Bill Text: NY A04835 | 2023-2024 | General Assembly | Introduced
Bill Title: Authorizes state of New York mortgage agency to purchase labor organization assisted forward commitment mortgages from banks; sets criteria for labor organization participation; requires them to guarantee up to twenty percent of outstanding indebtedness.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced) 2024-01-03 - referred to housing [A04835 Detail]
Download: New_York-2023-A04835-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4835 2023-2024 Regular Sessions IN ASSEMBLY February 23, 2023 ___________ Introduced by M. of A. FITZPATRICK -- Multi-Sponsored by -- M. of A. DeSTEFANO, MANKTELOW -- read once and referred to the Committee on Housing AN ACT to amend the public authorities law, in relation to authorizing the state of New York mortgage agency to purchase labor organization assisted forward commitment mortgages from banks within the state The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2402 of the public authorities law is amended by 2 adding a new subdivision 18 to read as follows: 3 (18) "Labor organization". Any organization of any kind which exists 4 for the purpose, in whole or in part, of representing employees employed 5 within the state of New York in dealing with employers or employer 6 organizations or with a state government, or any political or civil 7 subdivision or other agency thereof, concerning terms and conditions of 8 employment, grievances, labor disputes, or other matters incidental to 9 the employment relationship, and shall include the parent national or 10 international organization of a local labor organization. 11 § 2. The public authorities law is amended by adding a new section 12 2405-g to read as follows: 13 § 2405-g. Purchase of labor organization assisted forward commitment 14 mortgages. (1) In accordance with the authority set forth in section 15 twenty-four hundred five-b of this part, the agency may purchase labor 16 organization assisted forward commitment mortgages from banks at such 17 prices and upon such terms and conditions as it shall determine. In 18 conducting its program of purchasing labor organization assisted forward 19 commitment mortgages, the agency shall be governed by the provisions of 20 section twenty-four hundred five-b of this part. The board of directors 21 of the agency shall establish from time to time maximum income limits of 22 persons eligible to receive such mortgages, which income limits shall 23 not exceed the latest maximum income limits permitted under the Internal EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08521-01-3A. 4835 2 1 Revenue Code of 1986, as amended, for mortgages financed by mortgage 2 revenue bonds. A labor organization may develop additional qualifica- 3 tions for eligible members beyond those qualifications provided for in 4 this section, provided that such qualifications are non-discriminatory 5 and are pre-approved by the agency; the labor organization, however, 6 shall remain solely responsible for determining and insuring the legali- 7 ty of such qualifications and may not rely on any agency reviews, 8 approvals, legal opinions or statements. 9 (2) To participate in a labor organization assisted forward commitment 10 mortgage program, a labor organization shall be a bona fide union or 11 association of employees which maintains an office in the state and 12 shall satisfy the requirements set forth in guidelines established by 13 the agency. 14 (3) For any labor organization assisted forward commitment mortgage, 15 the maximum loan-to-value ratio shall be established by the agency, 16 provided that such loan shall not exceed one hundred percent of the 17 appraised value of the mortgaged premises. Reasonable closing costs for 18 the loan may be amortized over the life of the loan, provided that the 19 final loan amount does not exceed one hundred percent of the appraised 20 value of the mortgaged premises. 21 (4) The agency shall require any labor organization participating in 22 the labor organization assisted forward commitment mortgage program to 23 guarantee to pay up to twenty percent of the total outstanding mortgage 24 indebtedness (as determined by the agency) for each member who obtains a 25 mortgage loan under the provisions of this section and who defaults on 26 such mortgage loan during the first seven years of such loan, regardless 27 of whether such borrower is a member of such labor organization at the 28 time of the default. 29 § 3. This act shall take effect on the ninetieth day after it shall 30 have become a law.
