The New York State Senate

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

                                  8443

                            I N  S E N A T E

                              June 3, 2020
                               ___________

Introduced  by  Sens.  GAUGHRAN,  KAVANAGH,  ADDABBO,  BROOKS, CARLUCCI,
  HARCKHAM, KAMINSKY, KAPLAN, MARTINEZ, MAY, METZGER, SKOUFIS, THOMAS --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Housing, Construction and Community Development

AN  ACT to amend the public housing law, in relation to establishing the
  COVID-19 emergency homeownership stability program

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

  Section  1.  The public housing law is amended by adding a new article
14 to read as follows:
                               ARTICLE 14
           COVID-19 EMERGENCY HOMEOWNERSHIP STABILITY PROGRAM
SECTION 600. DEFINITIONS.
        601. AUTHORITY TO  IMPLEMENT  COVID-19  EMERGENCY  HOMEOWNERSHIP
               STABILITY PROGRAM.
        602. ELIGIBILITY.
        603. TAX LIEN FORECLOSURE.
        604. MORTGAGE FORECLOSURE.
        605. PAYMENT.
  §  600. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "ADJUSTED INCOME" SHALL MEAN INCOME MINUS ANY DEDUCTIONS  ALLOWABLE
AT  THE  DISCRETION  OF  THE  COMMISSIONER  PURSUANT TO THIS SECTION. IN
DETERMINING THE INCOME OF A HOUSEHOLD FOR THE  PURPOSES  OF  THIS  PARA-
GRAPH, INCOME SHALL BE CONSIDERED TO INCLUDE ONLY INCOME THAT THE HOUSE-
HOLD  IS  RECEIVING  AT  THE TIME OF APPLICATION FOR ASSISTANCE FROM THE
PROGRAM AND ANY INCOME RECENTLY TERMINATED SHALL NOT BE INCLUDED, EXCEPT
THAT FOR PURPOSES OF  HOUSEHOLDS  RECEIVING  ASSISTANCE  FOR  ARREARAGES
INCOME  MAY  INCLUDE  THE INCOME THAT THE HOUSEHOLD WAS RECEIVING AT THE
TIME SUCH ARREARAGES WERE INCURRED.
  2. "INCOME" SHALL MEAN INCOME FROM ALL SOURCES OF EACH MEMBER  OF  THE
HOUSEHOLD, INCLUDING ALL WAGES, TIPS, OVERTIME, SALARY, RECURRING GIFTS,
RETURNS  ON  INVESTMENTS,  WELFARE ASSISTANCE, SOCIAL SECURITY PAYMENTS,
CHILD SUPPORT PAYMENTS, UNEMPLOYMENT BENEFITS, ANY BENEFIT,  PAYMENT  OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD16482-01-0

