S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7834
 
                             I N  S E N A T E
 
                             January 12, 2022
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT  to  amend  the  public  authorities  law,  in  relation  to  the
   construction of modular and manufactured housing
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 5 of section 2402  of  the  public  authorities
 law,  as  amended  by  a chapter of the laws of 2021 amending the public
 authorities law relating to the construction of modular and manufactured
 housing, as proposed in legislative bills numbers S. 7185 and  A.  7719,
 is amended to read as follows:
   (5) "Mortgage". A loan owed to a bank secured by a first lien on a fee
 simple  or  leasehold  estate  in real property located in the state and
 improved by a residential structure or, on which a residential structure
 for use as single-family modular or manufactured housing  purchased  and
 sited  on  land  shall  be  constructed using the proceeds of such loan,
 whether or not insured or guaranteed by the United States of America  or
 any  agency  thereof. The term "mortgage" shall also include a loan owed
 to a bank secured by a second lien on a fee simple or  leasehold  estate
 in  real  property  located  in  the state and improved by a residential
 structure or on which a residential structure for use  as  single-family
 modular  or  manufactured  housing  purchased and sited on land shall be
 constructed using the proceeds of the related loan  described  in  para-
 graph  (a) or (b) of this subdivision, whether or not insured or guaran-
 teed by the United States of America or any  agency  thereof,  provided,
 however,  that  such  second  lien:  (a) secures a loan purchased by the
 agency, and (b) is made at the same time as a first lien securing a loan
 purchased by the agency pursuant to its  programs  or  by  a  government
 sponsored  enterprise  or is made at the same time as a new housing loan
 purchased by the agency pursuant to section twenty-four  hundred  five-c
 of  this  part. The term "mortgage" shall also include loans made by the
 agency and secured by a second lien on a fee simple or leasehold  estate
 in  real  property  located  in  the state and improved by a residential
 structure or on which a residential structure for use  as  single-family
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11153-02-2
 S. 7834                             2
 
 modular  or  manufactured  housing  purchased and sited on land shall be
 constructed using the proceeds of such loan, whether or not  insured  or
 guaranteed  by  the  United  States  of  America  or any agency thereof,
 provided  however,  that the loan made by the agency and secured by such
 second lien is made at the same time as a first lien securing a mortgage
 loan purchased by the agency pursuant to its programs or by a government
 sponsored enterprise.  In the case of any second lien purchased or  made
 hereunder,  the  mortgagor  shall be obligated to contribute from his or
 her own verifiable funds an amount not less than such percentage as  the
 agency  shall determine, of the lower of the purchase price or appraised
 value of the property subject to the first lien. "Real property" as used
 in this subdivision shall include air rights.
   For the purposes of this title and  SUBDIVISION TEN  of  section  [one
 hundred eighty-seven] TWO HUNDRED TEN-B of the tax law, "mortgage" shall
 include  housing  loans  as  defined  below.  Except for the purposes of
 subdivision seven of section twenty-four hundred  five  and  subdivision
 eight  of section [two thousand four] TWENTY-FOUR hundred five-b of this
 part, "mortgage" shall also include a loan owed to a bank by an individ-
 ual borrower incurred for the  purpose  of  financing  the  purchase  of
 certificates  of stock or other evidence of ownership of an interest in,
 and a proprietary lease from, a cooperative housing  corporation  formed
 for  the purpose of the cooperative ownership of residential real estate
 in the state, secured by an assignment or transfer of  the  benefits  of
 such  cooperative ownership, and containing such terms and conditions as
 the agency may approve.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner  as a chapter of the laws of 2021 amending the public authorities
 law relating to the construction of modular and manufactured housing, as
 proposed in legislative bills numbers S. 7185 and A. 7719, takes effect.