Authorizes the state of New York mortgage agency to purchase rehabilitation mortgages from banks within the state during periods when there is an inadequate supply of credit available for new residential mortgages or available for such loans at carrying charges within the financial means of persons and families of low and moderate income.
Summary
Bill A07488 amends the public authorities law to authorize the New York State Mortgage Agency (NYSME) to purchase rehabilitation mortgages from banks. This action is aimed at addressing periods when there is insufficient credit available for new residential mortgages, particularly for low and moderate-income families. The bill defines 'rehabilitation' and 'rehabilitation mortgage' and sets specific criteria for the eligibility and conditions under which these mortgages can be purchased by the agency.
Impact
The passage of this bill will enhance the state's ability to support housing rehabilitation efforts by providing a mechanism for the NYSME to purchase rehabilitation mortgages. This is expected to stimulate the housing market by making funds available for the improvement of residential properties, thereby potentially increasing housing standards and availability for low and moderate-income families. It also establishes a framework for banks to engage in rehabilitation lending with the assurance that the agency will purchase these loans under specified conditions.
Sentiment
The sentiment surrounding Bill A07488 appears to be generally positive, as it addresses a critical need for affordable housing and rehabilitation financing. However, there may be concerns regarding the implementation of the program and the financial implications for the state and participating banks, which could lead to further discussions in committee sessions.
Contention
Notable points of contention may arise around the specific criteria for rehabilitation mortgages, such as the required percentage of existing structures to be retained and the financial responsibilities of banks in certifying the mortgages. Some stakeholders may argue that the requirements could be too stringent, potentially limiting access to the program, while others may advocate for stricter guidelines to ensure the quality of rehabilitation work.
Authorizes the state of New York mortgage agency to purchase construction mortgages from banks within the state during periods when there is an inadequate supply of credit available for new residential mortgages or available for such loans at carrying charges within the financial means of persons and families of low and moderate income.
Authorizes the state mortgage agency to purchase veterans' assisted forward commitment mortgages from banks within the state; requires the board of directors of the state mortgage agency to establish income limits for eligible veterans from time to time.
Authorizes the state mortgage agency to purchase veterans' assisted forward commitment mortgages from banks within the state; requires the board of directors of the state mortgage agency to establish income limits for eligible veterans from time to time.
Prohibits mortgagee from refusing to accept partial mortgage payments from a mortgagor which does not bring the mortgagor current on such mortgagor's mortgage debt.
Makes clarifying changes in regards to the purchase of flood insurance by mortgagors that exceeds certain limits upon a mortgagees request; amends the effectiveness thereof.
Makes clarifying changes in regards to the purchase of flood insurance by mortgagors that exceeds certain limits upon a mortgagees request; amends the effectiveness thereof.
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