S. 8443                             2

CASH GRANT WHOSE PURPOSE IS TO ASSIST WITH RENTAL PAYMENTS, ANY PAYMENTS
WHOSE  PURPOSE IS TO REPLACE LOST INCOME, AND ANY OTHER GOVERNMENT BENE-
FIT OR CASH GRANT. THE  TERM  "INCOME"  SHALL  NOT  INCLUDE:  EMPLOYMENT
INCOME FROM CHILDREN UNDER EIGHTEEN YEARS OF AGE, EMPLOYMENT INCOME FROM
CHILDREN  EIGHTEEN  YEARS  OF  AGE  OR OLDER WHO ARE FULL-TIME STUDENTS,
FOSTER CARE PAYMENTS, SPORADIC GIFTS, GROCERIES PROVIDED BY PERSONS  NOT
LIVING IN THE HOUSEHOLD, SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENE-
FITS, EARNED INCOME DISREGARD, OR THE EARNED INCOME TAX CREDIT.
  3.  "QUALIFIED  PROPERTY" MEANS RESIDENTIAL REAL PROPERTY OWNED BY THE
HOMEOWNER WHICH IS USED EXCLUSIVELY AS  THE  HOMEOWNER'S  PRIMARY  RESI-
DENCE;  PROVIDED HOWEVER, THAT IN THE EVENT ANY PORTION OF SUCH PROPERTY
IS NOT SO USED EXCLUSIVELY FOR RESIDENTIAL  PURPOSES  BUT  IS  USED  FOR
OTHER  PURPOSES, SUCH PORTION SHALL BE INELIGIBLE FOR THE PAYMENT ESTAB-
LISHED PURSUANT TO THIS SUBDIVISION.
  4. "PROPERTY TAX" SHALL MEAN A TAX LEVIED, OR PORTION OF  THOSE  TAXES
LEVIED,  BY  OR  ON  BEHALF  OF  ANY COUNTY, CITY, TOWN, VILLAGE, SCHOOL
DISTRICT OR SPECIAL DISTRICT ON THE QUALIFIED PROPERTY WHICH IS  ATTRIB-
UTABLE TO THE YEAR TWO THOUSAND TWENTY.
  5.  "MORTGAGOR" SHALL MEAN AN INDIVIDUAL WHO RESIDES IN NEW YORK WHOSE
PRINCIPAL DWELLING IS ENCUMBERED BY A HOME LOAN  PURSUANT  TO  PARAGRAPH
(A)  OF  SUBDIVISION  SIX  OF  SECTION THIRTEEN HUNDRED FOUR OF THE REAL
PROPERTY ACTIONS AND PROCEEDINGS LAW OR WHOSE PRINCIPAL  DWELLING  IS  A
CO-OPERATIVE  UNIT  WHOSE  SHARES  ARE  ENCUMBERED BY ANY LOAN OTHERWISE
MEETING THE REQUIREMENTS OF A HOME LOAN UNDER PARAGRAPH (A) OF  SUBDIVI-
SION  SIX  OF SECTION THIRTEEN HUNDRED FOUR OF THE REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW, FROM OR SERVICED BY A REGULATED INSTITUTION.
  6. "REVERSE MORTGAGE LOAN" SHALL HAVE THE SAME MEANING AS SECTION  TWO
HUNDRED EIGHTY OF THE REAL PROPERTY LAW.
  7. "HOMEOWNER" SHALL MEAN A PERSON OR PERSONS WHO IS A RESIDENT OF THE
STATE  AND  WHO  OWNS AND PRIMARILY RESIDES IN QUALIFIED PROPERTY WITHIN
THE STATE.
  8. "HOMEOWNERSHIP PAYMENTS"  SHALL  MEAN  MORTGAGE  PAYMENTS,  REVERSE
MORTGAGE  PAYMENTS,  PROPERTY  TAXES,  HAZARD  INSURANCE PAYMENTS, FLOOD
INSURANCE PAYMENTS, MORTGAGE INSURANCE PAYMENTS, HOMEOWNERS' ASSOCIATION
FEES, CONDOMINIUM COMMON CHARGES,  OR  UTILITY  PAYMENTS.  HOMEOWNERSHIP
PAYMENTS  SHALL NOT INCLUDE: ANY MORTGAGE PAYMENTS THAT HAVE BEEN PLACED
IN FORBEARANCE AT THE TIME OF APPLICATION IF  SUCH  FORBEARANCE  EXTENDS
BEYOND THE COVERED PERIOD.
  9.  "UTILITY"  SHALL  MEAN ELECTRIC, GAS, WATER, AND INTERNET SERVICE,
INCLUDING BROADBAND INTERNET ACCESS SERVICE.
  10. "FAIR MARKET RENT" SHALL MEAN THE FAIR MARKET RENT FOR EACH RENTAL
AREA AS PROMULGATED ANNUALLY BY THE UNITED STATES DEPARTMENT OF  HOUSING
AND URBAN DEVELOPMENT'S OFFICE OF POLICY DEVELOPMENT AND RESEARCH PURSU-
ANT TO 42 U.S.C. 1437(F).
  11.  "COMMISSIONER"  SHALL MEAN THE COMMISSIONER OF NEW YORK HOMES AND
COMMUNITY RENEWAL AND ITS SUBSIDIARY, THE HOUSING FINANCE AGENCY.
  12. "COVERED PERIOD" MEANS THE PERIOD DURING  WHICH  THE  RESTRICTIONS
CONSTITUTING  NEW  YORK  ON PAUSE, AS DEFINED BY EXECUTIVE ORDER 202.31,
APPLIED IN THE COUNTY OF THE HOMEOWNER'S RESIDENCE.
  § 601.    AUTHORITY  TO  IMPLEMENT  COVID-19  EMERGENCY  HOMEOWNERSHIP
STABILITY PROGRAM.  THE COMMISSIONER, AS SOON AS PRACTICABLE AND SUBJECT
TO  THE  DISBURSEMENT OF FEDERAL FUNDS EXPRESSLY FOR THIS PURPOSE TO THE
HOUSING FINANCE AGENCY, SHALL IMPLEMENT AN EMERGENCY COVID-19 HOMEOWNER-
SHIP STABILITY PROGRAM. THE COMMISSIONER MAY DELEGATE THE ADMINISTRATION
OF PORTIONS OF THIS PROGRAM TO ANY STATE AGENCY, CITY, COUNTY, TOWN,  OR
NON-PROFIT  ORGANIZATION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTI-

