Establishes the senior homeowner foreclosure and rehabilitation revolving loan program to permit the New York state mortgage agency to make low-interest loans, deferred payment loans, or forgivable loans, or a combination thereof, to eligible senior homeowners for eligible assistance; directs SONYMA to prioritize senior homeowners at imminent risk of foreclosure; properties with essential systems in need of immediate repair or replacement, including heating and boilers; and senior homeowners with documented financial hardship that limits their ability to maintain the property or make mortgage payments.
STATE OF NEW YORK
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9120
IN SENATE
February 4, 2026
___________
Introduced by Sen. COMRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend the public authorities law, in relation to establishing
the senior homeowner foreclosure and rehabilitation revolving loan
program administered by the state of New York mortgage agency (SONYMA)
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. Senior homeowner foreclosure and rehabilitation revolving
4 loan program. (1) For purposes of this section:
5 (a) "Senior homeowner" means a natural person who is sixty-two years
6 of age or older and owns a single-family residence within the state of
7 New York.
8 (b) "Eligible property" means a single-family residence owned and
9 occupied by a senior homeowner, including attached accessory structures
10 and systems essential for habitability.
11 (c) "Eligible assistance" means financial support provided for one or
12 more of the following purposes: mortgage payment assistance to prevent
13 foreclosure, repair or replacement of essential home systems including
14 boilers, heating, plumbing, electrical, and other capital repairs neces-
15 sary to maintain habitability, and remediation of health and safety
16 hazards.
17 (d) "Program" means the senior homeowner foreclosure and rehabili-
18 tation revolving loan program established under this section.
19 (2) (a) There is hereby established within the agency a program to be
20 known as the senior homeowner foreclosure and rehabilitation revolving
21 loan program.
22 (b) The program shall consist of moneys appropriated by the legisla-
23 ture, repayments of principal and interest on loans made from the
24 program, interest earnings, federal, private, or philanthropic contrib-
25 utions, and any other moneys made available for its purposes.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14757-01-6
S. 9120 2
1 (c) Moneys in the program shall be continuously available and shall
2 not lapse.
3 (3) (a) The agency is authorized to make low-interest loans, deferred
4 payment loans, or forgivable loans, or a combination thereof, to eligi-
5 ble senior homeowners for eligible assistance.
6 (b) Loan terms may include below-market interest rates, extended amor-
7 tization periods, interest-only or deferred payment periods, and techni-
8 cal assistance as determined by the agency.
9 (c) Loans shall be secured by a mortgage, note, or other appropriate
10 security interest, except where forgivable loan structures are author-
11 ized by program guidelines.
12 (d) Administrative, outreach, and marketing expenditures, including
13 program materials, community-based outreach, and applicant technical
14 assistance, shall not exceed one percent of the total annual appropri-
15 ation for the program and shall not include general agency overhead or
16 unrelated personnel costs.
17 (4) (a) To be eligible for assistance, a senior homeowner shall:
18 (i) demonstrate financial need and an inability to make mortgage
19 payments or maintain essential home systems without assistance;
20 (ii) certify that the eligible property is occupied as their primary
21 residence; and
22 (iii) agree to comply with all applicable housing maintenance, build-
23 ing, and fire codes.
24 (b) As a condition of receiving assistance:
25 (i) no senior shall be displaced as a result of rehabilitation activ-
26 ities; and
27 (ii) the agency may require affordability covenants for a defined
28 period commensurate with the amount and terms of assistance.
29 (5) In awarding assistance, the agency shall prioritize:
30 (a) senior homeowners at imminent risk of foreclosure;
31 (b) properties with essential systems in need of immediate repair or
32 replacement, including heating and boilers; and
33 (c) senior homeowners with documented financial hardship that limits
34 their ability to maintain the property or make mortgage payments.
35 (6) (a) The agency shall submit an annual report to the governor, the
36 temporary president of the senate, and the speaker of the assembly
37 detailing program activity, including number of loans made, types of
38 assistance provided, repayment performance, and fund balance.
39 (b) The program and its administration shall be subject to audit by
40 the state comptroller.
41 (7) Severability. If any provision of this section or its application
42 shall be adjudged invalid, such judgment shall not affect or impair the
43 validity of the remainder of the section.
44 § 2. This act shall take effect immediately. Effective immediately,
45 the addition, amendment and/or repeal of any rule or regulation neces-
46 sary for the implementation of this act on its effective date are
47 authorized to be made and completed on or before such effective date.
