NY State Senate Bill 2009-S6150

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 15, 2010	signed chap.208
Jul 09, 2010	delivered to governor
Jun 24, 2010	returned to senate passed assembly ordered to third reading cal.950 substituted for a9149a referred to ways and means delivered to assembly passed senate
Jun 23, 2010	ordered to third reading cal.1132
Jun 15, 2010	print number 6150a
Jun 15, 2010	amend and recommit to rules
Jun 14, 2010	committee discharged and committed to rules
Jan 06, 2010	referred to corporations, authorities and commissions returned to senate died in assembly
Sep 11, 2009	referred to corporations, authorities and commissions
Sep 10, 2009	delivered to assembly passed senate ordered to third reading cal.983
Sep 02, 2009	referred to rules

Votes

- Jun 24, 2010 - Floor Vote
  S6150
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 24, 2010
      
      aye (61)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (1)
      
      Morahan
  Sep 10, 2009 - Floor Vote
  S6150
  
  59
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Sep 10, 2009
      
      aye (59)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (3)
      
      Bonacic
      
      Foley
      
      Huntley
  Jun 23, 2010 - Rules Committee Vote
  S6150
  
  21
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 23, 2010
      
      aye (21)
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hassell-Thompson
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Montgomery
      
      Padavan
      
      Parker
      
      Saland
      
      Serrano
      
      Seward
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      Volker
      
      aye wr (1)
      
      Skelos
      
      absent (1)
      
      Hannon
  Sep 10, 2009 - Rules Committee Vote
  S6150
  
  23
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Sep 10, 2009
      
      aye (23)
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Monserrate
      
      Montgomery
      
      Padavan
      
      Saland
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      Volker
      
      aye wr (1)
      
      Parker

Bill Amendments

Original

A (Active)

2009-S6150 - Details

See Assembly Version of this Bill:: A9149
Law Section:: Public Authorities Law
Laws Affected:: Amd §2402, Pub Auth L

2009-S6150 - Summary

Relates to the powers of the state of New York mortgage agency.

2009-S6150 - Sponsor Memo

                                 BILL NUMBER:  S6150

 TITLE OF BILL :

An act to amend the public authorities law, in relation to the powers
of the state of New  York mortgage agency; and providing for the
repeal of such provisions upon the expiration thereof


 PURPOSE :

This bill corrects an unintended omission in recently enacted
legislation that authorized the State of New York Mortgage Agency
("SONYMA") to purchase second mortgage loans under certain limited
circumstances, and to insure such second mortgage loans. Text was
omitted that would have authorized SONYMA to purchase second mortgage
loans in situations where the first mortgage loan was not also
purchased by SONYMA but was instead purchased by a
government-sponsored enterprise (GSE).

 SUMMARY OF PROVISIONS :

Section 1 of the bill adds the definition of "mortgage" set forth in
Public Authorities Law ("PAL") §2402(5) to include mortgages secured
by a second lien in cases where the second lien:  (i) is made at the
same time as a mortgage loan purchased by a government-sponsored

enterprise (GSE).

Section 2 of the bill conforms the definition of "mortgage" to that
described above.

Section 3 of the bill provides for an immediate effective date.

 EXISTING LAW :

SONYMA currently has the authority to purchase and insure second lien
mortgages. However, the definition of "mortgage" set forth in PAL
§2402(5) does not allow SONYMA to purchase or insure second lien
mortgage loans made simultaneously as first mortgages to be purchased
by GSEs.

 JUSTIFICATION :

This bill would authorize SONYMA to purchase and insure second
mortgages in the following limited circumstance: where the second
mortgage is made simultaneously and with respect to the same secured
property as a first or senior mortgage that is purchased by a GSE.

