S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6345
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 22, 2021
                                ___________
 
 Introduced  by  Sen.  RATH  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN ACT to amend the private housing finance law, in relation to creating
   a veteran's home and land ownership loan program

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The private housing finance law is amended by adding a  new
 article 19-A to read as follows:
                               ARTICLE XIX-A
                  VETERAN'S HOME AND LAND OWNERSHIP LOAN
 SECTION 1115. LEGISLATIVE PURPOSE.
         1115-A. DEFINITIONS.
         1115-B. CREATION OF THE "VETERAN'S HOME AND LAND OWNERSHIP
                   LOAN FUND".
         1115-C. PURPOSE AND TERMS OF LOAN.
         1115-D. LOAN REPAYMENT.
         1115-E. ISSUANCE OF BONDS.
         1115-F. ADOPTION OF REGULATIONS.
   § 1115. LEGISLATIVE PURPOSE. IT IS HEREBY FOUND AND DECLARED THAT MANY
 NEW  YORK RESIDENTS HAVE SERVED OUR NATION HONORABLY IN THE ARMED FORCES
 OF THE UNITED STATES, AND THAT MANY SUCH  NEW  YORKERS  HAVE  SACRIFICED
 CONSIDERABLY  DURING THEIR SERVICE. IT IS IN THE PUBLIC INTEREST BOTH TO
 DEMONSTRATE OUR APPRECIATION FOR THAT SERVICE BY PROVIDING STATE  FINAN-
 CIAL  ASSISTANCE  TO SUCH VETERANS; IN ORDER TO ENCOURAGE HOME OWNERSHIP
 AND THE REHABILITATION OF DETERIORATING HOUSING,  STABILIZE  COMMUNITIES
 AND IMPROVE THE LOCAL TAX BASE.
   § 1115-A. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "PERSON" MEANS AN HONORABLY DISCHARGED VETERAN OF THE ARMED FORCES
 OF THE UNITED STATES, OR THEIR SURVIVING UNMARRIED SPOUSE.

