S T A T E   O F   N E W   Y O R K
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                                  5818

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 20, 2009
                               ___________

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:

  Section  1.  Section  2402 of the public authorities law is amended by
adding a new subdivision 17 to read as follows:
  (17) "LABOR ORGANIZATION". ANY ORGANIZATION OF ANY KIND  WHICH  EXISTS
FOR THE PURPOSE, IN WHOLE OR IN PART, OF REPRESENTING EMPLOYEES EMPLOYED
WITHIN  THE  STATE  OF  NEW  YORK  IN DEALING WITH EMPLOYERS OR EMPLOYER
ORGANIZATIONS OR WITH A STATE GOVERNMENT,  OR  ANY  POLITICAL  OR  CIVIL
SUBDIVISION  OR OTHER AGENCY THEREOF, CONCERNING TERMS AND CONDITIONS OF
EMPLOYMENT, GRIEVANCES, LABOR DISPUTES, OR OTHER MATTERS  INCIDENTAL  TO
THE  EMPLOYMENT  RELATIONSHIP,  AND SHALL INCLUDE THE PARENT NATIONAL OR
INTERNATIONAL ORGANIZATION OF A LOCAL LABOR ORGANIZATION.
  S 2. The public authorities law is amended by  adding  a  new  section
2405-f to read as follows:
  S  2405-F.  PURCHASE OF LABOR ORGANIZATION ASSISTED FORWARD COMMITMENT
MORTGAGES. (1) IN ACCORDANCE WITH THE AUTHORITY  SET  FORTH  IN  SECTION
TWENTY-FOUR  HUNDRED  FIVE-B OF THIS PART, THE AGENCY MAY PURCHASE LABOR
ORGANIZATION ASSISTED FORWARD COMMITMENT MORTGAGES FROM  BANKS  AT  SUCH
PRICES  AND  UPON  SUCH  TERMS  AND CONDITIONS AS IT SHALL DETERMINE. IN
CONDUCTING ITS PROGRAM OF PURCHASING LABOR ORGANIZATION ASSISTED FORWARD
COMMITMENT MORTGAGES, THE AGENCY SHALL BE GOVERNED BY THE PROVISIONS  OF
SECTION  TWENTY-FOUR HUNDRED FIVE-B OF THIS PART. THE BOARD OF DIRECTORS
OF THE AGENCY SHALL ESTABLISH FROM TIME TO TIME MAXIMUM INCOME LIMITS OF
PERSONS ELIGIBLE TO RECEIVE SUCH MORTGAGES, WHICH  INCOME  LIMITS  SHALL
NOT EXCEED THE LATEST MAXIMUM INCOME LIMITS PERMITTED UNDER THE INTERNAL
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.
                                                           LBD03212-01-9
              

A. 5818                             2

REVENUE BONDS. A LABOR ORGANIZATION MAY  DEVELOP  ADDITIONAL  QUALIFICA-
TIONS  FOR  ELIGIBLE MEMBERS BEYOND THOSE QUALIFICATIONS PROVIDED FOR IN
THIS SECTION, PROVIDED THAT SUCH QUALIFICATIONS  ARE  NON-DISCRIMINATORY
AND  ARE  PRE-APPROVED  BY  THE AGENCY; THE LABOR ORGANIZATION, HOWEVER,
SHALL REMAIN SOLELY RESPONSIBLE FOR DETERMINING AND INSURING THE LEGALI-
TY OF SUCH QUALIFICATIONS AND  MAY  NOT  RELY  ON  ANY  AGENCY  REVIEWS,
APPROVALS, LEGAL OPINIONS OR STATEMENTS.
  (2) TO PARTICIPATE IN A LABOR ORGANIZATION ASSISTED FORWARD COMMITMENT
MORTGAGE  PROGRAM,  A  LABOR  ORGANIZATION SHALL BE A BONA FIDE UNION OR
ASSOCIATION OF EMPLOYEES WHICH MAINTAINS AN  OFFICE  IN  THE  STATE  AND
SHALL  SATISFY  THE  REQUIREMENTS SET FORTH IN GUIDELINES ESTABLISHED BY
THE AGENCY.
  (3) FOR ANY LABOR ORGANIZATION ASSISTED FORWARD  COMMITMENT  MORTGAGE,
THE  MAXIMUM  LOAN-TO-VALUE  RATIO  SHALL  BE ESTABLISHED BY THE AGENCY,
PROVIDED THAT SUCH LOAN SHALL NOT EXCEED  ONE  HUNDRED  PERCENT  OF  THE
APPRAISED  VALUE OF THE MORTGAGED PREMISES. REASONABLE CLOSING COSTS FOR
THE LOAN MAY BE AMORTIZED OVER THE LIFE OF THE LOAN, PROVIDED  THAT  THE
FINAL  LOAN  AMOUNT DOES NOT EXCEED ONE HUNDRED PERCENT OF THE APPRAISED
VALUE OF THE MORTGAGED PREMISES.
  (4) THE AGENCY SHALL REQUIRE ANY LABOR ORGANIZATION  PARTICIPATING  IN
THE  LABOR  ORGANIZATION ASSISTED FORWARD COMMITMENT MORTGAGE PROGRAM TO
GUARANTEE TO PAY UP TO TWENTY PERCENT OF THE TOTAL OUTSTANDING  MORTGAGE
INDEBTEDNESS (AS DETERMINED BY THE AGENCY) FOR EACH MEMBER WHO OBTAINS A
MORTGAGE  LOAN  UNDER THE PROVISIONS OF THIS SECTION AND WHO DEFAULTS ON
SUCH MORTGAGE LOAN DURING THE FIRST SEVEN YEARS OF SUCH LOAN, REGARDLESS
OF WHETHER SUCH BORROWER IS A MEMBER OF SUCH LABOR ORGANIZATION  AT  THE
TIME OF THE DEFAULT.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.