Bill > S02002

This bill amends the private housing finance law to establish new rules for limited-profit housing companies when their projects are sold or transferred to a new owner. Specifically, when a limited-profit housing project is sold to an entity that is not another limited-profit housing company, the new owner must hold all reserve and surplus funds from the previous owner in escrow accounts. These funds can only be used for making major capital improvements to the project. Additionally, the bill prohibits the new owner from increasing rental rates to cover the cost of capital improvements until all of the transferred reserve and surplus funds have been completely spent on such improvements. This legislation aims to protect tenants from potential rent increases by ensuring that existing funds are first used for necessary property upgrades before any additional costs are passed on to residents.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/S2002