  UNITS LOCATED IN NEW YORK STATE FOR THE PRIOR TAX
 YEAR;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14921-04-4

 S. 8828--A                          2
 
   (II) FIFTY PERCENT OF UTILITY COSTS AND REGULAR MAINTENANCE COSTS  FOR
 AFFORDABLE HOUSING RENTAL UNITS LOCATED IN NEW YORK STATE FOR THE PREVI-
 OUS TWELVE MONTHS; AND
   (III)  AN  AMOUNT  SUFFICIENT TO COVER ANY POTENTIAL FIRE SERVICES, AS
 DETERMINED BY THE COMMISSIONER.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.

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