Bill > A07445

This bill establishes a new mechanism for purchasing community land mortgages (CLMs) through the New York State Mortgage Agency, which are specialized mortgages for affordable housing where a not-for-profit housing company retains the property title while selling improvements to low or moderate-income families who also lease the underlying land. The bill defines CLMs and authorizes the agency to purchase these mortgages from banks during periods of limited credit availability, with specific guidelines that include requiring banks to certify that each mortgage is additional to their normal lending and meets certain conditions. The agency can set interest rates, require banks to submit evidence of mortgage compliance, and enforce strict standards such as requiring insurance coverage, verifying mortgage details, and establishing potential repurchase requirements if representations prove untrue. The bill aims to support affordable housing by creating a structured pathway for CLM financing, with provisions designed to protect both the agency's financial interests and the potential homeowners' needs. The legislation will take effect 120 days after becoming law, providing time for implementation and preparation by relevant financial institutions.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A7445