S T A T E   O F   N E W   Y O R K
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                                  1371

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of  A.  ENGLEBRIGHT, CANESTRARI, MORELLE, BRADLEY --
  Multi-Sponsored by --  M.    of  A.  ABBATE,  ALFANO,  ARROYO,  BARRA,
  BOYLAND,  CARROZZA,  DESTITO, EDDINGTON, FINCH, GALEF, HEVESI, HOOPER,
  HOYT, KOON, MAGEE, MARKEY, McENENY, MILLMAN, PHEFFER, J. RIVERA, SWEE-
  NEY, WEISENBERG, WEPRIN -- read once and referred to the Committee  on
  Housing

AN ACT to amend the public authorities law, in relation to establishment
  of a reverse mortgage loan program for low income seniors

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The legislature  finds  and  declares
that  many  senior  citizens  living in New York own their own homes and
want to continue to live at home for as long  as  possible.  Nationally,
with over two trillion dollars tied up in home equity, reverse mortgages
have  the  potential  to dramatically increase the ability of seniors to
pay for their long-term care and remain  in  their  homes.  Today,  over
eighty  percent  of  older  Americans own their own homes, seventy-three
percent of which are owned free and clear of  any  mortgages.  Unlocking
these resources can help "house-rich and cash-poor" seniors purchase the
long-term  care  services they feel best meet their needs. Private funds
from reverse mortgages also  can  strengthen  community  long-term  care
systems  and  reduce the burden on state and local Medicaid budgets. The
purpose of this act is to establish  a  reverse  mortgage  loan  program
within the state of New York mortgage agency to enable low income elder-
ly homeowners to stay at home and pay for their long-term care.
  S  2.  The  public  authorities law is amended by adding a new section
2405-f to read as follows:
  S 2405-F. REVERSE MORTGAGE LOAN PROGRAM FOR LOW INCOME SENIORS.    (1)
AUTHORIZATION. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE
AGENCY IS HEREBY AUTHORIZED AND DIRECTED TO ESTABLISH A REVERSE MORTGAGE

