Bill Text: NY A01662 | 2019-2020 | General Assembly | Introduced

Bill Title: Creates a veteran's home and land ownership loan program to provide loans to veterans to purchase homes or unimproved land suitable for building; requires such loans to be secured by a second mortgage.

Spectrum: Partisan Bill (Republican 22-1)

Status: (Introduced) 2019-01-16 - referred to housing [A01662 Detail]

Download: New_York-2019-A01662-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 16, 2019
        Introduced  by  M.  of  A.  HAWLEY,  KOLB, PALMESANO, COLTON, MONTESANO,
          DiPIETRO, BRABENEC, JOHNS, ASHBY -- Multi-Sponsored by  --  M.  of  A.
          BARCLAY, RA -- read once and referred to the Committee on Housing
        AN ACT to amend the private housing finance law, in relation to creating
          a veteran's home and land ownership loan program
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The private housing finance law is amended by adding a  new
     2  article 19-A to read as follows:
     3                                ARTICLE XIX-A
     5  Section 1115. Legislative purpose.
     6          1115-a. Definitions.
     7          1115-b. Creation of the "veteran's home and land ownership
     8                    loan fund".
     9          1115-c. Purpose and terms of loan.
    10          1115-d. Loan repayment.
    11          1115-e. Issuance of bonds.
    12          1115-f. Adoption of regulations.
    13    § 1115. Legislative purpose. It is hereby found and declared that many
    14  New  York residents have served our nation honorably in the armed forces
    15  of the United States, and that many such  New  Yorkers  have  sacrificed
    16  considerably  during their service. It is in the public interest both to
    17  demonstrate our appreciation for that service by providing state  finan-
    18  cial  assistance  to such veterans; in order to encourage home ownership
    19  and the rehabilitation of deteriorating housing,  stabilize  communities
    20  and improve the local tax base.
    21    § 1115-a. Definitions. For the purposes of this article, the following
    22  terms shall have the following meanings:
    23    1.  "Person" means an honorably discharged veteran of the Armed Forces
    24  of the United States, or their surviving unmarried spouse.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 1662                             2
     1    2. "Veteran" means a person who served in the active military,  naval,
     2  or air service during time of war as defined below, or who was a recipi-
     3  ent  of  the armed forces expeditionary medal, navy expeditionary medal,
     4  marine corps expeditionary medal, or global war on terrorism expedition-
     5  ary  medal, and who was discharged or released therefrom under honorable
     6  conditions.
     7    3. "Service during time of war" means:
     8    (a) The individual in question was a recipient  of  the  armed  forces
     9  expeditionary  medal,  the  navy expeditionary medal or the marine corps
    10  expeditionary medal for participation in operations in Lebanon from June
    11  first, nineteen hundred eighty-three to December first, nineteen hundred
    12  eighty-seven, in Grenada from  October  twenty-third,  nineteen  hundred
    13  eighty-three to November twenty-first, nineteen hundred eighty-three, or
    14  in Panama from December twentieth, nineteen hundred eighty-nine to Janu-
    15  ary thirty-first, nineteen hundred ninety, or;
    16    (b)  The  individual  served on active duty for ninety days or more in
    17  the armed forces of the United States during any one  of  the  following
    18  wars or hostilities:
    19    (i)  in  World  War  I  from  the sixth day of April, nineteen hundred
    20  seventeen to the eleventh day of November,  nineteen  hundred  eighteen,
    21  inclusive;
    22    (ii)  in  World  War  II  from  the  seventh day of December, nineteen
    23  hundred forty-one to the thirty-first day of December, nineteen  hundred
    24  forty-six, inclusive;
    25    (iii)  in  the Korean hostilities from the twenty-seventh day of June,
    26  nineteen hundred fifty to the  thirty-first  day  of  January,  nineteen
    27  hundred fifty-five, inclusive;
    28    (iv)  in  the Vietnam conflict from the twenty-second day of December,
    29  nineteen hundred sixty-one to the seventh day of May,  nineteen  hundred
    30  seventy-five; or
    31    (v)  in the Persian Gulf conflict from the second day of August, nine-
    32  teen hundred ninety to the end of such conflict.
    33    4. "Agency" means the New York state housing finance agency created by
    34  section forty-three of this chapter.
    35    § 1115-b. Creation of the "veteran's  home  and  land  ownership  loan
    36  fund".  There is hereby established a "veteran's home and land ownership
    37  loan  fund".  Such  fund  shall be used to make loans authorized by this
    38  article and for expenses incurred by the agency in the implementation of
    39  the program established by this article.
    40    § 1115-c. Purpose and terms of loan. 1. The agency, acting  on  behalf
    41  of the state may in its discretion, enter into a contract with an eligi-
    42  ble  person to provide a loan to assist in the purchase of a dwelling or
    43  the purchase and rehabilitation of a  dwelling  containing  up  to  four
    44  residential  units, provided such person shall reside in at least one of
    45  such units. Such loan may also be made for the  purchase  of  unimproved
    46  real property when such property shall be used for the construction of a
    47  new dwelling.
    48    2.  Such  loan  shall  not  exceed twenty percent of the value for the
    49  purchase of a home, or forty thousand dollars for the purchase of  unim-
    50  proved real property. Such value shall be determined from the appraisal,
    51  if  any, required by the lending institution granting the first mortgage
    52  loan on such dwelling, and if no such appraisal has  been  made  at  the
    53  time  that a contract for loan is entered into pursuant to this article,
    54  the agency shall cause such appraisal to be made.
    55    § 1115-d. Loan repayment. 1. Any loan contracted for pursuant to  this
    56  article  shall  be secured by a second mortgage on the dwelling or unim-

