Bill > A01787

This bill amends the private housing finance law to establish new requirements for limited-profit housing companies when they sell or transfer their projects to a new owner. Specifically, when a project is sold to an entity other than another limited-profit housing company, the new owner must hold all reserve and surplus funds from the previous owner in escrow accounts and can use these funds only for major capital improvements to the project. Additionally, the bill prohibits the new owner from increasing rental charges to cover the cost of major capital improvements until all of the transferred reserve and surplus funds have been completely exhausted. This legislation aims to protect tenants by ensuring that funds originally set aside for the project's maintenance are used specifically for significant property upgrades before any rent increases can be implemented, thereby maintaining affordability and preserving the original intent of the limited-profit housing project's financial resources.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A1787