A09628 Summary:
BILL NO | A09628 |
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SAME AS | SAME AS S08828 |
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SPONSOR | Buttenschon |
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COSPNSR | |
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MLTSPNSR | |
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Add §615, Priv Hous Fin L | |
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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. |
A09628 Actions:
BILL NO | A09628 | |||||||||||||||||||||||||||||||||||||||||||||||||
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03/26/2024 | referred to housing |
A09628 Memo:
Go to topNEW 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
A09628 Text:
Go to top 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