S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1582
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced  by  M. of A. SIMON -- Multi-Sponsored by -- M. of A. COLTON,
   COOK, HYNDMAN, REYES, WILLIAMS  --  read  once  and  referred  to  the
   Committee on Housing
 
 AN ACT to amend the public authorities law, in relation to establishment
   of a reverse mortgage loan program for seniors

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature  finds  and  declares
 that  many  senior  citizens  living in New York own their own homes and
 want to continue to live at home for as long  as  possible.  Nationally,
 with over two trillion dollars tied up in home equity, reverse mortgages
 have  the  potential  to dramatically increase the ability of seniors to
 pay for their long-term care and remain  in  their  homes.  Today,  over
 eighty  percent  of  older  Americans own their own homes, seventy-three
 percent of which are owned free and clear of  any  mortgages.  Unlocking
 these resources can help "house-rich and cash-poor" seniors purchase the
 long-term  care  services they feel best meet their needs. Private funds
 from reverse mortgages also  can  strengthen  community  long-term  care
 systems  and  reduce the burden on state and local Medicaid budgets. The
 purpose of this act is to establish  a  reverse  mortgage  loan  program
 within  the state of New York mortgage agency to enable elderly homeown-
 ers to stay at home and pay for their long-term care.
   § 2. The public authorities law is amended by  adding  a  new  section
 2405-g to read as follows:
   §  2405-G.  REVERSE  MORTGAGE  LOAN PROGRAM FOR SENIORS.  (1) AUTHORI-
 ZATION. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE AGENCY
 IS HEREBY AUTHORIZED AND DIRECTED TO ESTABLISH A REVERSE  MORTGAGE  LOAN
 PROGRAM  FOR THE PURPOSE OF ENABLING SENIOR HOMEOWNERS TO USE THE EQUITY
 IN THEIR HOMES TO PROVIDE FOR THEIR LONG-TERM  CARE  NEEDS.  THE  SUPER-
 INTENDENT  OF  FINANCIAL SERVICES IS HEREBY AUTHORIZED TO VARY ANY RULES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01979-01-3
 A. 1582                             2
              

 
 AND REGULATIONS PERTAINING TO REVERSE MORTGAGE LOANS TO ACCOMMODATE  THE
 NEEDS OF THE PROGRAM.
   (2)  DEFINITIONS.  FOR  PURPOSES  OF  THIS SECTION THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS  UNLESS  THE  CONTEXT  SHALL  INDICATE
 ANOTHER OR DIFFERENT MEANING OR INTENT:
   (A)  "PROGRAM"  SHALL  MEAN  THE  REVERSE  MORTGAGE  LOAN  PROGRAM FOR
 SENIORS,
   (B) "APPLICANT" SHALL MEAN AN INDIVIDUAL WHO IS  APPLYING  TO  PARTIC-
 IPATE IN THE PROGRAM,
   (C) "BORROWER" SHALL MEAN AN INDIVIDUAL WHO IS ELIGIBLE TO PARTICIPATE
 IN THE PROGRAM PURSUANT TO SUBDIVISION FOUR OF THIS SECTION,
   (D)  "REVERSE  MORTGAGE LOAN" SHALL MEAN A LOAN FOR A TERM OF YEARS TO
 BE DETERMINED BY THE AGENCY, IN WHICH LOAN PROCEEDS ARE  ADVANCED  TO  A
 BORROWER  IN  EQUAL,  MONTHLY  INSTALLMENTS  AND MAY INCLUDE AN INITIAL,
 ONE-TIME LUMP SUM PAYMENT OF UP TO FIVE THOUSAND DOLLARS,
   (E) "LOAN" SHALL MEAN A REVERSE MORTGAGE LOAN ISSUED PURSUANT  TO  THE
 TERMS OF THIS SECTION,
   (F)  "INCOME" SHALL MEAN INCOME THAT DOES NOT EXCEED THE INCOME LIMITS
 ESTABLISHED BY THE AGENCY, AND
   (G) "ASSESSMENT" SHALL MEAN THE CARE  NEEDS  ASSESSMENT  DESCRIBED  IN
 SUBDIVISION FIVE OF THIS SECTION.
