NY S07865

Establishes a New York City Department of Housing Preservation and Development Homeowners Improvement Trust Fund administered by the Commissioner of New York State Community Homes & Renewal to pay for repairs to homeowners harmed by substandard housing built through HPD projects.

Requires sponsors of HPD projects to contribute at least 5 percent of the total project value to the fund before project award, unless they provide a bond or meet warranty requirements; contributions are returned 50 percent after 30 months and 50 percent after 60 months if no unresolved warranty issues exist.

Mandates sponsors provide a written HPD Owner Warranty covering one year for construction defects, two years for plumbing and electrical systems, and six years for material defects in load-bearing structures, with sponsors required to correct substantial defects within 60 days of notice.

Authorizes the Commissioner to conduct investigations, hold administrative hearings, issue penalties up to $10,000 per violation (maximum $50,000 per HPD project), and maintain a public registry of approved sponsors and violations.

Allows homeowners to file complaints within one year and ten days of delivery or certificate of occupancy, with the Department determining compensation including repair costs and incidental fees; decisions are appealable through judicial review.