S07541 Summary:
| BILL NO | S07541 |
| SAME AS | SAME AS A07403-A |
| SPONSOR | COMRIE |
| COSPNSR | |
| MLTSPNSR | |
| Amd 2401, 2402, 2405-b & 2428, Pub Auth L | |
| Facilitates the purchase by the state of New York mortgage agency of mortgages on manufactured homes. | |
S07541 Actions:
| BILL NO | S07541 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/05/2023 | REFERRED TO RULES | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/07/2023 | ORDERED TO THIRD READING CAL.1728 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2023 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2023 | DELIVERED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2023 | referred to housing | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2023 | substituted for a7403a | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2023 | ordered to third reading rules cal.776 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2023 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/09/2023 | returned to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
| 10/13/2023 | DELIVERED TO GOVERNOR | |||||||||||||||||||||||||||||||||||||||||||||||||
| 10/25/2023 | SIGNED CHAP.605 | |||||||||||||||||||||||||||||||||||||||||||||||||
S07541 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 7541 2023-2024 Regular Sessions IN SENATE June 5, 2023 ___________ Introduced by Sen. COMRIE -- (at request of the New York State Homes and Community Renewal) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the public authorities law, in relation to facilitating the purchase by the state of New York mortgage agency of mortgages on manufactured homes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tenth undesignated paragraph of section 2401 of the 2 public authorities law, as added by chapter 628 of the laws of 2021, is 3 amended to read as follows: 4 It is further found and determined that there is a shortage of 5 adequate funds to assist in the new construction of modular and manufac- 6 tured housing, and to assist in the purchase of existing modular and 7 manufactured housing. 8 § 2. Subdivision 5 of section 2402 of the public authorities law, as 9 amended by chapter 65 of the laws of 2022, is amended to read as 10 follows: 11 (5) "Mortgage". A loan owed to a bank secured by a first lien on (i) a 12 fee simple or leasehold estate in real property, or (ii) any other 13 instrument which shall constitute or create a security interest in 14 tangible personal property constituting modular or manufactured housing, 15 located in the state and improved by a residential structure or, on 16 which a residential structure for use as single-family modular or manu- 17 factured housing purchased and sited on land shall be constructed using 18 the proceeds of such loan, whether or not insured or guaranteed by the 19 United States of America or any agency thereof. The term "mortgage" 20 shall also include a loan owed to a bank secured by a second lien on (i) 21 a fee simple or leasehold estate in real property, or (ii) any other 22 instrument which shall constitute or create a security interest in 23 tangible personal property constituting modular or manufactured housing, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06854-03-3S. 7541 2 1 located in the state and improved by a residential structure or on which 2 a residential structure for use as single-family modular or manufactured 3 housing purchased and sited on land shall be constructed using the 4 proceeds of the related loan described in paragraph (a) or (b) of this 5 subdivision, whether or not insured or guaranteed by the United States 6 of America or any agency thereof, provided, however, that such second 7 lien: (a) secures a loan purchased by the agency, and (b) is made at the 8 same time as a first lien securing a loan purchased by the agency pursu- 9 ant to its programs or by a government sponsored enterprise or is made 10 at the same time as a new housing loan purchased by the agency pursuant 11 to section twenty-four hundred five-c of this part. The term "mortgage" 12 shall also include loans made by the agency and secured by a second lien 13 on (i) a fee simple or leasehold estate in real property, or (ii) any 14 other instrument which shall constitute or create a security interest in 15 tangible personal property constituting modular or manufactured housing, 16 located in the state and improved by a residential structure or on which 17 a residential structure for use as single-family modular or manufactured 18 housing purchased and sited on land shall be constructed using the 19 proceeds of such loan, whether or not insured or guaranteed by the 20 United States of America or any agency thereof, provided however, that 21 the loan made by the agency and secured by such second lien is made at 22 the same time as a first lien securing a mortgage loan purchased by the 23 agency pursuant to its programs or by a government sponsored enterprise. 24 In the case of any second lien purchased or made hereunder, the mortga- 25 gor shall be obligated to contribute from his or her own verifiable 26 funds an amount not less than such percentage as the agency shall deter- 27 mine, of the lower of the purchase price or appraised value of the prop- 28 erty subject to the first lien. "Real property" as used in this subdivi- 29 sion shall include air rights. 30 For the purposes of this title and subdivision ten of section two 31 hundred ten-B of the tax law, "mortgage" shall include housing loans as 32 defined below. Except for the purposes of subdivision seven of section 33 twenty-four hundred five and subdivision eight of section twenty-four 34 hundred five-b of this part, "mortgage" shall also include a loan owed 35 to a bank by an individual borrower incurred for the purpose of financ- 36 ing the purchase of certificates of stock or other evidence of ownership 37 of an interest in, and a proprietary lease from, a cooperative housing 38 corporation formed for the purpose of the cooperative ownership of resi- 39 dential real estate in the state, secured by an assignment or transfer 40 of the benefits of such cooperative ownership, and containing such terms 41 and conditions as the agency may approve. 