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

                                  3960

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 1, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

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
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  SUPERINTENDENT  OF  FINANCIAL SERVICES IS HEREBY AUTHORIZED TO VARY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07242-01-3

              

S. 3960                             2

ANY RULES AND REGULATIONS PERTAINING TO REVERSE MORTGAGE LOANS TO ACCOM-
MODATE 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, AND
  (G) "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
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

S. 3960                             3

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
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

S. 3960                             4

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.