Amd Title, 2, 3 & 4, Chap of 2020 (as proposed in S.8417 & A.10492); amd 91, Pub Serv L; amd 5, Chap of 2020
(as proposed in S.8113-A & A.10521); amd 9-x, Bank L (as proposed in S.8243-C & A.10351-B); amd 180.65, CP L
(as proposed in S.8414 & A.10493)
Relates to expenditures and temporary transfers of reserve funds for expenses related to a state disaster emergency (Part A); relates to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies (Part B); relates to the forbearance of residential mortgage payments for qualified mortgagors for a period of up to 180 days with the option to extend for an additional 180 days (Part C); relates to hearings conducted on a felony complaint during a state disaster emergency (Part D).
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10530
SPONSOR: Rules (Mosley) TITLE OF BILL: /sk An act to amend a chapter of the laws of 2020
amending the local finance law relating to bond anticipation notes
issued in calendar years 2015 through 2021, as proposed in legislative
bills numbers S. 8417 and A. 10492, in relation to expenditures and
temporary transfer of reserve funds for expenses related to state disas-
ter emergency declared pursuant to executive order 202 of 2020 and
authorizing the extension of repayment of inter-fund advances made for
expenses related to state disaster emergency declared pursuant to execu-
tive order 202 of 2020 (Part A); to amend the public service law, in
relation to issuing a moratorium on utility termination of services
during periods of pandemics and/or state of emergencies; and to amend a
chapter of the laws of 2020 amending the public service law, relating to
issuing a moratorium on utility termination of services during periods
of pandemics and/or state of emergencies, as proposed in legislative
bills numbers S.8113-A and A.10521, in relation to the effectiveness
thereof (Part B); to amend the banking law, in relation to the forbear-
ance of residential mortgage payments (Part C); and to amend the crimi-
nal procedure law, in relation to hearings conducted on a felony
complaint during a state disaster emergency (Part D)
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to amend several chapters of the laws of
2020.
SUMMARY OF PROVISIONS:
Part A would make technical changes to Assembly bill number A. 10492 and
Senate bill number S.8417, which provided municipalities with greater
flexibility in financing COVID-19 related expenses, to provide greater
specificity to the timeframe of the disaster emergency. Part B would
amend Assembly bill number A10521 to allow, during the COVID-19 state of
emergency, telephone corporations disconnect service for at the request
of the customer require that telephone corporations not terminate
service to customers who defaulted on deferred payment agreement or owe
arrears to the company for a period of 180 days after the state of emer-
gency is lifted, when such customer has experienced a change in finan-
cial circumstances due to the emergency. It also adds an expiration date
to A10521 of 3/31/21.
Section two of the bill would add an expiration clause to the chapter,
of March 31, 2021.
Part C would amend a chapter of the laws of 2020 creating section 9-x of
the Banking Law. Section one would make the following amendments: Para-
graph 1 (a) is amended to change the definition of "qualified mortgagor"
to include a showing of demonstrable financial hardship due to COVID-19
during the covered period; Paragraph 2 (b) is amended to clarify that
all monthly payments related to the mortgage may be forborn; Paragraph 2
(b) is amended to clarify that any forbearance granted under the Execu-
tive Order are included in the 180 day forbearance period under this
bill; Paragraph 3 is amended to create a new sub paragraph (c) allowing
a qualified mortgagor to have the option to negotiate a loan modifica-
tion or any other option that meets the changed circumstances of the
qualified mortgagor; Paragraph 5 is amended to exempt loans guaranteed
by the State of New York Mortgage Agency which is identified in the bill
as a corporate governmental agency of the state constituted as political
subdivision and public benefit corporation; A new Paragraph 6 is added
to condition the forbearance on the liquidity, safety and soundness of
the bank. Additionally, it mandates DFS' toll-free number and website be
used as a resource for any borrower who was denied forbearance to lodge
a complaint with DFS
Part D: Section 1 adds additional phrases to confirm that a request for
audio-visual proceedings for a preliminary hearing in a felony case
during the period of the ongoing state disaster emergency may be made on
motion of the parties, a witness or the court and that the court may
proceed in this manner after soliciting the views of the parties and any
such witness, that among the factors to be considered is whether
personal appearance would create an unreasonable health risk to the
public, court staff or any other person involved in the proceeding, and
that a copy of any recorded appearance shall be made by the court and
provided to the attorneys for the parties.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
JUSTIFICATION:
Part A: This bill is necessary to provide technical amendments of Assem-
bly bill number A. 10492 and Senate bill number S. 8417 to define the
period in which this bill is intended to provide relief for, which is
the time following the declaration of the COVID19 related State disaster
emergency of 2020. Flexibility in municipal financing for municipalities
and special districts, including fire and school districts, is benefi-
cial to help local governments recover from the effects of the COVID-19
pandemic.
