What's happening
This bill allows owners of cooperative housing units aged 70 or older to qualify for reverse mortgages in New York.
Why it matters
Expands financial options for older New Yorkers. By allowing owners of cooperative units aged 70 or older to access reverse mortgages, the bill gives a new group of seniors the ability to tap into their home equity, potentially improving their financial security in retirement.
Addresses a major gap in current law. Previously, only owners of single-family homes and condominiums could qualify for reverse mortgages. This change acknowledges the large number of seniors living in co-ops, especially in cities like New York, and gives them the same financial tools available to other homeowners.
Potentially impacts housing stability and estate planning. With access to reverse mortgages, senior co-op owners may be able to age in place longer, cover medical or living expenses, or manage their estate planning more flexibly—reducing the likelihood they’ll be forced to sell their homes due to financial hardship.
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Who cares
Headline styles
Allow Reverse Mortgages for Co-ops
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing
- Delivered to assembly
- Passed senateVote 59–1
- Advanced to third reading
- 2nd report cal.
- 1st report cal.355
- Referred to aging
- Returned to senate
- Died in assembly
- Referred to housing
- Delivered to assembly
- Passed senateVote 58–2
Show 3 earlier actions
- Ordered to third reading cal.1789
- Committee discharged and committed to rules
- 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.
Reverse Mortgages for Co-ops
In Assembly Committee · Housing · Sponsor Jeffrey Dinowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4712
2017-2018 Regular Sessions
IN SENATE
February 24, 2017
Introduced by Sen. KLEIN -- read twice and ordered printed, and when printed to be committed to the Committee on Aging
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 1 of section 280-a of the real property law, as added by chapter 613 of the laws of 1993, is amended to read as follows:
(a) Reverse mortgage loan. A loan which is secured by a first mortgage on real property improved by a one to four-family residence [or], condominium or cooperative unit that is the residence of the mortgagor(s) the proceeds of which are advanced to the mortgagor(s) during the term of the loan in equal installments, or in advances through a line of credit or otherwise, in lump sums, or through a combination thereof.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03795-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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
2016 - Same as S. 7844 that passed the Senate last year.
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.