NY State Senate Bill 2025-S6263

Senate Bill S6263

2025-2026 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
Mar 07, 2025	referred to housing, construction and community development

2025-S6263 (ACTIVE) - Details

See Assembly Version of this Bill:: A1791
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add §615, Priv Hous Fin L
Versions Introduced in 2023-2024 Legislative Session:: S8828, A9628

2025-S6263 (ACTIVE) - 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.

2025-S6263 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6263

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 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 resulting in hundreds of residents faced with a
potential water shut off and displaced due to the lack of available
water.

This bill requires all out-of-state organizations with properties in New
York to create an escrow account building a reserve 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:

2024 - S.8828 - A - Housing, Construction and Community Development
Committee

 
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.

2025-S6263 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6263
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               March 7, 2025
                                ___________
 
 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 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04486-01-5
 S. 6263                             2

   (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;
   (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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