NY State Senate Bill 2023-S7541

Senate Bill S7541

Signed By Governor

2023-2024 Legislative Session

Facilitates the purchase by the state of New York mortgage agency of mortgages on manufactured homes

download bill text pdf

Current 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Oct 25, 2023	signed chap.605
Oct 13, 2023	delivered to governor
Jun 09, 2023	returned to senate passed assembly ordered to third reading rules cal.776 substituted for a7403a referred to housing delivered to assembly passed senate
Jun 07, 2023	ordered to third reading cal.1728
Jun 05, 2023	referred to rules

Votes

- Jun 9, 2023 - Floor Vote
  S7541
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 9, 2023
      
      aye (63)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      The following Member(s) participated via videoconferencing: Cooney
  Jun 7, 2023 - Rules Committee Vote
  S7541
  
  20
  
  Aye
  
  1
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 7, 2023
      
      aye (20)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Helming
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      O'Mara
      
      Parker
      
      Sepúlveda
      
      Stec
      
      Stewart-Cousins
      
      Thomas
      
      nay (1)
      
      Ortt

2023-S7541 (ACTIVE) - Details

See Assembly Version of this Bill:: A7403
Law Section:: Public Authorities Law
Laws Affected:: Amd §§2401, 2402, 2405-b & 2428, Pub Auth L

2023-S7541 (ACTIVE) - Summary

Facilitates the purchase by the state of New York mortgage agency of mortgages on manufactured homes.

2023-S7541 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7541

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to facilitating
the purchase by the state of New York mortgage agency of mortgages on
manufactured homes

 
PURPOSE OF THE BILL:

This bill would grant the State of New York Mortgage Agency ("SONYMA")
authority to purchase mortgages for modular or manufactured housing as
personal property-not as real property, as SONYMA's statute currently
requires. It would further authorize the SONYMA Mortgage Insurance Fund
to provide mortgage pool insurance thereon.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends Section 2401 of the Public Authorities Law
to add legislative findings and purpose.

Section 2 of the bill amends Sections 2402 (5) to allow SONYMA to
purchase mortgages which are not considered as real property under state
law, but are treated as personal property, and corrects a mistake in an
existing reference to the tax law.

Section 3 amends section 2405-b of the Public Authorities Law by amend-
ing certain of the provisions thereof to authorize the purchase of mort-
gage loans treated as personal property under state law.

Section 4 amends section 2428 of the Public Authorities Law to permit
the mortgage insurance fund of SONYMA to provide pool insurance on SONY-
MA loans treated as personal property under state law.

Section 5 of the bill provides for an immediate effective date.

 
JUSTIFICATION:

SONYMA is authorized to purchase only mortgages secured by real property
with pre-existing residential structures. An expansion of SONYMA's
authority to purchase mortgages as personal property, targeted to the
modular/manufactured home market, will enable SONYMA to better meet the
legislative goal of assisting low- and moderate-income New Yorkers to
fmance the purchase of safe and affordable single-family housing. In New
York State, manufactured homes are primarily financed as personal prop-
erty. New York state utilizes a certificate of title process to estab-
lish ownership of, and to perfect a security interest in, a manufactured
home.

SONYMA's statute allows it to purchase mortgage loans from eligible
lenders but each loan must be secured as real property. This amendment
would allow SONYMA to purchase mortgages for manufactured homes as
"personal property" which is consistent with the way New York law
governs the purchase and sale of these properties. The amendment would
also allow the Mortgage Insurance Fund of SONYMA to provide pool insur-
ance on these loans, as it does for all other SONYMA mortgage loans
purchase by SONYMA under its forward commitment program.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

N/A

 
EFFECTIVE DATE:
All provisions of the bill shall be effective immediately.

2023-S7541 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7541
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2023
                                ___________
 
 Introduced by Sen. COMRIE -- (at request of the New York State Homes and
   Community Renewal) -- read twice and ordered printed, and when printed
   to be committed to the Committee on Rules
 
 AN  ACT to amend the public authorities law, in relation to facilitating
   the purchase by the state of New York mortgage agency of mortgages  on
   manufactured homes