S. 8443                             3

CLE. THE HOUSING FINANCE AGENCY, OR THE AGENCY, GOVERNMENTAL ENTITY,  OR
ORGANIZATION SO DESIGNATED BY THE COMMISSIONER, SHALL ISSUE AN EMERGENCY
HOMEOWNERSHIP PAYMENT DIRECTLY TO THE ELIGIBLE HOMEOWNER.
  §  602.  ELIGIBILITY.  THE COMMISSIONER SHALL PROMULGATE STANDARDS FOR
DETERMINING ELIGIBILITY FOR THIS PROGRAM. A HOMEOWNER SHALL BE  ELIGIBLE
FOR THIS PROGRAM IF:
  1. THE HOMEOWNER, DURING THE COVERED PERIOD:
  (A) APPLIED AND QUALIFIED FOR UNEMPLOYMENT INSURANCE BENEFITS; OR
  (B)  EXPERIENCED  A  SIGNIFICANT  LOSS  OF INCOME AS DETERMINED BY THE
DEPARTMENT OF  TAXATION  AND  FINANCE  OR  AS  DETERMINED  IN  A  MANNER
PRESCRIBED BY THE COMMISSIONER; AND
  (C)  THE SUM TOTAL OF ALL HOMEOWNERSHIP PAYMENTS THAT CAME DUE OR WILL
BE OWED DURING THE COVERED PERIOD IS  GREATER  THAN  THIRTY  PERCENT  OF
ANNUALIZED  ADJUSTED  INCOME  AS  PRO-RATED BY THE LENGTH OF THE COVERED
PERIOD.
  2. IN ADDITION TO THE ELIGIBILITY CRITERIA ABOVE, THE COMMISSIONER MAY
PROMULGATE LIMITS ON ASSETS AS PART OF ANY DETERMINATION OF  ELIGIBILITY
FOR THIS PROGRAM.
  3. A HOMEOWNER SHALL NOT BE ELIGIBLE FOR THIS PROGRAM IF THEIR CURRENT
ANNUALIZED INCOME IS AN AMOUNT EQUAL TO OR GREATER THAN THEIR INCOME FOR
THE YEAR TWO THOUSAND NINETEEN.
  4.  ANY  AMBIGUITY  IN ELIGIBILITY CRITERIA PROMULGATED BY THE COMMIS-
SIONER SHALL BE RESOLVED IN FAVOR  OF  THE  APPLICANT  WHEN  DETERMINING
ELIGIBILITY.
  5.    NOT  LESS THAN SIXTY PERCENT OF THE AMOUNT MADE AVAILABLE TO THE
STATE SHALL BE USED FOR EMERGENCY  HOMEOWNERSHIP  PAYMENTS  THAT  ASSIST
HOMEOWNERS  HAVING  INCOMES  EQUAL TO OR LESS THAN EIGHTY PERCENT OF THE
AREA MEDIAN INCOME.
  6. THE COMMISSIONER MAY ESTABLISH PREFERENCE  IN  PROCESSING  APPLICA-
TIONS  FOR  THIS PAYMENT.  SUCH PREFERENCE MAY INCLUDE ANY OR ALL OF THE
FOLLOWING:
  (A) THE HOMEOWNER'S HISTORICAL INCOME LEVEL PRIOR TO THE COVERED PERI-
OD AS IT RELATES TO THE AREA MEDIAN INCOME;
  (B) THE HOMEOWNER'S CURRENT INCOME AS IT RELATES TO  THE  AREA  MEDIAN
INCOME;
  (C) THE TAXPAYER'S PROPERTY TAX BURDEN;
  (D) THE PERCENTAGE OF INCOME THE HOMEOWNER LOST;
  (E) THE HOMEOWNER'S STATUS AS A VICTIM OF DOMESTIC VIOLENCE; AND
  (F)  THE  CURRENT INCOME OF ANY ADDITIONAL PARTIES ON THE DEED FOR THE
QUALIFIED PROPERTY WHO ARE NOT HOMEOWNERS AS  DEFINED  IN  THIS  SECTION
AND,  TO  THE  EXTENT  THAT  ANY MORTGAGE PAYMENTS ARE CONSIDERED IN THE
TOTAL SUM REACHED IN PARAGRAPH (B)  OF  THIS  SUBDIVISION,  THE  CURRENT
INCOME OF ANY ADDITIONAL PARTIES TO THE MORTGAGE.
  §  603. TAX LIEN FORECLOSURE.  NOTWITHSTANDING ANY PROVISION OF LAW TO
THE CONTRARY, A TAX LIEN FORECLOSURE INITIATED PURSUANT TO ARTICLE ELEV-
EN OF THE REAL PROPERTY TAX LAW WHICH INCLUDES UNPAID  TAXES  THAT  CAME
DUE  DURING  THE  COVERED PERIOD CANNOT BE COMMENCED AGAINST A HOMEOWNER
WHO HAS APPLIED FOR THIS PROGRAM UNLESS OR UNTIL A  FINAL  DETERMINATION
OF  INELIGIBILITY  HAS BEEN ISSUED.   THE ACTION MAY PROCEED NINETY DAYS
AFTER THE DETERMINATION OF INELIGIBILITY OR AFTER PAYMENT IS RELEASED BY
THE HOUSING FINANCE AGENCY.
  § 604. MORTGAGE FORECLOSURE. NOTWITHSTANDING ANY PROVISION OF  LAW  TO
THE  CONTRARY,  A  MORTGAGE  FORECLOSURE  ON  A  HOME LOAN AS DEFINED BY
SECTION  THIRTEEN  HUNDRED  FOUR  OF  THE  REAL  PROPERTY  ACTIONS   AND
PROCEEDINGS  LAW  WHICH  INCLUDES UNPAID MORTGAGE PAYMENTS THAT CAME DUE
DURING THE COVERED PERIOD CANNOT BE COMMENCED OR PROCEED AGAINST A HOME-