42 § 3. Paragraphs (e), (f) and (h) of subdivision 8 of section 2405-b of 43 the public authorities law, paragraph (e) as added by chapter 915 of the 44 laws of 1982, paragraph (f) as amended by chapter 432 of the laws of 45 2009 and paragraph (h) as amended by chapter 628 of the laws of 2021, 46 are amended to read as follows: 47 (e) the mortgage is evidenced by a bond or promissory note and a mort- 48 gage document which has been properly recorded with the appropriate 49 public official or by an instrument which shall constitute or create a 50 security interest in tangible personal property constituting modular or 51 manufactured housing purchased by the agency; 52 (f) the mortgage constitutes a valid first lien, or second lien on the 53 real property or tangible personal property constituting modular or 54 manufactured housing, described to the agency in accordance with subdi- 55 vision five of section twenty-four hundred two of this part subject only 56 to real property taxes or other taxes not yet due, installments ofS. 7541 3 1 assessments not yet due, and easements and restrictions of record which 2 do not adversely affect, to a material degree, the use or value of the 3 real property, tangible personal property constituting modular or manu- 4 factured housing or improvements thereon; 5 (h) the improvements to, or new construction of single-family modular 6 or manufactured housing purchased and sited on land, the mortgaged real 7 property or tangible personal property constituting modular or manufac- 8 tured housing, are covered by a valid and subsisting policy of insurance 9 issued by a company authorized by the superintendent of financial 10 services to issue such policies in the state of New York and providing 11 fire and extended coverage to an amount not less than eighty percent of 12 the insurable value of the improvements to, or new construction of, the 13 mortgaged real property or tangible personal property constituting 14 modular or manufactured housing. 15 § 4. Subdivision 4 of section 2428 of the public authorities law, as 16 amended by section 6 of chapter 432 of the laws of 2009, is amended to 17 read as follows: 18 4. To be eligible for insurance under this article, a mortgage loan 19 shall (a) (i) be a first lien of the kind which is commonly given to 20 secure advances on, or the unpaid purchase price of, real property, or 21 tangible personal property constituting modular or manufactured housing 22 in the case of mortgage loans purchased by the agency under its forward 23 commitment program, under the laws of the state together with any credit 24 instrument secured thereby, provided, however, that a mortgage loan may 25 be a second lien if such mortgage loan was purchased by the agency or 26 (ii) be secured by an assignment or transfer of stock certificates or 27 other evidence of ownership interest of the borrower in, and a proprie- 28 tary lease from, a corporation formed for the purpose of the cooperative 29 ownership of residential real estate in the state; (b) secure a rehabil- 30 itation or preservation loan on real property held in fee simple or on a 31 leasehold under a proprietary lease or a lease having a period of years 32 to run at the time the mortgage is insured under this article of at 33 least twenty per centum greater duration than the remaining term of the 34 mortgage; (c) contain terms with respect to prepayment, insurance, 35 repairs, alterations, payment of taxes, special assessments, service 36 charges, default reserves, delinquency charges, foreclosure proceedings, 37 additional and secondary liens, and such other matters as the agency may 38 in its discretion prescribe; (d) be accompanied by certificates, issued 39 by such officers of the mortgage financial institutions, independent 40 appraisers or other persons as the agency may require, certifying that 41 (i) where appropriate, the annual income to be derived from the property 42 equals not less than one hundred and five per centum of the annual 43 charges and expenses, including provision for reserves, satisfactory to 44 the agency, for the amortization of subordinate mortgage loans over the 45 remaining terms of such loans notwithstanding the provisions thereof; 46 (ii) the remaining useful life of the property is greater than the term 47 of the mortgage; and (iii) the property does not contain any substantial 48 violations of local building maintenance and construction codes, except 49 that in the case of a loan made to the owner of a property containing 50 any such violations, the agency may insure or commit to insure such loan 51 if the mortgagee and the owner have submitted a plan, satisfactory to 52 the agency to eliminate such violations and the issuance of such insur- 53 ance shall be conditioned on removal of such violations to the satisfac- 54 tion of the local code enforcement agency; and (e) satisfy such addi- 55 tional terms and conditions as the agency may prescribe. For poolS. 7541 4 1 insurance, the requirements of paragraph (b) of this subdivision shall 2 not be applicable. 3 § 5. This act shall take effect immediately, provided, however, that: 4 a. the amendments to subdivision 5 of section 2402 of the public 5 authorities law made by section two of this act shall not affect the 6 expiration of such subdivision and shall expire and be deemed repealed 7 therewith; 8 b. the amendments to section 2405-b of the public authorities law made 9 by section three of this act shall not affect the repeal of such section 10 and shall be deemed repealed therewith; and 11 c. the amendments to subdivision 4 of section 2428 of the public 12 authorities law made by section four of this act shall not affect the 13 expiration of such subdivision and shall expire and be deemed repealed 14 therewith.