Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENTSubtitle S - Division of Housing and Community RenewalChapter IV - State-assisted Housing Constructed By Private EnterpriseSubchapter C - Housing Company ManagementPart 1728 - Budget And Fiscal
Subpart 1728-2 - Accounting And Financial
Section 1728-2.3 - Escrow funds and reserve funds

N.Y. Comp. Codes R. & Regs. tit. 9 § 1728-2.3

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Current through Register Vol. 46, No. 25, June 18, 2024
Section 1728-2.3 - Escrow funds and reserve funds
(a) A bank account shall be opened in a local commercial bank insured by the Federal Deposit Insurance Corporation entitled as follows: "Name of company Operating Escrow Fund." A letter shall be obtained from the bank acknowledging its acceptance of the account, designating the exact name of the account and stating that deposits in the bank are insured by the Federal Deposit Insurance Corporation.
(b) Checks drawn on this account shall require the signature of one of several designated officers of the housing company and the counter signature of a duly authorized officer of the division. A certified copy of the housing company's resolution opening the bank account and a photocopy of the housing company's signature card filed with the bank, shall be submitted to the division.
(c) Into this account shall be deposited monthly "Escrow Funds" equal to one twelfth of the estimated annual charges for debt service, real estate taxes, water charges, sewer rents and insurance. The amount of the monthly deposit shall be determined by the division and shall be subject to periodic review.
(d) There shall be deposited monthly into the "Operating Escrow Fund Account" an amount to cover future painting and redecorating, contingencies, vacancies and collection losses and replacements. The amount of the monthly deposit shall be determined by the division and shall be subject to periodic review. The monies in this account shall be known as "Reserve Funds."
(e) All escrow, reserve funds and administrative funds not currently required, shall be invested. Such investments shall have the prior written approval of the division.
(f) Interest earned on all reserve fund investments shall be credited to the replacement reserve. Interest earned on escrow deposits representing debt service shall be credited to the escrow debt service account for such disposition as the division may decide. Interest earned on escrow fund investments excluding debt service investments shall be credited to operating income and may be employed for general corporate purposes.
(g) Reserve funds shall be applied and disbursed for such purposes and in such manner as the division may from time to time approve or direct.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1728-2.3