   (3)  TERMS  AND CONDITIONS OF THE LOAN.  LOANS SHALL ONLY BE ISSUED TO
 APPLICANTS WHO OWN AND OCCUPY A SINGLE FAMILY DWELLING, A CONDOMINIUM OR
 A CO-OP.  IF A BORROWER VACATES HIS OR HER RESIDENCE, THE LOAN  PAYMENTS
 SHALL  CEASE  AND  THE  BALANCE OF THE LOAN SHALL BECOME DUE. A BORROWER
 SHALL NOTIFY THE AGENCY UPON VACATING  HIS  OR  HER  RESIDENCE.    LOANS
 ISSUED  BY  THE  PROGRAM  SHALL  OFFER A LOW, FIXED INTEREST RATE, TO BE
 DETERMINED BY THE AGENCY. ANY LOAN ORIGINATION FEES,  CLOSING  COSTS  OR
 FEES CHARGED BY THE PROGRAM SHALL BE AT A REDUCED RATE, TO BE DETERMINED
 BY  THE AGENCY. THE AGENCY SHALL NOT IMPOSE PRE-PAYMENT PENALTIES ON ANY
 LOAN. THE LOAN SHALL ALSO INCLUDE THE COST OF THE CARE NEEDS  ASSESSMENT
 REQUIRED  UNDER  SUBDIVISION  FIVE  OF  THIS SECTION. LOANS SHALL NOT BE
 ISSUED TO BORROWERS WHOSE  INCOME  EXCEEDS  THE  MAXIMUM  INCOME  LIMITS
 ESTABLISHED  BY  THE  AGENCY.    LOANS SHALL NOT BE ISSUED FOR MORE THAN
 EIGHTY PERCENT OF THE VALUE OF THE BORROWER'S  HOME,  WITH  MINIMUM  AND
 MAXIMUM  LOAN  AMOUNTS  TO BE DETERMINED BY THE AGENCY ON A CASE BY CASE
 BASIS.
   IN ITS DETERMINATION OF MINIMUM AND MAXIMUM LOAN AMOUNTS,  THE  AGENCY
 SHALL CONSIDER THE FOLLOWING CRITERIA:
   (A)  THE  AMOUNT  OF  THE  APPLICANT'S  PERSONAL AND HOUSEHOLD INCOME,
 ASSETS, AND OTHER FINANCIAL RESOURCES AVAILABLE TO MEET THE NEEDS OF THE
 APPLICANT AND THE APPLICANT'S HOUSEHOLD;
   (B) THE VALUE OF THE APPLICANT'S RESIDENCE AS DETERMINED BY THE  AGEN-
 CY; AND
   (C) THE INFORMATION CONTAINED IN THE APPLICANT'S CARE NEEDS ASSESSMENT
 PROVIDED  BY  AN  AREA  AGENCY  ON AGING, INCLUDING THE SPECIAL NEEDS OF
 PARTICULAR APPLICANTS BECAUSE OF  PHYSICAL  OR  MENTAL  DISABILITIES  OR
 IMPAIRMENTS.
