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.