Senate Bill S2883

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2883
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT to amend the public authorities law, in relation to establishing
   the new American homebuyer assistance program within the state of  New
   York mortgage agency

   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 2428-b to read as follows:
   §  2428-B.  NEW  AMERICAN HOMEBUYER ASSISTANCE PROGRAM. 1.  ESTABLISH-
 MENT. THE AGENCY IS HEREBY AUTHORIZED AND DIRECTED  TO  CREATE,  MANAGE,
 AND MAINTAIN THE "NEW AMERICAN HOMEBUYER ASSISTANCE PROGRAM".  THE AGEN-
 CY  SHALL  MAKE SUCH RULES AND REGULATIONS AS NECESSARY TO IMPLEMENT THE
 NEW AMERICAN HOMEBUYER ASSISTANCE PROGRAM.  THE PURPOSE OF  THE  PROGRAM
 IS  TO  PROVIDE  HOMEBUYER  ASSISTANCE TO ELIGIBLE HOMEBUYERS PURCHASING
 THEIR FIRST RESIDENCE BY IMPOSING FLEXIBLE DOCUMENTATION GUIDELINES THAT
 TAKE INTO ACCOUNT FOREIGN DOCUMENTATION OF INCOME AND ASSETS.
   2. DEFINITIONS. FOR PURPOSES OF THIS SECTION:
   (A) "RESIDENCE" MEANS A SINGLE-FAMILY HOME, A ONE TO FOUR FAMILY HOME,
 A CONDOMINIUM HOUSING UNIT OR A HOUSING  UNIT  OWNED  BY  A  COOPERATIVE
 HOUSING CORPORATION, THAT IS LOCATED WITHIN THE STATE.
   (B)  "ELIGIBLE  HOMEBUYER"  MEANS  ANY  PERSON WHO (A) HAS NOT HAD ANY
 OWNERSHIP INTEREST IN HIS OR HER PRIMARY RESIDENCE THAT IS LOCATED WITH-
 IN THE UNITED STATES AT ANY TIME DURING THE THREE  YEARS  PRIOR  TO  THE
 DATE  OF  MAKING  AN  APPLICATION  FOR  AN  AGENCY MORTGAGE LOAN; (B) IS
 CURRENTLY AN ALIEN ADMITTED TO THE UNITED STATES AS A  LAWFUL  PERMANENT
 RESIDENT  WITHIN  THE  PAST TEN YEARS AND; (C) AT THE TIME OF MAKING THE
 LOAN APPLICATION TO THE AGENCY, DOES NOT OWN A  VACATION  OR  INVESTMENT
 HOME  WHETHER  SUCH  VACATION  OR INVESTMENT HOME IS OWNED IN THE UNITED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04628-01-3
 S. 2883                             2
              

