S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4835
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 23, 2023
                                ___________
 
 Introduced  by  M.  of  A. FITZPATRICK -- 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.
                                                            LBD08521-01-3
              

 A. 4835                             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.