Part B: S.8113-A /A.10521 was enacted in response to the severe health
and economic hardships inflicted on New Yorkers, particularly those of
low-income or who were laid off from their jobs, by the COVID-19 pandem-
ic and resulting declared state of emergency. This bill was intended to
give the hardest hit New Yorkers vital relief in the form of a moratori-
um on providers disconnecting water, landline, gas and electricity
services during and for a period of 180 days the state of emergency, for
those suffering a financial hardship, for nonpayment of a charge. Tele-
phone corporations, who were targeted in the bill, have expressed a
valid and understandable desire to be able to disconnect land line
services during this period when a customer expresses their desire to
disconnect service or change providers. This bill would make changes to
the chapter to give telephone corporation this ability, as well as to
correct several unintentional omissions made in drafting of the bill.
Part C: As the COVID-19 pandemic continues to wreak havoc on New York,
and with State and local governments mandating the shuttering of all but
essential businesses in the interest of protecting public health, New
York has seen a rapid and unprecedented economic decline. Many New York-
ers, facing severely reduced or entirely lost wages, will not be able to
keep up with mortgage payments during this time. With the Governor's
issuance of Executive Order 202.9, some mortgagors were given a three-
month forbearance period, but this has only slightly averted the danger
of mass displacement still at hand. This bill would extend the spirit of
the Governor's executive order to all state-regulated mortgage lenders
and servicers, requiring them to grant a six-month forbearance period
with the option to extend another 180 days-to any mortgagor who certi-
fies they have a loss of income during the COVID-19 crisis, including
those already struggling to make payments.
"While the Governor's Executive Order provides immediate relief to some
homeowners, it still allows for mortgage lenders to collect the back
payments as soon as the forbearance period is over. Many homeowners will
not be able to pay the lump sum of their arrears once forbearance ends
if they have been unable to work. This bill requires regulated lenders
and servicers to allow mortgagors to either extend their mortgage for a
period of time equal to the forbearance, pay their arrears in monthly
installments or pay the deferred payments as a balloon payment upon the
maturity of the loan. Under this legislation, mortgagors will also be
prohibited from: charging interest during forbearance, or on the balloon
payment; charging late fees; or negatively reporting the mortgagor's
decision to a credit porting bureau. Compliance with this law will also
be required in order for a foreclosure action to proceed against a mort-
gagor for payments that would otherwise have been covered by this defer-
ment period.
"By giving homeowners this flexibility, we can provide essential securi-
ty to New Yorkers, ensuring that no one will be subject to foreclosure,
or punished with fees because of the economic havoc brought on by
COVID-19. Part D: These changes will best assure that the legislation
to authorize such appearances is effective to accomplish its purpose.
PRIOR LEGISLATIVE HISTORY:
A.10492, A.10521, A.10526 and A.10527 Passed the Assembly on 5/28/2020.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
Immediate, provided however, that the applicable effective date of Parts
A through D of this act shall be as specifically set forth in the last
section of such parts.
