Bill Text: NY A06948 | 2019-2020 | General Assembly | Introduced

Bill Title: Authorizes the establishment of the home equity protection insurance program directing the agency to issue a commitment to insure and insure the full value of certain residences which are owner-occupied by persons who meet certain income qualifications.

Spectrum: Strong Partisan Bill (Republican 12-1)

Status: (Introduced) 2019-03-27 - referred to housing [A06948 Detail]

Download: New_York-2019-A06948-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 27, 2019
        Introduced  by  M.  of A. FITZPATRICK, RA, GIGLIO, BARCLAY, BLANKENBUSH,
          TAGUE, SALKA -- Multi-Sponsored by --  M.  of  A.  CROUCH,  DeSTEFANO,
          MANKTELOW,  McDONOUGH,  RAIA,  THIELE -- read once and referred to the
          Committee on Housing
        AN ACT to amend the public authorities law, in relation to  establishing
          a home equity protection insurance program
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 33 of section 2404 of  the  public  authorities
     2  law,  as  renumbered  by  chapter  72 of the laws of 2016, is renumbered
     3  subdivision 34 and a new subdivision 33 is added to read as follows:
     4    (33) To establish and administer a home  equity  protection  insurance
     5  program  in  accordance  with section twenty-four hundred five-g of this
     6  part.
     7    § 2. The public authorities law is amended by  adding  a  new  section
     8  2405-g to read as follows:
     9    §  2405-g. Home equity protection insurance program. (1) The agency is
    10  hereby directed, to the extent it finds practicable, to establish a home
    11  equity protection insurance program whereby it will issue  a  commitment
    12  to  insure  and insure the full value of a one-to-four family residence,
    13  including a condominium and a cooperative, that is owner-occupied by any
    14  person or persons who meet  the  income  qualifications  for  a  forward
    15  commitment  mortgage  pursuant  to section twenty-four hundred five-b of
    16  this part. The full value of the  residential  real  property  shall  be
    17  determined  by  either  its  purchase price, the purchase price plus the
    18  cost of any rehabilitation to the residence, or an appraisal. The insur-
    19  ance shall be issued by the agency after the purchase or  the  rehabili-
    20  tation  of  the  real property upon payment of a premium that the agency
    21  shall determine.
    22    (2) Upon the sale of the residential real property that is insured  by
    23  the  agency  through its home equity insurance program, the agency shall
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 6948                             2
     1  pay the policy holder/owner the difference between the face value of the
     2  insurance policy and the sales price of the  insured  premises  if  such
     3  sales  price  is  less  than  the  insured  amount  and  if  the  policy
     4  holder/owner  has  lived  in  the premises for a period of not less than
     5  three years. The agency shall establish procedures to be followed  by  a
     6  policy  holder/owner  in  the  event of a payment under the terms of any
     7  home equity  protection  insurance  policy.  The  agency  shall  not  be
     8  required  to  pay  on a claim for a loss of equity if it determines that
     9  such loss occurred predominantly from the policy holder/owner's  neglect
    10  of the real property's physical condition.
    11    (3)(a) The agency shall create a home equity protection insurance fund
    12  to  be  used as a revolving fund for carrying out the provisions of this
    13  section with respect to residential real  property  insured  thereunder.
    14  The agency shall pay into such fund all moneys which may be available to
    15  the  agency for the purposes of such fund from any source, including but
    16  not limited to the moneys received from premiums derived from the  issu-
    17  ance of home equity protection insurance policies.
    18    (b)  The  agency  shall  maintain  in  the  equity insurance fund as a
    19  reserve an amount of money or cash equivalents equal  to  no  less  than
    20  twenty  percent  of  the  amounts insured under the agency's home equity
    21  protection insurance contracts.
    22    (4) Moneys in such fund may be invested (a) in  special  time  deposit
    23  accounts  in, or certificates of deposit issued by, a bank, trust compa-
    24  ny, savings bank or savings and loan association located and  authorized
    25  to  do business in this state; provided, however, that such time deposit
    26  account or certificate of deposit shall be payable within such  time  as
    27  the proceeds may be needed to meet expenditures estimated to be incurred
    28  by  the  agency  and  provided further that such time deposit account or
    29  certificate of deposit be secured by a  pledge  of  obligations  of  the
    30  United  States  of  America or obligations of the state, any city of the
    31  state, or other  municipal  corporation,  school  district  or  district
    32  corporation  of  the  state  or  obligations  of agencies of the federal
    33  government; or (b) in obligations of the United States of America or the
    34  state which may from time to time be legally purchased by savings  banks
    35  within the state as an investment of funds belonging to them or in their
    36  control,  or in obligations of the Federal National Mortgage Association
    37  provided such obligations shall be payable or redeemable at  the  option
    38  of  the  owner  within  such times as the proceeds may be needed to meet
    39  expenditures estimated to be incurred by the agency.
    40    § 3. This act shall take effect on the one hundred eightieth day after
    41  it shall have become a law.