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

                                  8141

                            I N  S E N A T E

                              June 14, 2016
                               ___________

Introduced  by Sen. SAVINO -- (at request of the Governor) -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Rules

AN ACT to amend the public authorities law, in relation to  establishing
  the New York state community restoration fund

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

  Section 1. Section 2401 of the public authorities law, is  amended  by
adding a new closing paragraph to read as follows:
  IT IS FURTHER FOUND AND DETERMINED THAT THERE IS A NEED TO ESTABLISH A
PROGRAM  TO  ASSIST  HOMEOWNERS  IN  THE STATE OF NEW YORK WHO HAVE BEEN
AFFECTED BY THE NATIONAL MORTGAGE CRISIS WHO ARE  EITHER  DELINQUENT  ON
THEIR  MORTGAGE  PAYMENTS OR ARE IN DANGER OF GOING INTO DEFAULT BECAUSE
OF ECONOMIC HARDSHIP, AS SUCH TERM IS DEFINED UNDER THE AGENCY'S  GUIDE-
LINES, IN CONSULTATION WITH THE ADVISORY COUNCIL ESTABLISHED IN SUBDIVI-
SION  THREE  OF SECTION TWENTY-FOUR HUNDRED FIVE-F OF THIS PART, WHO MAY
LOSE THEIR HOMES TO FORECLOSURE, OR WHO MAY HAVE ABANDONED  THEIR  HOMES
DUE  TO  ECONOMIC HARDSHIP AND WHO MAY BENEFIT FROM ASSISTANCE. IN ADDI-
TION, THE EXISTENCE OF VACANT,  ABANDONED,  DISTRESSED,  DILAPIDATED  OR
REASONABLY BEYOND REPAIR PROPERTIES MAY CONTRIBUTE TO THE PERSISTENCE OF
CONDITIONS  THAT  INCREASE  BLIGHT  AND  ADD TO THE DETERIORATION OF THE
QUALITY OF THE ENVIRONMENT AND LIVING CONDITIONS OF A  LARGE  NUMBER  OF
PERSONS RESIDING IN THE STATE. TO ADDRESS THESE CONDITIONS, IT IS HEREBY
FOUND AND DETERMINED THAT THE STATE OF NEW YORK MORTGAGE AGENCY SHALL BE
AUTHORIZED  TO  CREATE  AND  MANAGE  A FUND TO ACQUIRE RESIDENCES AND TO
PURCHASE MORTGAGES AND MORTGAGE NOTES, OR TO PROVIDE MONIES TO  ELIGIBLE
INSTITUTIONS  TO  ACQUIRE RESIDENCES AND TO PURCHASE MORTGAGES AND MORT-
GAGE NOTES AND TO CARRY OUT SUCH OTHER FUNCTIONS IN CONNECTION WITH SUCH
ACQUISITIONS AS ARE NECESSARY TO ACCOMPLISH THE PURPOSES OF  THIS  PARA-
GRAPH.  IN  CONNECTION  THEREWITH, THE STATE OF NEW YORK MORTGAGE AGENCY
SHALL BE AUTHORIZED TO CREATE A SUBSIDIARY CORPORATION TO CARRY OUT  THE
PROGRAM AUTHORIZED UNDER THIS PARAGRAPH.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12089-01-6

              

