Assembly Bill A8030A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8030--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 22, 2025
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on  Judiciary  -- recommitted to the Committee on Judiciary in accord-
   ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the real property law, in relation to limits  on  amount
   of flood insurance required by a mortgagee
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 283 of the real property law, as amended by chapter
 64 of the laws of 2025, is amended to read as follows:
   § 283. Limits on amount of flood insurance required by mortgagee.   1.
 No  mortgagee  shall  require  a  mortgagor to whom the mortgagee makes,
 increases, extends, or renews any loan or  line  of  credit  secured  by
 improved  residential  real property to purchase or pay for flood insur-
 ance on such residential real property: (1) at a  coverage  amount  that
 exceeds  the  lesser  of the replacement value of the IMPROVEMENT ON THE
 residential real property or the outstanding principal mortgage  balance
 as of the beginning of the year for which the policy shall be in effect;
 or  (2) that includes coverage for contents.  IN THE CASE OF AN OPEN-END
 LINE OF CREDIT, "PRINCIPAL" SHALL INCLUDE THE FULL LINE OF CREDIT AMOUNT
 REGARDLESS OF THE AMOUNT THAT HAS BEEN DRAWN ON THE LINE OF CREDIT.   In
 each  instance where a mortgagee requires a mortgagor to purchase or pay
 for flood insurance on such residential  real  property,  the  mortgagee
 shall provide notice to the mortgagor at the time the mortgagee is noti-
 fied  of the need to purchase or pay for flood insurance that states the
 following in clear and conspicuous print: 'The flood  insurance  we  are
 requiring  you  to purchase may not be sufficient to pay for many needed
 repairs after a flood and may not compensate you for your losses in  the
 property  due to the flood.  If you wish to protect your home or invest-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10859-02-6
 A. 8030--A                          2
              

 
 ment, you may wish to purchase more flood insurance than the  amount  we
 are requiring you to buy.'
   2.  ANY  ENTITY SUBJECT TO THE REQUIREMENTS OF SUBDIVISION ONE OF THIS
 SECTION AND SUBJECT TO THE NATIONAL FLOOD INSURANCE ACT (42  U.S.C.    §
 4001 ET. SEQ.) AND IMPLEMENTING REGULATIONS ISSUED BY BOARD OF GOVERNORS
 OF  THE  FEDERAL  RESERVE  SYSTEM,  THE FEDERAL DEPOSIT INSURANCE CORPO-
 RATION, THE OFFICE OF THE COMPTROLLER  OF  THE  CURRENCY,  THE  NATIONAL
 CREDIT  UNION  ADMINISTRATION,  OR  THE  FARM  CREDIT ADMINISTRATION, AS
 APPLICABLE, SHALL NOT BE IN VIOLATION OF SUBDIVISION ONE OF THIS SECTION
 WHEN IT REQUIRES FLOOD INSURANCE  IN  MINIMUM  REQUIRED  AMOUNT  OR  FOR
 CONTENTS  UNDER  THE  NATIONAL  FLOOD INSURANCE ACT AND APPLICABLE REGU-
 LATIONS.
   3. FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL  HAVE
 THE  MEANING  AS  SET  FORTH IN SUBDIVISION FIVE OF SECTION FOUR HUNDRED
 SIXTY-ONE OF THIS CHAPTER.
   4. THIS SECTION SHALL NOT APPLY TO RESIDENTIAL REAL PROPERTY  THAT  IS
 USED  FOR  COLLATERAL  ON  A LOAN ALONG WITH ADDITIONAL RESIDENTIAL REAL
 PROPERTY OR PROPERTIES.
   § 2. This act shall take effect immediately.