S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3169
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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 private housing finance law, in relation to enacting
   the  "home  mortgage bridge loan assistance act of 2021"; and to amend
   the state finance law, in relation to establishing the  home  mortgage
   bridge loan assistance fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The private housing finance law is amended by adding a new
 article 28 to read as follows:
                                ARTICLE 28
                         HOME MORTGAGE BRIDGE LOAN
                                ASSISTANCE
 SECTION 1250. SHORT TITLE.
         1251. LEGISLATIVE FINDINGS AND PURPOSE.
         1252. DEFINITIONS.
         1253. HOME MORTGAGE BRIDGE LOAN ASSISTANCE.
         1254. NOTICE, TIMING AND STAY OF PROCEEDING REQUIREMENTS.
         1255. ELIGIBILITY.
         1256. TEMPORARY PAYMENTS OF ASSISTANCE.
   § 1250.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED  AS
 THE "HOME MORTGAGE BRIDGE LOAN ASSISTANCE ACT OF 2021".
   §  1251.  LEGISLATIVE FINDINGS AND PURPOSE. (1) FINDINGS. THE LEGISLA-
 TURE HEREBY FINDS AND DECLARES THAT:
   (A) THIS STATE AND THE UNITED STATES HAVE EXPERIENCED THE COLLAPSE  OF
 A  SIZEABLE  PRIMARY  AND  SECONDARY REAL ESTATE MARKET BUBBLE WHICH FEW
 FORESAW AND MANY NOW SUFFER THE WEALTH DESTRUCTIVE EFFECTS OF;
   (B) THIS STATE AND THE UNITED STATES ARE IN CONSEQUENCE NOW  SUFFERING
 AN  ECONOMIC  SLOWDOWN  AS  CONSUMERS TRIM SPENDING AND CONCENTRATE UPON
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04759-01-1
              

 S. 3169                             2
 
 PAYING DOWN DEBT, WHILE FINANCIAL INSTITUTIONS AND OTHER BUSINESS  FIRMS
 TRIM INVESTMENT EXPENDITURES PENDING A RETURN OF CONSUMER SPENDING;
   (C)  THE ECONOMIC SLOWDOWN AFFLICTING THIS STATE AND THE UNITED STATES
 HAS DRIVEN LARGE NUMBERS OF RESIDENTS INTO TEMPORARY  INVOLUNTARY  UNEM-
 PLOYMENT  OR  UNDEREMPLOYMENT,  THEREBY  LOWERING  INCOMES, SPENDING AND
 INVESTMENT YET FURTHER, WHILE  RENDERING  DEBT  PAYMENT  CORRESPONDINGLY
 MORE DIFFICULT FOR MANY;
   (D) THERE IS IN CONSEQUENCE A DANGER THAT MANY OTHERWISE CREDIT WORTHY
 HOMEOWNERS' CAPACITY TO REMAIN CURRENT ON MORTGAGE PAYMENTS WILL DETERI-
 ORATE  YET  FURTHER,  RESULTING  IN  WIDESPREAD DEFAULT, MULTIPLE COSTLY
 FORECLOSURE PROCEEDINGS, DISTRESS SALES  OF  HOMES,  CONSEQUENT  FURTHER
 DISTRESS TO FINANCIAL INSTITUTIONS' BALANCE SHEETS AND SOLVENCY, GROWING
 RATES  OF AVOIDABLE HOMELESSNESS, AND SIGNIFICANT DETERIORATION OF ABAN-
 DONED HOUSING STOCK AND NEIGHBORHOODS;
   (E) FORECLOSED HOMES, ABANDONED HOUSING STOCK AND CONSEQUENTLY DETERI-
 ORATING BUILDINGS AND NEIGHBORHOODS NOT ONLY DETRIMENTALLY AFFECT  THOSE
 WHO  NEEDLESSLY  LOSE  THEIR  HOMES  AND THE NEIGHBORHOODS IN WHICH THEY
 RESIDE, BUT ALSO DRAIN WEALTH  FROM  OTHERWISE  HEALTHY  LENDING  INSTI-
 TUTIONS  AND NON-DISTRESSED HOME MORTGAGE BORROWERS, THEREBY HARMING THE
 HEALTH OF THE BROADER ECONOMY YET FURTHER;
   (F) WHILE THE CURRENT ECONOMIC  CRISIS  DEMANDS  IMMEDIATE  ACTION  TO
 AVOID UNNECESSARY FORECLOSURES, HELP REVITALIZE AND STABILIZE OUR COMMU-
 NITIES  AND  REINVIGORATE  MORTGAGE LENDING, BUSINESS CYCLES ARE PART OF
 THE ECONOMIC FABRIC OF THE STATE AND THE NATION AND THEREFORE, A  TEMPO-
 RARY  BRIDGE LOAN MORTGAGE PAYMENT ASSISTANCE PROGRAM WOULD BENEFIT HOME
 MORTGAGE BORROWERS, LENDERS AND NEIGHBORHOODS NOT ONLY  IN  THE  CURRENT
 DOWNTURN, BUT ALSO IN FUTURE CONVENTIONAL ECONOMIC DOWNTURNS;
   (G) EMPIRICAL EVIDENCE REVEALS THAT MANY TEMPORARILY TROUBLED MORTGAGE
 BORROWERS  PROVE  ABLE TO RETAIN THEIR HOMES AND PAY OFF THEIR MORTGAGES
 WITHOUT MODIFICATION WHEN OFFERED BRIDGE LOAN ASSISTANCE  UNTIL  BROADER
 ECONOMIC  CONDITIONS IMPROVE, THEREBY STAVING OFF GROWING DEFAULT, FORE-
 CLOSURE, HOMELESSNESS AND NEIGHBORHOOD DETERIORATION RATES, AS  WELL  AS
 YET FURTHER WORSENING OF ECONOMIC CONDITIONS;
   (H) TEMPORARY BRIDGE LOAN MORTGAGE ASSISTANCE PROGRAMS HAVE ACCORDING-
 LY  PROVED  HIGHLY  SUCCESSFUL  IN COST EFFECTIVELY LIMITING FORECLOSURE
 RATES AND ATTENDANT ECONOMIC AND SOCIAL ILLS  IN  SEVERAL  STATES,  MOST
 NOTABLY IN PENNSYLVANIA, CONNECTICUT, MARYLAND AND NEVADA; AND
   (I)  A  TEMPORARY  BRIDGE  LOAN MORTGAGE PAYMENT ASSISTANCE PROGRAM IS
 HIGHLY LIKELY TO REDOUND IN A COST EFFECTIVE MANNER TO  THE  BENEFIT  OF
 HOME  MORTGAGE BORROWERS, LENDERS, NEIGHBORHOODS, AND THE BROADER PUBLIC
 OF THIS STATE.
   2. PURPOSE. THE LEGISLATURE DECLARES THAT THE PURPOSE OF THIS  ARTICLE
 SHALL BE TO ESTABLISH A PROGRAM TO AFFORD BRIDGE LOAN ASSISTANCE TO HOME
 MORTGAGE  DEBTORS  FACING TEMPORARY DIFFICULTIES IN REMAINING CURRENT ON
 MORTGAGE LOAN PAYMENTS THROUGH NO FAULT OF THEIR OWN SO AS TO AVOID MANY
 AVOIDABLE PUBLIC AND PRIVATE ILLS.
   § 1252.  DEFINITIONS.  AS USED IN THIS ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "COMMISSIONER"  MEANS  THE  COMMISSIONER  OF HOUSING AND COMMUNITY
 RENEWAL.
   2. "DIVISION" MEANS THE DIVISION OF HOUSING AND COMMUNITY RENEWAL.
   3.  "EVENT"  MEANS  A  QUALIFYING  FINANCIAL   HARDSHIP   BEYOND   THE
 MORTGAGOR'S  CONTROL AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION THREE OF
 SECTION TWELVE HUNDRED FIFTY-THREE OF THIS ARTICLE.
   4. "GROSS HOUSEHOLD INCOME" MEANS THE SUM OF THE INCOMES OF THE APPLI-
 CANT, HIS OR HER SPOUSE AND CHILDREN RESIDING IN THE SAME  HOUSEHOLD  AS

