Bill Text: NY S00972 | 2021-2022 | General Assembly | Amended
Bill Title: Authorizes the commissioner of New York homes and community renewal, as soon as practicable and subject to the disbursement of federal funds expressly for this purpose to the housing finance agency, to implement an emergency COVID-19 homeownership stability program and issue an emergency homeownership payment directly to the eligible homeowner; makes related provisions.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S00972 Detail]
Download: New_York-2021-S00972-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 972--A 2021-2022 Regular Sessions IN SENATE (Prefiled) January 6, 2021 ___________ Introduced by Sens. GAUGHRAN, KAVANAGH, ADDABBO, BROOKS, COMRIE, HARCK- HAM, KAMINSKY, KAPLAN, MAY, SKOUFIS, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the public housing law, in relation to establishing the COVID-19 emergency homeownership stability program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public housing law is amended by adding a new article 2 14 to read as follows: 3 ARTICLE 14 4 COVID-19 EMERGENCY HOMEOWNERSHIP STABILITY PROGRAM 5 Section 600. Definitions. 6 601. Authority to implement COVID-19 emergency homeownership 7 stability program. 8 602. Eligibility. 9 603. Tax lien foreclosure. 10 604. Mortgage foreclosure. 11 605. Application. 12 606. Payment. 13 § 600. Definitions. For purposes of this article, the following terms 14 shall have the following meanings: 15 1. "Adjusted income" shall mean income minus any deductions allowable 16 at the discretion of the commissioner pursuant to this section. In 17 determining the income of a household for the purposes of this para- 18 graph, income shall be considered to include only income that the house- 19 hold is receiving at the time of application for assistance from the 20 program and any income recently terminated shall not be included, except EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03812-03-1S. 972--A 2 1 that for purposes of households receiving assistance for arrearages 2 income may include the income that the household was receiving at the 3 time such arrearages were incurred. 4 2. "Income" shall mean income from all sources of each member of the 5 household, including all wages, tips, overtime, salary, recurring gifts, 6 returns on investments, welfare assistance, social security payments, 7 child support payments, unemployment benefits, any benefit, payment or 8 cash grant whose purpose is to assist with rental payments, any payments 9 whose purpose is to replace lost income, and any other government bene- 10 fit or cash grant. The term "income" shall not include: employment 11 income from children under eighteen years of age, employment income from 12 children eighteen years of age or older who are full-time students, 13 foster care payments, sporadic gifts, groceries provided by persons not 14 living in the household, supplemental nutrition assistance program bene- 15 fits, earned income disregard, or the earned income tax credit. 16 3. "Qualified property" means 1-4 family residential real property 17 owned by the homeowner of which one dwelling unit is used exclusively as 18 the homeowner's primary residence. 19 4. "Property tax" shall mean a tax levied, or portion of those taxes 20 levied, by or on behalf of any county, city, town, village, school 21 district or special district on the qualified property which is attrib- 22 utable to the period from January twenty-second, two thousand twenty 23 through December thirty-first, two thousand twenty-two. 24 5. "Reverse mortgage loan" shall have the same meaning as section two 25 hundred eighty of the real property law. 26 6. "Homeowner" shall mean a person or persons who is a resident of the 27 state and who owns and primarily resides in qualified property within 28 the state. 29 7. "Homeownership expenses" shall mean mortgage payments, reverse 30 mortgage payments, property taxes, homeowners insurance payments, flood 31 insurance payments, mortgage insurance payments, homeowners' association 32 fees, condominium association fees, common charges, or utility payments. 33 Homeownership payments shall not include: any mortgage payments that 34 have been placed in forbearance at the time of application if such 35 forbearance extends beyond the covered period. 36 8. "Other fees associated with homeownership" shall mean principal 37 reduction of a mortgage and expenses incurred facilitating interest rate 38 reductions on a mortgage. 39 9. "Utility" shall mean electric, gas, water, and internet service, 40 including broadband internet service as defined in section 8.1(b) of 41 title 47, Code of Federal Regulations (or any successor regulation). 42 10. "Fair market rent" shall mean the fair market rent for each rental 43 area as promulgated annually by the United States department of housing 44 and urban development's office of policy development and research pursu- 45 ant to 42 U.S.C. 1437(f). 46 11. "Commissioner" shall mean the commissioner of New York homes and 47 community renewal. 48 12. "Covered period" means the period beginning January twenty-second, 49 two thousand twenty and ending on the date that is thirty days after the 50 date on which such state disaster emergency ends. 51 13. "Mortgage" means any credit transaction that is: (A) secured by a 52 mortgage, deed of trust, or other consensual security interest on a 53 principal residence of a borrower that is a 1- to 4-unit dwelling; and 54 (B) the unpaid principal balance of which was, at the time of origi- 55 nation, not more than the conforming loan limit.S. 972--A 3 1 14. "Conforming loan limit" means the applicable limitation governing 2 the maximum original principal obligation of a mortgage secured by a 3 single-family residence, a mortgage secured by a 2-family residence, a 4 mortgage secured by a 3-family residence, or a mortgage secured by a 5 4-family residence, as determined and adjusted annually under section 6 302(b)(2) of the Federal National Mortgage Association Charter Act (12 7 U.S.C. 1717(b)(2)) and section 305(a)(2) of the Federal Home Loan Mort- 8 gage Corporation Act (12 U.S.C. 1454(a)(2)). 9 § 601. Authority to implement COVID-19 emergency homeownership 10 stability program. The commissioner is hereby authorized and directed 11 to implement, as soon as practicable, a program for financial assistance 12 to allow a homeowner to reinstate a mortgage or to pay other housing 13 related costs related to a period of forbearance, delinquency or 14 default; assistance with homeownership expenses; and other fees related 15 to homeownership for those eligible pursuant to section six hundred two 16 of this article. Such program shall be funded with all funds allocated 17 to the state of New York from the homeowner assistance fund, and any 18 state funds appropriated for such program. The commissioner shall adopt, 19 on an emergency basis pursuant to subdivision six of section two hundred 20 two of the state administrative procedure act, any rules necessary to 21 carry out the provisions of this article. The commissioner may delegate 22 the administration of any portions of this program to any state agency, 23 city, county, town, village, or non-profit organization in accordance 24 with the provisions of this article. 