NY State Senate Bill 2009-S1095

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to corporations, authorities and commissions
Jan 26, 2009	referred to corporations, authorities and commissions

2009-S1095 (ACTIVE) - Details

See Assembly Version of this Bill:: A4521
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §2404, add §2405-f, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S763, A2520
2013-2014: S4037, A3211
2015-2016: S2274, A3186
2017-2018: S453, A3283
2019-2020: S929, A6948
2021-2022: A5637
2023-2024: A4843

2009-S1095 (ACTIVE) - Summary

Authorizes the establishment of the home equity protection insurance program directing the agency to issue a commitment to insure and insure the full value of certain residences which are owner-occupied by persons who meet certain income qualifications.

2009-S1095 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1095

 TITLE OF BILL :

An act to amend the public authorities law, in relation to
establishing a home equity protection insurance program

 PURPOSE :

To authorize the State of New York Mortgage Agency to institute a home
equity protection insurance program whereby the agency will insure the
value of residential real property against any loss thereof upon
resale of the property.

 SUMMARY OF PROVISIONS :

This bill adds a new subdivision (30) to Section 2404 of the Public
Authorities Law and a new 2405-f to authorize the State of New York
Mortgage Agency (SONYMA) to establish and administer a home equity
protection insurance program. Under the program the agency would
insure the full value of an owner-occupied one-to-four family
residence, including a condominium or a cooperative.  This program
would be restricted to middle-and low-income persons who meet the
income qualification threshold for a SONYMA forward commitment
mortgage.  They would not have to obtain a SONYMA mortgage to be
eligible for the home equity protection insurance program. The insured

value of the residential real property would be determined by either
its purchase price, the purchase price plus the cost of rehabilitation
or an appraisal. The insurance would become effective upon payment of
a premium that shall be determined by SONYMA. The insured homeowner
could collect on the policy if upon resale of the real property the
sales price is less than the insured amount (i.e. - the original
purchase price) provided that the loss in value is not predominantly
from the owner's neglect of the property's physical condition.  In
addition, in order to be eligible to collect for any decrease in the
policy holder/owner must have lived in the insured residence for a
minimum of three years. The bill also provides that SONYMA must create
a home equity protection insurance fund into which it must deposit any
moneys which may be available to the agency from any source, including
revenues received from insurance premiums for the payment of any
liabilities under the home equity protection insurance program. It
also requires the agency to maintain in the fund a reserve equaling at
least 20% of the total amounts insured.  Finally, the bill delineates
the types of investments in which the agency may invest the fund's
moneys. These investments correspond statutorily to the ones
authorized for the agency's mortgage insurance fund.

 JUSTIFICATION :

This bill reflects an attempt to provide homeowners with the
confidence to invest and live in areas of the state that have
experienced depressed residential real property prices. These areas
include upstate cities, parts of New York City, and rural areas. The
bill is modeled after a municipal program in Syracuse which was
developed to help reverse that city's housing decline. By guaranteeing
that homeowners will never lose their equity investment if they
purchase home equity protection insurance, the bill is designed to
help protect low and moderate income home- owners from the vagaries of
the real estate market. Since SONYMA already provides mortgage
insurance for aggregates of its forward commitment housing mortgages,
it represents the ideal agency to initiate and manage the home equity
protection program.

 LEGISLATIVE HISTORY :
2007: S.356 2006: S.6249 A.9606 2004: A.6486

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
One hundred eighty days after it becomes law.

2009-S1095 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1095

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 26, 2009
                               ___________

Introduced  by  Sen.  YOUNG  -- 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
  a home equity protection insurance program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  30 of section 2404 of the public authorities
law, as renumbered by chapter 229 of the laws  of  2007,  is  renumbered
subdivision 31 and a new subdivision 30 is added to read as follows:
  (30)  TO  ESTABLISH  AND ADMINISTER A HOME EQUITY PROTECTION INSURANCE
PROGRAM IN ACCORDANCE WITH SECTION TWENTY-FOUR HUNDRED  FIVE-F  OF  THIS
PART.
  S  2.  The  public  authorities law is amended by adding a new section
2405-f to read as follows:
  S 2405-F. HOME EQUITY PROTECTION INSURANCE PROGRAM. (1) THE AGENCY  IS
HEREBY DIRECTED, TO THE EXTENT IT FINDS PRACTICABLE, TO ESTABLISH A HOME
EQUITY  PROTECTION  INSURANCE PROGRAM WHEREBY IT WILL ISSUE A COMMITMENT
TO INSURE AND INSURE THE FULL VALUE OF A ONE-TO-FOUR  FAMILY  RESIDENCE,
INCLUDING A CONDOMINIUM AND A COOPERATIVE, THAT IS OWNER-OCCUPIED BY ANY
PERSON  OR  PERSONS  WHO  MEET  THE  INCOME QUALIFICATIONS FOR A FORWARD
COMMITMENT MORTGAGE PURSUANT TO SECTION TWENTY-FOUR  HUNDRED  FIVE-B  OF
THIS  PART.  THE  FULL  VALUE  OF THE RESIDENTIAL REAL PROPERTY SHALL BE
DETERMINED BY EITHER ITS PURCHASE PRICE, THE  PURCHASE  PRICE  PLUS  THE
COST OF ANY REHABILITATION TO THE RESIDENCE, OR AN APPRAISAL. THE INSUR-
ANCE  SHALL  BE ISSUED BY THE AGENCY AFTER THE PURCHASE OR THE REHABILI-
TATION OF THE REAL PROPERTY UPON PAYMENT OF A PREMIUM  THAT  THE  AGENCY
SHALL DETERMINE.
  (2)  UPON THE SALE OF THE RESIDENTIAL REAL PROPERTY THAT IS INSURED BY
THE AGENCY THROUGH ITS HOME EQUITY INSURANCE PROGRAM, THE  AGENCY  SHALL
PAY THE POLICY HOLDER/OWNER THE DIFFERENCE BETWEEN THE FACE VALUE OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02957-01-9