 S. 3169                             3
 
 THE  APPLICANT,  AS  WELL  AS  THE INCOMES OF ANY OTHER RESIDENTS OF THE
 HOUSEHOLD DECLARED  BY  THE  APPLICANT  TO  BE  DEPENDENTS  FOR  FEDERAL
 PERSONAL  INCOME  TAXATION PURPOSES. INCLUDED IN SUCH TERM ARE ALL FORMS
 OF  MONETARY  ASSISTANCE  RECEIVED  BY  SUCH  MEMBERS OF THE APPLICANT'S
 HOUSEHOLD.
   5. "NET EFFECTIVE INCOME" MEANS AN APPLICANT'S GROSS HOUSEHOLD  INCOME
 LESS LOCAL, STATE AND FEDERAL INCOME AND SOCIAL SECURITY TAXES.
   6.  "TOTAL  HOUSING EXPENSES" MEANS THE SUM OF THE MORTGAGOR'S MONTHLY
 MORTGAGE PAYMENTS, INCLUDING ESCROWS,  UTILITY  COSTS,  PROPERTY  HAZARD
 INSURANCE PREMIUMS, REAL PROPERTY TAXES AND HOMEOWNER'S FEES IMPOSED FOR
 THE MAINTENANCE OF ANY COMMON AREAS.
   §  1253.  HOME  MORTGAGE BRIDGE LOAN ASSISTANCE. 1. AUTHORITY. (A) THE
 COMMISSIONER SHALL ESTABLISH, WITHIN THE DIVISION, A PROGRAM  TO  AFFORD
 TEMPORARY  SUPPLEMENTAL  MORTGAGE  PAYMENTS OF APPROVED MORTGAGORS. SUCH
 PROGRAM SHALL BE  CALLED  THE  "HOME  MORTGAGE  BRIDGE  LOAN  ASSISTANCE
 PROGRAM".  THE  ASSISTANCE  PROVIDED  PURSUANT  TO THIS ARTICLE SHALL BE
 CALLED "HOME MORTGAGE BRIDGE LOAN ASSISTANCE".
   (B) THE COMMISSIONER SHALL PROMULGATE SUCH RULES AND FORMS AS SHALL BE
 NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE, AND SHALL PUBLISH
 AND ENFORCE SUCH RULES.
   (C) THE AGGREGATE AMOUNT  OF  HOME  MORTGAGE  BRIDGE  LOAN  ASSISTANCE
 PROVIDED  TO  ANY  MORTGAGOR SHALL NOT EXCEED SIXTY THOUSAND DOLLARS, OR
 EXTEND BEYOND TWENTY-FOUR OR THIRTY-SIX MONTHS, AND SHALL ULTIMATELY  BE
 RECOVERED FROM BENEFICIARIES AFTER THEIR EMPLOYMENT RESUMES, AS PROVIDED
 PURSUANT TO THIS ARTICLE.
   (D)  THE  DIVISION  IS AUTHORIZED TO PROVIDE HOME MORTGAGE BRIDGE LOAN
 ASSISTANCE PURSUANT TO THIS ARTICLE ONLY AT SUCH TIME AS FUNDS HAVE BEEN
 APPROPRIATED OR MADE AVAILABLE FOR THE HOME MORTGAGE BRIDGE LOAN ASSIST-
 ANCE PROGRAM.
   2. ELIGIBLE MORTGAGES. EXCEPT AS  OTHERWISE  PROVIDED  IN  SUBDIVISION
 FOUR  OF  SECTION TWELVE HUNDRED FIFTY-FOUR OF THIS ARTICLE THE DIVISION
 SHALL MAKE HOME  MORTGAGE  BRIDGE  LOAN  ASSISTANCE  AVAILABLE  FOR  THE
 PAYMENT  OF MORTGAGES ONLY ON ONE, TWO, THREE AND FOUR FAMILY RESIDENCES
 AND FOR SINGLE FAMILY RESIDENCES IN CONDOMINIUMS,  HOUSING  COOPERATIVES
 OR MANUFACTURED HOMES IN CONNECTION WITH WHICH:
   (A) THE MORTGAGED PROPERTY IS THE MORTGAGOR'S PRINCIPAL PLACE OF RESI-
 DENCE;
   (B) THE MORTGAGED PROPERTY IS LOCATED IN THIS STATE;
   (C)  THE  MORTGAGOR,  PRIOR  TO THE OCCURRENCE OF AN EVENT HAD A TOTAL
 PRE-EVENT INCOME THAT WAS LESS THAN ONE HUNDRED TWENTY  PERCENT  OF  THE
 MEDIAN  FAMILY INCOME FOR THE METROPOLITAN STATISTICAL AREA OR STATEWIDE
 NONMETROPOLITAN AREA WHERE THE PROPERTY IS  LOCATED,  AS  MOST  RECENTLY
 DETERMINED AND PUBLISHED BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOP-
 MENT;
   (D)  THE  MORTGAGOR  DOES  NOT  OWN OTHER RESIDENTIAL PROPERTY THAT IS
 SUBJECT TO A MORTGAGE LIEN;
   (E) THE MORTGAGEE HAS GIVEN THE MORTGAGOR NOTICE, PURSUANT TO  SECTION
 TWELVE  HUNDRED FIFTY-FOUR OF THIS ARTICLE, THAT IT INTENDS TO FORECLOSE
 ON THE MORTGAGE;
   (F) THE MORTGAGOR HAS APPLIED TO THE DIVISION FOR ASSISTANCE  PURSUANT
 TO SECTION TWELVE HUNDRED FIFTY-FIVE OF THIS ARTICLE;
   (G)  AT  LEAST  TWO FULL MONTHLY INSTALLMENTS DUE UPON THE MORTGAGOR'S
 MORTGAGE REMAIN UNPAID AFTER APPLICATION OF ANY  PARTIAL  PAYMENTS  THAT
 MIGHT  HAVE  BEEN  ACCEPTED  BY THE MORTGAGEE BUT NOT YET APPLIED TO THE
 MORTGAGOR'S ACCOUNT;