S. 8141                             2

  S  2. Subdivision 31 of section 2404 of the public authorities law, as
renumbered by chapter 151 of the laws of 2013, is renumbered subdivision
33 and two new subdivisions 31 and 32 are added to read as follows:
  (31)  TO  ADMINISTER  THE  FUND  AND  OPERATE THE PROGRAM SET FORTH IN
SECTION TWENTY-FOUR HUNDRED FIVE-F OF THIS PART.
  (32) TO FORM A SUBSIDIARY TO BE KNOWN AS "THE STATE OF NEW YORK  MORT-
GAGE  AGENCY  COMMUNITY RESTORATION FUND" FOR THE PURPOSE OF USING FUNDS
AVAILABLE  TO  THE  AGENCY  UNDER  THE  PROGRAM  SET  FORTH  IN  SECTION
TWENTY-FOUR  HUNDRED  FIVE-F  OF THIS PART AND OF OWNING AND HOLDING ANY
RESIDENCES, MORTGAGES AND MORTGAGE NOTES ACQUIRED BY THE AGENCY, AND  TO
OTHERWISE  CARRY  OUT THE PURPOSES OF SECTION TWENTY-FOUR HUNDRED FIVE-F
OF THIS PART. SUCH SUBSIDIARY CREATED PURSUANT TO THIS  SUBDIVISION  MAY
EXERCISE  AND PERFORM ONE OR MORE OF THE PURPOSES, POWERS, DUTIES, FUNC-
TIONS, RIGHTS AND RESPONSIBILITIES OF THE AGENCY, OTHER THAN  THE  ISSU-
ANCE OF INDEBTEDNESS, IN CONNECTION WITH REAL AND PERSONAL PROPERTY WITH
RESPECT  TO WHICH THE AGENCY HOLDS OR HELD A MORTGAGE, SECURITY INTEREST
OR OTHER COLLATERAL. SUCH  SUBSIDIARY  SHALL  HAVE  THE  POWER  TO  OWN,
ACQUIRE  AND  DISPOSE  OF  REAL  PROPERTY, AND TO ACQUIRE, OWN AND HOLD,
SERVICE AND DISPOSE OF MORTGAGES AND MORTGAGE NOTES. IT SHALL  HAVE  THE
RIGHT  TO FORECLOSE OR CONTRACT TO FORECLOSE ON ANY MORTGAGE ACQUIRED BY
SUCH SUBSIDIARY, UNDER THE LAWS OF THE STATE, TO COMMENCE ANY ACTION  TO
PROTECT  OR TO ENFORCE THE RIGHTS CONVEYED TO IT BY LAW, CONTRACT OR ANY
AGREEMENT AND TO DISPOSE OF ANY SUCH PROPERTY AND TO  OTHERWISE  PROCEED
WITH  ANY  ACTION  AS  MAY BE NECESSARY TO PROTECT THE INTERESTS OF SAID
SUBSIDIARY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,
THE  TRANSFER  OF TITLE TO SUCH SUBSIDIARY OR ANY OTHER ACTIONS TAKEN BY
THE AGENCY OR SUCH SUBSIDIARY TO ENFORCE THE AGENCY'S RIGHTS  UNDER  THE
MORTGAGE,  SECURITY INTEREST OR OTHER COLLATERAL INTEREST OR TO PROTECT,
ACQUIRE, OWN, MANAGE OR DISPOSE OF THE PROPERTY SHALL BE DEEMED TO BE  A
CORPORATE  PURPOSE OF THE AGENCY GRANTED TO IT TO CARRY OUT THE PURPOSES
OF SECTION TWENTY-FOUR HUNDRED FIVE-F  OF  THIS  PART.  SUCH  SUBSIDIARY
SHALL  BE  ESTABLISHED  IN  THE  FORM OF A PUBLIC BENEFIT CORPORATION BY
EXECUTING AND FILING WITH THE SECRETARY OF STATE A CERTIFICATE OF INCOR-
PORATION WHICH SHALL IDENTIFY THE AGENCY AS THE ENTITY  ORGANIZING  SUCH
SUBSIDIARY  AND  SET  FORTH  THE  NAME OF SUCH SUBSIDIARY PUBLIC BENEFIT
CORPORATION, ITS DURATION, THE LOCATION OF ITS PRINCIPAL OFFICE AND  ITS
CORPORATE PURPOSES AS PROVIDED IN THIS SUBDIVISION AND WHICH CERTIFICATE
MAY  BE  AMENDED  FROM  TIME TO TIME BY THE FILING OF AMENDMENTS THERETO
WITH THE SECRETARY OF STATE, PROVIDED THAT THE SUBSIDIARY CREATED  HERE-
UNDER  SHALL CEASE TO EXIST AT SUCH TIME AS THE PROGRAM AUTHORIZED UNDER
SECTION TWENTY-FOUR HUNDRED FIVE-F OF THIS PART IS NO LONGER  IN  EXIST-
ENCE.  SUCH  SUBSIDIARY  SHALL  BE  ORGANIZED AS A PUBLIC BENEFIT CORPO-
RATION, SHALL BE A BODY POLITIC AND CORPORATE, AND SHALL  HAVE  ALL  THE
PRIVILEGES, IMMUNITIES, TAX EXEMPTIONS AND OTHER EXEMPTIONS OF THE AGEN-
CY.  THE  MEMBERS OF SUCH SUBSIDIARY SHALL BE THE SAME AS THE MEMBERS OF
THE AGENCY.
  S 3. The public authorities law is amended by  adding  a  new  section
2405-f to read as follows:
  S  2405-F. NEW YORK STATE COMMUNITY RESTORATION FUND. (1) DEFINITIONS.
FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
FOLLOWING MEANINGS:
  (A)  "FUND"  SHALL  MEAN THE NEW YORK STATE COMMUNITY RESTORATION FUND
ESTABLISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION;
  (B) "RESIDENTIAL HOME LOAN" SHALL MEAN A  FIRST  OR  SUBORDINATE  LIEN
LOAN,  INCLUDING  MORTGAGE  LOANS  PURCHASED BY THE AGENCY UNDER SECTION
TWENTY-FOUR HUNDRED FIVE-B OF THIS PART, THAT IS SECURED BY A BORROWER'S

