NY State Assembly Bill 2009-A8842

Assembly Bill A8842

Signed By Governor

2009-2010 Legislative Session

Relates to small loans to owners of multiple dwellings to remove substandard or insanitary conditions

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Archive: Last Bill Status - Signed by Governor

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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 26, 2009	signed chap.408
Aug 14, 2009	delivered to governor
Jul 16, 2009	returned to assembly passed senate 3rd reading cal.928 substituted for s5892
Jun 22, 2009	referred to rules delivered to senate passed assembly ordered to third reading rules cal.617 rules report cal.617 reported reported referred to rules
Jun 16, 2009	reported referred to ways and means
Jun 11, 2009	referred to housing

Votes

- Jul 16, 2009 - Floor Vote
  A8842
  
  57
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  5
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 16, 2009
      
      aye (57)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (5)
      
      Diaz
      
      Foley
      
      Johnson
      
      Kruger
      
      Squadron

co-Sponsors

2009-A8842 (ACTIVE) - Details

See Senate Version of this Bill:: S5892
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §§452 & 472, Priv Hous Fin L

2009-A8842 (ACTIVE) - Summary

Relates to small loans to owners of multiple dwellings to remove substandard or unsanitary conditions and to loans to owner-occupants of one-to-four unit private and multiple dwelling units.

2009-A8842 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8842

TITLE OF BILL:
An act to amend the private housing finance law, in relation to small
loans to owners of multiple dwellings to remove substandard or insani-
tary conditions and to loans to owner-occupants of one-to-four unit
private and multiple dwellings

PURPOSE OR GENERAL IDEA OF BILL:
Each note/loan shall be repaid within a period of thirty years or such
shorter periods as the supervising agency shall determine, but in no
event longer than the useful life of the rehabilitation or improvement
financed with such loan. The probable life of the existing multiple
dwelling which is hereby determined to be thirty years, or such shorter
period as the supervising agency shall determine.

SUMMARY OF SPECIFIC PROVISIONS:
Articles 8-A and 8-B of the Private Housing Finance Law ("PHFL") provide
loans for owners and owner-occupants of one-to-four unit multiple dwell-
ings to eliminate substandard or insanitary conditions in their build-
ings or units. Currently such loans must be repaid within a period of
thirty years or a shorter term determined by the agency, provided that
the term shall not exceed the "useful life of the rehabilitation or the
improvement financed with such loan".  Section one of the bill would
amend subdivision 2 of Section 452 of the PHFL to provide that the long-
est possible term for such loans to multiple dwelling owners shall be

"the probable life of the existing multiple dwelling", which it explic-
itly defines as thirty years.  Similarly, section two would amend subdi-
vision 2 of Section 472 of the PHFL to provide that the longest possible
term for such loans to owner-occupants shall be "the probable life of
the existing multiple dwelling", which it explicitly defines as thirty
years.

JUSTIFICATION:
Articles 8-A and 8-B of the PHFL currently provide that the term of any
loan made pursuant to such articles may not exceed the "useful life of
the rehabilitation or improvement." This language differs from the
equivalent provisions in Articles 8 and 15 of the PHFL, which provide
that the term of any loan made under such articles may not exceed the
probable life of the building, which is determined to be thirty years.
Therefore, while Articles 8 and 15 clearly allow thirty year loans,
Articles 8-A and 8-B contain some ambiguity regarding the permissible
loan term.

The financial viability of loans pursuant to Article 8-A and 8-B often
depends on the ability to spread repayment over a thirty year term.
Shorter loan terms may increase debt service beyond the amount the prop-
erty's rent roll can support. The proposed legislation resolves any
ambiguity by replacing the current language with the more definitive
language of Articles 8 and 15.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-A8842 (ACTIVE) - Bill Text download pdf

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

                                  8842

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 11, 2009
                               ___________

Introduced  by  M.  of  A.  CRESPO,  V. LOPEZ,  GIBSON  -- read once and
  referred to the Committee on Housing

AN ACT to amend the private housing finance law, in  relation  to  small
  loans to owners of multiple dwellings to remove substandard or insani-
  tary  conditions  and  to loans to owner-occupants of one-to-four unit
  private and multiple dwellings

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

  Section 1. Subdivision 2 of section 452 of the private housing finance
law,  as  amended by chapter 449 of the laws of 2004, is amended to read
as follows:
  2. Each loan shall be evidenced by a note executed by the owner of the
existing multiple dwelling. The supervising agency in its discretion may
require one or more of the shareholders of a corporate owner to  co-sign
such note or to otherwise guarantee or pledge security for the repayment
of  the  loan.  The  amount of any such loan shall not exceed the sum of
thirty-five thousand dollars ($35,000) per dwelling unit, or the cost of
eliminating such substandard or insanitary condition or  conditions,  or
effecting  such  rehabilitation  or improvement, whichever is less. Each
such note shall be repaid within a  period  of  [thirty  years  or  such
shorter  period  as  the  supervising  agency shall determine, but in no
event longer than the useful life of the rehabilitation  or  improvement
financed  with  such  loan]  THE  PROBABLE LIFE OF THE EXISTING MULTIPLE
DWELLING WHICH IS HEREBY DETERMINED TO BE THIRTY YEARS, OR SUCH  SHORTER
PERIOD  AS  THE SUPERVISING AGENCY SHALL DETERMINE.  The repayment shall
be made in such manner as may be provided in such note and contract,  if
any, in connection with such loan and may authorize such owner, with the
consent  of  the supervising agency, to prepay the principal of the loan
subject to such terms and conditions as therein provided. Such note  and
contract  may  contain  such other terms and provisions not inconsistent
with the provisions of this article as the  local  legislative  body  or

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14300-01-9

A. 8842                             2

supervising  agency  may deem necessary or desirable to secure repayment
of the loan, the interest thereon and other charges in connection there-
with and to carry out the  purposes  and  provisions  of  this  article,
including  but  not limited to provisions ensuring availability of rents
for such repayment.
  S 2. Subdivision 2 of section 472 of the private housing finance  law,
as  amended  by  chapter  705 of the laws of 1991, is amended to read as
follows:
  2. Each loan shall be evidenced by a note executed by the  owner-occu-
pant  of  the  existing  dwelling.  Repayment of each such note shall be
within a period of [thirty years or such shorter period  as  the  agency
shall  determine,  but  in  no  event longer than the useful life of the
rehabilitation or improvement financed with such loan] THE PROBABLE LIFE
OF THE EXISTING DWELLING WHICH IS HEREBY DETERMINED TO BE THIRTY  YEARS,
OR  SUCH  SHORTER  PERIOD  AS  THE AGENCY SHALL DETERMINE. The repayment
shall be made in such manner  as  may  be  provided  in  such  note  and
contract,  if  any, in connection with such loan, and may authorize such
owner-occupant, with the consent of the agency, to prepay the  principal
of the loan subject to such terms and conditions as therein provided. In
order to make any such loan affordable to the owner-occupant, the agency
may  provide in such note and contract that all of the outstanding prin-
cipal of said loan may be self-liquidated over a fifteen year period  of
owner-occupancy. Such note and contract may contain such other terms and
provisions  not  inconsistent with the provisions of this article as the
agency may deem necessary or desirable to secure repayment of the  loan,
the interest thereon, if any, and other charges in connection therewith,
and to carry out the purposes and provisions of this article.
  S 3. This act shall take effect immediately.

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Assembly Bill A8842

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