Authorizes state of New York mortgage agency to purchase labor organization assisted forward commitment mortgages from banks; sets criteria for labor organization participation; requires them to guarantee up to twenty percent of outstanding indebtedness.
STATE OF NEW YORK
________________________________________________________________________
6129
2019-2020 Regular Sessions
IN ASSEMBLY
February 28, 2019
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Introduced by M. of A. FITZPATRICK, TAGUE -- Multi-Sponsored by -- M. of
A. DeSTEFANO, MANKTELOW -- read once and referred to the Committee on
Housing
AN ACT to amend the public authorities law, in relation to authorizing
the state of New York mortgage agency to purchase labor organization
assisted forward commitment mortgages from banks within the state
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2402 of the public authorities law is amended by
2 adding a new subdivision 18 to read as follows:
3 (18) "Labor organization". Any organization of any kind which exists
4 for the purpose, in whole or in part, of representing employees employed
5 within the state of New York in dealing with employers or employer
6 organizations or with a state government, or any political or civil
7 subdivision or other agency thereof, concerning terms and conditions of
8 employment, grievances, labor disputes, or other matters incidental to
9 the employment relationship, and shall include the parent national or
10 international organization of a local labor organization.
11 § 2. The public authorities law is amended by adding a new section
12 2405-g to read as follows:
13 § 2405-g. Purchase of labor organization assisted forward commitment
14 mortgages. (1) In accordance with the authority set forth in section
15 twenty-four hundred five-b of this part, the agency may purchase labor
16 organization assisted forward commitment mortgages from banks at such
17 prices and upon such terms and conditions as it shall determine. In
18 conducting its program of purchasing labor organization assisted forward
19 commitment mortgages, the agency shall be governed by the provisions of
20 section twenty-four hundred five-b of this part. The board of directors
21 of the agency shall establish from time to time maximum income limits of
22 persons eligible to receive such mortgages, which income limits shall
23 not exceed the latest maximum income limits permitted under the Internal
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05738-01-9
A. 6129 2
1 Revenue Code of 1986, as amended, for mortgages financed by mortgage
2 revenue bonds. A labor organization may develop additional qualifica-
3 tions for eligible members beyond those qualifications provided for in
4 this section, provided that such qualifications are non-discriminatory
5 and are pre-approved by the agency; the labor organization, however,
6 shall remain solely responsible for determining and insuring the legali-
7 ty of such qualifications and may not rely on any agency reviews,
8 approvals, legal opinions or statements.
9 (2) To participate in a labor organization assisted forward commitment
10 mortgage program, a labor organization shall be a bona fide union or
11 association of employees which maintains an office in the state and
12 shall satisfy the requirements set forth in guidelines established by
13 the agency.
14 (3) For any labor organization assisted forward commitment mortgage,
15 the maximum loan-to-value ratio shall be established by the agency,
16 provided that such loan shall not exceed one hundred percent of the
17 appraised value of the mortgaged premises. Reasonable closing costs for
18 the loan may be amortized over the life of the loan, provided that the
19 final loan amount does not exceed one hundred percent of the appraised
20 value of the mortgaged premises.
21 (4) The agency shall require any labor organization participating in
22 the labor organization assisted forward commitment mortgage program to
23 guarantee to pay up to twenty percent of the total outstanding mortgage
24 indebtedness (as determined by the agency) for each member who obtains a
25 mortgage loan under the provisions of this section and who defaults on
26 such mortgage loan during the first seven years of such loan, regardless
27 of whether such borrower is a member of such labor organization at the
28 time of the default.
29 § 3. This act shall take effect on the ninetieth day after it shall
30 have become a law.