senate Bill S526

2013-2014 Legislative Session

Establishes the rural homeowners assistance program to assist first time, low or moderate income, or minority homeowners to avoid foreclosure; appropriation

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to finance
Jan 09, 2013 referred to finance

S526 - Bill Details

Current Committee:
Law Section:
Appropriations
Laws Affected:
Add Art 16-B ยงยง930 - 935, Priv Hous Fin L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1674
2009-2010: S127

S526 - Bill Texts

view summary

Establishes the rural homeowners assistance program for assisting first time, low or moderate income, or minority homeowners from foreclosure by authorizing and directing the commissioner of state division of housing and community renewal to enter into contracts with neighborhood preservation companies to provide such assistance to residents in certain rural communities; appropriates $1,000,000 for such purposes.

view sponsor memo
BILL NUMBER:S526

TITLE OF BILL:
An act
to amend the private housing finance law, in relation to establishing
the rural homeowners assistance program and making an appropriation
therefor

PURPOSE:
Authorizes contracts for the release of grant moneys to neighborhood
preservation companies to provide home ownership assistance activities.

SUMMARY OF PROVISIONS:
The private housing finance law is amended by adding a new article
16-B to define the rural home ownership assistance program.

JUSTIFICATION:
There is currently a mortgage crisis in the United States and the
State of New York, Rising interest rates are dramatically increasing
the amounts of required monthly mortgage payments for home owners who
financed their property by using Adjustable Rate Mortgages. In some
cases consumers are required to pay double what their former payments
were under their old rates. In addition, "Interest Only" payment
plans, "No Money Down" and 40-year mortgage loans are also leading
consumers to greater hardship and financial difficulty. Inability to
pay mortgages leads more consumers to bankruptcy or foreclosure.

Homeowners in danger of foreclosure are in need of technical and
legal assistance. New home owners are in need of financial literacy
to advise them on the perils and pitfalls of the various mortgages
available in the market. Providing funds to enable these homeowners
to consul with professionals, such as the neighborhood preservation
companies, can save New York consumers time, money, frustration and
legal peril.

EXISTING LAW:
None.

LEGISLATIVE HISTORY:
S.5935 of 2007
S.1674 of 2011
01/11/11 Referred to Finance
01/04/12 Referred to Finance

FISCAL IMPLICATIONS:
$1,000,000 from the State General Fund to be appropriated to
the State Division of Housing and Community Renewal.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.


view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   526

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the private housing finance law, in relation  to  estab-
  lishing  the  rural homeowners assistance program and making an appro-
  priation therefor

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

  Section  1. The private housing finance law is amended by adding a new
article 16-B to read as follows:
                              ARTICLE XVI-B
                 RURAL HOMEOWNERSHIP ASSISTANCE PROGRAM
SECTION 930. DECLARATION OF LEGISLATIVE FINDINGS.
        931. DEFINITIONS.
        932. CONTRACTS WITH NEIGHBORHOOD PRESERVATION COMPANIES IN RURAL
               AREAS.
        933. PAYMENTS  TO  NEIGHBORHOOD   PRESERVATION   COMPANIES   FOR
               HOMEOWNERSHIP, TECHNICAL ASSISTANCE AND TRAINING.
        934. LEGAL AID AGREEMENTS.
        935. ANNUAL REPORT TO THE LEGISLATURE.
  S  930.  DECLARATION  OF  LEGISLATIVE FINDINGS. THE LEGISLATURE HEREBY
FINDS AND DECLARES THAT THERE HAS DEVELOPED A DAMAGING IMPACT OF  PREDA-
TORY  AND  SUB-PRIME  RESIDENTIAL  MORTGAGE  LENDING PATTERNS IN VARIOUS
VULNERABLE NEIGHBORHOODS AND COMMUNITIES  OF  THE  STATE  AND  THAT  THE
RELATIONSHIP  BETWEEN  THE  PREDOMINANCE  OF  SUB-PRIME  LOANS  AND HIGH
CONCENTRATIONS OF FORECLOSURE ACTIONS BEING FILED HAS BEEN FORECAST  AND
CLEARLY  DOCUMENTED.  THE LEGISLATURE FURTHER FINDS THAT THE SCARCITY OF
RESOURCES DEDICATED TO  HOUSING  COUNSELING  AND  HOME  BUYER  EDUCATION
SERVICES  HAS  LEFT MANY FIRST TIME, LOW OR MODERATE INCOME, OR MINORITY
HOMEBUYERS AT RISK.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02133-01-3

