Bill Text: NY A06129 | 2019-2020 | 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 4-0)

Status: (Introduced) 2019-02-28 - referred to housing [A06129 Detail]

Download: New_York-2019-A06129-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6129
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 28, 2019
                                       ___________
        Introduced by M. of A. FITZPATRICK, TAGUE -- 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.
                                                                   LBD05738-01-9

        A. 6129                             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.
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