S. 8141                             3

INTEREST IN: (I) RESIDENTIAL REAL  PROPERTY,  INCLUDING  AS  DEFINED  IN
SECTION   THIRTEEN  HUNDRED  FIVE  OF  THE  REAL  PROPERTY  ACTIONS  AND
PROCEEDINGS LAW, AND ANY IMPROVEMENTS  OR  STRUCTURES  THEREON;  (II)  A
SHARE OR SHARES OF A COOPERATIVE CORPORATION THAT ENTITLES A BORROWER TO
A  HOUSING  UNIT;  OR  (III)  A  RESIDENTIAL STRUCTURE THAT IS PART OF A
CONDOMINIUM DEVELOPMENT. RESIDENTIAL HOME LOAN SHALL ALSO INCLUDE INTER-
EST, TAXES, HOMEOWNERSHIP ASSOCIATIONS FEES, CARRYING CHARGES, AND OTHER
LIENS ENCUMBERING THE RESIDENCE;
  (C) "VACANT AND ABANDONED" RESIDENTIAL REAL PROPERTY  SHALL  MEAN  (I)
RESIDENTIAL  REAL  PROPERTY, AS DEFINED IN SECTION THIRTEEN HUNDRED FIVE
OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW, WHERE THE PROPERTY  IS
NOT  OCCUPIED BY THE TENANT, AS THAT TERM IS DEFINED IN SECTION THIRTEEN
HUNDRED FIVE OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW,  HOMEOWN-
ER, OR MORTGAGOR AND (II) EITHER:
  (A)  THE  PROPERTY  IS A RISK TO THE HEALTH, SAFETY, OR WELFARE OF THE
PUBLIC, OR ANY ADJOINING OR ADJACENT PROPERTY OWNERS,  DUE  TO  ACTS  OF
VANDALISM, LOITERING, CRIMINAL CONDUCT, OR PHYSICAL DESTRUCTION OR DETE-
RIORATION OF THE PROPERTY; OR
  (B)  THE  RELEVANT  GOVERNMENTAL  AUTHORITY  HAS DECLARED THE PROPERTY
UNFIT FOR OCCUPANCY AND EITHER ORDERED THAT THE PROPERTY  REMAIN  VACANT
AND UNOCCUPIED OR ORDERED THAT THE PROPERTY BE DEMOLISHED; OR
  (C) EACH HOMEOWNER OR MORTGAGOR HAS SEPARATELY INFORMED THE MORTGAGEE,
IN  WRITING,  THAT  THEY  DO  NOT  INTEND  TO OCCUPY THE PROPERTY IN THE
FUTURE, AND
  (III) WHERE INDICIA OF LACK OF OCCUPANCY MAY INCLUDE, BUT SHALL NOT BE
LIMITED TO: (A) OVERGROWN OR DEAD VEGETATION; (B) ACCUMULATION OF  NEWS-
PAPERS,  CIRCULARS,  FLYERS,  OR  MAIL;  (C)  PAST  DUE UTILITY NOTICES,
DISCONNECTED UTILITIES OR UTILITIES NOT  IN  USE;  (D)  ACCUMULATION  OF
TRASH,  REFUSE  OR OTHER DEBRIS; (E) ABSENCE OF WINDOW COVERINGS SUCH AS
