Bill Text: NY A04307 | 2023-2024 | General Assembly | Introduced
Bill Title: Creates a veteran's home and land ownership loan program to provide loans to veterans to purchase homes or unimproved land suitable for building; requires such loans to be secured by a second mortgage.
Spectrum: Strong Partisan Bill (Republican 19-2)
Status: (Introduced) 2024-01-03 - referred to housing [A04307 Detail]
Download: New_York-2023-A04307-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4307 2023-2024 Regular Sessions IN ASSEMBLY February 14, 2023 ___________ Introduced by M. of A. HAWLEY, PALMESANO, COLTON, DiPIETRO, MORINELLO, DeSTEFANO, WALSH, MIKULIN, MILLER, NORRIS, DURSO, TANNOUSIS, SMULLEN, BYRNES, McDONOUGH, MEEKS, GALLAHAN, ANGELINO, TAGUE -- Multi-Sponsored by -- M. of A. BARCLAY -- read once and referred to the Committee on Housing AN ACT to amend the private housing finance law, in relation to creating a veteran's home and land ownership loan program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The private housing finance law is amended by adding a new 2 article 19-A to read as follows: 3 ARTICLE XIX-A 4 VETERAN'S HOME AND LAND OWNERSHIP LOAN 5 Section 1115. Legislative purpose. 6 1115-a. Definitions. 7 1115-b. Creation of the "veteran's home and land ownership 8 loan fund". 9 1115-c. Purpose and terms of loan. 10 1115-d. Loan repayment. 11 1115-e. Issuance of bonds. 12 1115-f. Adoption of regulations. 13 § 1115. Legislative purpose. It is hereby found and declared that many 14 New York residents have served our nation honorably in the armed forces 15 of the United States, and that many such New Yorkers have sacrificed 16 considerably during their service. It is in the public interest both to 17 demonstrate our appreciation for that service by providing state finan- 18 cial assistance to such veterans; in order to encourage home ownership 19 and the rehabilitation of deteriorating housing, stabilize communities 20 and improve the local tax base. 21 § 1115-a. Definitions. For the purposes of this article, the following 22 terms shall have the following meanings: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07013-01-3A. 4307 2 1 1. "Person" means an honorably discharged veteran of the Armed Forces 2 of the United States, or their surviving unmarried spouse. 3 2. "Veteran" means a person who served in the active military, naval, 4 or air service during time of war as defined below, or who was a recipi- 5 ent of the armed forces expeditionary medal, navy expeditionary medal, 6 marine corps expeditionary medal, or global war on terrorism expedition- 7 ary medal, and who was discharged or released therefrom under honorable 8 conditions. 9 3. "Service during time of war" means: 10 (a) The individual in question was a recipient of the armed forces 11 expeditionary medal, the navy expeditionary medal or the marine corps 12 expeditionary medal for participation in operations in Lebanon from June 13 first, nineteen hundred eighty-three to December first, nineteen hundred 14 eighty-seven, in Grenada from October twenty-third, nineteen hundred 15 eighty-three to November twenty-first, nineteen hundred eighty-three, or 16 in Panama from December twentieth, nineteen hundred eighty-nine to Janu- 17 ary thirty-first, nineteen hundred ninety, or; 18 (b) The individual served on active duty for ninety days or more in 19 the armed forces of the United States during any one of the following 20 wars or hostilities: 21 (i) in World War I from the sixth day of April, nineteen hundred 22 seventeen to the eleventh day of November, nineteen hundred eighteen, 23 inclusive; 24 (ii) in World War II from the seventh day of December, nineteen 25 hundred forty-one to the thirty-first day of December, nineteen hundred 26 forty-six, inclusive; 27 (iii) in the Korean hostilities from the twenty-seventh day of June, 28 nineteen hundred fifty to the thirty-first day of January, nineteen 29 hundred fifty-five, inclusive; 30 (iv) in the Vietnam conflict from the twenty-second day of December, 31 nineteen hundred sixty-one to the seventh day of May, nineteen hundred 32 seventy-five; or 33 (v) in the Persian Gulf conflict from the second day of August, nine- 34 teen hundred ninety to the end of such conflict. 35 4. "Agency" means the New York state housing finance agency created by 36 section forty-three of this chapter. 37 § 1115-b. Creation of the "veteran's home and land ownership loan 38 fund". There is hereby established a "veteran's home and land ownership 39 loan fund". Such fund shall be used to make loans authorized by this 40 article and for expenses incurred by the agency in the implementation of 41 the program established by this article. 