Bill > A04678

This bill authorizes the State of New York Mortgage Agency (SONYMA) to purchase rehabilitation mortgages from banks within the state during periods when there is an inadequate supply of credit available for new residential mortgages or when such loans are not financially accessible to low- and moderate-income individuals and families. The bill defines "rehabilitation" as repairs, alterations, or improvements to a housing accommodation to raise its standards, and "rehabilitation mortgage" as a loan extended by a bank, secured by a mortgage, to finance the rehabilitation of a residential structure. SONYMA must require that the estimated cost of the repairs be at least 25% of the mortgagor's adjusted basis in the property, and that the purchase price plus the estimated cost of repairs fall within SONYMA's regulations for maximum purchase price. The bill also outlines various other requirements and provisions related to SONYMA's purchase of these rehabilitation mortgages.