For those of you who are looking to update your Android version to Lollipop and wish to continue using the chroot environment I have shown how to setup here, please hold off! You can do so but at your own risk. Currently my chroot environment is not functional because I get ‘permission denied’ when I try to run the same script as I’ve always done before with my rooted Nexus 4 with previous versions of Android (up to 4.4.4). I’m highly confident that the issue is related to Android Lollipop’s PIE system, though I could be wrong. Over at the XDA forums, it appears that there is a workaround, but it still doesn’t fix the ‘permission denied’ issue that I’m experiencing. However it may help you with other apps:

http://forum.xda-developers.com/google-nexus-5/development/fix-bypassing-pie-security-check-t2797731

This bypass method did fix SSHDroid, but caused some issues with other apps.