BILL NUMBER:  S4712

 TITLE OF BILL :  An act to amend the real property law, in relation
to including cooperative unit loan dwellings as those eligible for
reverse mortgages for persons seventy years of age or older

 PURPOSE :

To enable owners of co-op apartments, who are over the age of 70, the
ability to obtain reverse mortgages, in a manner similar to the way
such reverse mortgages can be secured by the owner of a one to
four-family owner/occupied residence or condominium unit owner.

 SUMMARY OF PROVISIONS :

Section 1: Amends Real Property Law section 280-a 1(a) to include in
the category of owner occupied residential properties that can obtain
a reverse mortgage, a Coop unit, in addition to the already authorized
owner occupied residential real properties, such as single family
homes, owner occupied town homes, and condominium units. This
expansion in the ability to obtain such a reverse mortgage would be
only for persons who are 70 years of age or older.

 EXISTING LAW :

The current law allows for owners of one to four family residences or
              

condominiums that is the residence of the mortgagor to apply for a
reverse mortgage if the mortgagor is over the age of 65 (see Real
Property Law section 280) and over the age of 70 (see Real Property
Law section 280-a). This provision adds the owners of cooperative
housing units, who are over the age of 70, in the category of those
allowed to apply for reverse mortgages.

 JUSTIFICATION :

This legislation would level the playing field for many senior
citizens who live in New York, many of whom are of low to middle
income, who own their primary residence by means of a cooperative
unit, as opposed to being owned as condominium or one to four family
unit residence. While some estimates state that only about 10% of
national housing units are structured in cooperative units, the
percentage in New York City may be closer to up to 75 percent.
Therefore, the current law on obtaining money via a reverse mortgage
financing plan excludes a large portion of residents who own their
residences in one of the most expensive residential markets in the
nation. Further, this current situation in the law precludes such
persons, over the age of 70, from taking advantage of a financing
program that would allow them to remain in their homes unencumbered by
the fear of eviction or unmet medical or other expenses.

 LEGISLATIVE HISTORY :

2016 - Same as S. 7844 that passed the Senate last year.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.