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tenth undesignated paragraph of  section  2401  of  the
 public authorities law, as added by chapter  628 of the laws of 2021, is
 amended to read as follows:
   It  is  further  found  and  determined  that  there  is a shortage of
 adequate funds to assist in the new construction of modular and manufac-
 tured housing, AND TO ASSIST IN THE PURCHASE  OF  EXISTING  MODULAR  AND
 MANUFACTURED HOUSING.
   §  2. Subdivision 5  of section 2402 of the public authorities law, as
 amended by chapter 65 of the  laws  of  2022,  is  amended  to  read  as
 follows:
   (5) "Mortgage". A loan owed to a bank secured by a first lien on (I) a
 fee  simple  or  leasehold  estate  in  real property, OR (II) ANY OTHER
 INSTRUMENT WHICH SHALL CONSTITUTE  OR  CREATE  A  SECURITY  INTEREST  IN
 TANGIBLE PERSONAL PROPERTY CONSTITUTING MODULAR OR MANUFACTURED HOUSING,
 located  in  the  state  and  improved by a residential structure or, on
 which a residential structure for use as single-family modular or  manu-
 factured  housing purchased and sited on land shall be constructed using
 the proceeds of such loan, whether or not insured or guaranteed  by  the
 United  States  of  America  or  any agency thereof. The term "mortgage"
 shall also include a loan owed to a bank secured by a second lien on (I)
 a fee simple or leasehold estate in real property,  OR  (II)  ANY  OTHER
 INSTRUMENT  WHICH  SHALL  CONSTITUTE  OR  CREATE  A SECURITY INTEREST IN
 TANGIBLE PERSONAL PROPERTY CONSTITUTING MODULAR OR MANUFACTURED HOUSING,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06854-03-3

 S. 7541                             2
 
 located in the state and improved by a residential structure or on which
 a residential structure for use as single-family modular or manufactured
 housing purchased and sited on  land  shall  be  constructed  using  the
 proceeds  of  the related loan described in paragraph (a) or (b) of this
 subdivision, whether or not insured or guaranteed by the  United  States
 of  America  or  any agency thereof, provided, however, that such second
 lien: (a) secures a loan purchased by the agency, and (b) is made at the
 same time as a first lien securing a loan purchased by the agency pursu-
 ant to its programs or by a government sponsored enterprise or  is  made
 at  the same time as a new housing loan purchased by the agency pursuant
 to section twenty-four hundred five-c of this part. The term  "mortgage"
 shall also include loans made by the agency and secured by a second lien
 on  (I)  a  fee simple or leasehold estate in real property, OR (II) ANY
 OTHER INSTRUMENT WHICH SHALL CONSTITUTE OR CREATE A SECURITY INTEREST IN
 TANGIBLE PERSONAL PROPERTY CONSTITUTING MODULAR OR MANUFACTURED HOUSING,
 located in the state and improved by a residential structure or on which
 a residential structure for use as single-family modular or manufactured
 housing purchased and sited on  land  shall  be  constructed  using  the
 proceeds  of  such  loan,  whether  or  not insured or guaranteed by the
 United States of America or any agency thereof, provided  however,  that
 the  loan  made by the agency and secured by such second lien is made at
 the same time as a first lien securing a mortgage loan purchased by  the
 agency pursuant to its programs or by a government sponsored enterprise.
 In  the case of any second lien purchased or made hereunder, the mortga-
 gor shall be obligated to contribute from  his  or  her  own  verifiable
 funds an amount not less than such percentage as the agency shall deter-
 mine, of the lower of the purchase price or appraised value of the prop-
 erty subject to the first lien. "Real property" as used in this subdivi-
 sion shall include air rights.
   For  the  purposes  of  this  title and subdivision ten of section two
 hundred ten-B of the tax law, "mortgage" shall include housing loans  as
 defined  below.  Except for the purposes of subdivision seven of section
 twenty-four hundred five and subdivision eight  of  section  twenty-four
 hundred  five-b  of this part, "mortgage" shall also include a loan owed
 to a bank by an individual borrower incurred for the purpose of  financ-
 ing the purchase of certificates of stock or other evidence of ownership
 of  an  interest in, and a proprietary lease from, a cooperative housing
 corporation formed for the purpose of the cooperative ownership of resi-
 dential real estate in the state, secured by an assignment  or  transfer
 of the benefits of such cooperative ownership, and containing such terms
 and conditions as the agency may approve.
   § 3. Paragraphs (e), (f) and (h) of subdivision 8 of section 2405-b of
 the public authorities law, paragraph (e) as added by chapter 915 of the
 laws  of  1982,  paragraph  (f) as amended by chapter 432 of the laws of
 2009 and paragraph (h) as amended by chapter 628 of the  laws  of  2021,
 are amended to read as follows:
   (e) the mortgage is evidenced by a bond or promissory note and a mort-
 gage  document  which  has  been  properly recorded with the appropriate
 public official  OR BY AN INSTRUMENT WHICH SHALL CONSTITUTE OR CREATE  A
 SECURITY  INTEREST IN TANGIBLE PERSONAL PROPERTY CONSTITUTING MODULAR OR
 MANUFACTURED HOUSING PURCHASED BY THE AGENCY;
   (f) the mortgage constitutes a valid first lien, or second lien on the
 real property OR TANGIBLE  PERSONAL  PROPERTY  CONSTITUTING  MODULAR  OR
 MANUFACTURED  HOUSING, described to the agency in accordance with subdi-
 vision five of section twenty-four hundred two of this part subject only
 to real property taxes OR OTHER  TAXES  not  yet  due,  installments  of
 S. 7541                             3
 