 S. 3169                             4
 
   (H) THE MORTGAGOR IS SUFFERING TEMPORARY FINANCIAL HARDSHIP  OWING  TO
 CIRCUMSTANCES BEYOND HIS OR HER CONTROL, AS DEFINED IN SUBDIVISION THREE
 OF  THIS SECTION, WHICH RENDERS THE MORTGAGOR UNABLE TO BRING HIS OR HER
 ACCOUNT CURRENT WITHIN THE SIXTY DAY PERIOD COMMENCING WITH  RECEIPT  OF
 THE MORTGAGEE'S NOTICE OF INTENTION TO FORECLOSE;
   (I)  THE  MORTGAGOR  HAS NOT BEEN MORE THAN SIXTY DAYS DELINQUENT ON A
 RESIDENTIAL MORTGAGE WITHIN THE FIVE-YEAR INTERVAL PRECEDING THE  DELIN-
 QUENCY  OR  THE FILING FOR UNEMPLOYMENT INSURANCE UNDER SUBDIVISION FOUR
 OF SECTION TWELVE HUNDRED FIFTY-FOUR OF THIS ARTICLE IN CONNECTION  WITH
 WHICH  ASSISTANCE  IS  REQUESTED  OF  THE DIVISION, UNLESS THE MORTGAGOR
 DEMONSTRATES THAT THE PRIOR DELINQUENCY ALSO RESULTED FROM AN EVENT; AND
   (J) THERE IS A REASONABLE LIKELIHOOD THAT THE MORTGAGOR WILL  BE  ABLE
 TO  RESUME  FULL MORTGAGE PAYMENTS NOT LATER THAN TWENTY-FOUR MONTHS (OR
 NOT LATER THAN THIRTY-SIX MONTHS, IN PERIODS OF  HIGH  UNEMPLOYMENT,  AS
 DETERMINED FROM TIME-TO-TIME BY THE COMMISSIONER) AFTER THE COMMENCEMENT
 OF  HOME MORTGAGE BRIDGE LOAN ASSISTANCE PAYMENTS BY THE DIVISION TO THE
 MORTGAGEE, AND THAT THE MORTGAGOR WILL PAY THE MORTGAGE IN  FULL  EITHER
 BY ITS MATURITY DATE OR BY A LATER DATE AGREED TO WITH THE MORTGAGEE.
   3.  TEMPORARY  FINANCIAL  HARDSHIP  BEYOND  CONTROL  OF MORTGAGOR. THE
 COMMISSIONER SHALL  DETERMINE  WHETHER  THAT  FINANCIAL  HARDSHIP  WHICH
 IMPEDES  TIMELY MORTGAGE PAYMENT MAY BE TEMPORARY AND BEYOND THE CONTROL
 OF THE MORTGAGOR BY REFERENCE TO VERIFIED IMPEDIMENTS.
   (A) QUALIFYING FINANCIAL  HARDSHIP  BEYOND  THE  MORTGAGOR'S  CONTROL.
 CIRCUMSTANCES  BEYOND THE MORTGAGOR'S CONTROL, NOT INCLUDING TERMINATION
 FROM PAID EMPLOYMENT, WHICH RESULT IN FINANCIAL HARDSHIP TO THE  MORTGA-
 GOR INCLUDE:
   (I) INVOLUNTARY LOSS OF EMPLOYMENT BY THE MORTGAGOR;
   (II)  INVOLUNTARY  REDUCTION  OF SALARY, WAGE OR OTHER EARNINGS ON THE
 PART OF THE MORTGAGOR; OR
   (III) ANY OTHER FINANCIAL HARDSHIP  DETERMINED  BY  REGULATION  TO  BE
 BEYOND THE MORTGAGOR'S CONTROL.
   (B)  DETERMINATION  AS TO WHETHER FINANCIAL HARDSHIP MAY BE TEMPORARY.
 FACTORS THAT THE COMMISSIONER SHALL CONSIDER WHEN EVALUATING WHETHER THE
 MORTGAGOR HAS A REASONABLE PROSPECT OF RESUMING FULL  MORTGAGE  PAYMENTS
 WITHIN  TWENTY-FOUR  OR THIRTY-SIX MONTHS, FROM THE COMMENCEMENT OF HOME
 MORTGAGE BRIDGE LOAN ASSISTANCE PAYMENTS, AND OF BEING ABLE TO  PAY  THE
 MORTGAGE IN FULL BY MATURITY OR BY A LATER DATE AGREED TO BY THE MORTGA-
 GEE INCLUDE:
   (I)  PRIOR  WORK  HISTORY,  EXPERIENCE,  TRAINING,  OPPORTUNITIES  FOR
 RETRAINING AND SIMILAR FACTORS WHICH MAY AFFECT FUTURE EMPLOYMENT OPPOR-
 TUNITIES;
   (II) DEBT REDUCTION OR OTHER INCOME CHANGES SUFFICIENT TO  ENABLE  THE
 MORTGAGOR TO RESUME FULL MORTGAGE PAYMENTS;
   (III)  NONCASH  BENEFITS  THAT  MAY REDUCE HOUSEHOLD EXPENSES, SUCH AS
 FOOD STAMPS OR FREE MEDICAL SERVICES FOR MILITARY  OR  LOW-INCOME  FAMI-
 LIES;
   (IV)  CHANGES  IN INCOME OR RECURRING EXPENSES THAT MAY BE AFFECTED BY
 CHANGES IN THE AGE, COMPOSITION OR EMPLOYMENT OF MEMBERS OF  THE  HOUSE-
 HOLD;
   (V) POTENTIAL FOR REPAYMENT OF SHORT-TERM OR INSTALLMENT DEBT;
   (VI) DELINQUENCIES IN OTHER DEBTS WHICH SERIOUSLY JEOPARDIZE CONTINUED
 OWNERSHIP  OF  THE  HOME, WHICH CANNOT BE CURED BY A MORTGAGE ASSISTANCE
 LOAN;
   (VII) A FAVORABLE WORK AND CREDIT HISTORY;
   (VIII) A HISTORY OF TIMELY MORTGAGE PAYMENTS WHEN EMPLOYED;
   (IX) LACK OF AN IMPEDIMENT OR DISABILITY THAT PREVENTS REEMPLOYMENT;

