S T A T E   O F   N E W   Y O R K
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                                  5052

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 10, 2015
                               ___________

Introduced  by M. of A. SIMON, JAFFEE, PICHARDO, MOSLEY -- 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 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 elderly  homeown-
ers 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  SENIORS.    (1)  AUTHORI-
ZATION. 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 SENIOR HOMEOWNERS TO USE THE  EQUITY
IN  THEIR  HOMES  TO  PROVIDE FOR THEIR LONG-TERM CARE NEEDS. THE SUPER-
INTENDENT OF FINANCIAL SERVICES IS HEREBY AUTHORIZED TO VARY  ANY  RULES
AND  REGULATIONS PERTAINING TO REVERSE MORTGAGE LOANS TO ACCOMMODATE THE
NEEDS OF THE PROGRAM.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06108-01-5
              

A. 5052                             2

  (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
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)  "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, A CONDOMINIUM OR
A CO-OP.  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  AGENCY.    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
CARE SERVICES, HOMEMAKER AND CHORE SERVICES,  INCLUDING  CHORE  SERVICES

A. 5052                             3

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)  (A)  PRIOR  TO  ACCEPTING  A FINAL AND COMPLETE APPLICATION FOR A
REVERSE MORTGAGE THE LENDER SHALL PROVIDE THE BORROWER WITH  A  LIST  OF
NOT  FEWER  THAN TEN COUNSELING AGENCIES THAT ARE APPROVED BY THE UNITED

A. 5052                             4

STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO ENGAGE IN  REVERSE
MORTGAGE  COUNSELING AS PROVIDED IN SUBPART B OF PART 214 OF TITLE 24 OF
THE CODE OF FEDERAL REGULATIONS. THE COUNSELING AGENCY SHALL NOT RECEIVE
ANY COMPENSATION, EITHER DIRECTLY OR INDIRECTLY, FROM THE LENDER OR FROM
ANY  OTHER  PERSON  OR  ENTITY  INVOLVED IN ORIGINATING OR SERVICING THE
MORTGAGE OR THE SALE OF ANNUITIES, INVESTMENTS,  LONG-TERM  CARE  INSUR-
ANCE, OR ANY OTHER TYPE OF FINANCIAL OR INSURANCE PRODUCT. THIS SUBDIVI-
SION  SHALL  NOT  PREVENT  A  COUNSELING AGENCY FROM RECEIVING FINANCIAL
ASSISTANCE THAT IS UNRELATED TO THE OFFERING OR  SELLING  OF  A  REVERSE
MORTGAGE  LOAN  AND THAT IS PROVIDED BY THE LENDER AS PART OF CHARITABLE
OR PHILANTHROPIC ACTIVITIES.
  (B) A LENDER SHALL NOT ACCEPT A FINAL AND COMPLETE APPLICATION  FOR  A
REVERSE  MORTGAGE  LOAN  FROM A PROSPECTIVE APPLICANT OR ASSESS ANY FEES
UPON A PROSPECTIVE APPLICANT WITHOUT FIRST RECEIVING CERTIFICATION  FROM
THE  APPLICANT  OR  THE  APPLICANT'S  AUTHORIZED REPRESENTATIVE THAT THE
APPLICANT HAS RECEIVED COUNSELING FROM AN AGENCY AS DESCRIBED  IN  PARA-
GRAPH  (A)  OF THIS SUBDIVISION AND THAT THE COUNSELING WAS CONDUCTED IN
PERSON, UNLESS THE CERTIFICATION SPECIFIES THAT THE APPLICANT ELECTED TO
RECEIVE THE COUNSELING IN A MANNER OTHER THAN  IN  PERSON.  THE  CERTIF-
ICATION  SHALL  BE  SIGNED BY THE BORROWER AND THE AGENCY COUNSELOR, AND
SHALL INCLUDE THE DATE OF THE COUNSELING  AND  THE  NAME,  ADDRESS,  AND
TELEPHONE  NUMBER  OF  BOTH  THE COUNSELOR AND THE APPLICANT. ELECTRONIC
FACSIMILE COPY OF THE HOUSING  COUNSELING  CERTIFICATION  SATISFIES  THE
REQUIREMENTS  OF THIS SUBDIVISION. THE LENDER SHALL MAINTAIN THE CERTIF-
ICATION IN AN ACCURATE, REPRODUCIBLE, AND ACCESSIBLE FORMAT FOR THE TERM
OF THE REVERSE MORTGAGE.
  (C) A LENDER SHALL NOT MAKE A  REVERSE  MORTGAGE  LOAN  WITHOUT  FIRST
COMPLYING  WITH,  OR  IN  THE CASE OF BROKERED LOANS ENSURING COMPLIANCE
WITH, THE REQUIREMENTS OF THIS SUBDIVISION.
  (8) 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.
  (9)  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.
  (10)  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.