S. 526                              2

  THE  LEGISLATURE  FURTHER  FINDS  THAT  IN  RURAL  COMMUNITIES   WHERE
SUB-PRIME LENDERS DOMINATE REFINANCING AND HOME EQUITY MORTGAGE MARKETS,
AND  WHERE NECESSITY COMBINED WITH POOR DECISION-MAKING OFTEN PLACES LOW
AND MODERATE INCOME HOMEOWNERS IN NON-SUSTAINABLE MORTGAGE PRODUCTS, THE
ADJUSTED  COST  OF  THE HOME IS FREQUENTLY EXCEEDED AS A RESULT OF REFI-
NANCING PRODUCTS, HOME EQUITY PRODUCTS COMPOUNDED WITH FIRST  MORTGAGES,
AND  RUNAWAY  FEES. AS A RESULT, MANY HOMEOWNERS ARE RENDERED AT RISK OF
FORECLOSURE. BESIDES THE PERSONAL TRAGEDIES THESE HOUSEHOLDS FACE, FORE-
CLOSURE FURTHER AFFECTS NEIGHBORHOODS AND COMMUNITIES BY  DE-STABILIZING
THE  CHARACTER  OF THE AREA. THE LEGISLATURE FURTHER FINDS THAT IN ORDER
TO PREVENT AND/OR MITIGATE  FORECLOSURES,  FINANCIAL  LITERACY  MUST  BE
IMPARTED  TO INDIVIDUALS WHO ARE ABOUT TO PURCHASE A HOME OR ARE AT RISK
OF FORECLOSURE.
  THE LEGISLATURE  FURTHER  FINDS  THAT  THE  NEIGHBORHOOD  PRESERVATION
COMPANIES  WHICH  HAVE BEEN ESTABLISHED THROUGHOUT THE STATE ARE INSTRU-
MENTAL AS PROVIDERS OF INFORMATION, TRAINING AND ASSISTANCE TO RESIDENTS
IN THEIR SERVICE AREAS IN NEED OF HOUSING SERVICES INTERVENTION  IN  THE
RETENTION  OF AFFORDABLE HOMEOWNERSHIP; THAT CONDITIONS AGGRAVATED BY AN
AFFORDABLE RENTAL HOUSING CRISIS HAVE OVERBURDENED THEIR  RESOURCES  AND
ARE  BEING  COMPOUNDED  BY  THE  DEMAND FOR HOMEOWNERSHIP ASSISTANCE AND
FORECLOSURE PREVENTION; AND THAT THERE IS A NECESSITY FOR  THE  SERVICES
OF  NEIGHBORHOOD PRESERVATION COMPANIES FAMILIAR WITH THE SPECIFIC NEEDS
OF THE RESIDENTS IN THEIR SERVICE AREAS TO PROVIDE  TARGETED  ASSISTANCE
TO EXISTING AND POTENTIAL HOMEOWNERS TO SECURE PERMANENT, AFFORDABLE AND
FISCALLY  VIABLE HOMEOWNERSHIP. THE NECESSITY IN THE PUBLIC INTEREST FOR
THE PROVISIONS HEREINAFTER ENACTED IS HEREBY DECLARED  AS  A  MATTER  OF
LEGISLATIVE DETERMINATION.
  S  931.  DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
PHRASES SHALL HAVE THE FOLLOWING MEANINGS:
  1. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF THE STATE DIVISION OF
HOUSING AND COMMUNITY RENEWAL.
  2. "DIVISION" SHALL MEAN THE STATE DIVISION OF HOUSING  AND  COMMUNITY
RENEWAL.
  3. "NEIGHBORHOOD PRESERVATION COMPANY" SHALL MEAN A CORPORATION ORGAN-
IZED  UNDER  THE  PROVISIONS OF THE NOT-FOR-PROFIT CORPORATION LAW WHICH
HAS BEEN PRIMARILY ENGAGED IN ONE OR  MORE  PRESERVATION  ACTIVITIES  AS
DEFINED IN SUBDIVISION FIVE OF SECTION ONE THOUSAND TWO OF THIS CHAPTER.
  4.  "HOMEOWNERSHIP  ASSISTANCE  ACTIVITIES"  SHALL MEAN COUNSELING FOR
DEFAULT AND FORECLOSURE PREVENTION, BUDGET  MANAGEMENT,  DEBT  REDUCTION
PLANNING,  CREDIT  REPAIR,  REFINANCING  OPTIONS,  IN THE RECOGNITION OF
PREDATORY LENDERS, CONSUMER SCAMS, HOMEOWNER BASICS AND  THE  HIRING  OF
CONTRACTORS  AND ALL SUCH OTHER ACTIVITIES AS MAY BE DEEMED ESSENTIAL TO
ENSURING THE PREVENTION OF FORECLOSURE.
  5. "ACCESSIBILITY" SHALL MEAN CULTURAL AND LINGUISTIC ACCESSIBILITY TO
DIVERSE RESIDENTS.
  6. "RESIDENTS" SHALL MEAN INDIVIDUALS OR  FAMILIES  WITH  INCOMES  NOT
EXCEEDING  NINETY  PERCENT  OF  MEDIAN  INCOME  RESIDING  IN RURAL AREAS
DEFINED IN SUBDIVISION THREE OF SECTION ONE THOUSAND THREE OF THIS CHAP-
TER AND CURRENTLY IN RESIDENCE OR WITH EVIDENCE OF FORTHCOMING RESIDENCY
IN THE SERVICE AREA.
  7. "SERVICE AREA" SHALL MEAN THE ESTABLISHED BOUNDARIES OF A NEIGHBOR-
HOOD PRESERVATION COMPANY AS SPECIFIED IN SUBDIVISION THREE  OF  SECTION
ONE THOUSAND THREE OF THIS CHAPTER.
  8.  "SIGNIFICANT"  SHALL MEAN NO LESS THAN SEVENTY-FIVE PERCENT OF THE
SPECIFIED CONTRACTED SERVICES.

