S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         5892

                              2009-2010 Regular Sessions

                                   I N  S E N A T E

                                     June 18, 2009
                                      ___________

       Introduced  by  Sen.  ESPADA -- read twice and ordered printed, and when
         printed to be committed to the Committee on Rules

       AN ACT to amend the private housing finance law, in  relation  to  small
         loans to owners of multiple dwellings to remove substandard or insani-
         tary  conditions  and  to loans to owner-occupants of one-to-four unit
         private and multiple dwellings

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Subdivision 2 of section 452 of the private housing finance
    2  law,  as  amended by chapter 449 of the laws of 2004, is amended to read
    3  as follows:
    4    2. Each loan shall be evidenced by a note executed by the owner of the
    5  existing multiple dwelling. The supervising agency in its discretion may
    6  require one or more of the shareholders of a corporate owner to  co-sign
    7  such note or to otherwise guarantee or pledge security for the repayment
    8  of  the  loan.  The  amount of any such loan shall not exceed the sum of
    9  thirty-five thousand dollars ($35,000) per dwelling unit, or the cost of
   10  eliminating such substandard or insanitary condition or  conditions,  or
   11  effecting  such  rehabilitation  or improvement, whichever is less. Each
   12  such note shall be repaid within a  period  of  [thirty  years  or  such
   13  shorter  period  as  the  supervising  agency shall determine, but in no
   14  event longer than the useful life of the rehabilitation  or  improvement
   15  financed  with  such  loan]  THE  PROBABLE LIFE OF THE EXISTING MULTIPLE
   16  DWELLING WHICH IS HEREBY DETERMINED TO BE THIRTY YEARS, OR SUCH  SHORTER
   17  PERIOD  AS  THE SUPERVISING AGENCY SHALL DETERMINE.  The repayment shall
   18  be made in such manner as may be provided in such note and contract,  if
   19  any, in connection with such loan and may authorize such owner, with the
   20  consent  of  the supervising agency, to prepay the principal of the loan
   21  subject to such terms and conditions as therein provided. Such note  and
   22  contract  may  contain  such other terms and provisions not inconsistent
   23  with the provisions of this article as the  local  legislative  body  or

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14300-01-9
       S. 5892                             2

    1  supervising  agency  may deem necessary or desirable to secure repayment
    2  of the loan, the interest thereon and other charges in connection there-
    3  with and to carry out the  purposes  and  provisions  of  this  article,
    4  including  but  not limited to provisions ensuring availability of rents
    5  for such repayment.
    6    S 2. Subdivision 2 of section 472 of the private housing finance  law,
    7  as  amended  by  chapter  705 of the laws of 1991, is amended to read as
    8  follows:
    9    2. Each loan shall be evidenced by a note executed by the  owner-occu-
   10  pant  of  the  existing  dwelling.  Repayment of each such note shall be
   11  within a period of [thirty years or such shorter period  as  the  agency
   12  shall  determine,  but  in  no  event longer than the useful life of the
   13  rehabilitation or improvement financed with such loan] THE PROBABLE LIFE
   14  OF THE EXISTING DWELLING WHICH IS HEREBY DETERMINED TO BE THIRTY  YEARS,
   15  OR  SUCH  SHORTER  PERIOD  AS  THE AGENCY SHALL DETERMINE. The repayment
   16  shall be made in such manner  as  may  be  provided  in  such  note  and
   17  contract,  if  any, in connection with such loan, and may authorize such
   18  owner-occupant, with the consent of the agency, to prepay the  principal
   19  of the loan subject to such terms and conditions as therein provided. In
   20  order to make any such loan affordable to the owner-occupant, the agency
   21  may  provide in such note and contract that all of the outstanding prin-
   22  cipal of said loan may be self-liquidated over a fifteen year period  of
   23  owner-occupancy. Such note and contract may contain such other terms and
   24  provisions  not  inconsistent with the provisions of this article as the
   25  agency may deem necessary or desirable to secure repayment of the  loan,
   26  the interest thereon, if any, and other charges in connection therewith,
   27  and to carry out the purposes and provisions of this article.
   28    S 3. This act shall take effect immediately.