Bill Text: NY A02680 | 2011-2012 | 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 1-0)

Status: (Introduced - Dead) 2012-05-08 - held for consideration in housing [A02680 Detail]

Download: New_York-2011-A02680-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2680
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 20, 2011
                                      ___________
       Introduced  by  M.  of  A.  FITZPATRICK -- 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    S 2. The public authorities law is amended by  adding  a  new  section
   12  2405-f to read as follows:
   13    S  2405-F.  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
   24  REVENUE  CODE  OF  1986,  AS AMENDED, FOR MORTGAGES FINANCED BY MORTGAGE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03037-01-1
       A. 2680                             2
    1  REVENUE BONDS. A LABOR ORGANIZATION MAY  DEVELOP  ADDITIONAL  QUALIFICA-
    2  TIONS  FOR  ELIGIBLE MEMBERS BEYOND THOSE QUALIFICATIONS PROVIDED FOR IN
    3  THIS SECTION, PROVIDED THAT SUCH QUALIFICATIONS  ARE  NON-DISCRIMINATORY
    4  AND  ARE  PRE-APPROVED  BY  THE AGENCY; THE LABOR ORGANIZATION, HOWEVER,
    5  SHALL REMAIN SOLELY RESPONSIBLE FOR DETERMINING AND INSURING THE LEGALI-
    6  TY OF SUCH QUALIFICATIONS AND  MAY  NOT  RELY  ON  ANY  AGENCY  REVIEWS,
    7  APPROVALS, LEGAL OPINIONS OR STATEMENTS.
    8    (2) TO PARTICIPATE IN A LABOR ORGANIZATION ASSISTED FORWARD COMMITMENT
    9  MORTGAGE  PROGRAM,  A  LABOR  ORGANIZATION SHALL BE A BONA FIDE UNION OR
   10  ASSOCIATION OF EMPLOYEES WHICH MAINTAINS AN  OFFICE  IN  THE  STATE  AND
   11  SHALL  SATISFY  THE  REQUIREMENTS SET FORTH IN GUIDELINES ESTABLISHED BY
   12  THE AGENCY.
   13    (3) FOR ANY LABOR ORGANIZATION ASSISTED FORWARD  COMMITMENT  MORTGAGE,
   14  THE  MAXIMUM  LOAN-TO-VALUE  RATIO  SHALL  BE ESTABLISHED BY THE AGENCY,
   15  PROVIDED THAT SUCH LOAN SHALL NOT EXCEED  ONE  HUNDRED  PERCENT  OF  THE
   16  APPRAISED  VALUE OF THE MORTGAGED PREMISES. REASONABLE CLOSING COSTS FOR
   17  THE LOAN MAY BE AMORTIZED OVER THE LIFE OF THE LOAN, PROVIDED  THAT  THE
   18  FINAL  LOAN  AMOUNT DOES NOT EXCEED ONE HUNDRED PERCENT OF THE APPRAISED
   19  VALUE OF THE MORTGAGED PREMISES.
   20    (4) THE AGENCY SHALL REQUIRE ANY LABOR ORGANIZATION  PARTICIPATING  IN
   21  THE  LABOR  ORGANIZATION ASSISTED FORWARD COMMITMENT MORTGAGE PROGRAM TO
   22  GUARANTEE TO PAY UP TO TWENTY PERCENT OF THE TOTAL OUTSTANDING  MORTGAGE
   23  INDEBTEDNESS (AS DETERMINED BY THE AGENCY) FOR EACH MEMBER WHO OBTAINS A
   24  MORTGAGE  LOAN  UNDER THE PROVISIONS OF THIS SECTION AND WHO DEFAULTS ON
   25  SUCH MORTGAGE LOAN DURING THE FIRST SEVEN YEARS OF SUCH LOAN, REGARDLESS
   26  OF WHETHER SUCH BORROWER IS A MEMBER OF SUCH LABOR ORGANIZATION  AT  THE
   27  TIME OF THE DEFAULT.
   28    S  3.  This  act shall take effect on the ninetieth day after it shall
   29  have become a law.