Establishes the homeownership protection program; provides that the department of law shall establish the homeownership protection program to ensure the availability of free housing counseling and legal services to homeowners for the purposes of mitigating threats to homeownership; provides that the department of law shall provide grants to eligible not-for-profit housing counseling organizations and legal services organizations to provide services under the program.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7636B
SPONSOR: Solages TITLE OF BILL:
An act to amend the real property law, in relation to establishing the
homeownership protection program
PURPOSE:
Since 2012, the Homeowner Protection Program (HOPP) has provided free
legal services and housing counseling to help New Yorkers facing threats
to homeownership to remain in their homes. This bill would codify the
funding and administration of this important program.
SUMMARY:
Section 1. Amends the real property law by adding a new section 265-c.
Section 2. Sets the effective date.
JUSTIFICATION:
The Homeowner Protection Program (HOPP) was established in 2012 to
provide legal services and housing counseling to New York homeowners at
risk of losing their homes. Originally funded by the state's bank
settlement funds, HOPP has, in recent years, received annual allocation
from the State to support its network of 33 legal services organizations
and 56 housing counseling agencies. Statewide, 150,000 families have
been helped by HOPP, with over 15,000 families receiving assistance each
year.
It is necessary to codify HOPP and to mandate annual appropriations to
fund this program to ensure access to homeownership retention and fore-
closure mitigation services is maintained for homeowners facing the
potential loss of their homes. For example, between January and December
2022, there was an 85% increase in delinquency notices sent to New York
City homeowners. Statewide, as of February 2023, there were 346,928 New
York families at risk of losing their homes due to delinquency, accord-
ing to February 2023 data from the U.S. Census Household Pulse Survey.
If annual funding for HOPP is not mandated, the loss of funding for the
network would leave these families without the help they need to save
their homes.
It is also necessary to codify HOPP to ensure that the statutory
mandates of RPAPL 1303, 1304 and CPLR 3408 are fulfilled, so that free
housing counseling and legal services are available to homeowners as
provided for by RPAPL sections 1303 and 1304 in every county, and so
that legal services are available to assist homeowners answering
complaints and participating in mandatory settlement conferences pursu-
ant to CPLR section 3408, which requires a copy of the filing of judi-
cial intervention to be sent to a housing counseling agency so the home-
owner can be notified of foreclosure prevention services including pro
bono representation at settlement conferences. Without HOPP and its
network of organizations, compliance with these mandates would not be
possible.
RACIAL JUSTICE IMPACT:
Racial disparities in mortgage costs have led to higher rates of fore-
closure on homeowners of color. A study by the Center for Responsible
Lending found that Black and Latino families lose their homes at about
twice the rate of white families.
GENDER JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY:
2023: A7636; referred to housing.
FISCAL IMPLICATIONS:
Subject to allocation levels.
EFFECTIVE DATE:
This act shall take effect immediately.
