Expands access to mortgage loans for cooperative properties under the homes for veterans program, as administered by the state of New York mortgage agency.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7842
SPONSOR: Cunningham TITLE OF BILL:
An act to amend the public authorities law, in relation to expanding
access to mortgage financing for cooperative properties under the homes
for veterans program
PURPOSE OR GENERAL IDEA OF BILL:
To expand coverage of mortgages for co-op homes for veterans
SUMMARY OF PROVISIONS:
Section 1 begins with definitions of terms. The program under consider-
ation is the Homes for Veterans program of the State of New York Mort-
gage Agency (SONYMA). Updated program requirements are defined. Minimum
borrower cash contribution shall not be greater than 1% of the value of
the loan. Loans for residential property in a cooperative housing corpo-
ration (co-op) shall not be rejected based on: number of units, occupan-
cy rates, location, percentage of units already sold, or LLC status.
Section 2 states that this act will take effect 30 days after it becomes
law.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
JUSTIFICATION:
Co-op homes are excluded from federal home loans for veterans, and in
our state, the Homes for Veterans program currently restricts eligibil-
ity of co-ops for mortgages. The justification is that with cooperative
ownership, technically only a share of the company that owns the build-
ing is purchased, rather than the real estate itself. Yet, this
restricts access to loans for many veterans in New York. For example,
co-ops make up about 74% of apartments in Manhattan. Veterans who have
served our country should not be priced out of the majority of homes in
NYC because they are excluded from receiving these mortgages from the
state. The Homes for Veterans program should be applicable to all types
of housing. This bill expands its coverage of co-op housing.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Minimal.
EFFECTIVE DATE:
This act will take effect 30 days after it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
7842
2023-2024 Regular Sessions
IN ASSEMBLY
July 7, 2023
___________
Introduced by M. of A. CUNNINGHAM -- read once and referred to the
Committee on Housing
AN ACT to amend the public authorities law, in relation to expanding
access to mortgage financing for cooperative properties under the
homes for veterans program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public authorities law is amended by adding a new
2 section 2405-g to read as follows:
3 § 2405-g. Special provisions for veterans. (1) Definitions. For the
4 purposes of this article, the following terms shall have the following
5 meanings:
6 (a) "Person" shall mean a veteran, or their surviving unmarried
7 spouse.
8 (b) "Veteran" shall:
9 (i) have the same meaning as set forth in subdivision three of section
10 one of the veterans' services law; and
11 (ii) include members of the army national guard, air national guard,
12 and other reserve components of the armed forces of the United States or
13 New York who are currently serving on active duty or have been released
14 from such service under other than dishonorable conditions, and all
15 military members who are currently serving on active duty in New York,
16 regardless of such members' discharge status.
17 (2) Construction. (a) The provisions of this section shall apply to
18 any mortgage purchased by the agency pursuant to section twenty-four
19 hundred five of this part under the homes for veterans program.
20 (b) No contract or agreement for the provision of loan or mortgage
21 loan services between the agency and an eligible person pursuant to this
22 section shall be construed as to limit such person's eligibility under
23 any other financing program offered by the state of New York mortgage
24 agency.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11822-01-3
A. 7842 2
1 (3) Homes for veterans program requirements. Notwithstanding any other
2 provision of law or regulation to the contrary, any contract or agree-
3 ment for the provision of a loan or mortgage loan services between the
4 agency and an eligible person under the homes for veterans program shall
5 be subject to the following provisions:
6 (a) No such contract or agreement shall require a minimum borrower
7 cash contribution from such person greater than one percent of the value
8 of the property securing such loan or mortgage loan; and
9 (b) No application by an eligible person for a loan or mortgage loan
10 secured by a residential property in a cooperative housing corporation
11 shall be rejected based on:
12 (i) the number of units, occupancy rates, or location of such corpo-
13 ration;
14 (ii) the percentage of units already sold in such corporation; or
15 (iii) the status of such corporation as a limited equity cooperative
16 project.
17 § 2. This act shall take effect on the thirtieth day after it shall
18 have become a law. Effective immediately, the addition, amendment and/or
19 repeal of any rule or regulation necessary for the implementation of
20 this act on its effective date are authorized to be made and completed
21 on or before such effective date.