 S. 3169                             5
 
   (X) EVIDENCE THAT THE MORTGAGOR IS ACTIVELY SEEKING WORK; AND
   (XI)  ANY  OTHER  CONSIDERATION  DETERMINED  BY THE COMMISSIONER TO BE
 RELEVANT TO EVALUATING WHETHER THE  MORTGAGOR'S  FINANCIAL  HARDSHIP  IS
 TEMPORARY.
   §  1254.  NOTICE,  TIMING  AND  STAY  OF PROCEEDING REQUIREMENTS.   1.
 REQUIREMENTS.  NO MORTGAGEE OR AGENT THEREOF, OR ANY MORTGAGE  SERVICER,
 MAY  ACCELERATE  ANY ELIGIBLE MORTGAGE OBLIGATION AS DEFINED IN SUBDIVI-
 SION TWO OF SECTION TWELVE  HUNDRED  FIFTY-THREE  OF  THIS  ARTICLE,  OR
 COMMENCE ANY LEGAL ACTION, INCLUDING MORTGAGE FORECLOSURE, TO RECOVER ON
 SUCH OBLIGATION, OR TAKE POSSESSION OF ANY SECURITY OF THE MORTGAGOR FOR
 SUCH  MORTGAGE  OBLIGATION,  UNTIL:  (A)  THE  MORTGAGOR  IS NOTIFIED AS
 PRESCRIBED IN SUBDIVISION TWO OF THIS SECTION, PURSUANT TO SUCH FORM AND
 IN SUCH MANNER AS THE COMMISSIONER SHALL PRESCRIBE BY RULE; AND (B)  THE
 COMMISSIONER HAS MADE A DETERMINATION NOT TO EXTEND HOME MORTGAGE BRIDGE
 LOAN  ASSISTANCE,  OR  UNTIL  THE  APPLICABLE TIME PERIODS PRESCRIBED IN
 SUBDIVISIONS TWO AND THREE OF THIS SECTION HAVE  EXPIRED,  WHICHEVER  IS
 EARLIER.
   2.  TIMING AND NOTICE REQUIREMENTS.  (A) TIMING. NO MORTGAGEE OR AGENT
 THEREOF, OR ANY MORTGAGE SERVICER, MAY ACCELERATE ANY ELIGIBLE  MORTGAGE
 OBLIGATION  AS  DEFINED  IN  SUBDIVISION  TWO  OF SECTION TWELVE HUNDRED
 FIFTY-THREE OF THIS ARTICLE, OR COMMENCE  ANY  LEGAL  ACTION,  INCLUDING
 MORTGAGE  FORECLOSURE, TO RECOVER ON SUCH OBLIGATION, OR TAKE POSSESSION
 OF ANY SECURITY OF THE MORTGAGOR FOR SUCH MORTGAGE OBLIGATION, UNTIL THE
 MORTGAGOR IS AT LEAST SIXTY DAYS CONTRACTUALLY DELINQUENT IN MAKING  HIS
 OR  HER  MORTGAGE  PAYMENTS,  OR  IN VIOLATION OF SOME OTHER CONTRACTUAL
 PROVISION OF SUCH MORTGAGE.
   (B) NOTICE. ANY MORTGAGEE OR AGENT THEREOF, OR ANY MORTGAGE  SERVICER,
 BEFORE  ACCELERATING  ANY  ELIGIBLE  MORTGAGE  OBLIGATION  AS DEFINED IN
 SUBDIVISION TWO OF SECTION TWELVE HUNDRED FIFTY-THREE OF  THIS  ARTICLE,
 OR  COMMENCING  ANY  LEGAL  ACTION,  INCLUDING  MORTGAGE FORECLOSURE, TO
 RECOVER ON SUCH OBLIGATION, OR TAKING POSSESSION OF ANY SECURITY OF  THE
 MORTGAGOR  FOR SUCH MORTGAGE OBLIGATION, SHALL, IN ADDITION TO COMPLYING
 WITH THE REQUIREMENTS PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION  AND
 PARAGRAPH  (A)  OF  THIS  SUBDIVISION,  COMPLY WITH THE FOLLOWING NOTICE
 REQUIREMENTS:
   (I) NOTICE SHALL BE GIVEN BY A UNIFORM NOTICE FORM,  APPLICATION  FORM
 AND  BY  ANY  OTHER  DOCUMENTATION  CONCERNING HOME MORTGAGE BRIDGE LOAN
 ASSISTANCE, TO BE PREPARED BY THE COMMISSIONER;
   (II) THE NOTICE, WHICH MAY BE PROVIDED BY (A) FIRST CLASS MAIL OR  (B)
 IN  ANY OTHER MANNER AGREED TO BY THE MORTGAGOR IN WRITING, SHALL ADVISE
 THE MORTGAGOR OF HIS OR HER DELINQUENCY OR OTHER DEFAULT UNDER THE MORT-
 GAGE;
   (III) THE NOTICE SHALL ADVISE THE MORTGAGOR THAT HE OR SHE HAS  THIRTY
 CALENDAR  DAYS  FROM  THE DATE OF THE NOTICE TO MEET FACE-TO-FACE WITH A
 DESIGNATED CONSUMER CREDIT COUNSELING AGENCY DESIGNATED BY  THE  COMMIS-
 SIONER,  WITH A VIEW TO RESOLVING THE DELINQUENCY OR DEFAULT BY RESTRUC-
 TURING THE LOAN PAYMENT SCHEDULE OR IN SOME OTHER MANNER THROUGH NEGOTI-
 ATIONS WITH THE MORTGAGEE OR ITS SERVICER OR OTHER AGENT  WHO  HAS  SENT
 THE NOTICE; AND
   (IV)  THE  NOTICE SHALL ADVISE THE MORTGAGOR THAT, SHOULD HE OR SHE BE
 UNABLE TO RESOLVE THE DELINQUENCY OR DEFAULT WITHIN THIRTY CALENDAR DAYS
 OF THE FIRST CONTACT MADE WITH THE CONSUMER COUNSELING AGENCY, AND  WISH
 TO  BE  CONSIDERED  FOR HOME MORTGAGE BRIDGE LOAN ASSISTANCE PURSUANT TO
 THIS ARTICLE, HE OR SHE MUST APPLY FOR SUCH ASSISTANCE NO LATER THAN TEN
 CALENDAR DAYS FROM THE END OF SAID THIRTY DAY PERIOD, TO THE DIVISION AT

