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History
- Referred to housing
- Delivered to assembly
- Passed senateVote 59–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1096
- Referred to aging
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 permitting reverse mortgages for persons aged 70 and over to be secured by a cooperative unit
In Assembly Committee · Housing · Sponsor Jeffrey Dinowitz
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the real property law, in relation to including cooperative unit loan dwellings as those eligible for reverse mortgages for persons seventy years of age or older
Purpose
To enable owners of co-op apartments, who are over the age of 70, the ability to obtain reverse mortgages, in a manner similar to the way such reverse mortgages can be secured by the owner of a one to four-family owner/occupied residence or condominium unit owner.
Summary of provisions
Section 1: Amends Real Property Law section 280-a 1(a) to include in the category of owner occupied residential properties that can obtain a reverse mortgage, a Coop unit, in addition to the already authorized owner occupied residential real properties, such as single family homes, owner occupied town homes, and condominium units. This expansion in the ability to obtain such a reverse mortgage would be only for persons who are 70 years of age or older.
Existing law
The current law allows for owners of one to four family residences or condominiums that is the residence of the mortgagor to apply for a reverse mortgage if the mortgagor is over the age of 65 (see Real Property Law section 280) and over the age of 70 (see Real Property Law section 280-a). This provision adds the owners of cooperative housing units, who are over the age of 70, in the category of those allowed to apply for reverse mortgages.
Justification
This legislation would level the playing field for many senior citizens who live in New York, many of whom are of low to middle income, who own their primary residence by means of a cooperative unit, as opposed to being owned as condominium or one to four family unit residence. While some estimates state that only about 10% of national housing units are structured in cooperative units, the percentage in New York City may be closer to up to 75 percent. Therefore, the current law on obtaining money via a reverse mortgage financing plan excludes a large portion of residents who own their residences in one of the most expensive residential markets in the nation. Further, this current situation in the law precludes such persons, over the age of 70, from taking advantage of a financing program that would allow them to remain in their homes unencumbered by the fear of eviction or unmet medical or other expenses.
Legislative history
New Bill
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.