CURTAINS, BLINDS, OR SHUTTERS; (F) ABSENCE OF  FURNISHINGS  OR  PERSONAL
ITEMS  CONSISTENT  WITH RESIDENTIAL HABITATION; (G) ONE OR MORE BOARDED,
MISSING OR BROKEN WINDOWS; (H) THE PROPERTY IS OPEN TO CASUAL  ENTRY  OR
TRESPASS;  (I)  THE  PROPERTY  HAS  A  BUILDING  OR STRUCTURE THAT IS OR
APPEARS STRUCTURALLY UNSOUND OR HAS ANY OTHER CONDITION THAT PRESENTS  A
POTENTIAL HAZARD OR DANGER TO THE SAFETY OF PERSONS, AND
  (IV)  WHERE  SUCH  RESIDENTIAL  REAL  PROPERTY SHALL NOT BE CONSIDERED
"VACANT AND ABANDONED" IF, ON THE PROPERTY: (A) THERE IS  AN  UNOCCUPIED
BUILDING WHICH IS UNDERGOING CONSTRUCTION, RENOVATION, OR REHABILITATION
THAT IS PROCEEDING TO COMPLETION, AND THE BUILDING IS IN COMPLIANCE WITH
ALL  APPLICABLE  ORDINANCES, CODES, REGULATIONS, AND STATUTES; (B) THERE
IS A BUILDING THAT IS SECURE, BUT IS THE SUBJECT OF  A  PROBATE  ACTION,
ACTION  TO QUIET TITLE, OR OTHER SIMILAR OWNERSHIP DISPUTE; (C) THERE IS
A BUILDING DAMAGED BY NATURAL  DISASTER  UPON  DECLARATION  OF  A  STATE
DISASTER  EMERGENCY  BY THE GOVERNOR PURSUANT TO SECTION TWENTY-EIGHT OF
THE EXECUTIVE LAW RELATING TO ANY CLAIM ARISING FROM THE CAUSE  OF  SUCH
DECLARATION,  WHILE AWAITING FUNDS TO REPAIR; OR (D) THERE IS A BUILDING
OCCUPIED ON A SEASONAL BASIS, BUT OTHERWISE SECURE;
  (D) "HOMEOWNER" SHALL MEAN A NATURAL PERSON WHO HAS A  LEGAL  INTEREST
IN  THE  PROPERTY OTHER THAN A TENANT AND IS THE OCCUPANT OF A RESIDENCE
THAT SECURES SUCH RESIDENTIAL HOME LOAN;
  (E) "ELIGIBLE INSTITUTION" SHALL MEAN A COMMUNITY  DEVELOPMENT  FINAN-
CIAL  INSTITUTION OR A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION PART-
NERED WITH A NOT-FOR-PROFIT, HOUSING COUNSELING AGENCY,  LAND  BANK,  OR
OTHER  LOCAL  GOVERNMENT ENTITY, OR ANY OF THE AFOREMENTIONED, EITHER ON
THEIR OWN OR PARTNERED WITH A COMMUNITY DEVELOPMENT  FINANCIAL  INSTITU-
TION. AN ELIGIBLE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION SHALL HAVE

