New York A01787 mandates that upon sale of a limited-profit housing company project, reserve and surplus funds must be held in escrow by the new.

New York A01787 amends the private housing finance law to establish that when a limited-profit housing company project is sold to an entity other than a new limited-profit housing company, the new owner must hold reserve and surplus funds in escrow. These funds can only be used for major capital improvements to the project. Additionally, the bill prohibits the new owner from increasing rents to cover the cost of major capital improvements until all reserve and surplus funds have been used.

New York A01787 mandates that upon sale of a limited-profit housing company project, reserve and surplus funds must be held in escrow by the new.

New York A01787 amends the private housing finance law to establish that when a limited-profit housing company project is sold to an entity other than a new limited-profit housing company, the new owner must hold reserve and surplus funds in escrow. These funds can only be used for major capital improvements to the project. Additionally, the bill prohibits the new owner from increasing rents to cover the cost of major capital improvements until all reserve and surplus funds have been used.