S. 526                              3

  S 932. CONTRACTS WITH NEIGHBORHOOD  PRESERVATION  COMPANIES  IN  RURAL
AREAS.  1. THE COMMISSIONER SHALL ENTER INTO CONTRACTS WITH NEIGHBORHOOD
PRESERVATION  COMPANIES  FOR THE PERFORMANCE OF HOMEOWNERSHIP ASSISTANCE
ACTIVITIES. SUCH CONTRACTS SHALL BE ENTERED INTO,  HOWEVER,  ONLY  AFTER
APPROPRIATE  FINDINGS  BY  THE  COMMISSIONER AND SHALL BE SUBJECT TO THE
LIMITATIONS AS SET FORTH IN THIS SECTION.
  2. PRIOR TO ENTERING INTO A CONTRACT  WITH  AN  EXISTING  NEIGHBORHOOD
PRESERVATION  COMPANY,  THE COMMISSIONER SHALL HAVE MADE A FINDING, THAT
THE COMPANY IS IN GOOD STANDING PURSUANT TO THE PROVISIONS  OF  SUBDIVI-
SION  FIVE  OF SECTION ONE THOUSAND THREE OF THIS CHAPTER AND THAT THERE
IS A NEED FOR PROPOSED HOMEOWNERSHIP ACTIVITIES BEING PROPOSED BASED  ON
THE DOCUMENTED SUBMISSION OF THE COMPANY.
  3.  PRIOR  TO  ENTERING  INTO A CONTRACT WITH AN EXISTING NEIGHBORHOOD
PRESERVATION COMPANY, THE COMMISSIONER SHALL HAVE MADE  A  FINDING  THAT
THE  COMPANY  HAS  OR  IS PREPARED TO ENGAGE IN SERVICES OR HAS EMPLOYED
PERSONS TO RENDER CULTURAL AND LINGUISTIC ACCESSIBILITY TO  THE  DIVERSE
TARGET POPULATION.
  4.  CONTRACTS  ENTERED INTO PURSUANT TO THIS SECTION WITH NEIGHBORHOOD
PRESERVATION COMPANIES SHALL BE LIMITED IN DURATION TO  PERIODS  OF  ONE
YEAR,  BUT  MAY  THEREAFTER  BE  RENEWED,  EXTENDED  OR SUCCEEDED BY NEW
CONTRACTS FROM YEAR TO YEAR IN THE DISCRETION OF THE COMMISSIONER;  THEY
SHALL  BE  LIMITED IN AMOUNT TO FORTY-FIVE THOUSAND DOLLARS PER YEAR AND
SHALL NOT BE CONSIDERED PART OF THE AGGREGATE  SUM  LIMITATIONS  IMPOSED
UNDER SUBDIVISION FOUR OF SECTION ONE THOUSAND THREE OF THIS CHAPTER.
  5.  PRIOR TO RENEWING OR EXTENDING A CONTRACT OR ENTERING A SUCCEEDING