The ability of SONYMA, and other issuers of mortgage revenue bonds, to
borrow in the tax-exempt markets to fund mortgage programs has been
negatively impacted as a result of a loss of investor confidence as
well as interest rate volatility associated with the market events of
2008. SONYMA's borrowing costs for its single family programs have
increased as a result of the turbulent markets that have been with us
since mid-2008, thus making it a less competitive provider of mortgage
loan products to first time homebuyers. This is happening at a time
when that customer base, low to moderate income first time homebuyers,
is more than ever in need of safe, fixed rate mortgage loans with down
payment or closing cost assistance.

For the first time in its history, the Agency in the fall of 2008 was
not able to access the capital markets. Since then, as the markets
have slowly recovered, its ability to issue long-term fixed rate debt
has become more costly, as housing bond investors demand higher yields
in return for what they perceive (wrongly in the case of SONYMA) as
the increased risks associated with housing.  This impacts the
mortgage rates on its products, since they are directly tied to its
cost of funds. In the past, the Agency has taken advantage of the
tax-exempt capital markets to both offer low interest rates to
first-time homebuyers in New York State and to also offer additional
benefits such as low down payments and closing cost assistance.

The events of 2008 have thus led the Agency to look to alternative
fixed rate funding sources beyond the capital markets. The Agency has
been working with the GSEs, particularly Fannie Mae, to structure
programs that would allow the Agency to take advantage of GSE programs
thereby generating an alternative source of mortgage funding.

SONYMA has entered into an agreement with Fannie Mae which will allow
first time home buyers to take advantage of the special pricing and
certain underwriting advantages offered by the GSE to state housing
agencies like SONYMA. Unless SONYMA amends its statute to allow it to
fund second loans made simultaneously as first loans purchased by
GSEs, however, it will not be able to take advantage of the agreement
reached with Fannie Mae or future programs with GSE involvement.
Under the agreement with Fannie Mae, SONYMA can make closing cost
and/or down payment assistance loans in connection with a non-SONYMA
first mortgage loans made at the same time, and purchased by Fannie
Mae. Under current law, SONYMA can only make second loans on loans
that are made at the same time as first mortgages purchased by SONYMA.
The GSEs will not accept loans which carry co-first liens for closing
cost assistance or down payment assistance. They can only accept them
if the assistance is made in the form of second liens.

Unless SONYMA amends its statute to allow it to fund second loans in
connection with a first mortgage purchased by a GSE, it will not be
able to take advantage of the agreement reached with Fannie Mae or
future programs with GSE involvement. This is the case because closing
cost or down payment assistance is a key component to any program that
SONYMA offers. Under the current statutory language, SONYMA can fund
closing cost or down payment assistance on a co-first lien basis only,
since it cannot take a secondary position. They can only accept them
if the assistance is made in the form of second liens. SONYMA would
thus be shut out from offering a program for first-time homebuyers
where a GSE will purchase the first mortgage and in cases where
closing cost or down payment assistance is involved.

In order to be in position to take advantage of the increased role of
GSEs, SONYMA will need to amend its statute to eliminate the
prohibition on funding second lien mortgages. The amendment would
authorize SONYMA to purchase second mortgages made simultaneously as a
mortgage by a GSE.

 LEGISLATIVE HISTORY :

During the 2003 through 2007 legislative sessions, respectively, a
similar version of the bill (in the 2007 Legislative Session, S.375)
was referred or committed to the Senate Corporations, Authorities and
Commissions Committee. In 2009 legislation was passed that allowed for
the SONYMA second lien but inadvertently excluded the GSE language.

 FISCAL IMPLICATIONS :

None.

 LOCAL FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
The act takes effect immediately.