 S. 3169                             6
 
 EITHER AN ADDRESS, INCLUDING AN EMAIL ADDRESS, OR  A  TELEPHONE  NUMBER,
 BOTH TO BE PROVIDED IN THE NOTICE ITSELF, TO BE CONSIDERED.
   3.  MORTGAGOR'S  RECEIPT  OF DEFAULT NOTICE.   (A) THE CONSUMER CREDIT
 COUNSELING AGENCY SHALL PROMPTLY NOTIFY ANY AND ALL  MORTGAGEES  SECURED
 BY THE MORTGAGOR'S REAL PROPERTY OF THE DATE THAT FIRST CONTACT WAS MADE
 WITH  THE CONSUMER COUNSELING AGENCY BY THE MORTGAGOR AND THAT THE MORT-
 GAGOR IS ACTING PURSUANT TO THE PROCEDURES STIPULATED IN THIS SECTION.
   (B) NO MORTGAGEE NOTIFIED PURSUANT TO PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION  SHALL  COMMENCE  OR  CONTINUE  ANY  LEGAL  PROCEEDING  AGAINST THE
 MORTGAGOR'S REAL PROPERTY FOR AT LEAST TEN CALENDAR DAYS FROM THE END OF
 THE THIRTY DAY PERIOD THAT COMMENCES FROM THE FIRST CONTACT THE  MORTGA-
 GOR MAKES WITH A CREDIT COUNSELING AGENCY AS STATED IN SUCH NOTICE.
   (C)  SHOULD  THE MORTGAGOR APPLY FOR HOME MORTGAGE BRIDGE LOAN ASSIST-
 ANCE PURSUANT TO SUBPARAGRAPH (IV) OF PARAGRAPH (B) OF  SUBDIVISION  TWO
 OF  THIS  SECTION, THE COMMISSIONER SHALL MAKE A DETERMINATION OF ELIGI-
 BILITY OR NON-ELIGIBILITY WITHIN SIXTY CALENDAR DAYS OF RECEIPT  OF  THE
 APPLICATION.    UPON  RECEIPT  OF THE APPLICATION, THE COMMISSIONER ALSO
 SHALL PROMPTLY INFORM ANY AND ALL MORTGAGEES SECURED BY THE  MORTGAGOR'S
 REAL  PROPERTY  THAT  AN  APPLICATION HAS BEEN RECEIVED PURSUANT TO THIS
 ARTICLE, AND SHALL INFORM THE SAME OF BOTH THE DATE OF RECEIPT  AND  THE
 PROHIBITION STATED IN PARAGRAPH (D) OF THIS SUBDIVISION.
   (D) DURING THE PERIOD OVER WHICH A MORTGAGOR'S APPLICATION MADE TO THE
 DIVISION  PURSUANT  TO  THIS  ARTICLE  IS  PENDING,  NO  MORTGAGEE SHALL
 COMMENCE OR CONTINUE ANY FORECLOSURE OR RELATED LEGAL  ACTION  UPON  ITS
 MORTGAGE WITH THE MORTGAGOR.
   (E)  IF  (I)  THE  MORTGAGOR  FAILS TO MEET WITH A DESIGNATED CONSUMER
 CREDIT COUNSELING AGENCY WITHIN THE DESIGNATED TIME PERIOD PRESCRIBED BY
 SUBPARAGRAPH (III) OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS  SECTION;
 (II)  THE MORTGAGOR DOES NOT APPLY FOR HOME MORTGAGE BRIDGE LOAN ASSIST-
 ANCE WITHIN THE TIME PERIOD PRESCRIBED BY SUBPARAGRAPH (IV) OF PARAGRAPH
 (B) OF SUBDIVISION TWO OF THIS SECTION; OR (III) THE MORTGAGOR'S  APPLI-
 CATION  PURSUANT  TO  THIS SUBDIVISION IS DENIED, THEN THE MORTGAGEE MAY
 TAKE ANY LEGAL ACTIONS THAT ARE AVAILABLE TO ENFORCE THE MORTGAGE,  FREE
 OF THE REQUIREMENTS OF THIS ARTICLE.
   4.  OTHER  ELIGIBLE MORTGAGES.   (A) ANY MORTGAGOR WHO FILES FOR UNEM-
 PLOYMENT INSURANCE WITH THE DEPARTMENT OF LABOR SHALL RECEIVE  A  NOTICE
 FROM  SUCH  DEPARTMENT  STATING  THAT HE OR SHE MAY BE ELIGIBLE FOR HOME
 MORTGAGE BRIDGE LOAN ASSISTANCE PURSUANT TO THIS ARTICLE.
   (B) SUCH NOTICE SHALL BE GIVEN BY A UNIFORM NOTICE PRESCRIBED  BY  THE
 COMMISSIONER.
   (C)  THE NOTICE SHALL DESCRIBE THE PURPOSE OF THE HOME MORTGAGE BRIDGE
 LOAN ASSISTANCE PROGRAM, INCLUDE AN APPLICATION FOR HOME MORTGAGE BRIDGE
 LOAN ASSISTANCE AND NOTIFY THE FILER THAT HE OR SHE MAY CONSULT  WITH  A
 CONSUMER CREDIT COUNSELING AGENCY WITH A VIEW TO APPLYING FOR HOME MORT-
 GAGE BRIDGE LOAN ASSISTANCE.
   (D)  NOTWITHSTANDING  THE  CONDITIONS  FOR  HOME  MORTGAGE BRIDGE LOAN
 ASSISTANCE ELIGIBILITY PRESCRIBED BY THIS ARTICLE, A  MORTGAGOR  WHO  IS
 NOT  CONTRACTUALLY  IN  DEFAULT  ON  HIS OR HER MORTGAGE LOAN AND WHO IS
 FACED WITH AN EVENT, MAY APPLY FOR HOME MORTGAGE BRIDGE LOAN  ASSISTANCE
 ON  A FORM PRESCRIBED BY THE COMMISSIONER WHICH INCLUDES THE INFORMATION
 PRESCRIBED IN SUBDIVISION ONE OF SECTION TWELVE HUNDRED  FIFTY-FIVE  AND
 SECTION TWELVE HUNDRED FIFTY-SIX OF THIS ARTICLE.
   (E)  THE  DIVISION  SHALL  MAKE  A DETERMINATION OF ELIGIBILITY WITHIN
 SIXTY CALENDAR DAYS OF RECEIPT OF THE APPLICATION.
   (F) SHOULD THE MORTGAGOR'S APPLICATION FOR HOME MORTGAGE  BRIDGE  LOAN
 ASSISTANCE  BE DENIED, THE MORTGAGOR MAY REAPPLY PURSUANT TO THIS SUBDI-

 S. 3169                             7
 
 VISION FOR SUCH ASSISTANCE NOT LESS THAN SIX MONTHS  FROM  THE  DATE  OF
 SUCH DETERMINATION, UNLESS THERE IS A MATERIAL CHANGE OF CIRCUMSTANCES.
   §  1255. ELIGIBILITY.  1. ELIGIBLE MORTGAGORS. WITH THE PARTIAL EXCEP-
 TION OF CASES COVERED BY SUBDIVISION  FOUR  OF  SECTION  TWELVE  HUNDRED
 FIFTY-FOUR  OF  THIS ARTICLE, HOME MORTGAGE BRIDGE LOAN ASSISTANCE SHALL
 BE MADE AVAILABLE TO A MORTGAGOR ONLY WHEN ALL OF THE  FOLLOWING  CONDI-
 TIONS ARE MET:
   (A) THE MORTGAGOR IS A PERMANENT RESIDENT OF THIS STATE;
   (B)  THE  PROPERTY SECURING THE MORTGAGE IS (I) LOCATED IN THIS STATE;
 (II) A ONE-TO-FOUR-FAMILY OWNER-OCCUPIED RESIDENCE  OR  A  SINGLE-FAMILY
 RESIDENCE  IN  A  CONDOMINIUM, HOUSING COOPERATIVE OR MANUFACTURED HOME;
 AND (III) THE PRIMARY RESIDENCE OF THE MORTGAGOR;
   (C) A MORTGAGEE HAS ANNOUNCED TO THE MORTGAGOR ITS INTENTION TO  FORE-
 CLOSE  UPON THE MORTGAGE, OR PAYMENT ON THE MORTGAGE HAS BEEN CONTRACTU-
 ALLY DELINQUENT FOR SIXTY OR MORE DAYS;
   (D) THE MORTGAGEE IS NOT PROHIBITED BY LAW FROM FORECLOSING  UPON  THE
 MORTGAGE;
   (E)  THE  MORTGAGOR IS FACED WITH FINANCIAL HARDSHIP BEYOND HIS OR HER
 CONTROL WHICH EITHER (I) PREVENTS HIS OR HER CORRECTING THE  DELINQUENCY
 WITHIN A REASONABLE PERIOD OF TIME AND BRINGING THE MORTGAGE CURRENT; OR
 (II)  AS  DETERMINED BY THE COMMISSIONER AFTER REVIEWING THE MORTGAGOR'S
 FINANCIAL CONDITION PURSUANT TO SUBPARAGRAPH (II) OF  PARAGRAPH  (F)  OF
 THIS  SUBDIVISION, MAY CAUSE THE MORTGAGOR TO BECOME AT LEAST SIXTY DAYS
 DELINQUENT ON HIS OR HER MORTGAGE ABSENT THE LIQUIDATION OF ANY PART  OF
 THE MORTGAGOR'S ASSETS;
   (F) THE MORTGAGOR HAS APPLIED TO THE DIVISION FOR HOME MORTGAGE BRIDGE
 LOAN  ASSISTANCE UPON AN APPLICATION FORM DEVELOPED BY THE COMMISSIONER,
 WHICH FORM SHALL INCLUDE:
   (I) A FINANCIAL STATEMENT DISCLOSING ALL ASSETS AND LIABILITIES OF THE
 MORTGAGOR WHETHER SINGLY OR JOINTLY HELD, AND ALL HOUSEHOLD INCOME IRRE-
 SPECTIVE OF SOURCE;
   (II) A STATEMENT OF FINANCIAL HARDSHIP, SUPPORTED BY  SUCH  DOCUMENTA-
 TION AS THE COMMISSIONER SHALL PRESCRIBE, DETAILING HOW EITHER CONDITION
 STATED  IN SUBPARAGRAPH (I) OR (II) OF PARAGRAPH (E) OF THIS SUBDIVISION
 IS SATISFIED;
   (III) A STATEMENT OF PRIOR MORTGAGE CREDIT HISTORY, SUPPORTED BY  SUCH
 DOCUMENTATION  AS  THE COMMISSIONER SHALL PRESCRIBE, INDICATING THAT THE
 MORTGAGOR EITHER HAS ENJOYED A FAVORABLE MORTGAGE  CREDIT  HISTORY  OVER
 THE  PREVIOUS  FIVE  YEARS,  OR  THAT ANY WANT OF SUCH HISTORY IS ITSELF
 ATTRIBUTABLE TO FINANCIAL HARDSHIP AS CAN BE ESTABLISHED BY A  STATEMENT
 OF  FINANCIAL  HARDSHIP  AS DESCRIBED IN SUBPARAGRAPH (II) OF THIS PARA-
 GRAPH;
   (IV) A STATEMENT OF PRIOR EDUCATION,  EMPLOYMENT,  INCOME  AND  CREDIT
 HISTORY,  SUPPORTED  BY  SUCH  DOCUMENTATION  AS  THE COMMISSIONER SHALL
 PRESCRIBE, TENDING TO SHOW A REASONABLE LIKELIHOOD  THAT  THE  MORTGAGOR
 WILL  BE ABLE TO RESUME FULL MORTGAGE PAYMENTS WITHIN TWENTY-FOUR MONTHS
 (OR NOT LATER THAN THIRTY-SIX MONTHS, IN PERIODS OF  HIGH  UNEMPLOYMENT,
 AS  DETERMINED FROM TIME-TO-TIME BY THE COMMISSIONER) AFTER COMMENCEMENT
 OF HOME MORTGAGE BRIDGE LOAN ASSISTANCE PAYMENTS PURSUANT TO THIS  ARTI-
 CLE,  AND  PAY  THE MORTGAGE IN FULL EITHER BY ITS MATURITY DATE OR BY A
 LATER DATE AGREED BY THE MORTGAGOR AND THE MORTGAGEE; AND
   (V) ANY OTHER INFORMATION DEEMED  NECESSARY  BY  THE  COMMISSIONER  TO
 DETERMINE  ELIGIBILITY FOR HOME MORTGAGE BRIDGE LOAN ASSISTANCE PURSUANT
 TO THIS ACT; AND

