Senate Bill S89

                                 BILL NUMBER:  S89

 TITLE OF BILL :
An act to amend the public authorities law, in relation to authorizing
the state of New York mortgage agency to restructure mortgage payments
for dislocated workers and reservists called to active duty


 PURPOSE OR GENERAL IDEA OF BILL :
The purpose of this legislation is to allow a dislocated worker and a
reservist who has been called to active duty who have a SONYMA
mortgage to refinance the conditions of payment to help ease his/her
transitional period of unemployment or loss of income.

 SUMMARY OF SPECIFIC PROVISIONS :
Amends section 2404 of the public Authorities Law by adding a new
subdivision 25-a. This legislation authorizes SONYMA to restructure
mortgage payments for dislocated workers who are registered with the
jobs service division in the Department of Labor and members of a
reserve component of the armed forces of the united States who have
been called to active duty by the president of the united states. The
dislocated worker and the reservist will be able to return to the bank
in which the SONYMA mortgage was obtained and renegotiate the payment
schedule in light of his/her unemployment status or loss of income
while serving active duty. The restructuring agreement will be subject
to the approval of SONYMA.
              

 JUSTIFICATION :
When a plant closing occurs, it creates a chain of problems for those
previously employed in the plant. Dislocated workers, most of whom are
in their middle years, are usually the main provider of their family's
sustenance. Often, these individuals assumed debt in anticipation of a
steady and secure income. Once they become dislocated, however, it
usually means they must pay the same amount of money for bills with
less available means, at least until they become reemployed at a
similar wage. This pressure can often lead to family strain and the
threat of foreclosure of the house from the bank. This is also true
for members of the reserves who have been called to active duty. This
legislation recognizes this predicament and will help to ease the
pressure of dislocation and active duty call-up. By allowing
dislocated workers and reservists who have a SONYMA mortgage to
restructure payments, the State of New York is taking one step toward
helping individuals make a strenuous, and sometimes grueling
transition.

 PRIOR LEGISLATIVE HISTORY :
S.1763 of 2007 01/25/07
REFERRED TO CORPORATIONS, AUTHORITIES & COMMISSIONS

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT :
None. SONYMA would receive the same amount for the mortgage. Payments
would be less during the transitional period.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law.