S. 8141                             4

A RECORD OF SUCCESS IN SERVING INVESTMENT AREAS OR TARGETED POPULATIONS;
AND/OR  SHALL HAVE AGREED TO EXPAND ITS OPERATIONS INTO A NEW INVESTMENT
AREA OR TO SERVE A NEW  TARGETED  POPULATION,  OFFER  MORE  PRODUCTS  OR
SERVICES,  OR INCREASE THE VOLUME OF ITS CURRENT BUSINESS. ELIGIBLE NOT-
FOR-PROFITS SHALL, AMONG OTHER THINGS, HAVE THE  ABILITY  TO:  UNDERTAKE
REPAIR  OR  REHABILITATION EFFORTS; CARRY OUT PROPERTY AND ASSET MANAGE-
MENT, INCLUDING SERVICING, UNDERTAKE DEMOLITION; AND/OR PROVIDE  ASSIST-
ANCE  IN  FINDING HOUSING OPTIONS, MARKET PROPERTIES FOR SALE OR RENTAL;
COORDINATE, PROVIDE, AND/OR CONNECT HOMEOWNERS TO COUNSELING, MEDIATION,
LEGAL REPRESENTATION, AND NEGOTIATE ON BEHALF OF  HOMEOWNERS  SEEKING  A
RESIDENTIAL HOME LOAN PAYMENT MODIFICATION, PROVIDE TRAINING AND SUPPORT
FOR  COUNSELORS,  MEDIATORS,  AND ATTORNEYS REGARDING SUCH ASSISTANCE TO
HOMEOWNERS, AS WELL AS PROVIDE CREDIT COUNSELING;
  (F) "COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION" OR "CDFI" SHALL MEAN
AN ORGANIZATION LOCATED IN THIS STATE WHICH  HAS  BEEN  CERTIFIED  AS  A
COMMUNITY  DEVELOPMENT  FINANCIAL  INSTITUTION  BY THE FEDERAL COMMUNITY
DEVELOPMENT FINANCIAL INSTITUTIONS FUND, AS ESTABLISHED PURSUANT  TO  12
U.S.C. 4701 ET SEQ., AS AMENDED FROM TIME TO TIME;
  (G)  "INVESTMENT  AREA"  MEANS A GEOGRAPHIC AREA THAT IS DETERMINED BY
THE AGENCY, FROM TIME TO TIME, AS MEETING  CRITERIA  INDICATIVE,  AS  OF
SUCH  TIME,  OF ECONOMIC DISTRESS, INCLUDING UNEMPLOYMENT RATE; FORECLO-
SURE RATE; PERCENTAGES AND NUMBERS OF LOW-INCOME RESIDENTS;  PER  CAPITA
INCOME AND PER CAPITA REAL PROPERTY WEALTH; AND SUCH OTHER INDICATORS OF
DISTRESS  AS  THE  AGENCY SHALL DETERMINE. ECONOMICALLY DISTRESSED AREAS
MAY INCLUDE COUNTIES, CITIES, MUNICIPALITIES, BLOCK NUMBERING AREAS, AND
CENSUS TRACTS. THE PROGRAM SHALL TO THE FULLEST EXTENT  POSSIBLE  STRIVE
FOR  REGIONAL  DIVERSITY  IN PROVIDING FORECLOSURE RELIEF AND ASSISTANCE
