S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4307
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2023
                                ___________
 
 Introduced  by  M. of A. HAWLEY, PALMESANO, COLTON, DiPIETRO, MORINELLO,
   DeSTEFANO, WALSH, MIKULIN, MILLER, NORRIS, DURSO, TANNOUSIS,  SMULLEN,
   BYRNES, McDONOUGH, MEEKS, GALLAHAN, ANGELINO, TAGUE -- Multi-Sponsored
   by  -- M.  of A. BARCLAY -- read once and referred to the Committee on
   Housing

 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:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07013-01-3
              

 A. 4307                             2
 
   1. "PERSON" MEANS AN HONORABLY DISCHARGED VETERAN OF THE ARMED  FORCES
 OF THE UNITED STATES, OR THEIR SURVIVING UNMARRIED SPOUSE.
   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.
 A. 4307                             3
 
   § 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-
 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.
 A. 4307                             4
 
   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
 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
 A. 4307                             5
 
 BONDS  OR NOTES THE HOLDERS OF WHICH MUST CONSENT THERETO AND THE MANNER
 IN WHICH SUCH CONSENT MAY BE GIVEN;
   (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.