NY State Senate Bill S9051

Current Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (7)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 24, 2022	referred to governmental employees delivered to assembly passed senate
May 16, 2022	advanced to third reading
May 11, 2022	2nd report cal.
May 10, 2022	1st report cal.1261
May 05, 2022	referred to civil service and pensions

Votes

view votes

May 24, 2022 - floor Vote

S9051

floor

Aye

Nay

Absent

Excused

Abstained

May 9, 2022 - Civil Service and Pensions committee Vote

S9051

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Co-Sponsors

S9051 (ACTIVE) - Details

Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §177, R & SS L

S9051 (ACTIVE) - Summary

Permits investment of retirement funds in mortgages guaranteed by New York state homes and community renewal.

S9051 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S9051

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
investments by public pension funds in certain guaranteed mortgages

 
PURPOSE:

This legislation would amend subdivision 3 of section 177 of the Retire-
ment and Social Security Law to add to the types of conventional mort-
gages in which a state pension fund may invest to include conventional
mortgages guaranteed by New York State Homes and Community Renewal
(HCR), any successor thereto, or agency thereof.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill amends subdivision 3 of section 177 of the
Retirement and Social Security Law to add to the types of conventional
mortgages in which a state pension fund may invest.

Section 2 of the bill provides the effective date.

 
JUSTIFICATION:

Currently, conventional mortgages are expressly made permissible invest-
ments for State pension funds up to a stated percentage of fund assets
under two subdivisions of RSSL section 177. State pension funds may
invest in conventional mortgages under subdivision 1 of section 177,
which provides that no mortgage can exceed seventy-five per cent of
appraised value on a property improved with a building.  And a fund may
invest in conventional mortgages under subdivision 3 of section 177,
where the mortgage is guaranteed by a state bank or trust company having
a net worth in excess of five hundred million dollars.

The State of New York Mortgage Agency (SONYMA) is a highly rated govern-
mental financing agency and its credit worthiness should compare favora-
bly to the credit worthiness of a bank with the capital presently
required under subdivision 3 of section 177. Moreover, these mortgage
guarantee programs, which help make capital available for affordable
homes and community preservation in New York can present an attractive
low risk investment opportunity for pension funds.

Depending upon the circumstances, however, financing for these mortgages
may exceed 75 percent of the value of a property improved with a build-
ing. This eliminates the opportunity for a pension fund to make a
permissible investment pursuant to subdivision 1 of section 177. Howev-
er, in light of the mortgage guarantees that are available through SONY-
MA for certain housing and community renewal projects in New York, it
makes sense that such mortgages should be covered in the guaranteed
category for permissible conventional mortgage investments pursuant to
subdivision 3 of RSSL section 177 as an alternative authorization.

 
FISCAL IMPLICATION:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S9051 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9051
 
                             I N  S E N A T E
 
                                May 5, 2022
                                ___________
 
 Introduced  by  Sen. JACKSON -- (at request of the State Comptroller) --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Civil Service and Pensions
 
 AN  ACT  to amend the retirement and social security law, in relation to
   investments by public pension funds in certain guaranteed mortgages
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 3 of section 177 of the retirement and social
 security law, as added by chapter 817 of the laws of 1960, is amended to
 read as follows:
   3. Conventional mortgages guaranteed by a state bank or trust  company
 having  a net worth in excess of five hundred million dollars OR GUARAN-
 TEED BY NEW YORK STATE HOMES AND COMMUNITY RENEWAL, ANY SUCCESSOR THERE-
 TO, OR ANY AGENCY THEREOF, provided, however, that not more than ten per
 centum of the assets of any fund shall be invested in any such  mortgage
 so guaranteed.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15430-01-2

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The New York State Senate

senate Bill S9051

Sponsored By

Current Bill Status - Passed Senate

Your Voice

Actions

Votes

May 24, 2022 - floor Vote

Floor Vote: May 24, 2022

May 9, 2022 - Civil Service and Pensions committee Vote

Civil Service and Pensions Committee Vote: May 9, 2022

Co-Sponsors

S9051 (ACTIVE) - Details

S9051 (ACTIVE) - Summary

S9051 (ACTIVE) - Sponsor Memo

S9051 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S9051

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Sponsored By

Robert Jackson

Current Bill Status - Passed Senate

Your Voice

Actions

Votes

May 24, 2022 - floor Vote

Floor Vote: May 24, 2022

May 9, 2022 - Civil Service and Pensions committee Vote

Civil Service and Pensions Committee Vote: May 9, 2022

Co-Sponsors

Diane J. Savino

S9051 (ACTIVE) - Details

S9051 (ACTIVE) - Summary

S9051 (ACTIVE) - Sponsor Memo

S9051 (ACTIVE) - Bill Text download pdf

Comments