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History
- Substituted by A8842
- Ordered to third reading cal.928
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to small loans to owners of multiple dwellings to remove substandard or insanitary conditions
Signed by Governor · Sponsor Marcos Crespo
Full text
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Sponsor's memo
Title of bill
An act to amend the private housing finance law, in relation to small loans to owners of multiple dwellings to remove substandard or insanitary conditions and to loans to owner-occupants of one-to-four unit private and multiple dwellings
Summary of provisions
Articles 8-A and 8-B of the Private Housing Finance Law ("PHFL") provide for loans to owners and owner occupants of one-to-four unit multiple dwellings to eliminate substandard or insanitary conditions in their buildings or units. Currently, such loans must be repaid within a period of thirty years or a shorter term determined by the agency, provided that the term shall not exceed the "useful life of the rehabilitation or improvement financed with such loan". Section one of the bill would amend subdivision 2 of Section 452 of the PHFL to provide that the longest possible term for such loans to multiple dwelling owners shall be "the probable life of the existing multiple dwelling", which it explicitly defines as thirty years. Similarly, section two would amend subdivision 2 of Section 472 of the PHFL to provide that the longest possible term for such loans to owner occupants shall be "the probable life of the existing multiple dwelling", which it explicitly defines 'as thirty years.
Reasons for support
Articles 8-A and 8-B of the PHFL currently provide that the term of any loan made pursuant to such articles may not exceed the "useful life of the rehabilitation or improvement." This language differs from the equivalent provisions in Articles 8 and 15 of the PHFL, which provide that the term of any loan made under such articles may not exceed the probable life of the building, which is determined to be thirty years. Therefore, while Articles 8 and 15 clearly allow thirty year loans, Articles 8-A and 8-B contain some ambiguity regarding the permissible loan term.
The financial viability of loans pursuant to Article 8-A and 8-B often depends on the ability to spread repayment over a thirty year term. Shorter loan terms may increase debt service beyond the amount the property's rent roll can support. The proposed legislation resolves any ambiguity by replacing the current language with the more definitive language of Articles 8 and 15.
Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.