25 § 602. Eligibility. The commissioner shall promulgate standards for 26 determining eligibility for this program. A homeowner shall be eligible 27 for this program if: 28 1. The homeowner, during the covered period: 29 (a) applied and qualified for unemployment insurance benefits; or 30 (b) experienced a significant loss of income during the covered peri- 31 od; and 32 (c) the sum total of all homeownership payments that came due or will 33 be owed during the covered period is greater than thirty percent of the 34 homeowner's income for the year two thousand twenty or two thousand 35 twenty-one. 36 2. In addition to the eligibility criteria above, the commissioner may 37 promulgate limits on assets as part of any determination of eligibility 38 for this program. 39 3. A homeowner shall not be eligible for this program if their two 40 thousand twenty or two thousand twenty-one annual income is an amount 41 equal to or greater than their income for the year two thousand nine- 42 teen. 43 4. Any ambiguity in eligibility criteria promulgated by the commis- 44 sioner shall be resolved in favor of the applicant when determining 45 eligibility. 46 5. Not less than sixty percent of the amount made available to the 47 state shall be used for emergency homeownership payments that assist 48 homeowners having incomes equal to or less than the greater of one 49 hundred percent of the area median income for their household size, or 50 the median income of the United States, as determined by the Secretary 51 of Housing and Urban Development. The commissioner shall prioritize 52 remaining funds to populations or geographies experiencing the greatest 53 need. 54 6. The commissioner may establish preference in processing applica- 55 tions for this payment. Such preference may include any or all of the 56 following:S. 972--A 4 1 (a) the homeowner's historical income level prior to the covered peri- 2 od as it relates to the area median income; 3 (b) the homeowner's current income as it relates to the area median 4 income; 5 (c) the taxpayer's property tax burden; 6 (d) the percentage of income the homeowner lost; 7 (e) the homeowner's status as a victim of domestic violence; and 8 (f) the current income of any additional parties on the deed for the 9 qualified property who are not homeowners as defined in this section 10 and, to the extent that any mortgage payments are considered in the 11 total sum reached in paragraph (b) of this subdivision, the current 12 income of any additional parties to the mortgage. 13 § 603. Tax lien foreclosure. Notwithstanding any provision of law to 14 the contrary, a tax lien foreclosure initiated pursuant to article elev- 15 en of the real property tax law which includes unpaid taxes that came 16 due during the covered period cannot be commenced against a homeowner 17 who has applied for this program unless or until a final determination 18 of ineligibility has been issued. The action may proceed ninety days 19 after the determination of ineligibility or after payment is released by 20 the commissioner. 21 § 604. Mortgage foreclosure. Notwithstanding any provision of law to 22 the contrary, a mortgage foreclosure on a home loan as defined by 23 section thirteen hundred four of the real property actions and 24 proceedings law which includes unpaid mortgage payments that came due 25 during the covered period cannot be commenced or proceed against a home- 26 owner who has applied for this program unless or until a final determi- 27 nation of ineligibility has been issued. The action may proceed ninety 28 days after the determination of ineligibility or after payment is 29 released by the housing finance agency. 30 § 605. Application. Eligible homeowners may apply for assistance from 31 this program for: 32 (a) financial assistance to allow a homeowner to reinstate a mortgage 33 or to pay other housing-related costs related to a period of forbear- 34 ance, delinquency, or default; and/or 35 (b) any delinquent homeownership expenses that came due during the 36 covered period; and/or 37 (c) other fees related to homeownership. The commissioner shall make 38 such application available no later than thirty days after the effective 39 date of this program. 40 § 606. Payment. 1. The commissioner shall make a one-time payment 41 directly to eligible homeowners pursuant to section six hundred two of 42 this article to cover financial assistance to allow a homeowner to rein- 43 state a mortgage or to pay other housing related costs related to a 44 period of forbearance, delinquency or default and/or delinquent homeown- 45 ership expenses that came due during the covered period. Such payment 46 shall not exceed the amount equivalent to one hundred fifty percent of 47 the fair market rent for the area and household size times the number of 48 months for which assistance is requested. If, after sixty days, funds 49 remain, the commissioner may provide assistance for expenses related to 50 homeownership. 51 2. Any payment received pursuant to this section shall only be used to 52 pay the homeownership expenses and other fees related to homeownership 53 for which the homeowner applied for assistance. The commissioner shall 54 require from any recipient of funds under this section documentation of 55 the use of any funds disbursed pursuant to this section within thirty 56 days of receipt. If ninety days after receipt, any funds received pursu-S. 972--A 5 1 ant to this section are not used for documented homeownership expenses 2 and other fees related to homeownership for which the homeowner applied 3 for assistance, such funds may be subject to repayment. 4 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 5 sion, section or part of this act shall be adjudged by any court of 6 competent jurisdiction to be invalid, such judgment shall not affect, 7 impair, or invalidate the remainder of this act, but shall be confined 8 in its operation to the clause, sentence, paragraph, subdivision, 9 section or part of this act directly involved in the controversy in 10 which such judgment shall have been rendered. It is hereby declared to 11 be the intent of the legislature that this act would have been enacted 12 even if such invalid clause, sentence, paragraph, subdivision, section 13 or part had not been included herein. 14 § 3. This act shall take effect immediately.