S. 8443                             4

OWNER WHO HAS APPLIED FOR THIS PROGRAM UNLESS OR UNTIL A FINAL  DETERMI-
NATION  OF INELIGIBILITY HAS BEEN ISSUED.  THE ACTION MAY PROCEED NINETY
DAYS AFTER THE  DETERMINATION  OF  INELIGIBILITY  OR  AFTER  PAYMENT  IS
RELEASED BY THE HOUSING FINANCE AGENCY.
  §  605.  PAYMENT.  THE EMERGENCY HOMEOWNERSHIP PAYMENT SHALL BE A ONE-
TIME PAYMENT PAID DIRECTLY TO THE HOMEOWNER.  THE  AMOUNT  OF  EMERGENCY
HOMEOWNERSHIP PAYMENT SHALL BE THE LESSER OF:
  1. THE DIFFERENCE BETWEEN THE SUM OF HOMEOWNERSHIP PAYMENTS DUE PURSU-
ANT  TO  SECTION SIX HUNDRED THREE OF THIS ARTICLE AND THIRTY PERCENT OF
THE CURRENT ANNUALIZED ADJUSTED INCOME AS PRO-RATED BY THE  DURATION  OF
THE COVERED PERIOD; OR
  2. THE DIFFERENCE BETWEEN TWO HUNDRED FIFTY PERCENT OF THE FAIR MARKET
RENT  FOR THE AREA AND THIRTY PERCENT OF THE CURRENT ANNUALIZED ADJUSTED
INCOME AS PRO-RATED BY THE DURATION OF THE COVERED PERIOD.
  § 2. 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 judgment shall not affect,
impair, or invalidate the remainder of this act, but shall  be  confined
in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
section or part of this act directly  involved  in  the  controversy  in
which  such  judgment 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 clause, sentence, paragraph, subdivision, section
or part had not been included herein.
  § 3. This act shall take effect immediately.