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

                                                            LBD02052-01-1

 S. 6345                             2
 
   2. "VETERAN" MEANS A PERSON WHO SERVED IN THE ACTIVE MILITARY,  NAVAL,
 OR AIR SERVICE DURING TIME OF WAR AS DEFINED BELOW, OR WHO WAS A RECIPI-
 ENT  OF  THE ARMED FORCES EXPEDITIONARY MEDAL, NAVY EXPEDITIONARY MEDAL,
 MARINE CORPS EXPEDITIONARY MEDAL, OR GLOBAL WAR ON TERRORISM EXPEDITION-
 ARY  MEDAL, AND WHO WAS DISCHARGED OR RELEASED THEREFROM UNDER HONORABLE
 CONDITIONS.
   3. "SERVICE DURING TIME OF WAR" MEANS:
   (A) THE INDIVIDUAL IN QUESTION WAS A RECIPIENT  OF  THE  ARMED  FORCES
 EXPEDITIONARY  MEDAL,  THE  NAVY EXPEDITIONARY MEDAL OR THE MARINE CORPS
 EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE
 FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED
 EIGHTY-SEVEN, IN GRENADA FROM  OCTOBER  TWENTY-THIRD,  NINETEEN  HUNDRED
 EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR
 IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU-
 ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY, OR;
   (B)  THE  INDIVIDUAL  SERVED ON ACTIVE DUTY FOR NINETY DAYS OR MORE IN
 THE ARMED FORCES OF THE UNITED STATES DURING ANY ONE  OF  THE  FOLLOWING
 WARS OR HOSTILITIES:
   (I)  IN  WORLD  WAR  I  FROM  THE SIXTH DAY OF APRIL, NINETEEN HUNDRED
 SEVENTEEN TO THE ELEVENTH DAY OF NOVEMBER,  NINETEEN  HUNDRED  EIGHTEEN,
 INCLUSIVE;
   (II)  IN  WORLD  WAR  II  FROM  THE  SEVENTH DAY OF DECEMBER, NINETEEN
 HUNDRED FORTY-ONE TO THE THIRTY-FIRST DAY OF DECEMBER, NINETEEN  HUNDRED
 FORTY-SIX, INCLUSIVE;
   (III)  IN  THE KOREAN HOSTILITIES FROM THE TWENTY-SEVENTH DAY OF JUNE,
 NINETEEN HUNDRED FIFTY TO THE  THIRTY-FIRST  DAY  OF  JANUARY,  NINETEEN
 HUNDRED FIFTY-FIVE, INCLUSIVE;
   (IV)  IN  THE VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY OF DECEMBER,
 NINETEEN HUNDRED SIXTY-ONE TO THE SEVENTH DAY OF MAY,  NINETEEN  HUNDRED
 SEVENTY-FIVE; OR
   (V)  IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST, NINE-
 TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
   4. "AGENCY" MEANS THE NEW YORK STATE HOUSING FINANCE AGENCY CREATED BY
 SECTION FORTY-THREE OF THIS CHAPTER.
   § 1115-B. CREATION OF THE "VETERAN'S  HOME  AND  LAND  OWNERSHIP  LOAN
 FUND".  THERE IS HEREBY ESTABLISHED A "VETERAN'S HOME AND LAND OWNERSHIP
 LOAN  FUND".  SUCH  FUND  SHALL BE USED TO MAKE LOANS AUTHORIZED BY THIS
 ARTICLE AND FOR EXPENSES INCURRED BY THE AGENCY IN THE IMPLEMENTATION OF
 THE PROGRAM ESTABLISHED BY THIS ARTICLE.
   § 1115-C. PURPOSE AND TERMS OF LOAN. 1. THE AGENCY, ACTING  ON  BEHALF
 OF THE STATE MAY IN ITS DISCRETION, ENTER INTO A CONTRACT WITH AN ELIGI-
 BLE  PERSON TO PROVIDE A LOAN TO ASSIST IN THE PURCHASE OF A DWELLING OR
 THE PURCHASE AND REHABILITATION OF A  DWELLING  CONTAINING  UP  TO  FOUR
 RESIDENTIAL  UNITS, PROVIDED SUCH PERSON SHALL RESIDE IN AT LEAST ONE OF
 SUCH UNITS. SUCH LOAN MAY ALSO BE MADE FOR THE  PURCHASE  OF  UNIMPROVED
 REAL PROPERTY WHEN SUCH PROPERTY SHALL BE USED FOR THE CONSTRUCTION OF A
 NEW DWELLING.
   2.  SUCH  LOAN  SHALL  NOT  EXCEED TWENTY PERCENT OF THE VALUE FOR THE
 PURCHASE OF A HOME, OR FORTY THOUSAND DOLLARS FOR THE PURCHASE OF  UNIM-
 PROVED REAL PROPERTY. SUCH VALUE SHALL BE DETERMINED FROM THE APPRAISAL,
 IF  ANY, REQUIRED BY THE LENDING INSTITUTION GRANTING THE FIRST MORTGAGE
 LOAN ON SUCH DWELLING, AND IF NO SUCH APPRAISAL HAS  BEEN  MADE  AT  THE
 TIME  THAT A CONTRACT FOR LOAN IS ENTERED INTO PURSUANT TO THIS ARTICLE,
 THE AGENCY SHALL CAUSE SUCH APPRAISAL TO BE MADE.
   § 1115-D. LOAN REPAYMENT. 1. ANY LOAN CONTRACTED FOR PURSUANT TO  THIS
 ARTICLE  SHALL  BE SECURED BY A SECOND MORTGAGE ON THE DWELLING OR UNIM-