 
 STATES OR ABROAD. THIS INCLUDES A SPOUSE OR A SINGLE PARENT WHO HAS ONLY
 OWNED WITH A FORMER SPOUSE WHILE MARRIED.
   3.  PROGRAM  FEATURES  AND  REQUIREMENTS.  THE AGENCY SHALL CREATE AND
 IMPLEMENT THE NEW AMERICAN HOMEBUYER ASSISTANCE PROGRAM SUBJECT  TO  THE
 FOLLOWING FEATURES AND REQUIREMENTS:
   (A) FLEXIBLE DOCUMENTATION REQUIREMENTS THAT TAKE INTO ACCOUNT FOREIGN
 DOCUMENTATION OF INCOME AND ASSETS;
   (B) HOUSEHOLD INCOME ELIGIBILITY INCOME LIMITS UP TO ONE HUNDRED THIR-
 TY PERCENT OF AREA MEDIAN INCOME;
   (C)  DEBT  TO  INCOME  CALCULATIONS THAT INCLUDE THE BORROWER'S ACTUAL
 STUDENT LOAN PAYMENTS REGARDLESS OF  WHETHER  THE  PAYMENTS  WILL  FULLY
 AMORTIZE  THE  LOAN, REGARDLESS OF WHETHER THE BORROWER IS ON AN INCOME-
 BASED OR STANDARD REPAYMENT PLAN;
   (D) STUDENT LOAN PAYMENTS CALCULATED AT THE  AVERAGE  MONTHLY  PAYMENT
 AMOUNT  MADE  BY THE BORROWER DURING THE PRECEDING TWELVE MONTHS, OR THE
 BORROWER'S CURRENT PAYMENT, WHICHEVER IS HIGHER;
   (E) LOANS WILL BE OFFERED FOR FIXED INTEREST RATE, THIRTY  YEAR  TERMS
 ONLY;
   (F) A LOAN-TO-VALUE RATIO OF NINETY-SEVEN PERCENT;
   (G) NO PREPAYMENT PENALTIES SHALL BE ASSESSED TO THE BORROWER;
   (H)  UTILIZATION OF AND FULL ACCESS TO THE AGENCY DOWN PAYMENT ASSIST-
 ANCE PROGRAM FINANCING;
   (I) A CALL CENTER TO ASSIST APPLICANTS;
   (J) CALL CENTER TRANSLATION SERVICES SHALL BE MADE AVAILABLE TO APPLI-
 CANTS IN ENGLISH, SPANISH, AND ANY OTHER LANGUAGE THAT THE AGENCY DETER-
 MINES, BASED ON THE SIZE  OF  THE  STATE  POPULATION  THAT  SPEAKS  EACH
 LANGUAGE  AND  ANY  OTHER  FACTOR  THAT THE CHAIRMAN OF THE AGENCY DEEMS
 RELEVANT AND;
   (K) ALL GUIDANCE DOCUMENTS AND APPLICATION MATERIALS SHALL  BE  AVAIL-
 ABLE  TO APPLICANTS IN ENGLISH, SPANISH, AND ANY OTHER LANGUAGE THAT THE
 AGENCY DETERMINES, BASED ON THE SIZE OF THE STATE POPULATION THAT SPEAKS
 EACH LANGUAGE AND ANY OTHER FACTOR THAT THE CHAIRMAN OF THE AGENCY DEEMS
 RELEVANT.
   4. ELIGIBILITY.  (A) IN ADDITION TO OTHER LIMITATIONS, THE NEW  AMERI-
 CAN  HOMEBUYER ASSISTANCE PROGRAM SHALL BE AVAILABLE TO A ELIGIBLE HOME-
 BUYER ONLY.
   (B) THE PROGRAM SHALL ONLY BE AVAILABLE TO A BORROWER IF AND  SO  LONG
 AS  THE  BORROWER  OCCUPIED  THE AGENCY-FINANCED HOME AS THEIR PERMANENT
 RESIDENCE.
   (C) THE PROGRAM SHALL ONLY BE AVAILABLE  TO  RESIDENCES  THAT  DO  NOT
 EXCEED THE AGENCY'S PURCHASE PRICE/APPRAISED VALUE LIMITS.
   (D)  EXCEPT  AS  PROVIDED  IN  THE  PROGRAM  FEATURES AND REQUIREMENTS
 CONTAINED IN SUBDIVISION THREE OF THIS SECTION, THE AGENCY MAY IMPLEMENT
 SUCH PROCEDURES AND REQUIREMENTS AS NECESSARY INCLUDING, BUT NOT LIMITED
 TO, OUTREACH, EDUCATION, COUNSELING, AND OTHER BORROWER REQUIREMENTS  OR
 DISCLOSURES.
   5.  TERMS  OF FINANCING.   NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
 THE AGENCY IS AUTHORIZED TO REQUIRE, AS A CONDITION TO THE FINANCING  OF
 ANY  MORTGAGE  WITH  RESPECT  TO  THE  NEW AMERICAN HOMEBUYER ASSISTANCE
 PROGRAM, SUCH RESTRICTIONS UPON ASSUMABILITY OF  THE  MORTGAGE,  DEFAULT
 PROVISIONS, RIGHTS TO ACCELERATE, AND SUCH OTHER TERMS AS THE AGENCY MAY
 DETERMINE  TO  BE  NECESSARY  OR  DESIRABLE.    ALL  SUCH TERMS SHALL BE
 ENFORCED BY THE ORIGINATING BANK, THE AGENCY, AND ANY  SUCCESSOR  HOLDER
 OF  THE  MORTGAGE  UNLESS EXPRESSLY WAIVED IN WRITING BY OR ON BEHALF OF
 THE AGENCY. SUBJECT TO THE FEATURES AND REQUIREMENTS  OF  THIS  SECTION,
 S. 2883                             3
 
 THE  AGENCY  MAY  CREATE AND ENFORCE CREDIT UNDERWRITING STANDARDS AS TO
 ENSURE THE CONTINUED SOLVENCY OF THE PROGRAM.
   § 2. This act shall take effect immediately.