What's happening
This bill amends rules for Green Jobs-Green New York on-bill energy efficiency loans, clarifying repayment obligations during property transfers.
Why it matters
Clarifies who is responsible for paying outstanding energy efficiency loan charges when a property changes hands. The bill specifies that unless the new owner or transferee explicitly agrees in writing to take over the loan payments, the original owner remains responsible for any remaining on-bill recovery charges.
Eliminates the automatic transfer of loan repayment obligations to new owners. Previously, these charges could simply "survive" changes in ownership. Now, the obligation only passes to the new owner if they expressly assume it in writing, which could prevent unexpected financial liabilities for buyers.
Requires clearer notification for buyers about on-bill recovery charges. Sellers must give written notice to buyers about any outstanding green energy loan charges unless the loan agreement states that the new owner won’t be responsible without written express assumption, increasing transparency in real estate transactions.
Removes the need for filing certain public declarations about loan existence. The bill deletes the requirement for the state to record a declaration about the loan in property records, streamlining administrative processes and possibly reducing confusion over liens or encumbrances during property sales.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Update Green Energy Loan Rules
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to energy
- Delivered to assembly
- Passed senateVote 59–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.329
- Referred to energy and telecommunications
- Returned to senate
- Died in assembly
- Referred to energy
- Delivered to assembly
- Passed senateVote 62–0
Show 2 earlier actions
- Ordered to third reading cal.1709
- 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.
Clarify Green Loan Repayment Rules
In Assembly Committee · Energy · Sponsor Michael Cusick
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6331
2019-2020 Regular Sessions
IN SENATE
June 5, 2019
Introduced by Sen. PARKER -- (at request of the Energy Research Development Authority) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the public authorities law, the public service law and the real property law, in relation to the green jobs-green New York on-bill energy efficiency payment program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 5 of section 1896 of the public authorities law, as added by section 1 of part DD of chapter 58 of the laws of 2012, is amended to read as follows:
(a) For each loan issued for qualified energy efficiency services that is to be repaid through an on-bill recovery mechanism[, the New York state energy research and development authority shall record, pursuant to article nine of the real property law, in the office of the appropriate recording officer, a declaration with respect to the property improved by such services of the existence of the loan and stating the total amount of the loan, the term of the loan, and that the loan is being repaid] through a charge on an electric or gas meter associated with the property, the on-bill recovery loan agreement shall allow for the purchaser or transferee to agree through written express assumption provided in accordance with the terms of the on-bill recovery loan that he or she is responsible for future on-bill recovery charges, and in the absence of such written express assumption, the original seller, transferor, or current loan holder of the subject property shall continue to be responsible for payment of such remaining charges through direct billing and payment to the New York state energy research and development authority, or its agent. [The declaration shall further state that it is being filed pursuant to this section and, unless fully satisfied prior to sale or transfer of the property, the loan repayment utility meter charge shall survive changes in ownership, tenancy, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09105-02-9
S. 6331 2
meter account responsibility and, until fully satisfied, shall constitute the obligation of the person responsible for the meter account. Such declaration shall not constitute a mortgage and shall not create any security interest or lien on the property. Upon satisfaction of the loan, the authority shall file a declaration of repayment pursuant to article nine of the real property law.]