 S. 6345                             3
 
 PROVED REAL PROPERTY PURCHASED BY THE RECIPIENT  OF  SUCH  LOAN  IF  THE
 RECIPIENT  OF  SUCH  LOAN ASSIGNS, TRANSFERS OR OTHERWISE CONVEYS HIS OR
 HER INTEREST IN SUCH DWELLING OR CEASES TO  OCCUPY  SUCH  DWELLING,  THE
 UNPAID PRINCIPAL BALANCE OF SAID SECOND MORTGAGE, TOGETHER WITH INTEREST
 THEREON,  SHALL  BECOME DUE AND PAYABLE. IF THE RECIPIENT OF ANY LOAN IS
 UNABLE TO REPAY THE LOAN, THE AGENCY, AT ITS DISCRETION, MAY ADJUST  THE
 INTEREST RATE, TERMS AND CONDITIONS OF THE LOAN TO FACILITATE REPAYMENT.
   2.  REPAYMENT  OF  ANY  LOAN  PROVIDED IN ACCORDANCE WITH THIS ARTICLE
 SHALL BE SUBJECT TO AN INTEREST RATE TO BE DETERMINED IN ACCORDANCE WITH
 TERMS AND CONDITIONS AS THE AGENCY MAY ESTABLISH. IN NO CASE  SHALL  THE
 TERM  EXCEED  THE TERM OF THE FIRST MORTGAGE OBTAINED FOR THE PURPOSE OF
 PURCHASING SUCH DWELLING EXCEPT, IN THE  CASE  OF  A  GRADUATED  PAYMENT
 MORTGAGE  LOAN,  THE  TERM OF THE LOAN MADE PURSUANT TO THIS ARTICLE MAY
 EXCEED THE EXPECTED TERM OF SUCH MORTGAGE LOAN PROVIDED. THE TERM OF THE
 LOAN MADE PURSUANT TO THIS ARTICLE DOES NOT EXCEED THE LESSER OF:
   (A) THE TERM INDICATED BY THE LIMITED  AMORTIZATION  SCHEDULE  OF  THE
 GRADUATED PAYMENT MORTGAGE LOAN; OR
   (B)  THIRTY  YEARS. PAYMENTS BY HOMEOWNERS SHALL BE PAID TO THE AGENCY
 AND DEPOSITED IN THE VETERAN'S HOME AND LAND OWNERSHIP LOAN FUND.
   § 1115-E. ISSUANCE OF BONDS. 1. THE AGENCY SHALL HAVE THE POWER AND IS
 HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE ITS  NEGOTIABLE  BONDS  AND
 NOTES IN CONFORMITY WITH APPLICABLE PROVISIONS OF THE UNIFORM COMMERCIAL
 CODE  IN  SUCH  PRINCIPAL  AMOUNTS  AS, IN THE DISCRETION OF THE AGENCY,
 SHALL BE NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE, BUT NOT IN
 EXCESS OF AN AGGREGATE AMOUNT OF TWENTY MILLION DOLLARS.
   2. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED BY  THE  AGENCY,  ALL
 BONDS  AND  NOTES  ISSUED  SHALL BE PAYABLE OUT OF ANY MONEYS, ASSETS OR
 REVENUES OF THE STATE, SUBJECT ONLY TO ANY AGREEMENT WITH BONDHOLDERS OR
 NOTEHOLDERS PLEDGING ANY PARTICULAR MONEYS, ASSETS OR REVENUES.
   3. BONDS AND NOTES SHALL BE AUTHORIZED BY A RESOLUTION OR  RESOLUTIONS
 OF THE AGENCY ADOPTED IN THE MANNER PROVIDED BY LAW.
   4.  SUCH BONDS OR NOTES SHALL BEAR SUCH DATE OR DATES, SHALL MATURE AT
 SUCH TIME OR TIMES, SHALL BEAR INTEREST AT SUCH RATE OR RATES, SHALL  BE
 OF  SUCH  DENOMINATIONS,  SHALL BE IN SUCH FORM, CARRY SUCH REGISTRATION
 PRIVILEGES, BE EXECUTED IN SUCH MANNER, BE PAYABLE IN  LAWFUL  MONEY  OF
 THE  UNITED  STATES OF AMERICA AT SUCH PLACE OR PLACES WITHIN OR WITHOUT
 THE STATE, BE SUBJECT TO SUCH TERMS OF REDEMPTION PRIOR TO  MATURITY  AS
 MAY  BE  PROVIDED  BY SUCH RESOLUTION OR RESOLUTIONS OR SUCH CERTIFICATE
 WITH RESPECT TO SUCH BONDS OR NOTES,  AS  THE  CASE  MAY  BE;  PROVIDED,
 HOWEVER,  THAT  THE  MAXIMUM  MATURITY  OF BONDS SHALL NOT EXCEED THIRTY
 YEARS FROM THE DATE THEREOF AND THE MAXIMUM MATURITY  OF  NOTES  OR  ANY
 RENEWALS  THEREOF  SHALL  NOT  EXCEED  SEVEN  YEARS FROM THE DATE OF THE
 ORIGINAL ISSUE OF SUCH NOTES.
   5. ANY SUCH BONDS OR NOTES MAY BE SOLD AT SUCH  PRICE  OR  PRICES,  AT
 PUBLIC  OR  PRIVATE SALE, IN SUCH MANNER AND FROM TIME TO TIME AS MAY BE
 DETERMINED BY THE AGENCY, AND THE AGENCY MAY PAY ALL EXPENSES,  PREMIUMS
 AND   COMMISSIONS  WHICH  IT  MAY  DEEM  NECESSARY  OR  ADVANTAGEOUS  IN
 CONNECTION WITH THE ISSUANCE AND SALE THEREOF. NO BONDS OR NOTES MAY  BE
 SOLD  AT  PRIVATE  SALE,  HOWEVER, UNLESS SUCH SALE AND THE TERM THEREOF
 HAVE BEEN APPROVED IN WRITING BY:
   (A) THE COMPTROLLER, IF SUCH SALE IS NOT TO THE COMPTROLLER; OR
   (B) THE STATE DIRECTOR OF THE BUDGET, IF SUCH SALE  IS  TO  THE  COMP-
 TROLLER.
   6.  THE  AGENCY IS AUTHORIZED TO PROVIDE FOR THE ISSUANCE OF ITS BONDS
 OR NOTES FOR THE PURPOSE OF REFUNDING  ANY  SUCH  BONDS  OR  NOTES  THEN
 OUTSTANDING,  INCLUDING  THE  PAYMENT OF ANY REDEMPTION PREMIUMS THEREON

