S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6129
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 28, 2019
                                ___________
 
 Introduced by M. of A. FITZPATRICK, TAGUE -- Multi-Sponsored by -- M. of
   A.  DeSTEFANO, MANKTELOW -- read once and referred to the Committee on
   Housing
 
 AN ACT to amend the public authorities law, in relation  to  authorizing
   the  state  of New York mortgage agency to purchase labor organization
   assisted forward commitment mortgages from banks within the state
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  2402 of the public authorities law is amended by
 adding a new subdivision 18 to read as follows:
   (18) "LABOR ORGANIZATION". ANY ORGANIZATION OF ANY KIND  WHICH  EXISTS
 FOR THE PURPOSE, IN WHOLE OR IN PART, OF REPRESENTING EMPLOYEES EMPLOYED
 WITHIN  THE  STATE  OF  NEW  YORK  IN DEALING WITH EMPLOYERS OR EMPLOYER
 ORGANIZATIONS OR WITH A STATE GOVERNMENT,  OR  ANY  POLITICAL  OR  CIVIL
 SUBDIVISION  OR OTHER AGENCY THEREOF, CONCERNING TERMS AND CONDITIONS OF
 EMPLOYMENT, GRIEVANCES, LABOR DISPUTES, OR OTHER MATTERS  INCIDENTAL  TO
 THE  EMPLOYMENT  RELATIONSHIP,  AND SHALL INCLUDE THE PARENT NATIONAL OR
 INTERNATIONAL ORGANIZATION OF A LOCAL LABOR ORGANIZATION.
   § 2. The public authorities law is amended by  adding  a  new  section
 2405-g to read as follows:
   §  2405-G.  PURCHASE OF LABOR ORGANIZATION ASSISTED FORWARD COMMITMENT
 MORTGAGES. (1) IN ACCORDANCE WITH THE AUTHORITY  SET  FORTH  IN  SECTION
 TWENTY-FOUR  HUNDRED  FIVE-B OF THIS PART, THE AGENCY MAY PURCHASE LABOR
 ORGANIZATION ASSISTED FORWARD COMMITMENT MORTGAGES FROM  BANKS  AT  SUCH
 PRICES  AND  UPON  SUCH  TERMS  AND CONDITIONS AS IT SHALL DETERMINE. IN
 CONDUCTING ITS PROGRAM OF PURCHASING LABOR ORGANIZATION ASSISTED FORWARD
 COMMITMENT MORTGAGES, THE AGENCY SHALL BE GOVERNED BY THE PROVISIONS  OF
 SECTION  TWENTY-FOUR HUNDRED FIVE-B OF THIS PART. THE BOARD OF DIRECTORS
 OF THE AGENCY SHALL ESTABLISH FROM TIME TO TIME MAXIMUM INCOME LIMITS OF
 PERSONS ELIGIBLE TO RECEIVE SUCH MORTGAGES, WHICH  INCOME  LIMITS  SHALL
 NOT EXCEED THE LATEST MAXIMUM INCOME LIMITS PERMITTED UNDER THE INTERNAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05738-01-9

 A. 6129                             2
 
 REVENUE  CODE  OF  1986,  AS AMENDED, FOR MORTGAGES FINANCED BY MORTGAGE
 REVENUE BONDS. A LABOR ORGANIZATION MAY  DEVELOP  ADDITIONAL  QUALIFICA-
 TIONS  FOR  ELIGIBLE MEMBERS BEYOND THOSE QUALIFICATIONS PROVIDED FOR IN
 THIS  SECTION,  PROVIDED THAT SUCH QUALIFICATIONS ARE NON-DISCRIMINATORY
 AND ARE PRE-APPROVED BY THE AGENCY;  THE  LABOR  ORGANIZATION,  HOWEVER,
 SHALL REMAIN SOLELY RESPONSIBLE FOR DETERMINING AND INSURING THE LEGALI-
 TY  OF  SUCH  QUALIFICATIONS  AND  MAY  NOT  RELY ON ANY AGENCY REVIEWS,
 APPROVALS, LEGAL OPINIONS OR STATEMENTS.
   (2) TO PARTICIPATE IN A LABOR ORGANIZATION ASSISTED FORWARD COMMITMENT
 MORTGAGE PROGRAM, A LABOR ORGANIZATION SHALL BE A  BONA  FIDE  UNION  OR
 ASSOCIATION  OF  EMPLOYEES  WHICH  MAINTAINS  AN OFFICE IN THE STATE AND
 SHALL SATISFY THE REQUIREMENTS SET FORTH IN  GUIDELINES  ESTABLISHED  BY
 THE AGENCY.
   (3)  FOR  ANY LABOR ORGANIZATION ASSISTED FORWARD COMMITMENT MORTGAGE,
 THE MAXIMUM LOAN-TO-VALUE RATIO SHALL  BE  ESTABLISHED  BY  THE  AGENCY,
 PROVIDED  THAT  SUCH  LOAN  SHALL  NOT EXCEED ONE HUNDRED PERCENT OF THE
 APPRAISED VALUE OF THE MORTGAGED PREMISES. REASONABLE CLOSING COSTS  FOR
 THE  LOAN  MAY BE AMORTIZED OVER THE LIFE OF THE LOAN, PROVIDED THAT THE
 FINAL LOAN AMOUNT DOES NOT EXCEED ONE HUNDRED PERCENT OF  THE  APPRAISED
 VALUE OF THE MORTGAGED PREMISES.
   (4)  THE  AGENCY SHALL REQUIRE ANY LABOR ORGANIZATION PARTICIPATING IN
 THE LABOR ORGANIZATION ASSISTED FORWARD COMMITMENT MORTGAGE  PROGRAM  TO
 GUARANTEE  TO PAY UP TO TWENTY PERCENT OF THE TOTAL OUTSTANDING MORTGAGE
 INDEBTEDNESS (AS DETERMINED BY THE AGENCY) FOR EACH MEMBER WHO OBTAINS A
 MORTGAGE LOAN UNDER THE PROVISIONS OF THIS SECTION AND WHO  DEFAULTS  ON
 SUCH MORTGAGE LOAN DURING THE FIRST SEVEN YEARS OF SUCH LOAN, REGARDLESS
 OF  WHETHER  SUCH BORROWER IS A MEMBER OF SUCH LABOR ORGANIZATION AT THE
 TIME OF THE DEFAULT.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.