42 § 1115-c. Purpose and terms of loan. 1. The agency, acting on behalf 43 of the state may in its discretion, enter into a contract with an eligi- 44 ble person to provide a loan to assist in the purchase of a dwelling or 45 the purchase and rehabilitation of a dwelling containing up to four 46 residential units, provided such person shall reside in at least one of 47 such units. Such loan may also be made for the purchase of unimproved 48 real property when such property shall be used for the construction of a 49 new dwelling. 50 2. Such loan shall not exceed twenty percent of the value for the 51 purchase of a home, or forty thousand dollars for the purchase of unim- 52 proved real property. Such value shall be determined from the appraisal, 53 if any, required by the lending institution granting the first mortgage 54 loan on such dwelling, and if no such appraisal has been made at the 55 time that a contract for loan is entered into pursuant to this article, 56 the agency shall cause such appraisal to be made.A. 4307 3 1 § 1115-d. Loan repayment. 1. Any loan contracted for pursuant to this 2 article shall be secured by a second mortgage on the dwelling or unim- 3 proved real property purchased by the recipient of such loan if the 4 recipient of such loan assigns, transfers or otherwise conveys his or 5 her interest in such dwelling or ceases to occupy such dwelling, the 6 unpaid principal balance of said second mortgage, together with interest 7 thereon, shall become due and payable. If the recipient of any loan is 8 unable to repay the loan, the agency, at its discretion, may adjust the 9 interest rate, terms and conditions of the loan to facilitate repayment. 10 2. Repayment of any loan provided in accordance with this article 11 shall be subject to an interest rate to be determined in accordance with 12 terms and conditions as the agency may establish. In no case shall the 13 term exceed the term of the first mortgage obtained for the purpose of 14 purchasing such dwelling except, in the case of a graduated payment 15 mortgage loan, the term of the loan made pursuant to this article may 16 exceed the expected term of such mortgage loan provided. The term of the 17 loan made pursuant to this article does not exceed the lesser of: 18 (a) The term indicated by the limited amortization schedule of the 19 graduated payment mortgage loan; or 20 (b) Thirty years. Payments by homeowners shall be paid to the agency 21 and deposited in the veteran's home and land ownership loan fund. 22 § 1115-e. Issuance of bonds. 1. The agency shall have the power and is 23 hereby authorized from time to time to issue its negotiable bonds and 24 notes in conformity with applicable provisions of the uniform commercial 25 code in such principal amounts as, in the discretion of the agency, 26 shall be necessary to carry out the purposes of this article, but not in 27 excess of an aggregate amount of twenty million dollars. 28 2. Except as may otherwise be expressly provided by the agency, all 29 bonds and notes issued shall be payable out of any moneys, assets or 30 revenues of the state, subject only to any agreement with bondholders or 31 noteholders pledging any particular moneys, assets or revenues. 32 3. Bonds and notes shall be authorized by a resolution or resolutions 33 of the agency adopted in the manner provided by law. 34 4. Such bonds or notes shall bear such date or dates, shall mature at 35 such time or times, shall bear interest at such rate or rates, shall be 36 of such denominations, shall be in such form, carry such registration 37 privileges, be executed in such manner, be payable in lawful money of 38 the United States of America at such place or places within or without 39 the state, be subject to such terms of redemption prior to maturity as 40 may be provided by such resolution or resolutions or such certificate 41 with respect to such bonds or notes, as the case may be; provided, 42 however, that the maximum maturity of bonds shall not exceed thirty 43 years from the date thereof and the maximum maturity of notes or any 44 renewals thereof shall not exceed seven years from the date of the 45 original issue of such notes. 