   (4)  ELIGIBILITY  OF  APPLICANTS.  IN  ORDER  TO  BE  ELIGIBLE FOR THE
 PROGRAM, AN APPLICANT MUST BE AN  INDIVIDUAL  AGE  SIXTY-FIVE  YEARS  OR
 OLDER,  BE  THE OWNER AND OCCUPANT OF A SINGLE FAMILY DWELLING OR CONDO-
 MINIUM, WHO HAS LOST SOME OR ALL OF THE CAPACITY TO FUNCTION ON  HIS  OR
 HER  OWN  DUE  TO  A  CHRONIC ILLNESS OR CONDITION, AND WHO, BASED ON AN
 ASSESSMENT PERFORMED BY AN AREA AGENCY ON AGING PURSUANT TO  SUBDIVISION
 FIVE  OF THIS SECTION, REQUIRES OR IS EXPECTED TO REQUIRE ONE OR MORE OF
 THE FOLLOWING ITEMS OR SERVICES FOR AN EXTENDED PERIOD OF  TIME  OF  SIX
 A. 1582                             3
 
 CONSECUTIVE  MONTHS  OR  MORE: HOME CARE, INCLUDING NURSING AND PERSONAL
 CARE SERVICES, HOMEMAKER AND CHORE SERVICES,  INCLUDING  CHORE  SERVICES
 RELATED  TO  HOME MAINTENANCE OR REPAIR, NUTRITION SERVICES, TRANSPORTA-
 TION,  COUNSELING,  PHYSICAL  THERAPY  AND  OTHER MEDICAL OR NON-MEDICAL
 SUPPORT SERVICES, RESPITE, ADULT DAY CARE,  DURABLE  MEDICAL  EQUIPMENT,
 MEDICALLY  INDICATED  HOME  ALTERATIONS,  AND  UNINSURED CATASTROPHIC OR
 RECURRING MEDICAL EXPENSES INCLUDING PRESCRIPTION DRUGS. AN  APPLICANT'S
 PERSONAL  AND  HOUSEHOLD INCOME MAY NOT EXCEED THE MAXIMUM INCOME LIMITS
 ESTABLISHED BY THE AGENCY.
   (5) CARE NEEDS ASSESSMENT. AS PART OF THE LOAN  APPROVAL  PROCESS,  AN
 AREA  AGENCY  ON  AGING SHALL CONDUCT AN ASSESSMENT OF EACH APPLICANT IN
 ORDER TO IDENTIFY THE  APPLICANT'S  CARE  NEEDS,  INCLUDING  INFORMATION
 NECESSARY  TO DETERMINE WHETHER THE APPLICANT REQUIRES OR IS EXPECTED TO
 REQUIRE ONE OR MORE OF THE ITEMS OR SERVICES  SPECIFIED  IN  SUBDIVISION
 FOUR OF THIS SECTION, AND IF SO, WHICH ITEMS OR SERVICES ARE REQUIRED OR
 EXPECTED  TO  BE  REQUIRED, THE DURATION FOR WHICH THE ITEMS OR SERVICES
 ARE EXPECTED TO BE REQUIRED, AND THE ESTIMATED  COST  OF  THE  ITEMS  OR
 SERVICES. THE ASSESSMENT SHALL BE CONDUCTED FACE-TO-FACE WITH THE APPLI-
 CANT,  AND,  IF REQUESTED BY THE APPLICANT, HIS OR HER AUTHORIZED REPRE-
 SENTATIVE AND INFORMAL CAREGIVERS, USING THE  STANDARDIZED  PROCESS  AND
 INSTRUMENT  PRESCRIBED  BY THE OFFICE FOR THE AGING FOR EXPANDED IN-HOME
 SERVICES FOR THE ELDERLY PROGRAM (EISEP) CLIENTS, UNLESS THE AREA AGENCY
 HAS RECEIVED APPROVAL FROM SAID OFFICE TO USE  A  DIFFERENT  INSTRUMENT.
 ALL  INFORMATION  DERIVED  FROM THE ASSESSMENT OF THE APPLICANT SHALL BE
 CONFIDENTIAL AND SHARED ONLY WITH OTHERS INVOLVED IN THE ARRANGEMENT  OR
 PROVISION  OF SERVICES TO THE APPLICANT PURSUANT TO WRITTEN CONSENT FROM
 THE APPLICANT OR HIS OR HER AUTHORIZED REPRESENTATIVE. IF, BASED ON  THE
 ASSESSMENT,  THE  APPLICANT  IS  DETERMINED  TO  HAVE  A  NEED FOR OR IS
 EXPECTED TO NEED ANY OF THE ITEMS OR SERVICES CONTAINED  IN  SUBDIVISION
 FOUR OF THIS SECTION, SUCH APPLICANT SHALL BE DEEMED FUNCTIONALLY ELIGI-
 BLE FOR THE PROGRAM.
