S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6620
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2021
                                ___________
 
 Introduced  by  M.  of A. THIELE, LAVINE, STERN, GRIFFIN, ENGLEBRIGHT --
   read once and referred to the Committee on Housing
 
 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. APPLICATION.
         606. 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03812-04-1

 A. 6620                             2
 
 RETURNS ON INVESTMENTS, WELFARE ASSISTANCE,  SOCIAL  SECURITY  PAYMENTS,
 CHILD  SUPPORT  PAYMENTS, UNEMPLOYMENT BENEFITS, ANY BENEFIT, PAYMENT OR
 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  1-4 FAMILY RESIDENTIAL REAL PROPERTY
 OWNED BY THE HOMEOWNER OF WHICH ONE DWELLING UNIT IS USED EXCLUSIVELY AS
 THE HOMEOWNER'S PRIMARY RESIDENCE.
   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  PERIOD  FROM JANUARY TWENTY-SECOND, TWO THOUSAND TWENTY
 THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO.
   5. "REVERSE MORTGAGE LOAN" SHALL HAVE THE SAME MEANING AS SECTION  TWO
 HUNDRED EIGHTY OF THE REAL PROPERTY LAW.
   6. "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.
   7. "HOMEOWNERSHIP EXPENSES"  SHALL  MEAN  MORTGAGE  PAYMENTS,  REVERSE
 MORTGAGE  PAYMENTS, PROPERTY TAXES, HOMEOWNERS INSURANCE PAYMENTS, FLOOD
 INSURANCE PAYMENTS, MORTGAGE INSURANCE PAYMENTS, HOMEOWNERS' ASSOCIATION
 FEES, CONDOMINIUM ASSOCIATION FEES, 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.
   8. "OTHER FEES ASSOCIATED WITH  HOMEOWNERSHIP"  SHALL  MEAN  PRINCIPAL
 REDUCTION OF A MORTGAGE AND EXPENSES INCURRED FACILITATING INTEREST RATE
 REDUCTIONS ON A MORTGAGE.
   9.  "UTILITY"  SHALL  MEAN ELECTRIC, GAS, WATER, AND INTERNET SERVICE,
 INCLUDING BROADBAND INTERNET SERVICE AS DEFINED  IN  SECTION  8.1(B)  OF
 TITLE 47, CODE OF FEDERAL REGULATIONS (OR ANY SUCCESSOR REGULATION).
   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.
   12. "COVERED PERIOD" MEANS THE PERIOD BEGINNING JANUARY TWENTY-SECOND,
 TWO THOUSAND TWENTY AND ENDING ON THE DATE THAT IS THIRTY DAYS AFTER THE
 DATE ON WHICH SUCH STATE DISASTER EMERGENCY ENDS.
   13.  "MORTGAGE" MEANS ANY CREDIT TRANSACTION THAT IS: (A) SECURED BY A
 MORTGAGE, DEED OF TRUST, OR OTHER  CONSENSUAL  SECURITY  INTEREST  ON  A
 PRINCIPAL  RESIDENCE  OF A BORROWER THAT IS A 1- TO 4-UNIT DWELLING; AND
 (B) THE UNPAID PRINCIPAL BALANCE OF WHICH WAS, AT  THE  TIME  OF  ORIGI-
 NATION, NOT MORE THAN THE CONFORMING LOAN LIMIT.
   14.  "CONFORMING LOAN LIMIT" MEANS THE APPLICABLE LIMITATION GOVERNING
 THE MAXIMUM ORIGINAL PRINCIPAL OBLIGATION OF A  MORTGAGE  SECURED  BY  A
 SINGLE-FAMILY  RESIDENCE,  A MORTGAGE SECURED BY A 2-FAMILY RESIDENCE, A
 MORTGAGE SECURED BY A 3-FAMILY RESIDENCE, OR A  MORTGAGE  SECURED  BY  A
 4-FAMILY  RESIDENCE,  AS  DETERMINED AND ADJUSTED ANNUALLY UNDER SECTION
 302(B)(2) OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER  ACT  (12