CONTRACT WITH A NEIGHBORHOOD PRESERVATION  COMPANY  THE  DIVISION  SHALL
DETERMINE THAT:
  (A)  THE  COMPANY SHALL HAVE SUBSTANTIALLY COMPLETED THE HOMEOWNERSHIP
ACTIVITIES SPECIFIED IN THE CONTRACT TO BE RENEWED OR SUCCEEDED;
  (B) THE COMPANY SHALL HAVE RECEIVED THE SUMS AND  FUNDS  SPECIFIED  IN
THIS SECTION; AND
  (C) THE ACTIVITIES CARRIED OUT BY THE COMPANY PURSUANT TO ITS CONTRACT
SHALL  HAVE RESULTED IN A SIGNIFICANT IMPACT ON THE NEEDS OF THE AT-RISK
EXISTING AND POTENTIAL HOMEOWNERS IN THE SERVICE AREA.
  6. PRIOR TO TERMINATING OR NOT ENTERING INTO A SUCCEEDING CONTRACT THE
DIVISION SHALL:
  (A) DETERMINE THAT THE COMPANY IS IN VIOLATION OF THE TERMS AND CONDI-
TIONS OF THE CONTRACT OR THAT FUNDS PROVIDED PURSUANT  TO  THE  CONTRACT
ARE  BEING  EXPENDED  IN  A  MANNER  NOT  CONSISTENT  WITH  THE TERMS OR
PROVISIONS OF THIS ARTICLE; OR
  (B) DETERMINE THAT THE SIGNIFICANT NEED IN THE SERVICE AREA  HAS  BEEN
FULFILLED; OR
  (C)  PROVIDE THE COMPANY WITH WRITTEN NOTICE, AT LEAST FORTY-FIVE DAYS
IN ADVANCE, OF ITS INTENT TO TERMINATE OR NOT  RENEW  THE  CONTRACT  AND
PROVIDE  THE  COMPANY WITH THE OPPORTUNITY TO APPEAR AND BE HEARD BEFORE
THE DIVISION WITH RESPECT TO THE REASONS FOR SUCH  PROPOSED  TERMINATION
OR NON-RENEWAL. AT THE SAME TIME THAT A COMPANY IS NOTIFIED OF THE DIVI-
SION'S  INTENT  TO  TERMINATE,  OR  NOT RENEW THE CONTRACT, THE DIVISION
SHALL LIKEWISE INFORM THE SENATE  AND  ASSEMBLY  MEMBERS  WHO  REPRESENT
AREAS WITHIN SUCH COMPANY'S GEOGRAPHIC BOUNDARIES.
  7. THE DIVISION MAY TEMPORARILY WITHHOLD PAYMENTS AND MAY ELECT NOT TO
ENTER  INTO  A  SUCCEEDING  CONTRACT  WITH ANY NEIGHBORHOOD PRESERVATION
COMPANY IF THE COMPANY IS NOT IN COMPLIANCE WITH  THE  CONTRACT  OR  HAS
WITHOUT GOOD CAUSE FAILED TO SUBMIT THE DOCUMENTATION REQUIRED UNDER THE
CONTRACT.

