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Sponsors
1 Co-sponsor
History
- Substituted by A9547A
- Ordered to third reading cal.1224
- Reported and committed to rules
- Print number 6657a
- Amend (t) and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
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 the insurance of certain preservation loans of the state of New York mortgage agency mortgage insurance fund
Signed by Governor · Sponsor Hakeem Jeffries
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to the insurance of certain preservation loans by the state of New York mortgage agency mortgage insurance fund; and providing for the repeal of such provisions upon expiration thereof
Purpose of the bill
The bill would grant the State of New York Mortgage Agency Mortgage Insurance Fund ("MIF") authority to insure the full principal amount of certain preservation loans thereby enabling the MIF to provide needed support for the refinancing of certain multi-family affordable housing accommodations which became over leveraged during the current housing crisis.
Summary of provisions
Section 1 of the bill would amend Public Authority Law ("PAL") . 2428 by adding a new subdivision 2-a to the Agency's statute to authorize the Agency to provide mortgage insurance for the full amount of certain refinancing/preservation loans which meet the following requirements (i) the indebtedness being refinanced was originated during the period from January 1, 2004 through December 31, 2008, (ii) the amount of such loan does not exceed $150 million, (iii) the loan will preserve or create affordable housing units in the State, and (iv) the loan shall have been made by a public benefit corporation of the state of New York which has issued bonds or notes to make such loan, or the loan shall have been made by a public employee pension fund.
Read the full memo (725 words)
Section 2 of the bill would amend PAL § 2428(8)(c) to provide that the Agency may issue commitments for, and insure preservation loans made with respect to, multi-family residential buildings seeking to refinance existing indebtedness that was originated during the period from January 1, 2004 through December 31, 2008 where the loan will preserve affordable housing accommodations.
Section 3 would provide that this bill and powers delineated therein be liberally construed to effectuate the intent and purpose of the bill.
Section 4 would contain a severability clause.
Section 5 would provide that the bill takes effect immediately and that the act shall expire on or after June 30, 2012.
Existing law
The Mortgage Insurance Fund has the authority to insure preservation loans with respect to one to four family dwellings and certain buildings and real property and improvements owned by cooperative housing corporations, both up to an amount not exceeding fifty per centum of the outstanding principal indebtedness of such loans.
Prior legislative history
This is new legislation.
Statement in support
In the years immediately preceding 2009, the real estate market in the state of New York saw an unprecedented increase in real estate values and in the level of acquisition and rehabilitation financing available to owners. As values have retreated in recent months and the rental market has declined, many of the multi-family residential buildings which were financed or refinanced prior to 2009 have become over leveraged and struggle to avoid loan defaults. In many communities in the State, refinancing is effectively unavailable for these buildings. Those communities face the loss or deterioration of affordable housing accommodations and the related retail and other community facilities they attract.
This bill would give the Mortgage Insurance Fund the authority to provide one hundred percent mortgage insurance on certain loans extended for the sole purpose of refinancing existing indebtedness which relate to over leveraged multi-family residential buildings. At present the MIF is authorized to insure preservation loans in an amount up to fifty percent of the outstanding principal amount of refinancing loans which relate to one to four family dwellings and certain cooperative housing corporations. The preservation loans to be insured pursuant to the expanded authority would remain subject to statutory and other requirements governing loans insured by the MIF.
In addition, the bill would require that the existing indebtedness to be refinanced be originated during a targeted period during which over expansive lending practices resulted in over leveraged multifamily residential buildings, each such preservation loan be subject to a per loan cap, and each such preservation loan preserve affordable housing accommodations. It is the intention that this authority be targeted, and enable the resources of the MIF to be committed to, the refinancing of certain troubled multi-family loans pursuant to statutory and other requirements consistent with the MIF's established mortgage insurance standards.
Budget implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.