CONSISTENT WITH THE PROGRAM GOALS TO  COMMUNITIES  THROUGHOUT  NEW  YORK
STATE THAT ARE IMPACTED BY THE FORECLOSURE CRISES;
  (H) "LENDER" MEANS BANKS AS DEFINED IN SECTION TWENTY-FOUR HUNDRED TWO
OF  THIS  PART, INVESTORS INCLUDING INSTITUTIONAL INVESTORS, THE AGENCY,
ANY STATE AGENCY AUTHORIZED TO ACQUIRE AND HOLD RESIDENTIAL HOME  LOANS,
MORTGAGE SERVICERS AND OTHER PRIVATE, NON-BANK ENTITIES THAT MAY OWN AND
HOLD  A  MORTGAGE AND MORTGAGE NOTE, THE FEDERAL HOUSING ADMINISTRATION,
THE U.S. DEPARTMENT OF AGRICULTURE RURAL  DEVELOPMENT  CORPORATION,  THE
U.S.  DEPARTMENT  OF  HOUSING AND URBAN DEVELOPMENT, THE FEDERAL HOUSING
FINANCE AGENCY, AND ANY PRIVATELY OWNED, PUBLICLY CHARTERED ENTITIES AND
WHOLLY-OWNED CORPORATE INSTRUMENTALITIES OF THE UNITED STATES WITHIN THE
U.S.  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CREATED BY CONGRESS TO
ENCOURAGE LENDING AND REDUCE COSTS PRIMARILY IN THE  HOUSING  SECTOR  OF
THE ECONOMY; AND
  (I)  "RESIDENCE" MEANS RESIDENTIAL REAL PROPERTY AS DEFINED IN SECTION
THIRTEEN HUNDRED FIVE OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW.
  (2) THE AGENCY IS HEREBY DIRECTED TO ESTABLISH AND ADMINISTER  A  FUND
TO  BE  KNOWN  AS THE "NEW YORK STATE COMMUNITY RESTORATION FUND," WHICH
SHALL CONSIST OF MONIES DEPOSITED THEREIN.  NOTHING  CONTAINED  IN  THIS
SECTION  SHALL PREVENT THE AGENCY FROM RECEIVING GRANTS, GIFTS, OR OTHER
MONIES FROM OTHER SOURCES, OR BEQUESTS  AND  DEPOSITING  THEM  INTO  THE
FUND.  THE  AGENCY  SHALL NOT COMMINGLE THE MONIES IN SUCH FUND WITH ANY
OTHER MONIES OF THE AGENCY.
  (3) THE MONIES IN THE FUND SHALL BE ELIGIBLE TO BE USED BY THE  AGENCY
UNDER  PROGRAM  GUIDELINES  ESTABLISHED BY THE BOARD OF DIRECTORS OF THE
AGENCY, IN CONSULTATION WITH AN ADVISORY COUNCIL TO BE  CREATED  BY  THE
AGENCY  COMPRISED OF A MINIMUM OF SEVEN MEMBERS, WHERE A MAJORITY OF THE
MEMBERSHIP OF THE COUNCIL WILL  BE  COMPRISED  OF  REPRESENTATIVES  FROM
NON-PROFIT  MEMBERS  OF  THE  COMMUNITY  WITH KNOWLEDGE OF FORECLOSURES,