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

                                                           LBD04206-01-9

A. 1371                             2

LOAN PROGRAM FOR THE PURPOSE OF ENABLING LOW INCOME SENIOR HOMEOWNERS TO
USE THE EQUITY IN THEIR HOMES TO PROVIDE FOR THEIR LONG-TERM CARE NEEDS.
THE BANKING BOARD IS HEREBY AUTHORIZED TO VARY ANY RULES AND REGULATIONS
PERTAINING  TO  REVERSE  MORTGAGE  LOANS TO ACCOMMODATE THE NEEDS OF THE
PROGRAM.
  (2) DEFINITIONS. FOR PURPOSES OF  THIS  SECTION  THE  FOLLOWING  TERMS
SHALL  HAVE  THE  FOLLOWING  MEANINGS  UNLESS THE CONTEXT SHALL INDICATE
ANOTHER OR DIFFERENT MEANING OR INTENT:
  (A) "PROGRAM" SHALL MEAN THE REVERSE MORTGAGE  LOAN  PROGRAM  FOR  LOW
INCOME SENIORS,
  (B)  "APPLICANT"  SHALL  MEAN AN INDIVIDUAL WHO IS APPLYING TO PARTIC-
IPATE IN THE PROGRAM,
  (C) "BORROWER" SHALL MEAN AN INDIVIDUAL WHO IS ELIGIBLE TO PARTICIPATE
IN THE PROGRAM PURSUANT TO SUBDIVISION FOUR OF THIS SECTION,
  (D) "REVERSE MORTGAGE LOAN" SHALL MEAN A LOAN FOR A TERM OF  YEARS  TO
BE  DETERMINED  BY  THE AGENCY, IN WHICH LOAN PROCEEDS ARE ADVANCED TO A
BORROWER IN EQUAL, MONTHLY INSTALLMENTS  AND  MAY  INCLUDE  AN  INITIAL,
ONE-TIME LUMP SUM PAYMENT OF UP TO FIVE THOUSAND DOLLARS,
  (E)  "LOAN"  SHALL MEAN A REVERSE MORTGAGE LOAN ISSUED PURSUANT TO THE
TERMS OF THIS SECTION,
  (F) "LOW INCOME" SHALL MEAN INCOME THAT DOES  NOT  EXCEED  THE  INCOME
LIMITS ESTABLISHED BY THE AGENCY,
  (G)  "BANKING  BOARD"  SHALL  MEAN  THE  BOARD ESTABLISHED PURSUANT TO
SECTION THIRTEEN OF THE BANKING LAW, AND
  (H) "ASSESSMENT" SHALL MEAN THE CARE  NEEDS  ASSESSMENT  DESCRIBED  IN
SUBDIVISION FIVE OF THIS SECTION.
  (3)  TERMS  AND CONDITIONS OF THE LOAN.  LOANS SHALL ONLY BE ISSUED TO
APPLICANTS WHO OWN AND OCCUPY A SINGLE FAMILY DWELLING OR A CONDOMINIUM.
IF A BORROWER VACATES HIS OR HER  RESIDENCE,  THE  LOAN  PAYMENTS  SHALL
CEASE  AND  THE  BALANCE  OF THE LOAN SHALL BECOME DUE. A BORROWER SHALL
NOTIFY THE AGENCY UPON VACATING HIS OR HER RESIDENCE.   LOANS ISSUED  BY
THE  PROGRAM SHALL OFFER A LOW, FIXED INTEREST RATE, TO BE DETERMINED BY
THE AGENCY. ANY LOAN ORIGINATION FEES, CLOSING COSTS OR FEES CHARGED  BY
THE  PROGRAM SHALL BE AT A REDUCED RATE, TO BE DETERMINED BY THE AGENCY.
THE AGENCY SHALL NOT IMPOSE PRE-PAYMENT PENALTIES ON ANY LOAN. THE  LOAN
SHALL  ALSO INCLUDE THE COST OF THE CARE NEEDS ASSESSMENT REQUIRED UNDER
SUBDIVISION FIVE OF THIS SECTION. LOANS SHALL NOT BE ISSUED TO BORROWERS
WHOSE INCOME EXCEEDS THE MAXIMUM INCOME LIMITS ESTABLISHED BY THE  AGEN-
CY.  LOANS SHALL NOT BE ISSUED FOR MORE THAN EIGHTY PERCENT OF THE VALUE
OF  THE  BORROWER'S  HOME,  WITH  MINIMUM AND MAXIMUM LOAN AMOUNTS TO BE
DETERMINED BY THE AGENCY ON A CASE BY CASE BASIS.
  IN ITS DETERMINATION OF MINIMUM AND MAXIMUM LOAN AMOUNTS,  THE  AGENCY
SHALL CONSIDER THE FOLLOWING CRITERIA:
  (A)  THE  AMOUNT  OF  THE  APPLICANT'S  PERSONAL AND HOUSEHOLD INCOME,
ASSETS, AND OTHER FINANCIAL RESOURCES AVAILABLE TO MEET THE NEEDS OF THE
APPLICANT AND THE APPLICANT'S HOUSEHOLD;
  (B) THE VALUE OF THE APPLICANT'S RESIDENCE AS DETERMINED BY THE  AGEN-
CY; AND
  (C) THE INFORMATION CONTAINED IN THE APPLICANT'S CARE NEEDS ASSESSMENT
PROVIDED  BY  AN  AREA  AGENCY  ON AGING, INCLUDING THE SPECIAL NEEDS OF
PARTICULAR APPLICANTS BECAUSE OF  PHYSICAL  OR  MENTAL  DISABILITIES  OR
IMPAIRMENTS.
  (4)  ELIGIBILITY  OF  APPLICANTS.  IN  ORDER  TO  BE  ELIGIBLE FOR THE
PROGRAM, AN APPLICANT MUST BE AN  INDIVIDUAL  AGE  SIXTY-FIVE  YEARS  OR
OLDER,  BE  THE OWNER AND OCCUPANT OF A SINGLE FAMILY DWELLING OR CONDO-
MINIUM, WHO HAS LOST SOME OR ALL OF THE CAPACITY TO FUNCTION ON  HIS  OR