S. 526                              4

  S  933. PAYMENTS TO NEIGHBORHOOD PRESERVATION COMPANIES FOR HOMEOWNER-
SHIP, TECHNICAL ASSISTANCE AND TRAINING. 1. EACH CONTRACT  ENTERED  INTO
WITH  A  NEIGHBORHOOD  PRESERVATION COMPANY SHALL PROVIDE PAYMENT TO THE
NEIGHBORHOOD PRESERVATION COMPANY  FOR  RURAL  HOMEOWNERSHIP  ASSISTANCE
ACTIVITIES WHICH THE COMPANY HAS PERFORMED.
  2.  PAYMENT  TO  NEIGHBORHOOD  PRESERVATION COMPANIES PURSUANT TO THIS
ARTICLE SHALL BE RESTRICTED TO SUMS REQUIRED FOR THE PAYMENT OF SALARIES
AND WAGES TO EMPLOYEES OF SUCH COMPANIES AND FEES TO  LEGAL  CONSULTANTS
RETAINED  BY  THEM WHO ARE ENGAGED IN RENDERING HOMEOWNERSHIP ASSISTANCE
ACTIVITIES TO THE TARGET POPULATION.
  3. PAYMENTS SHALL BE MADE BY THE DIVISION TO THE NEIGHBORHOOD  PRESER-
VATION COMPANY, NOT LESS FREQUENTLY THAN SEMIANNUALLY AT OR PRIOR TO THE
COMMENCEMENT OF THE CONTRACT, TO COMPENSATE THE COMPANY FOR THE HOMEOWN-
ERSHIP  ASSISTANCE  ACTIVITIES  WHICH  IT  SHALL  UNDERTAKE  TO PERFORM;
PROVIDED THAT WITH RESPECT TO CONTRACTS ENTERED INTO ON  OR  AFTER  JUNE
THIRTIETH,  THE  FIRST SUCH PAYMENT SHALL BE MADE BY THE DIVISION BEGIN-
NING ON OR AFTER JULY FIRST OF THE FISCAL YEAR FOR  WHICH  AN  APPROPRI-
ATION  IN  SUPPORT OF SUCH PAYMENT IS MADE AND PROVIDED FURTHER THAT THE
FINAL SUCH PAYMENT TO THE NEIGHBORHOOD  PRESERVATION  COMPANY  SHALL  BE
MADE  NO  LATER THAN MARCH THIRTY-FIRST OF SUCH FISCAL YEAR, UNLESS SUCH
PAYMENT HAS BEEN WITHHELD PURSUANT  TO  THE  PROVISIONS  OF  SUBDIVISION
SEVEN OF SECTION NINE HUNDRED THIRTY-TWO OF THIS ARTICLE.
  S  934.  LEGAL  AID  AGREEMENTS. A PORTION OF THE FUNDS, NOT TO EXCEED
TWENTY PERCENT OF THE APPROPRIATION, FOR THE ACTIVITIES SPECIFIED  UNDER
THIS  ARTICLE  SHALL  BE  DEDICATED, ON A COMPETITIVE BASIS AND BASED ON
NEEDS IDENTIFIED BY EACH COMPANY, TO LEGAL AID ORGANIZATIONS WITH ESTAB-
LISHED TIES TO THE NEIGHBORHOOD PRESERVATION COMPANY APPLICANT'S SERVICE
AREA FOR THE PROVISION  OF  LEGAL  SERVICES.  IN  THE  EVENT  THAT  SUCH
NOT-FOR-PROFIT  LEGAL AID ORGANIZATIONS ARE NOT AVAILABLE, THE NEIGHBOR-
HOOD PRESERVATION COMPANY SHALL SUBCONTRACT WITH INDIVIDUAL ATTORNEYS OR
LAW FIRMS WITH THE APPROVAL OF THE COMMISSIONER.
  S 935. ANNUAL REPORT TO THE LEGISLATURE. THE COMMISSIONER SHALL SUBMIT
AN ANNUAL REPORT TO THE LEGISLATURE ON OR BEFORE  DECEMBER  THIRTY-FIRST
ON  THE  IMPLEMENTATION  OF THIS ARTICLE. SUCH REPORT SHALL INCLUDE, BUT
NOT BE LIMITED TO, FOR EACH COMPANY RECEIVING FUNDS UNDER THIS ARTICLE:
  1. A DESCRIPTION OF SUCH COMPANY'S CONTRACT AMOUNT,
  2. THE SPECIFIC HOMEOWNERSHIP ACTIVITIES PERFORMED BY SUCH COMPANY,
  3. THE NUMBER OF PERSONS SERVED BY THE COMPANY AND, IF APPLICABLE, ITS
LEGAL AID CONSULTANT, AND
  4. THE IMPACT OF THE ACTIVITIES PERFORMED.
  S 2. The sum of one million dollars ($1,000,000.00), or so much there-
of as may be necessary, is hereby appropriated to the state division  of
housing and community renewal out of any moneys in the state treasury in
the  general  fund  to  the  credit of the state division of housing and
community renewal, not  otherwise  appropriated,  and  made  immediately
available,  for  the purpose of carrying out the provisions of this act.
Such moneys shall be payable on the audit and warrant of the comptroller
on vouchers certified or approved by the commission of the  state  divi-
sion of housing and community renewal in the manner prescribed by law.
  S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.