 S. 3169                             8

   (G) THE COMMISSIONER HAS DETERMINED THAT THE CRITERIA  ESTABLISHED  IN
 THIS SUBDIVISION, AND ANY PROCEDURAL REQUIREMENTS THAT HAVE BEEN PROMUL-
 GATED, HAVE BEEN SATISFIED.
   2.  WAIVER  OF  REQUIREMENTS.  THE COMMISSIONER IS AUTHORIZED TO WAIVE
 NONCOMPLIANCE WITH THE CRITERIA IN SUBDIVISION ONE OF  THIS  SECTION  TO
 THE  EXTENT THAT SUCH WAIVER IS CONSISTENT WITH THE STATE ADMINISTRATIVE
 PROCEDURE ACT, IS NOT INCONSISTENT WITH THE PURPOSE OF THIS ARTICLE  AND
 IS SUPPORTED BY EQUITABLE PRINCIPLES.
   3.  REAPPLICATION.  SHOULD  THE COMMISSIONER DETERMINE THAT ANY OF THE
 CRITERIA ELABORATED IN SUBDIVISION ONE OF THIS SECTION ARE NOT MET,  THE
 MORTGAGOR  MAY  REAPPLY  FOR  HOME  MORTGAGE  BRIDGE LOAN ASSISTANCE NOT
 BEFORE SIX MONTHS FROM THE DATE OF SUCH DETERMINATION, UNLESS THERE IS A
 MATERIAL CHANGE OF CIRCUMSTANCES.  NOTHING  IN  THIS  SUBDIVISION  SHALL
 PROHIBIT  A  MORTGAGEE FROM COMMENCING LEGAL ACTION TO ENFORCE THE MORT-
 GAGE PRIOR TO REAPPLICATION BY THE MORTGAGOR.
   4. MISREPRESENTATION IN APPLICATION FORM. AN APPLICANT  WHO  MISREPRE-
 SENTS  ANY  INFORMATION  PROVIDED  IN CONNECTION WITH AN APPLICATION FOR
 HOME MORTGAGE BRIDGE LOAN ASSISTANCE MAY BE DENIED SUCH  ASSISTANCE,  OR
 BE  REQUIRED  IMMEDIATELY TO RETURN ANY SUCH ASSISTANCE PROFFERED ON THE
 BASIS OF SUCH MISREPRESENTATION; AND THE MORTGAGEE MAY, ANY TIME  THERE-
 AFTER, TAKE ANY LEGAL ACTION TO ENFORCE THE MORTGAGE FREE OF ANY FURTHER
 RESTRICTION IMPOSED BY THIS ACT.
   §  1256.  TEMPORARY  PAYMENTS OF ASSISTANCE.   1.   INITIAL PAYMENT OF
 ARREARAGES. SHOULD THE COMMISSIONER DETERMINE A MORTGAGOR TO BE ELIGIBLE
 FOR HOME MORTGAGE BRIDGE LOAN  ASSISTANCE  PURSUANT  TO  SECTION  TWELVE
 HUNDRED  FIFTY-FIVE OF THIS ARTICLE, THE DIVISION SHALL DIRECTLY PAY ANY
 MORTGAGEE SECURED BY THE MORTGAGOR'S REAL ESTATE  SUCH  AMOUNTS  AS  ARE
 NECESSARY  TO BRING THE MORTGAGE CURRENT, WITHOUT REGARD TO ANY ACCELER-
 ATION OF THE DEBT UNDER THE MORTGAGE. IN THE ALTERNATIVE,  THE  DIVISION
 SHALL PAY TO THE MORTGAGEE ANY ALTERNATE MORTGAGE PAYMENTS AGREED BY THE
 MORTGAGEE  AND MORTGAGOR. IN ADDITION, THE DIVISION SHALL PAY REASONABLE
 COSTS INCURRED BY THE MORTGAGEE PRIOR TO THE DIVISION'S  GRANT  OF  HOME
 MORTGAGE BRIDGE LOAN ASSISTANCE TO THE MORTGAGOR.
   2.  MORTGAGE  PAYMENTS  SUBSEQUENT  TO  INITIAL PAYMENT OF ARREARAGES.
 AFTER THE DIVISION HAS PAID ANY AND ALL ARREARAGES PURSUANT TO  SUBDIVI-
 SION  ONE  OF  THIS  SECTION,  THE  DIVISION SHALL MAKE MONTHLY MORTGAGE
 ASSISTANCE PAYMENTS TO THE MORTGAGEE ON BEHALF  OF  THE  MORTGAGOR,  AND
 SHALL  COLLECT MONTHLY PAYMENTS FROM THE MORTGAGOR IN AMOUNTS DETERMINED
 PURSUANT TO THE FOLLOWING FORMULA: THE MORTGAGOR'S MONTHLY  PAYMENTS  TO
 THE  DIVISION  TO  COVER  THE MORTGAGOR'S SHARE OF TOTAL HOUSING EXPENSE
 SHALL BE IN AN  AMOUNT  THAT  DOES  NOT  EXCEED  FORTY  PERCENT  OF  THE
 MORTGAGOR'S NET EFFECTIVE INCOME.  THE MORTGAGOR'S PAYMENTS TO THE DIVI-
 SION  SHALL  BE  MADE  AT LEAST SEVEN DAYS PRIOR TO THE DUE DATE OF EACH
 MORTGAGE PAYMENT TO THE MORTGAGEE, AND UPON RECEIPT THEREOF THE DIVISION
 SHALL SEND THE FULL MORTGAGE PAYMENT DIRECTLY TO THE MORTGAGEE.
   3. MORTGAGE BRIDGE LOAN ASSISTANCE PAYMENTS AS LOANS.  (A) THE  AMOUNT
 BY  WHICH  THE  SUM OF ANY HOME MORTGAGE BRIDGE LOAN ASSISTANCE PAYMENTS
 MADE BY THE DIVISION TO MORTGAGEES EXCEEDS THE SUM OF PAYMENTS  MADE  BY
 THE  MORTGAGOR TO THE DIVISION, PLUS ANY AMOUNTS PAID BY THE DIVISION TO
 THE MORTGAGEE UNDER SUBDIVISION ONE OF THIS SECTION, SHALL CONSTITUTE  A
 LOAN  EXTENDED  BY  THE  DIVISION  TO  THE MORTGAGOR. SUCH LOAN SHALL BE
 EVIDENCED BY SUCH DOCUMENTS AS  THE  COMMISSIONER  SHALL  DETERMINE.  IT
 SHALL  ALSO  BE  SECURED,  AND  SUBJECT  TO  REPAYMENT WITH INTEREST, AS
 DESCRIBED IN PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION.
   (B) REPAYMENT OF HOME MORTGAGE BRIDGE LOAN ASSISTANCE SHALL BE SECURED
 BY A MORTGAGE LIEN ON THE MORTGAGED PROPERTY AND  BY  SUCH  OTHER  OBLI-

