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A02135 Summary:

COSPNSRSeawright, Cook, Joyner, Otis, Abbate, Gottfried, Rosenthal L, Crespo, Hooper, Quart, Braunstein
MLTSPNSRBarnwell, Hevesi
Amd 280-a, RP L
Relates to permitting reverse mortgages for persons aged 70 and over to be secured by a cooperative unit.
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A02135 Actions:

01/17/2017referred to housing
01/03/2018referred to housing
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A02135 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Dinowitz (MS)
  TITLE OF BILL: An act to amend the real property law, in relation to including cooperative unit loan dwellings as those eligible for reverse mortgages for persons seventy years of age or older   PURPOSE: To enable owners of co-op apartments, who are over the age of 70, the ability to obtain reverse mortgages, in a manner similar to the way such reverse mortgages can be secured by the owner of a one to four-family owner/occupied residence or condominium unit owner.   SUMMARY OF PROVISIONS: Section 1: Amends Real Property Law section 280-a 1(a) to include in the category of owner occupied residential properties that can obtain a reverse mortgage, a Coop unit, in addition to the already authorized owner occupied residential real properties, such as single family homes, owner occupied town homes, and condominium units. This expansion in the ability to obtain such a reverse mortgage would be only for persons who are 70 years of age or older.   EXISTING LAW: The current law allows for owners of one to four family residences or condominiums that is the residence of the mortgagor to apply for a reverse mortgage if the mortgagor is over the age of 65 (see Real Prop- erty Law section 280) and over the age of 70 (see Real Property Law section 280-a). This provision adds the owners of cooperative housing units, who are over the age of 70, in the category of those allowed to apply for reverse mortgages.   JUSTIFICATION: This legislation would level the playing field for many senior citizens who live in New York, many of whom are of low to middle income, who own their primary residence by means of a cooperative unit, as opposed to being owned as condominium or one to four family unit residence. While some estimates state that only about 10% of national housing units are structured in cooperative units, the percentage in New York City may be closer to up to 75 percent. Therefore, the current law on obtaining money via a reverse mortgage financing plan excludes a large portion of residents who own their residences in one of the most expensive residen- tial markets in the nation. Further, this current situation in the law precludes such persons, over the age of 70, from taking advantage of a financing program that would allow them to remain in their homes unen- cumbered by the fear of eviction or unmet medical or other expenses.   LEGISLATIVE HISTORY: 2015-16- A.10246 - Referred to Housing/S.7844 - Passed Senate   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: Immediately.
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A02135 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 17, 2017
        Introduced  by M. of A. DINOWITZ, SEAWRIGHT, COOK, JOYNER, OTIS, ABBATE,
          sored by -- M.  of A. HEVESI -- read once and referred to the  Commit-
          tee on Housing
        AN  ACT to amend the real property law, in relation to including cooper-
          ative unit loan dwellings as those eligible for reverse mortgages  for
          persons seventy years of age or older
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (a) of subdivision 1 of section 280-a of the real
     2  property law, as added by chapter 613 of the laws of 1993, is amended to
     3  read as follows:
     4    (a) Reverse mortgage loan. A loan which is secured by a first mortgage
     5  on real property improved by a one to four-family residence [or], condo-
     6  minium or cooperative unit that is the residence of the mortgagor(s) the
     7  proceeds of which are advanced to the mortgagor(s) during  the  term  of
     8  the  loan in equal installments, or in advances through a line of credit
     9  or otherwise, in lump sums, or through a combination thereof.
    10    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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