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A09628 Summary:

BILL NOA09628
 
SAME ASSAME AS S08828
 
SPONSORButtenschon
 
COSPNSR
 
MLTSPNSR
 
Add §615, Priv Hous Fin L
 
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.
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A09628 Actions:

BILL NOA09628
 
03/26/2024referred to housing
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A09628 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9628
 
SPONSOR: Buttenschon
  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
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A09628 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9628
 
                   IN ASSEMBLY
 
                                     March 26, 2024
                                       ___________
 
        Introduced  by  M.  of  A.  BUTTENSCHON -- read once and referred to the
          Committee on Housing
 
        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:
 
     1    Section  1. The private housing finance law is amended by adding a new
     2  section 615 to read as follows:
     3    § 615. Out-of-state affordable housing owner escrow account. 1.    For
     4  the purposes of this section, the following terms shall have the follow-
     5  ing meanings:
     6    (a)  "HUD"  shall  mean  the  federal  department of housing and urban
     7  development.
     8    (b) "Out-of-state affordable housing owner" shall mean  an  affordable
     9  housing development company that:
    10    (i) is located outside of New York state;
    11    (ii)  owns  twenty  or more affordable housing rental units located in
    12  New York state; and
    13    (iii) receives federal funding pursuant to a HUD-administered  program
    14  or initiative.
    15    2.  (a)  Every out-of-state affordable housing owner shall maintain an
    16  escrow account for the purpose of financing utility costs and tax  obli-
    17  gations for affordable housing rental units located in New York state.
    18    (b) Such escrow account shall contain fifty percent of:
    19    (i)  such  owner's  property  tax  obligations  for affordable housing
    20  rental units located in New York state for the prior tax year; and
    21    (ii) utility costs for affordable housing rental units located in  New
    22  York state for the previous twelve months.
    23    §  2.  This  act  shall take effect on the sixtieth day after it shall
    24  have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14921-02-4
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