 S. 6345                             4

 AND ANY INTEREST ACCRUED OR  TO  ACCRUE  TO  THE  REDEMPTION  DATE  NEXT
 SUCCEEDING  THE  DATE  OF DELIVERY OF SUCH REFUNDING BONDS OR NOTES. THE
 PROCEEDS OF ANY SUCH BONDS OR NOTES ISSUED FOR THE PURPOSE OF SO REFUND-
 ING  OUTSTANDING  BONDS  OR  NOTES  SHALL  BE  FORTHWITH  APPLIED TO THE
 PURCHASE OR RETIREMENT OF SUCH OUTSTANDING BONDS OR NOTES OR THE REDEMP-
 TION OF SUCH OUTSTANDING BONDS OR NOTES  ON  THE  REDEMPTION  DATE  NEXT
 SUCCEEDING  THE  DATE  OF  DELIVERY OF SUCH REFUNDING BONDS OR NOTES AND
 MAY, PENDING SUCH APPLICATION, BE PLACED IN ESCROW TO BE APPLIED TO SUCH
 PURCHASE OR RETIREMENT OR REDEMPTION ON SUCH  DATE.  ANY  SUCH  ESCROWED
 PROCEEDS, PENDING SUCH USE, MAY BE INVESTED AND REINVESTED ONLY IN OBLI-
 GATIONS  OF  OR  GUARANTEED BY THE STATE OR THE UNITED STATES OF AMERICA
 AND EITHER:
   (A) THE YIELD FROM WHICH DOES NOT EXCEED THE AVERAGE NET INTEREST COST
 PER ANNUM, EXPRESSED AS A PERCENTAGE, ON SUCH REFUNDING  BONDS  BY  MORE
 THAN ONE-HALF OF ONE PERCENT; OR
   (B) THE INCOME FROM WHICH IS EXEMPT FROM FEDERAL TAXATION, MATURING AT
 SUCH TIME OR TIMES AS SHALL BE APPROPRIATE TO ASSURE THE PROMPT PAYMENT,
 AS  TO  PRINCIPAL,  INTEREST  AND  REDEMPTION  PREMIUM,  IF  ANY, ON THE
 OUTSTANDING BONDS OR NOTES TO BE SO REFUNDED BY PURCHASE, RETIREMENT  OR
 REDEMPTION, AS THE CASE MAY BE.
   THE  INTEREST,  INCOME  AND PROFITS, IF ANY, EARNED OR REALIZED ON ANY
 SUCH INVESTMENT MAY ALSO BE APPLIED TO THE PAYMENT  OF  THE  OUTSTANDING
 BONDS  OR NOTES TO BE SO REFUNDED BY PURCHASE, RETIREMENT OR REDEMPTION,
 AS THE CASE MAY BE. AFTER THE TERMS OF THE ESCROW HAVE BEEN FULLY SATIS-
 FIED AND CARRIED OUT, ANY BALANCE OF SUCH PROCEEDS AND INTEREST, IF ANY,
 EARNED OR REALIZED ON THE INVESTMENTS THEREOF MAY  BE  RETURNED  TO  THE
 AGENCY FOR USE BY IT IN ANY LAWFUL MANNER. ALL SUCH BONDS OR NOTES SHALL
 BE  ISSUED  AND SECURED AND SHALL BE SUBJECT TO THE PROVISIONS OF LAW IN
 THE SAME MANNER AND TO THE SAME EXTENT  AS  ANY  OTHER  BONDS  OR  NOTES
 ISSUED PURSUANT TO LAW.
   7.  WHETHER  OR NOT THE BONDS AND NOTES ARE OF SUCH FORM AND CHARACTER
 AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE  UNIFORM  COMMER-