 S. 3169                             9
 
 GATIONS  AS  THE COMMISSIONER MAY REQUIRE. THE PRIORITY OF ANY SUCH LIEN
 OBTAINED BY THE DIVISION PURSUANT TO THIS ARTICLE SHALL BE DETERMINED IN
 THE SAME MANNER AS THE LIEN OF A GENERAL SECURED CREDITOR OF THE MORTGA-
 GOR.    NEITHER  THIS  LIEN NOR ANY OTHER SECURITY INTEREST TAKEN BY THE
 DIVISION SHALL BE DEEMED TO TAKE PRIORITY OVER ANY OTHER SECURED LIEN OR
 SECURED INTEREST IN EFFECT AGAINST THE MORTGAGOR'S PROPERTY ON THE  DATE
 THAT HOME MORTGAGE BRIDGE LOAN ASSISTANCE PAYMENTS COMMENCE. THE COMMIS-
 SIONER  MAY ALLOW SUBORDINATION OF THE HOME MORTGAGE BRIDGE LOAN ASSIST-
 ANCE LIEN IF NECESSARY TO ENABLE THE MORTGAGOR TO OBTAIN A HOME IMPROVE-
 MENT LOAN NECESSARY TO PRESERVE THE VALUE OF THE PROPERTY.
   (C) UPON APPROVAL OF AN APPLICATION  FOR  HOME  MORTGAGE  BRIDGE  LOAN
 ASSISTANCE,  THE DIVISION SHALL ENTER INTO AN AGREEMENT WITH THE MORTGA-
 GOR FOR REPAYMENT OF ALL SUCH ASSISTANCE PROVIDED BY THE DIVISION,  WITH
 INTEREST, AS FOLLOWS:
   (I) IF FORTY PERCENT OF THE MORTGAGOR'S NET EFFECTIVE INCOME EQUALS AN
 AMOUNT  THAT IS GREATER THAN TOTAL HOUSING EXPENSE, THAT AMOUNT SHALL BE
 PAID TO THE DIVISION, UNLESS OTHERWISE DETERMINED  BY  THE  COMMISSIONER
 AFTER EXAMINATION OF THE MORTGAGOR'S FINANCIAL CIRCUMSTANCES AND ABILITY
 TO CONTRIBUTE TO REPAYMENT OF THE ASSISTANCE;
   (II)  IF  FORTY PERCENT OF THE MORTGAGOR'S NET EFFECTIVE INCOME EQUALS
 AN AMOUNT THAT IS LESS THAN TOTAL HOUSING  EXPENSE,  REPAYMENT  OF  HOME
 MORTGAGE BRIDGE LOAN ASSISTANCE SHALL BE DEFERRED UNTIL FORTY PERCENT OF
 THE  MORTGAGOR'S  NET  EFFECTIVE INCOME EQUALS AN AMOUNT THAT IS GREATER
 THAN TOTAL HOUSING EXPENSE;
   (III) THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR PERIODIC  REVIEW
 OF  A  MORTGAGOR'S TOTAL HOUSING EXPENSE AND NET EFFECTIVE INCOME WITH A
 VIEW TO DETERMINING PAYMENT AMOUNTS THAT ARE DUE TO THE DIVISION  PURSU-
 ANT TO THIS SECTION;
   (IV) IF REPAYMENT OF HOME MORTGAGE BRIDGE LOAN ASSISTANCE HAS NOT BEEN
 MADE  BY  THE  DATE THAT ANY MORTGAGE HAS BEEN PAID, THE MORTGAGOR SHALL
 MAKE HOME MORTGAGE BRIDGE LOAN ASSISTANCE REPAYMENTS IN  AN  AMOUNT  NOT
 LESS THAN THE MORTGAGE PAYMENTS UNTIL THE ASSISTANCE IS REPAID;
   (V)  INTEREST  SHALL ACCRUE UPON ALL HOME MORTGAGE BRIDGE LOAN ASSIST-
 ANCE PAYMENTS MADE BY THE DIVISION ON BEHALF OF THE MORTGAGOR AT A  RATE
 PER  ANNUM THAT IS EQUAL TO THE STATE'S COST OF FUNDING OR AT SOME OTHER
 RATE PER ANNUM WHICH TAKES INTO  CONSIDERATION  OTHER  RELEVANT  FUNDING
 COSTS, AS DETERMINED BY THE COMMISSIONER. INTEREST SHALL ACCRUE FROM THE
 TIME  THE  MORTGAGOR  COMMENCES  REPAYMENT UNDER THIS SECTION, AND SHALL
 ACCRUE ONLY DURING THE PERIOD OVER WHICH THE MORTGAGOR  IS  REQUIRED  TO
 MAKE  SUCH  REPAYMENT.  WHEN ANY MORTGAGE FOR WHICH HOME MORTGAGE BRIDGE
 LOAN ASSISTANCE PAYMENTS ARE MADE IS PAID, INTEREST SHALL THEN ACCRUE ON
 ALL SUCH ASSISTANCE DUE AND OWING AT THE SAME RATE AND ON THE SAME BASIS
 AS THE MORTGAGE FOR WHICH THE ASSISTANCE PAYMENTS WERE MADE; AND
   (VI) ALL MONEYS RECEIVED FROM MORTGAGORS FOR REPAYMENT OF  HOME  MORT-
 GAGE  BRIDGE  LOAN  ASSISTANCE  SHALL  BE DEPOSITED IN THE HOME MORTGAGE
 BRIDGE LOAN ASSISTANCE FUND ESTABLISHED IN SECTION EIGHTY-NINE-J OF  THE
 STATE FINANCE LAW.
   4.   DURATION  OF  HOME  MORTGAGE  BRIDGE  LOAN  ASSISTANCE  PAYMENTS.
 PAYMENTS MADE PURSUANT TO THIS ARTICLE SHALL BE PROVIDED  FOR  A  PERIOD
 NOT  TO  EXCEED THIRTY-SIX MONTHS, CONSECUTIVELY OR NON-CONSECUTIVELY IN
 AN AGGREGATE AMOUNT WHICH DOES NOT EXCEED SIXTY  THOUSAND  DOLLARS.  THE
 COMMISSIONER  SHALL  ESTABLISH  PROCEDURES  FOR  PERIODIC  REVIEW OF THE
 MORTGAGOR'S FINANCIAL CIRCUMSTANCES FOR PURPOSES OF DETERMINING  WHETHER
 CONTINUATION,  TERMINATION  OR  ADJUSTMENT  OF HOME MORTGAGE BRIDGE LOAN
 ASSISTANCE PAYMENTS IS WARRANTED IN LIGHT OF  ANY  ELIGIBILITY  REQUIRE-
 MENTS PURSUANT TO THIS ARTICLE.

