Bill > A01789

This bill amends the New York Public Authorities Law to authorize the State of New York Mortgage Agency (the agency) to purchase construction mortgages from banks during periods of limited credit availability for new residential construction, particularly for low and moderate-income families. The bill defines a "construction mortgage" as a loan secured by a mortgage on real property for the construction of a residential structure and establishes detailed provisions for how the agency can purchase these mortgages. The agency is empowered to set interest rates, require specific certifications from banks, and impose conditions on mortgage purchases, such as ensuring the construction cost is at least 50% of the property's adjusted basis and that the total property and construction costs fall within the agency's regulations. Banks must certify that these mortgages are additional to their standard lending and meet various requirements, including providing insurance coverage and maintaining accurate documentation. The bill aims to address housing credit shortages and is considered an essential governmental function to support residential construction and housing affordability in New York State. The legislation will take effect 120 days after becoming law, with immediate authorization for developing necessary implementing regulations.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A1789