S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8030
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 22, 2025
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on Judiciary
 
 AN  ACT  to amend the real property law, in relation to limits on amount
   of flood insurance required by a mortgagee
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 283 of the real property law, as amended by chapter
 64 of the laws of 2025, is amended to read as follows:
   §  283. Limits on amount of flood insurance required by mortgagee.  1.
 No mortgagee shall require a mortgagor  to  whom  the  mortgagee  makes,
 increases,  extends,  or  renews  any  loan or line of credit secured by
 improved residential real property to purchase or pay for  flood  insur-
 ance  on  such  residential real property: (1) at a coverage amount that
 exceeds the lesser of the replacement value of the  IMPROVEMENT  ON  THE
 residential  real property or the outstanding principal mortgage balance
 as of the beginning of the year for which the policy shall be in effect;
 or (2) that includes coverage for contents.  IN THE CASE OF AN  OPEN-END
 LINE OF CREDIT, "PRINCIPAL" SHALL INCLUDE THE FULL LINE OF CREDIT AMOUNT
 REGARDLESS  OF THE AMOUNT THAT HAS BEEN DRAWN ON THE LINE OF CREDIT.  In
 each instance where a mortgagee requires a mortgagor to purchase or  pay
 for  flood  insurance  on  such residential real property, the mortgagee
 shall provide notice to the mortgagor at the time the mortgagee is noti-
 fied of the need to purchase or pay for flood insurance that states  the
 following  in  clear  and conspicuous print: 'The flood insurance we are
 requiring you to purchase may not be sufficient to pay for  many  needed
 repairs  after a flood and may not compensate you for your losses in the
 property due to the flood.  If you wish to protect your home or  invest-
 ment,  you  may wish to purchase more flood insurance than the amount we
 are requiring you to buy.'
   2. ANY ENTITY SUBJECT TO THE REQUIREMENTS OF SUBDIVISION ONE  OF  THIS
 SECTION  AND  SUBJECT  TO  THE NATIONAL FLOOD INSURANCE ACT (42 U.S.C. §
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10859-01-5
              

 A. 8030                             2
 
 4001 ET. SEQ.) AND IMPLEMENTING REGULATIONS ISSUED BY BOARD OF GOVERNORS
 OF THE FEDERAL RESERVE SYSTEM,  THE  FEDERAL  DEPOSIT  INSURANCE  CORPO-
 RATION,  THE  OFFICE  OF  THE  COMPTROLLER OF THE CURRENCY, THE NATIONAL
 CREDIT  UNION  ADMINISTRATION,  OR  THE  FARM  CREDIT ADMINISTRATION, AS
 APPLICABLE, SHALL NOT BE IN VIOLATION OF SUBDIVISION ONE OF THIS SECTION
 WHEN IT REQUIRES FLOOD INSURANCE  IN  MINIMUM  REQUIRED  AMOUNT  OR  FOR
 CONTENTS  UNDER  THE  NATIONAL  FLOOD INSURANCE ACT AND APPLICABLE REGU-
 LATIONS.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner as section 1 of chapter 64 of the laws of 2025, takes effect.