§ 2. Paragraph (d) of subdivision 2 of section 66-m of the public service law, as added by chapter 388 of the laws of 2011, is amended to read as follows:
(d) unless fully satisfied prior to sale or transfer, that (i) the on-bill recovery charges for any services provided at the customer's premises shall survive changes in ownership, tenancy or meter account responsibility if the New York state energy research and development authority shall have recorded a declaration pursuant to article nine of the real property law with respect to such property for the existence of an on-bill recovery loan, and (ii) that arrears in on-bill recovery charges at the time of account closure or meter transfer shall remain the responsibility of the incurring customer, unless expressly assumed by a subsequent purchaser of the property subject to such charges;
§ 3. Paragraph (a) of subdivision 4 of section 242 of the real property law, as added by chapter 388 of the laws of 2011, is amended to read as follows:
(a) Any person, firm, company, partnership or corporation offering to sell real property which is subject to a green jobs-green New York on-bill recovery charge pursuant to title nine-A of article eight of the public authorities law and which provides that such charge shall survive changes in ownership, tenancy or meter account responsibility if not fully satisfied prior to sale or transfer, shall provide written notice to the prospective purchaser or the prospective purchaser's agent, stating as follows: "This property is subject to a green jobs-green New York on-bill recovery charge". Such notice shall also state the total amount of the original charge, the payment schedule and the approximate remaining balance, a description of the energy efficiency services performed, including improvements to the property, and an explanation of the benefit of the green jobs-green New York qualified energy efficiency services. Such notice shall be provided by the seller prior to accepting a purchase offer; provided that such notice is not necessary if the loan agreement provides that upon sale or transfer of the subject property the purchaser or transferee is only responsible for on-bill recovery charges after sale or transfer if he or she agrees through written express assumption provided in accordance with the terms of the on-bill recovery loan agreement, and in the absence of such assumption, the original seller, transfer, or current loan holder of the subject property shall be responsible for payment of such remaining charges through direct billing and payment to the New York state energy research and development authority, or its agent.
§ 4. This act shall take effect on the thirtieth day after it shall have become a law and shall apply to any eligible applications on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, the public service law and the real property law, in relation to the green jobs- green New York on-bill energy efficiency payment program
Purpose of bill
This bill would amend section 1896 of Public Authorities Law (PAL), section 66-m of Public Service Law (PSL) and section 242 of the Real Property Law (RPL) to allow a revised On-Bill Recovery (OBR) loan trans- ferability process to eliminate a recording requirement and reduce costs associated with the program.
Summery of provisions
Section 1 would amend subdivision 5 (a) of PAL section 1896 to modify the transferability of loans to allow the loan to be voluntarily assumed by a subsequent purchaser by written agreement, eliminating the require- ment for recording loans and the costly fees, confusion and other issues that have arisen with such recordings and property transfers.
Section 2 would amend paragraph (d) of subdivision (2) of PSL section 66-m to provide that the OBR loan charges shall survive changes in ownership if the New York State Energy Research and Development Authori- ty (NYSERDA) shall have recorded a declaration pursuant to article nine of the real property law with respect to the existence of an OBR loan.
Section 3 amends subdivision (4) to section 242 of the RPL to modify the disclosure of OBR loan requirements to provide that notice is not neces- sary if the loan agreement provides that upon transfer of a property the purchaser is only responsible for on-bill recovery charges through writ- ten express assumption provided in the OBR loan agreement.
Section 4 provides for an effective date 30 days after becoming law.
Justification
Existing law requires that unless satisfied prior to the sale or trans- fer of the property, the charges after sale/transfer are the responsi- bility of the purchaser; requires the seller to provide written notice to the prospective purchaser; and requires NYSERDA to record a declara- tion in the municipal recording office to provide notice to any prospec- tive purchaser. The current recording process has led to delays in approval of on-bill recovery loan, has generally been ineffective, cost- ly and has led to confusion for prospective purchasers, mortgagees, title companies, and attorneys during the property sale process.
This bill would allow that upon sale or transfer of a property subject to an existing OBR loan, the purchaser would agree through voluntary written express assumption provided in accordance with the terms of the OBR loan that he or she is responsible for future OBR charges, and in the absence of such written assumption, the original seller of the subject property shall continue to be responsible for payment of any remaining OBR charges. Unless having received and submitted signed acceptance for the remaining charges from the purchaser/transferee in accordance with the OBR loan agreement, the original borrower shall be responsible for continuing to make direct loan payments to NYSERDA's loan servicer. As a result of this change, the recordation of the loan in the municipal recording office would be eliminated resulting in reduced costs, reduced processing time for borrowers, as well as substantial program cost savings.
Budget implications
None.
Effective date
The bill would take effect 30 days after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.