        A. 1662                             3
     1  proved real property purchased by the recipient  of  such  loan  if  the
     2  recipient  of  such  loan assigns, transfers or otherwise conveys his or
     3  her interest in such dwelling or ceases to  occupy  such  dwelling,  the
     4  unpaid principal balance of said second mortgage, together with interest
     5  thereon,  shall  become due and payable. If the recipient of any loan is
     6  unable to repay the loan, the agency, at its discretion, may adjust  the
     7  interest rate, terms and conditions of the loan to facilitate repayment.
     8    2.  Repayment  of  any  loan  provided in accordance with this article
     9  shall be subject to an interest rate to be determined in accordance with
    10  terms and conditions as the agency may establish. In no case  shall  the
    11  term  exceed  the term of the first mortgage obtained for the purpose of
    12  purchasing such dwelling except, in the  case  of  a  graduated  payment
    13  mortgage  loan,  the  term of the loan made pursuant to this article may
    14  exceed the expected term of such mortgage loan provided. The term of the
    15  loan made pursuant to this article does not exceed the lesser of:
    16    (a) The term indicated by the limited  amortization  schedule  of  the
    17  graduated payment mortgage loan; or
    18    (b)  Thirty  years. Payments by homeowners shall be paid to the agency
    19  and deposited in the veteran's home and land ownership loan fund.
    20    § 1115-e. Issuance of bonds. 1. The agency shall have the power and is
    21  hereby authorized from time to time to issue its  negotiable  bonds  and
    22  notes in conformity with applicable provisions of the uniform commercial
    23  code  in  such  principal  amounts  as, in the discretion of the agency,
    24  shall be necessary to carry out the purposes of this article, but not in
    25  excess of an aggregate amount of twenty million dollars.
    26    2. Except as may otherwise be expressly provided by  the  agency,  all
    27  bonds  and  notes  issued  shall be payable out of any moneys, assets or
    28  revenues of the state, subject only to any agreement with bondholders or
    29  noteholders pledging any particular moneys, assets or revenues.
    30    3. Bonds and notes shall be authorized by a resolution or  resolutions
    31  of the agency adopted in the manner provided by law.
    32    4.  Such bonds or notes shall bear such date or dates, shall mature at
    33  such time or times, shall bear interest at such rate or rates, shall  be
    34  of  such  denominations,  shall be in such form, carry such registration
    35  privileges, be executed in such manner, be payable in  lawful  money  of
    36  the  United  States of America at such place or places within or without
    37  the state, be subject to such terms of redemption prior to  maturity  as
    38  may  be  provided  by such resolution or resolutions or such certificate
    39  with respect to such bonds or notes,  as  the  case  may  be;  provided,
    40  however,  that  the  maximum  maturity  of bonds shall not exceed thirty
    41  years from the date thereof and the maximum maturity  of  notes  or  any
    42  renewals  thereof  shall  not  exceed  seven  years from the date of the
    43  original issue of such notes.
    44    5. Any such bonds or notes may be sold at such  price  or  prices,  at
    45  public  or  private sale, in such manner and from time to time as may be
    46  determined by the agency, and the agency may pay all expenses,  premiums
    47  and   commissions  which  it  may  deem  necessary  or  advantageous  in
    48  connection with the issuance and sale thereof. No bonds or notes may  be
    49  sold  at  private  sale,  however, unless such sale and the term thereof
    50  have been approved in writing by:
    51    (a) the comptroller, if such sale is not to the comptroller; or
    52    (b) the state director of the budget, if such sale  is  to  the  comp-
    53  troller.
    54    6.  The  agency is authorized to provide for the issuance of its bonds
    55  or notes for the purpose of refunding  any  such  bonds  or  notes  then
    56  outstanding,  including  the  payment of any redemption premiums thereon

