S T A T E O F N E W Y O R K
________________________________________________________________________
7842
2023-2024 Regular Sessions
I N A S S E M B L Y
July 7, 2023
___________
Introduced by M. of A. CUNNINGHAM -- read once and referred to the
Committee on Housing
AN ACT to amend the public authorities law, in relation to expanding
access to mortgage financing for cooperative properties under the
homes for veterans program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 2405-g to read as follows:
§ 2405-G. SPECIAL PROVISIONS FOR VETERANS. (1) DEFINITIONS. FOR THE
PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
(A) "PERSON" SHALL MEAN A VETERAN, OR THEIR SURVIVING UNMARRIED
SPOUSE.
(B) "VETERAN" SHALL:
(I) HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION THREE OF SECTION
ONE OF THE VETERANS' SERVICES LAW; AND
(II) INCLUDE MEMBERS OF THE ARMY NATIONAL GUARD, AIR NATIONAL GUARD,
AND OTHER RESERVE COMPONENTS OF THE ARMED FORCES OF THE UNITED STATES OR
NEW YORK WHO ARE CURRENTLY SERVING ON ACTIVE DUTY OR HAVE BEEN RELEASED
FROM SUCH SERVICE UNDER OTHER THAN DISHONORABLE CONDITIONS, AND ALL
MILITARY MEMBERS WHO ARE CURRENTLY SERVING ON ACTIVE DUTY IN NEW YORK,
REGARDLESS OF SUCH MEMBERS' DISCHARGE STATUS.
(2) CONSTRUCTION. (A) THE PROVISIONS OF THIS SECTION SHALL APPLY TO
ANY MORTGAGE PURCHASED BY THE AGENCY PURSUANT TO SECTION TWENTY-FOUR
HUNDRED FIVE OF THIS PART UNDER THE HOMES FOR VETERANS PROGRAM.
(B) NO CONTRACT OR AGREEMENT FOR THE PROVISION OF LOAN OR MORTGAGE
LOAN SERVICES BETWEEN THE AGENCY AND AN ELIGIBLE PERSON PURSUANT TO THIS
SECTION SHALL BE CONSTRUED AS TO LIMIT SUCH PERSON'S ELIGIBILITY UNDER
ANY OTHER FINANCING PROGRAM OFFERED BY THE STATE OF NEW YORK MORTGAGE
AGENCY.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11822-01-3
A. 7842 2
(3) HOMES FOR VETERANS PROGRAM REQUIREMENTS. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW OR REGULATION TO THE CONTRARY, ANY CONTRACT OR AGREE-
MENT FOR THE PROVISION OF A LOAN OR MORTGAGE LOAN SERVICES BETWEEN THE
AGENCY AND AN ELIGIBLE PERSON UNDER THE HOMES FOR VETERANS PROGRAM SHALL
BE SUBJECT TO THE FOLLOWING PROVISIONS:
(A) NO SUCH CONTRACT OR AGREEMENT SHALL REQUIRE A MINIMUM BORROWER
CASH CONTRIBUTION FROM SUCH PERSON GREATER THAN ONE PERCENT OF THE VALUE
OF THE PROPERTY SECURING SUCH LOAN OR MORTGAGE LOAN; AND
(B) NO APPLICATION BY AN ELIGIBLE PERSON FOR A LOAN OR MORTGAGE LOAN
SECURED BY A RESIDENTIAL PROPERTY IN A COOPERATIVE HOUSING CORPORATION
SHALL BE REJECTED BASED ON:
(I) THE NUMBER OF UNITS, OCCUPANCY RATES, OR LOCATION OF SUCH CORPO-
RATION;
(II) THE PERCENTAGE OF UNITS ALREADY SOLD IN SUCH CORPORATION; OR
(III) THE STATUS OF SUCH CORPORATION AS A LIMITED EQUITY COOPERATIVE
PROJECT.
§ 2. This act shall take effect on the thirtieth day after it shall
have become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.