 S. 3169                            10
 
   5.  DELINQUENCY  IN  PAYMENTS OWED TO THE DIVISION. SHOULD A MORTGAGOR
 FAIL TO PAY TO THE DIVISION ANY AMOUNTS OWED UNDER THIS  SECTION  WITHIN
 FIFTEEN  DAYS  OF  THE  DUE  DATE,  THE  COMMISSIONER  SHALL  REVIEW THE
 MORTGAGOR'S FINANCIAL CIRCUMSTANCES IN ORDER TO  DETERMINE  WHETHER  THE
 DELINQUENCY IS A RESULT OF A CHANGE IN THE MORTGAGOR'S FINANCIAL CIRCUM-
 STANCES.  IF  SUCH  A DETERMINATION IS MADE, THE COMMISSIONER MAY MODIFY
 THE MORTGAGOR'S REQUIRED PAYMENTS. IF FAILURE TO PAY IS  NOT  DETERMINED
 TO  BE  DUE  TO  A  MATERIAL  DETERIORATION IN THE MORTGAGOR'S FINANCIAL
 CIRCUMSTANCES, THE COMMISSIONER SHALL TERMINATE  ASSISTANCE  AND  NOTIFY
 THE  MORTGAGEE  THAT  ASSISTANCE  HAS BEEN TERMINATED. THE MORTGAGEE MAY
 THEREAFTER TAKE ANY LEGAL ACTION NECESSARY TO ENFORCE ITS MORTGAGE WITH-
 OUT FURTHER RESTRICTION PURSUANT TO THIS ARTICLE.
   6. DELINQUENCY IN MEETING OBLIGATIONS TO MORTGAGEES. SHOULD ANY  MORT-
 GAGEE  SCHEDULED  TO RECEIVE PAYMENTS FROM THE DIVISION PURSUANT TO THIS
 ARTICLE NOT RECEIVE ANY SUCH PAYMENT WITHIN THIRTY DAYS OF ITS SCHEDULED
 DUE DATE, OR SHOULD THE MORTGAGOR FAIL TO OBSERVE AND PERFORM ALL TERMS,
 COVENANTS, AND CONDITIONS OF THE MORTGAGE, THE  MORTGAGEE  MAY,  AT  ANY
 TIME  THEREAFTER,  TAKE ANY LEGAL ACTION TO ENFORCE THE MORTGAGE WITHOUT
 FURTHER RESTRICTION PURSUANT TO THIS ARTICLE.
   § 2. The state finance law is amended by adding a new section 89-j  to
 read as follows:
   § 89-J. HOME MORTGAGE BRIDGE LOAN ASSISTANCE FUND.  1. THERE IS HEREBY
 ESTABLISHED IN THE CUSTODY OF THE STATE COMPTROLLER A SPECIAL FUND TO BE
 KNOWN AS THE "HOME MORTGAGE BRIDGE LOAN ASSISTANCE FUND". MONIES IN SUCH
 FUND  SHALL  BE  KEPT  SEPARATE FROM AND NOT COMMINGLED WITH OTHER FUNDS
 HELD IN THE CUSTODY OF THE STATE COMPTROLLER.
   2. THE HOME MORTGAGE BRIDGE LOAN  ASSISTANCE  FUND  SHALL  CONSIST  OF
 MONEYS  APPROPRIATED  THERETO,  FUNDS TRANSFERRED FROM ANY OTHER FUND OR
 SOURCE, MONEYS PAID TO THE DIVISION OF HOUSING AND COMMUNITY RENEWAL  BY
 MORTGAGORS  FOR  REPAYMENT  OF  HOME  MORTGAGE  BRIDGE  LOAN  ASSISTANCE
 PAYMENTS PURSUANT TO ARTICLE TWENTY-EIGHT OF THE PRIVATE HOUSING FINANCE
 LAW, MONEYS RECEIVED AS GRANTS AND OTHER PROVISIONS OF FUNDS  BY  FINAN-
 CIAL  INSTITUTIONS  FOR  THE PURPOSE OF RECEIVING CREDIT PURSUANT TO THE
 COMMUNITY REINVESTMENT ACT OF  1977,  AND  ALL  REVENUES  RECEIVED  FROM
 CONTRIBUTIONS, DONATIONS AND ALL OTHER MONEYS CREDITED THERETO.
   3.  THE  MONEYS OF THE HOME MORTGAGE BRIDGE LOAN ASSISTANCE FUND, UPON
 APPROPRIATION THEREOF, SHALL BE EXPENDED BY THE DIVISION OF HOUSING  AND
 COMMUNITY RENEWAL SOLELY FOR THE PURPOSES OF ARTICLE TWENTY-EIGHT OF THE
 PRIVATE HOUSING FINANCE LAW.
   4.  THE  STATE  COMPTROLLER,  IN CONSULTATION WITH THE COMMISSIONER OF
 HOUSING AND COMMUNITY RENEWAL, MAY ESTABLISH ACCOUNTS  WITHIN  THE  HOME
 MORTGAGE BRIDGE LOAN ASSISTANCE FUND BASED ON THE SOURCES OF THE REVENUE
 INTO  SUCH  FUND  OR  ANY  OTHER  PURPOSE  WHICH  IS CONSISTENT WITH THE
 PROVISIONS OF ARTICLE TWENTY-EIGHT OF THE PRIVATE HOUSING  FINANCE  LAW;
 PROVIDED,  HOWEVER,  THAT  THE  COMPTROLLER  SHALL  ESTABLISH A SEPARATE
 ACCOUNT CALLED THE "COMMUNITY  REINVESTMENT  ACT  ACCOUNT"  WHICH  SHALL
 INCLUDE  THE MONEYS DEPOSITED INTO THE FUND BY FINANCIAL INSTITUTIONS IN
 ACCORDANCE WITH THE PROVISIONS OF  THE  COMMUNITY  REINVESTMENT  ACT  OF
 1977, AS AMENDED.
   § 3. This act shall take effect immediately.