2009-S6150 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6150

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            September 2, 2009
                               ___________

Introduced  by  Sen.  ESPADA -- 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 powers of
  the state of New  York mortgage agency; and providing for  the  repeal
  of such provisions upon the expiration thereof

  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 section 1 of a chapter of the laws of 2009 amending
the public authorities law relating to the powers of the  state  of  New
York  mortgage  agency,  as proposed in legislative bills numbers S.5551
and A.5753, 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, whether or not insured or guaran-
teed 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, whether or not insured or
guaranteed 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  GOVERN-
MENT  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, provided that, in the case of any second lien, the
mortgagor shall be obligated to contribute from his or her  own  verifi-
able  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14694-03-9

S. 6150                             2

  For the purposes of this title and of section one hundred  ninety  and
subsection (a) of section one thousand four hundred fifty-six of the tax
law, "mortgage" shall include housing loans as defined below. Except for
the  purposes  of subdivision seven of section two thousand four hundred
five  and  subdivision eight of section two thousand four hundred five-b
of this part, "mortgage" shall also include a loan owed to a bank by  an
individual  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 bene-
fits of such cooperative ownership, and containing such terms and condi-
tions as the agency may approve.
  S 2. Subdivision 5 of section 2402 of the public authorities  law,  as
amended  by  section  2  of  a  chapter of the laws of 2009 amending the
public authorities law relating to the powers of the state of  New  York
mortgage  agency,  as  proposed  in legislative bills numbers S.5551 and
A.5753, 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, whether or not insured or guaran-
teed 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, whether or not insured or
guaranteed 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  GOVERN-
MENT  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, provided that, in the case of any second lien, the
mortgagor shall be obligated to contribute from his or her  own  verifi-
able  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.
  Except for the purposes of subdivision seven of section  two  thousand
four  hundred  five  of  this part, "mortgage" shall also include a loan
owed to a bank by an individual 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.
  S 3. Section 2402 of the public authorities law is amended by adding a
new subdivision 17 to read as follows:
  (17)  "GOVERNMENT  SPONSORED  ENTERPRISES".  PRIVATELY OWNED, PUBLICLY
CHARTERED ENTITIES, CREATED BY CONGRESS TO ENCOURAGE LENDING AND  REDUCE
COSTS PRIMARILY IN THE HOUSING SECTOR OF THE ECONOMY.
  S  4.  This act shall take effect on the same date as a chapter of the
laws of 2009 amending the public authorities law relating to the  powers
of  the  state  of  New York mortgage agency, as proposed in legislative
bills numbers S.5551 and A.5753, takes effect and shall  expire  and  be
deemed repealed December 31, 2011.

2009-S6150A (ACTIVE) - Details

See Assembly Version of this Bill:: A9149
Law Section:: Public Authorities Law
Laws Affected:: Amd §2402, Pub Auth L

2009-S6150A (ACTIVE) - Summary

Relates to the powers of the state of New York mortgage agency.

2009-S6150A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6150A

TITLE OF BILL:

An act
to amend the public authorities law,
in relation to the powers of the state of New  York
mortgage agency;
and providing for the repeal of such provisions
upon the expiration thereof

PURPOSE:

This bill corrects an unintended omission in recently enacted
legislation that authorized the State of New York Mortgage Agency
("SONYMA") to purchase second mortgage loans under certain limited
circumstances, and to insure such second mortgage loans. Text was
omitted that would have authorized SONYMA to purchase second mortgage
loans in situations where the first mortgage loan was not also
purchased by SONYMA but was instead purchased by a
government-sponsored enterprise (GSE).

SUMMARY OF PROVISIONS:

Section 1 of the bill adds the definition of "mortgage" set forth in
Public Authorities Law ("PAL") §2402(5) to include mortgages secured

by a second lien in cases where the second lien: (i) is made at the
same time as a mortgage loan purchased by a government-sponsored
enterprise (GSE).

Section 2 of the bill conforms the definition of "mortgage" to that
described above.

Section 3 of the bill amends §2402 of the (PAL)
by adding subdivision 17.

Section 4 is the effective date.

EXISTING LAW:

SONYMA currently has the authority to purchase and insure second lien
mortgages. However, the definition of "mortgage" set forth in PAL

§2402(5) does not allow SONYMA to purchase or insure second lien
mortgage loans made simultaneously as first mortgages to be purchased
by GSEs.