S. 1095                             2

INSURANCE  POLICY  AND  THE  SALES PRICE OF THE INSURED PREMISES IF SUCH
SALES  PRICE  IS  LESS  THAN  THE  INSURED  AMOUNT  AND  IF  THE  POLICY
HOLDER/OWNER  HAS  LIVED  IN  THE PREMISES FOR A PERIOD OF NOT LESS THAN
THREE  YEARS.  THE AGENCY SHALL ESTABLISH PROCEDURES TO BE FOLLOWED BY A
POLICY HOLDER/OWNER IN THE EVENT OF A PAYMENT UNDER  THE  TERMS  OF  ANY
HOME  EQUITY  PROTECTION  INSURANCE  POLICY.  THE  AGENCY  SHALL  NOT BE
REQUIRED TO PAY ON A CLAIM FOR A LOSS OF EQUITY IF  IT  DETERMINES  THAT
SUCH  LOSS OCCURRED PREDOMINANTLY FROM THE POLICY HOLDER/OWNER'S NEGLECT
OF THE REAL PROPERTY'S PHYSICAL CONDITION.
  (3)(A) THE AGENCY SHALL CREATE A HOME EQUITY PROTECTION INSURANCE FUND
TO BE USED AS A REVOLVING FUND FOR CARRYING OUT THE PROVISIONS  OF  THIS
SECTION  WITH  RESPECT  TO RESIDENTIAL REAL PROPERTY INSURED THEREUNDER.
THE AGENCY SHALL PAY INTO SUCH FUND ALL MONEYS WHICH MAY BE AVAILABLE TO
THE AGENCY FOR THE PURPOSES OF SUCH FUND FROM ANY SOURCE, INCLUDING  BUT
NOT  LIMITED TO THE MONEYS RECEIVED FROM PREMIUMS DERIVED FROM THE ISSU-
ANCE OF HOME EQUITY PROTECTION INSURANCE POLICIES.
  (B) THE AGENCY SHALL MAINTAIN  IN  THE  EQUITY  INSURANCE  FUND  AS  A
RESERVE  AN  AMOUNT  OF  MONEY OR CASH EQUIVALENTS EQUAL TO NO LESS THAN
TWENTY PERCENT OF THE AMOUNTS INSURED UNDER  THE  AGENCY'S  HOME  EQUITY
PROTECTION INSURANCE CONTRACTS.
  (4)  MONEYS  IN  SUCH FUND MAY BE INVESTED (A) IN SPECIAL TIME DEPOSIT
ACCOUNTS IN, OR CERTIFICATES OF DEPOSIT ISSUED BY, A BANK, TRUST  COMPA-
NY,  SAVINGS BANK OR SAVINGS AND LOAN ASSOCIATION LOCATED AND AUTHORIZED
TO DO BUSINESS IN THIS STATE; PROVIDED, HOWEVER, THAT SUCH TIME  DEPOSIT
ACCOUNT  OR  CERTIFICATE OF DEPOSIT SHALL BE PAYABLE WITHIN SUCH TIME AS
THE PROCEEDS MAY BE NEEDED TO MEET EXPENDITURES ESTIMATED TO BE INCURRED
BY THE AGENCY AND PROVIDED FURTHER THAT SUCH  TIME  DEPOSIT  ACCOUNT  OR
CERTIFICATE  OF  DEPOSIT  BE  SECURED  BY A PLEDGE OF OBLIGATIONS OF THE
UNITED STATES OF AMERICA OR OBLIGATIONS OF THE STATE, ANY  CITY  OF  THE
STATE,  OR  OTHER  MUNICIPAL  CORPORATION,  SCHOOL  DISTRICT OR DISTRICT
CORPORATION OF THE STATE OR  OBLIGATIONS  OF  AGENCIES  OF  THE  FEDERAL
GOVERNMENT; OR (B) IN OBLIGATIONS OF THE UNITED STATES OF AMERICA OR THE
STATE  WHICH MAY FROM TIME TO TIME BE LEGALLY PURCHASED BY SAVINGS BANKS
WITHIN THE STATE AS AN INVESTMENT OF FUNDS BELONGING TO THEM OR IN THEIR
CONTROL, OR IN OBLIGATIONS OF THE FEDERAL NATIONAL MORTGAGE  ASSOCIATION
PROVIDED  SUCH  OBLIGATIONS SHALL BE PAYABLE OR REDEEMABLE AT THE OPTION
OF THE OWNER WITHIN SUCH TIMES AS THE PROCEEDS MAY  BE  NEEDED  TO  MEET
EXPENDITURES ESTIMATED TO BE INCURRED BY THE AGENCY.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S1095

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2009-S1095 (ACTIVE) - Details

2009-S1095 (ACTIVE) - Summary

2009-S1095 (ACTIVE) - Sponsor Memo

2009-S1095 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1095

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Sponsored By

Catharine Young

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2009-S1095 (ACTIVE) - Details

2009-S1095 (ACTIVE) - Summary

2009-S1095 (ACTIVE) - Sponsor Memo

2009-S1095 (ACTIVE) - Bill Text download pdf

Comments