46 5. Any such bonds or notes may be sold at such price or prices, at 47 public or private sale, in such manner and from time to time as may be 48 determined by the agency, and the agency may pay all expenses, premiums 49 and commissions which it may deem necessary or advantageous in 50 connection with the issuance and sale thereof. No bonds or notes may be 51 sold at private sale, however, unless such sale and the term thereof 52 have been approved in writing by: 53 (a) the comptroller, if such sale is not to the comptroller; or 54 (b) the state director of the budget, if such sale is to the comp- 55 troller.A. 4307 4 1 6. The agency is authorized to provide for the issuance of its bonds 2 or notes for the purpose of refunding any such bonds or notes then 3 outstanding, including the payment of any redemption premiums thereon 4 and any interest accrued or to accrue to the redemption date next 5 succeeding the date of delivery of such refunding bonds or notes. The 6 proceeds of any such bonds or notes issued for the purpose of so refund- 7 ing outstanding bonds or notes shall be forthwith applied to the 8 purchase or retirement of such outstanding bonds or notes or the redemp- 9 tion of such outstanding bonds or notes on the redemption date next 10 succeeding the date of delivery of such refunding bonds or notes and 11 may, pending such application, be placed in escrow to be applied to such 12 purchase or retirement or redemption on such date. Any such escrowed 13 proceeds, pending such use, may be invested and reinvested only in obli- 14 gations of or guaranteed by the state or the United States of America 15 and either: 16 (a) The yield from which does not exceed the average net interest cost 17 per annum, expressed as a percentage, on such refunding bonds by more 18 than one-half of one percent; or 19 (b) The income from which is exempt from federal taxation, maturing at 20 such time or times as shall be appropriate to assure the prompt payment, 21 as to principal, interest and redemption premium, if any, on the 22 outstanding bonds or notes to be so refunded by purchase, retirement or 23 redemption, as the case may be. 24 The interest, income and profits, if any, earned or realized on any 25 such investment may also be applied to the payment of the outstanding 26 bonds or notes to be so refunded by purchase, retirement or redemption, 27 as the case may be. After the terms of the escrow have been fully satis- 28 fied and carried out, any balance of such proceeds and interest, if any, 29 earned or realized on the investments thereof may be returned to the 30 agency for use by it in any lawful manner. All such bonds or notes shall 31 be issued and secured and shall be subject to the provisions of law in 32 the same manner and to the same extent as any other bonds or notes 33 issued pursuant to law. 34 7. Whether or not the bonds and notes are of such form and character 35 as to be negotiable instruments under the terms of the uniform commer- 36 cial code, the bonds and notes are hereby made negotiable instruments 37 within the meaning of and for all the purposes of the uniform commercial 38 code, subject only to the provisions of the bonds and notes for regis- 39 tration. 40 8. Any resolution or resolutions authorizing any bonds or notes pursu- 41 ant to the provisions of this article may contain provisions which may 42 be a part of the contract with the holders of such bonds or notes, as 43 to: 44 (a) pledging or creating a lien, to the extent provided by such resol- 45 ution or resolutions, on all or any part of any moneys held in trust or 46 otherwise by others for the payment of such bonds or notes; 47 (b) the setting aside of reserves or sinking funds and the regulation 48 or disposition thereof; 49 (c) limitations on the purpose to which the proceeds of sale of any 50 issue of such bonds or notes then or thereafter to be issued may be 51 applied; 52 (d) limitations on the issuance of additional bonds or notes, the 53 terms upon which additional bonds or notes may be issued and secured, 54 and upon the refunding of outstanding or other bonds or notes; 55 (e) the procedure, if any, by which the terms of any contract with the 56 holders of bonds or notes may be amended or abrogated, the amount ofA. 4307 5 1 bonds or notes the holders of which must consent thereto and the manner 2 in which such consent may be given; 3 (f) providing for the rights and remedies of the holders of bonds or 4 notes in the event of default, provided, however, that such rights and 5 remedies shall not be inconsistent with the general laws of this state; 6 and 7 (g) any other matters of like or different character, which in any way 8 affect the security and protection of the bonds or notes and the rights 9 of the holders thereof. 10 § 1115-f. Adoption of regulations. The agency shall adopt regulations 11 providing for qualifications of eligible persons, requirements and limi- 12 tations as to adjustments of terms and conditions of repayment, funding 13 priorities and any additional requirements as it deems necessary to 14 carry out the purposes of this article. 15 § 2. This act shall take effect on the one hundred eightieth day after 16 it shall have become a law. Effective immediately, the addition, amend- 17 ment and/or repeal of any rule or regulation necessary for the implemen- 18 tation of this act on its effective date are authorized to be made and 19 completed on or before such effective date.
