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- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
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Establishes a reverse mortgage loan program for low income seniors
In Assembly Committee · Housing · Sponsor Steven Englebright
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S3960
Title of bill
An act to amend the public authorities law, in relation to establishment of a reverse mortgage loan program for low income seniors
Purpose
The purpose of this bill is to establish a reverse mortgage loan program under the direction of the State of New York Mortgage Agency, in order to enable low income elderly home owners to stay at home and pay for their long term care.
Summary of provisions
This bill would add a new section 2405-f to the Public Authorities Law to authorize the State of New York Mortgage Agency (SONYMA) to establish the Reverse Mortgage Loan Program for Low Income Seniors. The goal of the program would be to enable low income senior homeowners to use the equity in their homes to pay for their long term care needs. In order to qualify for the program, an applicant would have to be sixty-five years of age or older, meet the income eligibility guidelines set by SONYMA, be the owner and occupant of a single family dwelling or condominium and have lost some or all of the capacity to function on his or her own due to chronic illness. An applicant would have to undergo a care needs assessment and counseling on reverse mortgages in order to obtain a loan from the program. Loans issued by the program would offer a low, fixed interest rate to be established by SONYMA. In addition, any origination fees, closing costs or fees charged by the program would be at a reduced rate to be determined by the Agency.
Existing law
The State of New York Mortgage Agency is not currently authorized to issue reverse mortgage loans for low income seniors.
Justification
There are many senior citizens living in New York who own their own homes and want to continue to live at home for as long as possible. Nationally, with over two trillion dollars tied up in home equity, reverse mortgages have the potential to dramatically increase the ability of seniors to pay for their long term care and remain in their homes. Today, over eighty percent of older Americans own their own homes, seventy-three percent of which are owned free and clear of any mortgages. Unlocking these resources can help "house-rich and cash-poor" seniors purchase the long term care services they feel best meet their needs. Private funds from reverse mortgages also can strengthen community long term care systems and reduce the burden on state and local Medicaid budgets. The purpose of this bill is to establish a reverse mortgage loan program within the State of New York Mortgage Agency to enable low income elderly home owners to stay at home and pay for their long term care.
Legislative history
S.639 of 2012, Referred to Corporations, Authorities, and Commissions S.2029 of 2010, Referred To Corporations, Authorities & Commissions S.4062 of 2008, 3rd Reading S.1933 of 2005-06, 3rd Reading S.7393 of 2004, Referred to Rules A.3876 of 2012, Referred to Housing
Fiscal implications
This bill would be funded through the bonding authority of the State of New York Mortgage Agency.
Effective date
One hundred eightieth day after enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.