S. 8141                             5

HOUSING, OR COMMUNITY DEVELOPMENT NEEDS IN COMMUNITIES HARD HIT BY FORE-
CLOSURES.  THE GUIDELINES SHALL INCLUDE, AMONG  OTHER  THINGS,  REQUIRE-
MENTS  TO  ENSURE  THAT FUND MONIES ARE EXPENDED BASED UPON DEMONSTRABLE
COMMUNITY NEEDS, FOR THE PURPOSES SET FORTH IN THIS SUBDIVISION, AND MAY
ALSO  BE  AWARDED  BY  THE AGENCY TO ELIGIBLE INSTITUTIONS FOLLOWING THE
PROCESS ESTABLISHED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, TO:
  (A) ACQUIRE, PURCHASE, OR SELL RESIDENCES  AND/OR  MORTGAGE  NOTES  ON
RESIDENTIAL  HOME  LOANS  AND RESIDENCES AT OR BELOW MARKET RATES, OR AT
PAR IF SO REQUIRED TO SATISFY LEGAL OR PROGRAMMATIC RESTRICTIONS  APPLI-
CABLE  TO  THE  PURCHASE  OF ANY MORTGAGE LOANS EXPECTED TO BE ACQUIRED,
FROM LENDERS, OR FROM LOCAL, STATE, AND/OR  THE  FEDERAL  GOVERNMENT  AT
AUCTION, SHORT SALE, OR OTHER PRIVATE OR PUBLIC SALE WITH THE INTENT TO:
  (I) WHERE POSSIBLE, PROVIDED THE HOMEOWNER CAN DEMONSTRATE AN ECONOMIC
HARDSHIP,  AS  SUCH  TERM  IS  DEFINED UNDER THE AGENCY'S GUIDELINES, IN
CONSULTATION WITH THE ADVISORY COUNCIL, MODIFY THE RESIDENTIAL HOME LOAN
TO AN AFFORDABLE RATE TO KEEP THE CURRENT HOMEOWNERS IN THE PROPERTY;
  (II) PERMIT THE HOMEOWNER, PROVIDED THE HOMEOWNER CAN  DEMONSTRATE  AN
ECONOMIC  HARDSHIP,  AS  SUCH  TERM IS DEFINED UNDER THE AGENCY'S GUIDE-
LINES, IN CONSULTATION WITH THE ADVISORY COUNCIL, TO TRANSFER HIS OR HER
OWNERSHIP INTEREST IN THE HOME TO THE AGENCY OR TO AN ELIGIBLE  INSTITU-
TION AND TO REMAIN IN THE RESIDENCE AS A TENANT ON AGREED-UPON TERMS, OR
OBTAIN  ASSISTANCE FROM THE AGENCY OR AN ELIGIBLE INSTITUTION TO ACQUIRE
A NEW AFFORDABLE RESIDENCE;
  (III) REHABILITATE DISTRESSED PROPERTIES; AND/OR
  (IV) DEMOLISH HOMES THAT ARE DILAPIDATED OR REASONABLY BEYOND REPAIR.
  (B) MAKE GRANTS AND LOANS  TO  ELIGIBLE  HOMEOWNERS  OR  TO  POTENTIAL
BUYERS OF RESIDENCES IN THE INVESTMENT AREAS; OR
  (C) FUND NOT-FOR-PROFIT DEVELOPERS, AFFORDABLE HOUSING DEVELOPERS, AND
NOT-FOR-PROFIT  AGENCIES  TO  ACQUIRE VACANT AND ABANDONED PROPERTIES OR
OTHER REAL PROPERTY, MORTGAGES, OR MORTGAGE NOTES  ACQUIRED  UNDER  THIS
PROGRAM, AND DEVELOP SUCH PROPERTIES INTO AFFORDABLE HOUSING AND TO WORK
WITH  HOMEOWNERS  IN  THE  INVESTMENT AREA ELIGIBLE TO BE ASSISTED UNDER
THIS SECTION, THROUGH ACTIVITIES SUCH AS  FORECLOSURE  PREVENTION  COUN-
SELING,  PROVIDING  NEW  HOMEOWNER  TRAINING,  HOME REPAIR AND REHABILI-
TATION, PROPERTY AND ASSET MANAGEMENT, DEMOLITION, AND MARKETING PROPER-
TIES FOR SALE AND RENTAL.
  (4) (A) IN AWARDING FUNDING TO ELIGIBLE INSTITUTIONS, THE AGENCY SHALL
SELECT FROM ELIGIBLE INSTITUTIONS PURSUANT TO  CRITERIA  ESTABLISHED  BY
THE AGENCY'S BOARD OF DIRECTORS, IN CONSULTATION WITH THE ADVISORY COUN-
CIL  ESTABLISHED  IN  SUBDIVISION  THREE OF THIS SECTION, WHICH CRITERIA
SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I) THE EXPERIENCE AND BACKGROUND OF THE ELIGIBLE INSTITUTION'S  BOARD
OF DIRECTORS OR MANAGEMENT TEAM;
  (II)  THE EXTENT OF NEED WITHIN THE INVESTMENT AREAS OR TARGETED POPU-
LATIONS;
  (III) THE EXTENT OF ECONOMIC DISTRESS WITHIN THE INVESTMENT  AREAS  OR
THE EXTENT OF NEED WITHIN THE TARGETED POPULATIONS;
  (IV)  THE  EXTENT  OF  THE  ELIGIBLE INSTITUTION'S CURRENT AND PLANNED
COMMUNITY INVOLVEMENT;
  (V) THE EXTENT TO WHICH THE ELIGIBLE  INSTITUTION  WILL  INCREASE  ITS
RESOURCES  THROUGH  COORDINATION  WITH  OTHER  ELIGIBLE  INSTITUTIONS OR
ENCOURAGE COLLABORATIVE APPLICATIONS BY MULTIPLE ELIGIBLE INSTITUTIONS;
  (VI) IN THE CASE OF AN INSTITUTION WITH A  PRIOR  HISTORY  OF  SERVING
INVESTMENT AREAS OR TARGETED POPULATIONS, THE EXTENT OF SUCCESS IN SERV-
ING SUCH AREAS OR POPULATIONS;