 A. 6620                             3
 
 U.S.C.  1717(B)(2)) AND SECTION 305(A)(2) OF THE FEDERAL HOME LOAN MORT-
 GAGE CORPORATION ACT (12 U.S.C. 1454(A)(2)).
   §  601.    AUTHORITY  TO  IMPLEMENT  COVID-19  EMERGENCY HOMEOWNERSHIP
 STABILITY PROGRAM.  THE COMMISSIONER IS HEREBY AUTHORIZED  AND  DIRECTED
 TO IMPLEMENT, AS SOON AS PRACTICABLE, A PROGRAM FOR FINANCIAL ASSISTANCE
 TO  ALLOW  A  HOMEOWNER  TO REINSTATE A MORTGAGE OR TO PAY OTHER HOUSING
 RELATED COSTS  RELATED  TO  A  PERIOD  OF  FORBEARANCE,  DELINQUENCY  OR
 DEFAULT;  ASSISTANCE WITH HOMEOWNERSHIP EXPENSES; AND OTHER FEES RELATED
 TO HOMEOWNERSHIP FOR THOSE ELIGIBLE PURSUANT TO SECTION SIX HUNDRED  TWO
 OF  THIS  ARTICLE. SUCH PROGRAM SHALL BE FUNDED WITH ALL FUNDS ALLOCATED
 TO THE STATE OF NEW YORK FROM THE HOMEOWNER  ASSISTANCE  FUND,  AND  ANY
 STATE FUNDS APPROPRIATED FOR SUCH PROGRAM. THE COMMISSIONER SHALL ADOPT,
 ON AN EMERGENCY BASIS PURSUANT TO SUBDIVISION SIX OF SECTION TWO HUNDRED
 TWO  OF  THE  STATE ADMINISTRATIVE PROCEDURE ACT, ANY RULES NECESSARY TO
 CARRY OUT THE PROVISIONS OF THIS ARTICLE. THE COMMISSIONER MAY  DELEGATE
 THE  ADMINISTRATION OF ANY PORTIONS OF THIS PROGRAM TO ANY STATE AGENCY,
 CITY, COUNTY, TOWN, VILLAGE, OR NON-PROFIT  ORGANIZATION  IN  ACCORDANCE
 WITH THE PROVISIONS OF THIS ARTICLE.
   §  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 DURING THE COVERED PERI-
 OD; 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 THE
 HOMEOWNER'S INCOME FOR THE YEAR TWO  THOUSAND  TWENTY  OR  TWO  THOUSAND
 TWENTY-ONE.
   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  TWO
 THOUSAND  TWENTY  OR  TWO THOUSAND TWENTY-ONE ANNUAL INCOME IS AN AMOUNT
 EQUAL TO OR GREATER THAN THEIR INCOME FOR THE YEAR  TWO  THOUSAND  NINE-
 TEEN.
   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 THE GREATER OF ONE
 HUNDRED PERCENT OF THE AREA MEDIAN INCOME FOR THEIR HOUSEHOLD  SIZE,  OR
 THE  MEDIAN  INCOME OF THE UNITED STATES, AS DETERMINED BY THE SECRETARY
 OF HOUSING AND URBAN  DEVELOPMENT.  THE  COMMISSIONER  SHALL  PRIORITIZE
 REMAINING  FUNDS TO POPULATIONS OR GEOGRAPHIES EXPERIENCING THE GREATEST
 NEED.
   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;

 A. 6620                             4
 
   (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 COMMISSIONER.
   § 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-
 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. APPLICATION.  ELIGIBLE HOMEOWNERS MAY APPLY FOR ASSISTANCE FROM
 THIS PROGRAM FOR:
   (A)  FINANCIAL ASSISTANCE TO ALLOW A HOMEOWNER TO REINSTATE A MORTGAGE
 OR TO PAY OTHER HOUSING-RELATED COSTS RELATED TO A  PERIOD  OF  FORBEAR-
 ANCE, DELINQUENCY, OR DEFAULT; AND/OR
   (B)  ANY  DELINQUENT  HOMEOWNERSHIP  EXPENSES THAT CAME DUE DURING THE
 COVERED PERIOD; AND/OR
   (C) OTHER FEES RELATED TO HOMEOWNERSHIP. THE COMMISSIONER  SHALL  MAKE
 SUCH APPLICATION AVAILABLE NO LATER THAN THIRTY DAYS AFTER THE EFFECTIVE
 DATE OF THIS PROGRAM.
   §  606.  PAYMENT.    1. THE COMMISSIONER SHALL MAKE A ONE-TIME PAYMENT
 DIRECTLY TO ELIGIBLE HOMEOWNERS PURSUANT TO SECTION SIX HUNDRED  TWO  OF
 THIS ARTICLE TO COVER FINANCIAL ASSISTANCE TO ALLOW A HOMEOWNER TO REIN-
 STATE  A  MORTGAGE  OR  TO  PAY OTHER HOUSING RELATED COSTS RELATED TO A
 PERIOD OF FORBEARANCE, DELINQUENCY OR DEFAULT AND/OR DELINQUENT HOMEOWN-
 ERSHIP EXPENSES THAT CAME DUE DURING THE COVERED  PERIOD.  SUCH  PAYMENT
 SHALL  NOT  EXCEED THE AMOUNT EQUIVALENT TO ONE HUNDRED FIFTY PERCENT OF
 THE FAIR MARKET RENT FOR THE AREA AND HOUSEHOLD SIZE TIMES THE NUMBER OF
 MONTHS FOR WHICH ASSISTANCE IS REQUESTED. IF, AFTER  SIXTY  DAYS,  FUNDS
 REMAIN,  THE COMMISSIONER MAY PROVIDE ASSISTANCE FOR EXPENSES RELATED TO
 HOMEOWNERSHIP.
   2. ANY PAYMENT RECEIVED PURSUANT TO THIS SECTION SHALL ONLY BE USED TO
 PAY THE HOMEOWNERSHIP EXPENSES AND OTHER FEES RELATED  TO  HOMEOWNERSHIP
 FOR  WHICH  THE HOMEOWNER APPLIED FOR ASSISTANCE. THE COMMISSIONER SHALL
 REQUIRE FROM ANY RECIPIENT OF FUNDS UNDER THIS SECTION DOCUMENTATION  OF
 THE  USE  OF  ANY FUNDS DISBURSED PURSUANT TO THIS SECTION WITHIN THIRTY
 DAYS OF RECEIPT. IF NINETY DAYS AFTER RECEIPT, ANY FUNDS RECEIVED PURSU-
 ANT TO THIS SECTION ARE NOT USED FOR DOCUMENTED  HOMEOWNERSHIP  EXPENSES
 AND  OTHER FEES RELATED TO HOMEOWNERSHIP FOR WHICH THE HOMEOWNER APPLIED
 FOR ASSISTANCE, SUCH FUNDS MAY BE SUBJECT TO REPAYMENT.
   § 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,

 A. 6620                             5
 
 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.