        A. 1662                             4
     1  and any interest accrued or  to  accrue  to  the  redemption  date  next
     2  succeeding  the  date  of delivery of such refunding bonds or notes. The
     3  proceeds of any such bonds or notes issued for the purpose of so refund-
     4  ing  outstanding  bonds  or  notes  shall  be  forthwith  applied to the
     5  purchase or retirement of such outstanding bonds or notes or the redemp-
     6  tion of such outstanding bonds or notes  on  the  redemption  date  next
     7  succeeding  the  date  of  delivery of such refunding bonds or notes and
     8  may, pending such application, be placed in escrow to be applied to such
     9  purchase or retirement or redemption on such  date.  Any  such  escrowed
    10  proceeds, pending such use, may be invested and reinvested only in obli-
    11  gations  of  or  guaranteed by the state or the United States of America
    12  and either:
    13    (a) The yield from which does not exceed the average net interest cost
    14  per annum, expressed as a percentage, on such refunding  bonds  by  more
    15  than one-half of one percent; or
    16    (b) The income from which is exempt from federal taxation, maturing at
    17  such time or times as shall be appropriate to assure the prompt payment,
    18  as  to  principal,  interest  and  redemption  premium,  if  any, on the
    19  outstanding bonds or notes to be so refunded by purchase, retirement  or
    20  redemption, as the case may be.
    21    The  interest,  income  and profits, if any, earned or realized on any
    22  such investment may also be applied to the payment  of  the  outstanding
    23  bonds  or notes to be so refunded by purchase, retirement or redemption,
    24  as the case may be. After the terms of the escrow have been fully satis-
    25  fied and carried out, any balance of such proceeds and interest, if any,
    26  earned or realized on the investments thereof may  be  returned  to  the
    27  agency for use by it in any lawful manner. All such bonds or notes shall
    28  be  issued  and secured and shall be subject to the provisions of law in
    29  the same manner and to the same extent  as  any  other  bonds  or  notes
    30  issued pursuant to law.
    31    7.  Whether  or not the bonds and notes are of such form and character
    32  as to be negotiable instruments under the terms of the  uniform  commer-
    33  cial  code,  the  bonds and notes are hereby made negotiable instruments
    34  within the meaning of and for all the purposes of the uniform commercial
    35  code, subject only to the provisions of the bonds and notes  for  regis-
    36  tration.
    37    8. Any resolution or resolutions authorizing any bonds or notes pursu-
    38  ant  to  the provisions of this article may contain provisions which may
    39  be a part of the contract with the holders of such bonds  or  notes,  as
    40  to:
    41    (a) pledging or creating a lien, to the extent provided by such resol-
    42  ution  or resolutions, on all or any part of any moneys held in trust or
    43  otherwise by others for the payment of such bonds or notes;
    44    (b) the setting aside of reserves or sinking funds and the  regulation
    45  or disposition thereof;
    46    (c)  limitations  on  the purpose to which the proceeds of sale of any
    47  issue of such bonds or notes then or thereafter  to  be  issued  may  be
    48  applied;
    49    (d)  limitations  on  the  issuance  of additional bonds or notes, the
    50  terms upon which additional bonds or notes may be  issued  and  secured,
    51  and upon the refunding of outstanding or other bonds or notes;
    52    (e) the procedure, if any, by which the terms of any contract with the
    53  holders  of  bonds  or  notes may be amended or abrogated, the amount of
    54  bonds or notes the holders of which must consent thereto and the  manner
    55  in which such consent may be given;

        A. 1662                             5
     1    (f)  providing  for the rights and remedies of the holders of bonds or
     2  notes in the event of default, provided, however, that such  rights  and
     3  remedies  shall not be inconsistent with the general laws of this state;
     4  and
     5    (g) any other matters of like or different character, which in any way
     6  affect  the security and protection of the bonds or notes and the rights
     7  of the holders thereof.
     8    § 1115-f. Adoption of regulations. The agency shall adopt  regulations
     9  providing for qualifications of eligible persons, requirements and limi-
    10  tations  as to adjustments of terms and conditions of repayment, funding
    11  priorities and any additional requirements  as  it  deems  necessary  to
    12  carry out the purposes of this article.
    13    § 2. This act shall take effect on the one hundred eightieth day after
    14  it shall have become a law.  Effective immediately, the addition, amend-
    15  ment and/or repeal of any rule or regulation necessary for the implemen-
    16  tation  of this act on its effective date are authorized and directed to
    17  be made and completed on or before such effective date.