A. 1371                             3

HER  OWN  DUE  TO  A  CHRONIC ILLNESS OR CONDITION, AND WHO, BASED ON AN
ASSESSMENT PERFORMED BY AN AREA AGENCY ON AGING PURSUANT TO  SUBDIVISION
FIVE  OF THIS SECTION, REQUIRES OR IS EXPECTED TO REQUIRE ONE OR MORE OF
THE  FOLLOWING  ITEMS  OR SERVICES FOR AN EXTENDED PERIOD OF TIME OF SIX
CONSECUTIVE MONTHS OR MORE: HOME CARE, INCLUDING  NURSING  AND  PERSONAL
CARE  SERVICES,  HOMEMAKER  AND CHORE SERVICES, INCLUDING CHORE SERVICES
RELATED TO HOME MAINTENANCE OR REPAIR, NUTRITION  SERVICES,  TRANSPORTA-
TION,  COUNSELING,  PHYSICAL  THERAPY  AND  OTHER MEDICAL OR NON-MEDICAL
SUPPORT SERVICES, RESPITE, ADULT DAY CARE,  DURABLE  MEDICAL  EQUIPMENT,
MEDICALLY  INDICATED  HOME  ALTERATIONS,  AND  UNINSURED CATASTROPHIC OR
RECURRING MEDICAL EXPENSES INCLUDING PRESCRIPTION DRUGS. AN  APPLICANT'S
PERSONAL  AND  HOUSEHOLD INCOME MAY NOT EXCEED THE MAXIMUM INCOME LIMITS
ESTABLISHED BY THE AGENCY.
  (5) CARE NEEDS ASSESSMENT. AS PART OF THE LOAN  APPROVAL  PROCESS,  AN
AREA  AGENCY  ON  AGING SHALL CONDUCT AN ASSESSMENT OF EACH APPLICANT IN
ORDER TO IDENTIFY THE  APPLICANT'S  CARE  NEEDS,  INCLUDING  INFORMATION
NECESSARY  TO DETERMINE WHETHER THE APPLICANT REQUIRES OR IS EXPECTED TO
REQUIRE ONE OR MORE OF THE ITEMS OR SERVICES  SPECIFIED  IN  SUBDIVISION
FOUR OF THIS SECTION, AND IF SO, WHICH ITEMS OR SERVICES ARE REQUIRED OR
EXPECTED  TO  BE  REQUIRED, THE DURATION FOR WHICH THE ITEMS OR SERVICES
ARE EXPECTED TO BE REQUIRED, AND THE ESTIMATED  COST  OF  THE  ITEMS  OR
SERVICES. THE ASSESSMENT SHALL BE CONDUCTED FACE-TO-FACE WITH THE APPLI-
CANT,  AND,  IF REQUESTED BY THE APPLICANT, HIS OR HER AUTHORIZED REPRE-
SENTATIVE AND INFORMAL CAREGIVERS, USING THE  STANDARDIZED  PROCESS  AND
INSTRUMENT  PRESCRIBED  BY THE OFFICE FOR THE AGING FOR EXPANDED IN-HOME
SERVICES FOR THE ELDERLY PROGRAM (EISEP) CLIENTS, UNLESS THE AREA AGENCY
HAS RECEIVED APPROVAL FROM SAID OFFICE TO USE  A  DIFFERENT  INSTRUMENT.
ALL  INFORMATION  DERIVED  FROM THE ASSESSMENT OF THE APPLICANT SHALL BE
CONFIDENTIAL AND SHARED ONLY WITH OTHERS INVOLVED IN THE ARRANGEMENT  OR
PROVISION  OF SERVICES TO THE APPLICANT PURSUANT TO WRITTEN CONSENT FROM
THE APPLICANT OR HIS OR HER AUTHORIZED REPRESENTATIVE. IF, BASED ON  THE
ASSESSMENT,  THE  APPLICANT  IS  DETERMINED  TO  HAVE  A  NEED FOR OR IS
EXPECTED TO NEED ANY OF THE ITEMS OR SERVICES CONTAINED  IN  SUBDIVISION
FOUR OF THIS SECTION, SUCH APPLICANT SHALL BE DEEMED FUNCTIONALLY ELIGI-
BLE FOR THE PROGRAM.
  (6)  COUNSELING  AND  ASSISTANCE.  THE  AREA  AGENCIES  ON AGING SHALL
PROVIDE COUNSELING AND ASSISTANCE TO APPLICANTS WHO  WISH  TO  OBTAIN  A
REVERSE  MORTGAGE LOAN FROM THE PROGRAM. COUNSELING AND ASSISTANCE SHALL
INCLUDE THE FOLLOWING:
  (A) REVIEWING WITH THE APPLICANT THE TERMS  AND  RESTRICTIONS  OF  THE
LOAN,  INCLUDING  ASSISTING  THE  APPLICANT WITH DETERMINING WHETHER THE
LOAN WOULD JEOPARDIZE THE APPLICANT'S ELIGIBILITY FOR MEDICAID AND OTHER
MEANS-TESTED PROGRAMS;
  (B) IDENTIFYING COMMUNITY BASED LONG-TERM CARE SERVICES, IN ACCORDANCE
WITH THE APPLICANT'S NEEDS AS DEMONSTRATED IN THE CARE NEEDS ASSESSMENT,
INCLUDING MEDICAL AND NON-MEDICAL IN-HOME SUPPORT PROGRAMS, AND  PROVID-
ING  INFORMATION  ON  HOW  TO  ACCESS THESE SERVICES, INCLUDING PROVIDER
DIRECTORIES, AND CASE MANAGEMENT SERVICES;
  (C) EXPLORING WITH THE APPLICANT  THE  POSSIBILITY  OF  THE  APPLICANT
BECOMING UNABLE TO MANAGE HIS OR HER FINANCES, AND IN THIS EVENT, HAVING
THE  APPLICANT  CONSIDER  WHO  HE OR SHE WOULD WANT TO MANAGE HIS OR HER
FINANCES, AND ADVISING THE APPLICANT OF THE NEED TO OBTAIN ESTATE  PLAN-
NING  COUNSELING  AND  PROPER LEGAL DOCUMENTATION IN ORDER TO EFFECTUATE
HIS OR HER WISHES UNDER THESE CIRCUMSTANCES; AND
  (D) DISCUSSING WITH THE APPLICANT HIS  OR  HER  WISHES  REGARDING  HOW
TITLE  OF  THE  RESIDENCE  SHOULD  BE  TRANSFERRED UPON THE DEATH OF THE

