Bill > A07488

This bill authorizes the New York State Mortgage Agency to purchase rehabilitation mortgages from banks during periods of inadequate credit availability for residential properties. A rehabilitation mortgage is defined as a loan secured by a mortgage on a residential property that involves repairs, alterations, or improvements designed to raise housing standards. The bill establishes specific requirements for these mortgages, including that the estimated repair costs must be at least 25% of the property's adjusted basis, the property must be at least 20 years old, and significant portions of the existing structure (at least 50-75% of walls and structural framework) must be retained. Banks must certify the cost and feasibility of repairs, monitor ongoing rehabilitation through inspections, and ensure borrowers occupy the property as their primary residence within 60 days of completing the work. The agency can set interest rates and purchase these mortgages under specific conditions, with banks required to provide various warranties about the mortgage's validity and condition. The goal is to address housing needs for low and moderate-income individuals by providing a mechanism to finance residential property rehabilitation during times of limited credit availability, which the bill declares to be a matter of public health, safety, and general welfare.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A7488