 assessments  not yet due, and easements and restrictions of record which
 do not adversely affect, to a material degree, the use or value  of  the
 real  property, TANGIBLE PERSONAL PROPERTY CONSTITUTING MODULAR OR MANU-
 FACTURED HOUSING or improvements thereon;
   (h)  the improvements to, or new construction of single-family modular
 or manufactured housing purchased and sited on land, the mortgaged  real
 property  OR TANGIBLE PERSONAL PROPERTY CONSTITUTING MODULAR OR MANUFAC-
 TURED HOUSING, are covered by a valid and subsisting policy of insurance
 issued  by  a  company  authorized  by  the  superintendent of financial
 services to issue such policies in the state of New York  and  providing
 fire  and extended coverage to an amount not less than eighty percent of
 the insurable value of the improvements to, OR NEW CONSTRUCTION OF,  the
 mortgaged  real  property    OR  TANGIBLE PERSONAL PROPERTY CONSTITUTING
 MODULAR OR MANUFACTURED HOUSING.
   § 4. Subdivision 4 of section 2428 of the public authorities  law,  as
 amended  by  section 6 of chapter 432 of the laws of 2009, is amended to
 read as follows:
   4. To be eligible for insurance under this article,  a  mortgage  loan
 shall  (a)  (i)  be  a first lien of the kind which is commonly given to
 secure advances on, or the unpaid purchase price of, real  property,  OR
 TANGIBLE  PERSONAL PROPERTY CONSTITUTING MODULAR OR MANUFACTURED HOUSING
 IN THE CASE OF MORTGAGE LOANS PURCHASED BY THE AGENCY UNDER ITS  FORWARD
 COMMITMENT PROGRAM, under the laws of the state together with any credit
 instrument  secured thereby, provided, however, that a mortgage loan may
 be a second lien if such mortgage loan was purchased by  the  agency  or
 (ii)  be  secured  by an assignment or transfer of stock certificates or
 other evidence of ownership interest of the borrower in, and a  proprie-
 tary lease from, a corporation formed for the purpose of the cooperative
 ownership of residential real estate in the state; (b) secure a rehabil-
 itation or preservation loan on real property held in fee simple or on a
 leasehold  under a proprietary lease or a lease having a period of years
 to run at the time the mortgage is insured  under  this  article  of  at
 least  twenty per centum greater duration than the remaining term of the
 mortgage; (c) contain  terms  with  respect  to  prepayment,  insurance,
 repairs,  alterations,  payment  of  taxes, special assessments, service
 charges, default reserves, delinquency charges, foreclosure proceedings,
 additional and secondary liens, and such other matters as the agency may
 in its discretion prescribe; (d) be accompanied by certificates,  issued
 by  such  officers  of  the mortgage financial institutions, independent
 appraisers or other persons as the agency may require,  certifying  that
 (i) where appropriate, the annual income to be derived from the property
 equals  not  less  than  one  hundred  and five per centum of the annual
 charges and expenses, including provision for reserves, satisfactory  to
 the  agency, for the amortization of subordinate mortgage loans over the
 remaining terms of such loans notwithstanding  the  provisions  thereof;
 (ii)  the remaining useful life of the property is greater than the term
 of the mortgage; and (iii) the property does not contain any substantial
 violations of local building maintenance and construction codes,  except
 that  in  the  case of a loan made to the owner of a property containing
 any such violations, the agency may insure or commit to insure such loan
 if the mortgagee and the owner have submitted a  plan,  satisfactory  to
 the  agency to eliminate such violations and the issuance of such insur-
 ance shall be conditioned on removal of such violations to the satisfac-
 tion of the local code enforcement agency; and (e)  satisfy  such  addi-
 tional  terms  and  conditions  as  the  agency  may prescribe. For pool
 S. 7541                             4
 
 insurance, the requirements of paragraph (b) of this  subdivision  shall
 not be applicable.
   § 5. This act shall take effect immediately, provided, however, that:
   a.  the  amendments  to  subdivision  5  of section 2402 of the public
 authorities law made by section two of this act  shall  not  affect  the
 expiration  of  such subdivision and shall expire and be deemed repealed
 therewith;
   b. the amendments to section 2405-b of the public authorities law made
 by section three of this act shall not affect the repeal of such section
 and shall be deemed repealed therewith; and
   c. the amendments to subdivision 4  of  section  2428  of  the  public
 authorities  law  made  by section four of this act shall not affect the
 expiration of such subdivision and shall expire and be  deemed  repealed
 therewith.

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