S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1111
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2025
                                ___________
 
 Introduced by M. of A. SIMON, WILLIAMS, COLTON, DeSTEFANO -- Multi-Spon-
   sored  by  -- M.  of A. COOK, HYNDMAN, REYES -- 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.
                                                            LBD02569-01-5
 A. 1111                             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 SUCH  BORROWER'S  RESIDENCE,  THE  LOAN
 PAYMENTS  SHALL  CEASE  AND  THE BALANCE OF THE LOAN SHALL BECOME DUE. A
 BORROWER SHALL NOTIFY THE AGENCY UPON  VACATING  SUCH  BORROWER'S  RESI-
 DENCE.    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 PENAL-
 TIES 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  SUCH
 APPLICANT'S OWN DUE TO A CHRONIC ILLNESS OR CONDITION, AND WHO, BASED ON
 AN  ASSESSMENT PERFORMED BY AN AREA AGENCY ON AGING PURSUANT TO SUBDIVI-
 SION 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
 A. 1111                             3
 
 OF SIX 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,
 TRANSPORTATION,  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,  SUCH  APPLICANT'S  AUTHORIZED
 REPRESENTATIVE  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  WRIT-
 TEN  CONSENT FROM THE APPLICANT OR SUCH APPLICANT'S AUTHORIZED REPRESEN-
 TATIVE. 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 ELIGIBLE 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 SUCH APPLICANT'S FINANCES, AND IN THIS EVENT,
 HAVING THE APPLICANT CONSIDER WHO SUCH APPLICANT WOULD  WANT  TO  MANAGE
 SUCH  APPLICANT'S  FINANCES,  AND  ADVISING THE APPLICANT OF THE NEED TO
 OBTAIN ESTATE PLANNING COUNSELING  AND  PROPER  LEGAL  DOCUMENTATION  IN
 ORDER  TO  EFFECTUATE SUCH APPLICANT'S WISHES UNDER THESE CIRCUMSTANCES;
 AND
   (D) DISCUSSING WITH THE APPLICANT THEIR 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 PLANNING COUNSELING
 AND PROPER LEGAL DOCUMENTATION IN ORDER TO ENSURE THAT SUCH  APPLICANT'S
 WISHES ARE CARRIED OUT.
 A. 1111                             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.