   (6)  COUNSELING  AND  ASSISTANCE.  THE  AREA  AGENCIES  ON AGING SHALL
 PROVIDE COUNSELING AND ASSISTANCE TO APPLICANTS WHO  WISH  TO  OBTAIN  A
 REVERSE  MORTGAGE LOAN FROM THE PROGRAM. COUNSELING AND ASSISTANCE SHALL
 INCLUDE THE FOLLOWING:
   (A) REVIEWING WITH THE APPLICANT THE TERMS  AND  RESTRICTIONS  OF  THE
 LOAN,  INCLUDING  ASSISTING  THE  APPLICANT WITH DETERMINING WHETHER THE
 LOAN WOULD JEOPARDIZE THE APPLICANT'S ELIGIBILITY FOR MEDICAID AND OTHER
 MEANS-TESTED PROGRAMS;
   (B) IDENTIFYING COMMUNITY BASED LONG-TERM CARE SERVICES, IN ACCORDANCE
 WITH THE APPLICANT'S NEEDS AS DEMONSTRATED IN THE CARE NEEDS ASSESSMENT,
 INCLUDING MEDICAL AND NON-MEDICAL IN-HOME SUPPORT PROGRAMS, AND  PROVID-
 ING  INFORMATION  ON  HOW  TO  ACCESS THESE SERVICES, INCLUDING PROVIDER
 DIRECTORIES, AND CASE MANAGEMENT SERVICES;
   (C) EXPLORING WITH THE APPLICANT  THE  POSSIBILITY  OF  THE  APPLICANT
 BECOMING UNABLE TO MANAGE HIS OR HER FINANCES, AND IN THIS EVENT, HAVING
 THE  APPLICANT  CONSIDER  WHO  HE OR SHE WOULD WANT TO MANAGE HIS OR HER
 FINANCES, AND ADVISING THE APPLICANT OF THE NEED TO OBTAIN ESTATE  PLAN-
 NING  COUNSELING  AND  PROPER LEGAL DOCUMENTATION IN ORDER TO EFFECTUATE
 HIS OR HER WISHES UNDER THESE CIRCUMSTANCES; AND
   (D) DISCUSSING WITH THE APPLICANT HIS  OR  HER  WISHES  REGARDING  HOW
 TITLE  OF  THE  RESIDENCE  SHOULD  BE  TRANSFERRED UPON THE DEATH OF THE
 APPLICANT, AND ADVISING THE APPLICANT OF THE NEED TO OBTAIN ESTATE PLAN-
 NING COUNSELING AND PROPER LEGAL DOCUMENTATION IN ORDER TO  ENSURE  THAT
 HIS OR HER WISHES ARE CARRIED OUT.
 A. 1582                             4
 
   (7)  (A)  PRIOR  TO  ACCEPTING  A FINAL AND COMPLETE APPLICATION FOR A
 REVERSE MORTGAGE THE LENDER SHALL PROVIDE THE BORROWER WITH  A  LIST  OF
 NOT  FEWER  THAN TEN COUNSELING AGENCIES THAT ARE APPROVED BY THE UNITED
 STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO ENGAGE IN  REVERSE
 MORTGAGE  COUNSELING AS PROVIDED IN SUBPART B OF PART 214 OF TITLE 24 OF
 THE CODE OF FEDERAL REGULATIONS. THE COUNSELING AGENCY SHALL NOT RECEIVE
 ANY COMPENSATION, EITHER DIRECTLY OR INDIRECTLY, FROM THE LENDER OR FROM
 ANY OTHER PERSON OR ENTITY INVOLVED  IN  ORIGINATING  OR  SERVICING  THE
 MORTGAGE  OR  THE  SALE OF ANNUITIES, INVESTMENTS, LONG-TERM CARE INSUR-
 ANCE, OR ANY OTHER TYPE OF FINANCIAL OR INSURANCE PRODUCT. THIS SUBDIVI-
 SION SHALL NOT PREVENT A  COUNSELING  AGENCY  FROM  RECEIVING  FINANCIAL
 ASSISTANCE  THAT  IS  UNRELATED  TO THE OFFERING OR SELLING OF A REVERSE
 MORTGAGE LOAN AND THAT IS PROVIDED BY THE LENDER AS PART  OF  CHARITABLE
 OR PHILANTHROPIC ACTIVITIES.