S. 8141                             6

  (VII)  THE  EXTENT  TO  WHICH ELIGIBLE INSTITUTIONS WOULD USE FUNDS TO
RESTRUCTURE RESIDENTIAL HOME LOANS TO ALLOW HOMEOWNERS  TO  CONTINUE  TO
OCCUPY THEIR RESIDENCES; AND
  (VIII) OTHER FACTORS DEEMED TO BE APPROPRIATE BY THE AGENCY.
  (B)  IN  ALLOCATING FUNDING TO ELIGIBLE INSTITUTIONS, THE AGENCY SHALL
BE AUTHORIZED TO MAKE FUNDING AVAILABLE IN ANY MANNER NECESSARY FOR SUCH
ELIGIBLE INSTITUTION TO PARTICIPATE IN AUCTIONS  DISPOSING  OF  MORTGAGE
NOTES OR RESIDENCES.
  (5)  THE  AGENCY'S BOARD OF DIRECTORS SHALL ESTABLISH, IN CONSULTATION
WITH THE ADVISORY COUNCIL  ESTABLISHED  IN  SUBDIVISION  THREE  OF  THIS
SECTION, GUIDELINES TO:
  (A)  DEVELOP  APPLICATION AND REPORTING PROCEDURES FOR ELIGIBLE INSTI-
TUTIONS TO USE TO APPLY FOR FUNDS TO CARRY OUT THE  PROVISIONS  OF  THIS
SECTION  AND  CRITERIA FOR USE BY THE ELIGIBLE INSTITUTIONS THAT RECEIVE
FUNDS PURSUANT TO THIS SECTION TO EVALUATE APPLICATIONS  FOR  ASSISTANCE
FROM HOMEOWNERS;
  (B)  DEVELOP  GUIDELINES  FOR  FUNDS ISSUED TO AND LOANS ISSUED BY THE
AGENCY AND BY ELIGIBLE INSTITUTIONS, INCLUDING GUIDELINES FOR USE BY THE
AGENCY FOR PURCHASE AND SALES OF RESIDENCES AND/OR MORTGAGES AND NOTES;
  (C)  ESTABLISH  THE  PROCEDURE  BY  WHICH  ELIGIBLE  INSTITUTIONS  ARE
SELECTED AND COMPENSATED, INCLUDING ESTABLISHING THE RELATIVE IMPORTANCE
AND/OR WEIGHT GIVEN TO EACH CRITERION;
  (D)  ESTABLISH TERMS BY WHICH ELIGIBLE INSTITUTIONS SHALL MAINTAIN AND
UTILIZE FUNDS RECEIVED PURSUANT TO THIS SECTION, PROVIDED  HOWEVER  THAT
ELIGIBLE  INSTITUTIONS  SHALL KEEP SUCH FUNDS SEPARATE FROM ALL OTHER OF
ITS BUSINESS OR FIDUCIARY ACCOUNTS; AND
  (E) ESTABLISH TERMS BY WHICH THE ELIGIBLE INSTITUTIONS SHALL REPAY THE
FUND FOR MONIES ALLOCATED TO THEM PURSUANT TO THIS SECTION, IF  APPLICA-
BLE.
  (6)  NOTHING  IN  THIS  SECTION SHALL PRECLUDE AN ELIGIBLE INSTITUTION
FROM WORKING WITH OR COORDINATING ACTIVITIES AND/OR  SERVICES  WITH  ANY
ENTITY  THAT  HANDLES  AND  FACILITATES  THE TRANSFERS OF MORTGAGE NOTES
AND/OR PROPERTY TO  ELIGIBLE  ENTITIES  UNDER  THIS  SECTION;  PROVIDED,
HOWEVER, THAT ANY FUNDS AWARDED TO AN ELIGIBLE INSTITUTION SHALL ONLY BE
USED TO ADVANCE THE PURPOSES OF THIS SECTION.
  (7)  THE  AGENCY SHALL SUBMIT A REPORT TO THE GOVERNOR, THE SPEAKER OF
THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY, THE TEMPORARY  PRESI-
DENT  OF  THE SENATE, AND THE MINORITY LEADER OF THE SENATE ON OR BEFORE
THE FIRST OF FEBRUARY EACH YEAR. SUCH REPORT SHALL INCLUDE, BUT  NOT  BE
LIMITED TO, A DETAILED DESCRIPTION OF THE USE OF FUNDS BY THE AGENCY FOR
PROGRAMS  UNDER  THIS SECTION, AND OF THE USE OF FUNDS FOR EACH ELIGIBLE
INSTITUTION RECEIVING FUNDS UNDER THIS SECTION.
  S 4. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to be invalid, such judgement shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to  the  clause,  sentence, subdivision, section or part
thereof directly involved in the controversy  in  which  such  judgement
shall  have been rendered. It is hereby declared to be the intent of the
legislature that this act would have been enacted even if  such  invalid
provisions had not been included herein.
  S 5. This act shall take effect immediately.