A. 1371                             4

APPLICANT, AND ADVISING THE APPLICANT OF THE NEED TO OBTAIN ESTATE PLAN-
NING COUNSELING AND PROPER LEGAL DOCUMENTATION IN ORDER TO  ENSURE  THAT
HIS OR HER WISHES ARE CARRIED OUT.
  (7) OUTREACH BY THE PROGRAM. THE AGENCY SHALL ADVERTISE THE PROGRAM IN
A  BROCHURE WHICH IT SHALL CREATE AND DISTRIBUTE TO EACH AREA OFFICE FOR
THE AGING. THE AGENCY SHALL PROVIDE THE BROCHURE TO  EACH  LOCAL  SOCIAL
SERVICES  DISTRICT  TO  DISTRIBUTE  TO  INDIVIDUALS WHO ARE APPLYING FOR
MEDICAID NURSING HOME OR HOME CARE SERVICES.
  (8) REPORT. THE AGENCY SHALL ISSUE AN ANNUAL REPORT TO  THE  GOVERNOR,
THE  TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
SUCH REPORT SHALL CONTAIN, AT A MINIMUM, THE FOLLOWING INFORMATION:  THE
NUMBER OF LOAN APPLICATIONS SUBMITTED TO THE PROGRAM, THE NUMBER OF LOAN
APPLICATIONS APPROVED AND THE NUMBER DENIED, THE REASONS FOR DENIAL, THE
NUMBER  OF  LOANS  ISSUED  BY  THE  PROGRAM, THE INCOMES AND AGES OF THE
BORROWERS, THE PURPOSE FOR WHICH A LOAN WAS ISSUED, ANY SUGGESTIONS  FOR
IMPROVING  OR  EXPANDING THE PROGRAM, AND A DESCRIPTION OF THE PROGRAM'S
FUNDING SOURCES AND WHETHER THEY ARE ADEQUATE.
  (9) RULEMAKING AUTHORITY. THE AGENCY SHALL ADOPT  ALL  PROCEDURAL  AND
SUBSTANTIVE  RULES AND REGULATIONS NECESSARY TO IMPLEMENT AND ADMINISTER
THE PROVISIONS OF THIS SECTION.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.