 CIAL  CODE,  THE  BONDS AND NOTES ARE HEREBY MADE NEGOTIABLE INSTRUMENTS
 WITHIN THE MEANING OF AND FOR ALL THE PURPOSES OF THE UNIFORM COMMERCIAL
 CODE, SUBJECT ONLY TO THE PROVISIONS OF THE BONDS AND NOTES  FOR  REGIS-
 TRATION.
   8. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS OR NOTES PURSU-
 ANT  TO  THE PROVISIONS OF THIS ARTICLE MAY CONTAIN PROVISIONS WHICH MAY
 BE A PART OF THE CONTRACT WITH THE HOLDERS OF SUCH BONDS  OR  NOTES,  AS
 TO:
   (A) PLEDGING OR CREATING A LIEN, TO THE EXTENT PROVIDED BY SUCH RESOL-
 UTION  OR RESOLUTIONS, ON ALL OR ANY PART OF ANY MONEYS HELD IN TRUST OR
 OTHERWISE BY OTHERS FOR THE PAYMENT OF SUCH BONDS OR NOTES;
   (B) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE  REGULATION
 OR DISPOSITION THEREOF;
   (C)  LIMITATIONS  ON  THE PURPOSE TO WHICH THE PROCEEDS OF SALE OF ANY
 ISSUE OF SUCH BONDS OR NOTES THEN OR THEREAFTER  TO  BE  ISSUED  MAY  BE
 APPLIED;
   (D)  LIMITATIONS  ON  THE  ISSUANCE  OF ADDITIONAL BONDS OR NOTES, THE
 TERMS UPON WHICH ADDITIONAL BONDS OR NOTES MAY BE  ISSUED  AND  SECURED,
 AND UPON THE REFUNDING OF OUTSTANDING OR OTHER BONDS OR NOTES;
   (E) THE PROCEDURE, IF ANY, BY WHICH THE TERMS OF ANY CONTRACT WITH THE
 HOLDERS  OF  BONDS  OR  NOTES MAY BE AMENDED OR ABROGATED, THE AMOUNT OF
 BONDS OR NOTES THE HOLDERS OF WHICH MUST CONSENT THERETO AND THE  MANNER
 IN WHICH SUCH CONSENT MAY BE GIVEN;

 S. 6345                             5

   (F)  PROVIDING  FOR THE RIGHTS AND REMEDIES OF THE HOLDERS OF BONDS OR
 NOTES IN THE EVENT OF DEFAULT, PROVIDED, HOWEVER, THAT SUCH  RIGHTS  AND
 REMEDIES  SHALL NOT BE INCONSISTENT WITH THE GENERAL LAWS OF THIS STATE;
 AND
   (G) ANY OTHER MATTERS OF LIKE OR DIFFERENT CHARACTER, WHICH IN ANY WAY
 AFFECT  THE SECURITY AND PROTECTION OF THE BONDS OR NOTES AND THE RIGHTS
 OF THE HOLDERS THEREOF.
   § 1115-F. ADOPTION OF REGULATIONS. THE AGENCY SHALL ADOPT  REGULATIONS
 PROVIDING FOR QUALIFICATIONS OF ELIGIBLE PERSONS, REQUIREMENTS AND LIMI-
 TATIONS  AS TO ADJUSTMENTS OF TERMS AND CONDITIONS OF REPAYMENT, FUNDING
 PRIORITIES AND ANY ADDITIONAL REQUIREMENTS  AS  IT  DEEMS  NECESSARY  TO
 CARRY OUT THE PURPOSES OF THIS ARTICLE.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.