   (B)  A  LENDER SHALL NOT ACCEPT A FINAL AND COMPLETE APPLICATION FOR A
 REVERSE MORTGAGE LOAN FROM A PROSPECTIVE APPLICANT OR  ASSESS  ANY  FEES
 UPON  A PROSPECTIVE APPLICANT WITHOUT FIRST RECEIVING CERTIFICATION FROM
 THE APPLICANT OR THE  APPLICANT'S  AUTHORIZED  REPRESENTATIVE  THAT  THE
 APPLICANT  HAS  RECEIVED COUNSELING FROM AN AGENCY AS DESCRIBED IN PARA-
 GRAPH (A) OF THIS SUBDIVISION AND THAT THE COUNSELING WAS  CONDUCTED  IN
 PERSON, UNLESS THE CERTIFICATION SPECIFIES THAT THE APPLICANT ELECTED TO
 RECEIVE  THE  COUNSELING  IN  A MANNER OTHER THAN IN PERSON. THE CERTIF-
 ICATION SHALL BE SIGNED BY THE BORROWER AND THE  AGENCY  COUNSELOR,  AND
 SHALL  INCLUDE  THE  DATE  OF  THE COUNSELING AND THE NAME, ADDRESS, AND
 TELEPHONE NUMBER OF BOTH THE COUNSELOR  AND  THE  APPLICANT.  ELECTRONIC
 FACSIMILE  COPY  OF  THE  HOUSING COUNSELING CERTIFICATION SATISFIES THE
 REQUIREMENTS OF THIS SUBDIVISION. THE LENDER SHALL MAINTAIN THE  CERTIF-
 ICATION IN AN ACCURATE, REPRODUCIBLE, AND ACCESSIBLE FORMAT FOR THE TERM
 OF THE REVERSE MORTGAGE.
   (C)  A  LENDER  SHALL  NOT  MAKE A REVERSE MORTGAGE LOAN WITHOUT FIRST
 COMPLYING WITH, OR IN THE CASE OF  BROKERED  LOANS  ENSURING  COMPLIANCE
 WITH, THE REQUIREMENTS OF THIS SUBDIVISION.
   (8) OUTREACH BY THE PROGRAM. THE AGENCY SHALL ADVERTISE THE PROGRAM IN
 A  BROCHURE WHICH IT SHALL CREATE AND DISTRIBUTE TO EACH AREA OFFICE FOR
 THE AGING. THE AGENCY SHALL PROVIDE THE BROCHURE TO  EACH  LOCAL  SOCIAL
 SERVICES  DISTRICT  TO  DISTRIBUTE  TO  INDIVIDUALS WHO ARE APPLYING FOR
 MEDICAID NURSING HOME OR HOME CARE SERVICES.
   (9) REPORT. THE AGENCY SHALL ISSUE AN ANNUAL REPORT TO  THE  GOVERNOR,
 THE  TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
 SUCH REPORT SHALL CONTAIN, AT A MINIMUM, THE FOLLOWING INFORMATION:  THE
 NUMBER OF LOAN APPLICATIONS SUBMITTED TO THE PROGRAM, THE NUMBER OF LOAN
 APPLICATIONS APPROVED AND THE NUMBER DENIED, THE REASONS FOR DENIAL, THE
 NUMBER  OF  LOANS  ISSUED  BY  THE  PROGRAM, THE INCOMES AND AGES OF THE
 BORROWERS, THE PURPOSE FOR WHICH A LOAN WAS ISSUED, ANY SUGGESTIONS  FOR
 IMPROVING  OR  EXPANDING THE PROGRAM, AND A DESCRIPTION OF THE PROGRAM'S
 FUNDING SOURCES AND WHETHER THEY ARE ADEQUATE.
   (10) RULEMAKING AUTHORITY. THE AGENCY SHALL ADOPT ALL  PROCEDURAL  AND
 SUBSTANTIVE  RULES AND REGULATIONS NECESSARY TO IMPLEMENT AND ADMINISTER
 THE PROVISIONS OF THIS SECTION.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.