JUSTIFICATION:

This bill would authorize SONYMA to purchase and insure second mortgages
in the following limited circumstance: where the second mortgage is

made simultaneously and with respect to the same secured property as
a first or senior mortgage that is purchased by a GSE.

The ability of SONYMA, and other issuers of mortgage revenue bonds, to
borrow in the tax-exempt markets to fund mortgage programs has been
negatively impacted as a result of a loss of investor confidence as
well as interest rate volatility associated with the market events of
2008.
SONYMA's borrowing costs for its single family programs have increased
as a result of the turbulent markets that have been with us since
mid-2008, thus making it a less competitive provider of mortgage loan
products to first time homebuyers. This is happening at a time when
that customer base, low to moderate income first time homebuyers, is
more than ever in need of safe, fixed rate mortgage loans with down
payment or closing cost assistance.
For the first time in its history, the Agency in the fall of 2008 was
not able to access the capital markets. Since then, as the markets
have slowly recovered, its ability to issue long-term fixed rate debt
has become more costly, as housing bond investors demand higher
yields in return for what they perceive (wrongly in the case of
SONYMA) as the increased risks associated with housing. This impacts
the mortgage rates on its products, since they are directly tied to
its cost of funds. In the past, the Agency has taken advantage of the
tax-exempt capital markets to both offer low interest rates to
first-time homebuyers in New York State and to also offer additional
benefits such as low down payments and closing cost assistance.

The events of 2008 have thus led the Agency to look to alternative
fixed rate funding sources beyond the capital markets. The Agency has
been working with the GSEs, particularly Fannie Mae, to structure
programs that would allow the Agency to take advantage of GSE
programs thereby generating an alternative source of mortgage funding.

SONYMA has entered into an agreement with Fannie Mae which will allow
first time home buyers to take advantage of the special pricing and
certain underwriting advantages offered by the GSE to state housing
agencies like SONYMA. Unless SONYMA amends its statute to allow it to
fund second loans made simultaneously as first loans purchased by

GSEs, however, it will not be able to take advantage of the agreement
reached with Fannie Mae or future programs with GSE involvement.
Under the agreement with Fannie Mae, SONYMA can make closing cost
and/or down payment assistance loans in connection with a non-SONYMA
first mortgage loans made at the same time, and purchased by Fannie
Mae. Under current law, SONYMA can only make second loans on loans
that are made at the same time as first mortgages purchased by
SONYMA. The GSEs will not accept loans which carry co-first liens for
closing cost assistance or down payment assistance. They can only
accept them if the assistance is made in the form of second liens.

Unless SONYMA amends its statute to allow it to fund second loans in
connection with a first mortgage purchased by a GSE, it will not be

able to take advantage of the agreement reached with Fannie Mae or
future programs with GSE involvement. This is the case because
closing cost or down payment assistance is a key component to any
program that SONYMA offers. Under the current statutory language,
SONYMA can fund closing cost or down payment assistance on a co-first
lien basis only, since it cannot take a secondary position. They can
only accept them if the
assistance is made in the form of second liens. SONYMA would thus be
shut out from offering a program for first-time homebuyers where a
GSE will purchase the first mortgage and in cases where closing cost
or down payment assistance is involved.

In order to be in position to take advantage of the increased role of
GSEs, SONYMA will need to amend its statute to eliminate the
prohibition on funding second lien mortgages. The amendment would
authorize SONYMA to purchase second mortgages made simultaneously as
a mortgage by a GSE.

LEGISLATIVE HISTORY:

During the 2003 through 2007 legislative sessions, respectively, a
similar version of the bill (in the 2007 Legislative Session, S.375)
was referred or committed to the Senate Corporations, Authorities and

Commissions Committee. In 2009 legislation was passed that allowed for
the SONYMA second lien but inadvertently excluded the GSE language.

FISCAL IMPLICATIONS:

None.

LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

The act takes effect immediately.

2009-S6150A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6150--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            September 2, 2009
                               ___________

Introduced  by  Sen.  ESPADA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules  --  recommitted  to
  the  Committee on Corporations, Authorities and Commissions in accord-
  ance with Senate Rule 6, sec. 8 -- committee discharged and said  bill
  committed  to  the  Committee  on  Rules -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN ACT to amend the public authorities law, in relation to the powers of
  the  state  of New  York mortgage agency; and providing for the repeal
  of such provisions upon the expiration thereof

  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 section 1 of chapter 432 of  the  laws  of  2009,  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, whether or not insured  or  guaran-
teed  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, whether or not insured or
guaranteed  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 GOVERN-
MENT 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, provided that, in the case of any second lien,  the
mortgagor  shall  be obligated to contribute from his or her own verifi-
able 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14694-06-0

S. 6150--A                          2

  For  the  purposes of this title and of section one hundred ninety and
subsection (a) of section one thousand four hundred fifty-six of the tax
law, "mortgage" shall include housing loans as defined below. Except for
the purposes of subdivision seven of section two thousand  four  hundred
five  and  subdivision eight of section two thousand four hundred five-b
of this part, "mortgage" shall also include a loan owed to a bank by  an
individual  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 bene-
fits of such cooperative ownership, and containing such terms and condi-
tions as the agency may approve.
  S 2. Subdivision 5 of section 2402 of the public authorities  law,  as
amended  by  section 2 of chapter 432 of the laws of 2009, 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, whether or not insured or guaran-
teed 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, whether or not insured or
guaranteed 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  GOVERN-
MENT  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, provided that, in the case of any second lien, the
mortgagor shall be obligated to contribute from his or her  own  verifi-
able  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.
  Except for the purposes of subdivision seven of section  two  thousand
four  hundred  five  of  this part, "mortgage" shall also include a loan
owed to a bank by an individual 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.
  S 3. Section 2402 of the public authorities law is amended by adding a
new subdivision 17 to read as follows:
  (17)  "GOVERNMENT  SPONSORED  ENTERPRISES".  PRIVATELY OWNED, PUBLICLY
CHARTERED ENTITIES, CREATED BY CONGRESS TO ENCOURAGE LENDING AND  REDUCE
COSTS PRIMARILY IN THE HOUSING SECTOR OF THE ECONOMY.
  S  4. This act shall take effect immediately, provided that the amend-
ments to subdivision 5 of section 2402 of  the  public  authorities  law
made  by  section one of this act shall be subject to the expiration and
reversion of such subdivision pursuant to section 16 of chapter  915  of
the  laws  of  1982,  as  amended, when upon such date the provisions of
section two of this act shall take effect; further  provided  that  this
act shall expire and be deemed repealed December 31, 2012.

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Senate Bill S6150

Sponsored By

Archive: Last Bill Status - Signed by Governor

Jun 24, 2010 - Floor Vote

Floor Vote: Jun 24, 2010

Sep 10, 2009 - Floor Vote

Floor Vote: Sep 10, 2009

Jun 23, 2010 - Rules Committee Vote

Rules Committee Vote: Jun 23, 2010

Sep 10, 2009 - Rules Committee Vote

Rules Committee Vote: Sep 10, 2009

Bill Amendments

2009-S6150 - Details

2009-S6150 - Summary

2009-S6150 - Sponsor Memo

2009-S6150 - Bill Text download pdf

2009-S6150A (ACTIVE) - Details

2009-S6150A (ACTIVE) - Summary

2009-S6150A (ACTIVE) - Sponsor Memo

2009-S6150A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6150

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Sponsored By

Pedro Espada Jr.

Archive: Last Bill Status - Signed by Governor

Bill Amendments

2009-S6150 - Details

2009-S6150 - Summary

2009-S6150 - Sponsor Memo

2009-S6150 - Bill Text download pdf

2009-S6150A (ACTIVE) - Details

2009-S6150A (ACTIVE) - Summary

2009-S6150A (ACTIVE) - Sponsor Memo

2009-S6150A (ACTIVE) - Bill Text download pdf

Comments