BILL NUMBER: S7541
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to facilitating
the purchase by the state of New York mortgage agency of mortgages on
manufactured homes
 
PURPOSE OF THE BILL:
This bill would grant the State of New York Mortgage Agency ("SONYMA")
authority to purchase mortgages for modular or manufactured housing as
personal property-not as real property, as SONYMA's statute currently
requires. It would further authorize the SONYMA Mortgage Insurance Fund
to provide mortgage pool insurance thereon.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends Section 2401 of the Public Authorities Law
to add legislative findings and purpose.
Section 2 of the bill amends Sections 2402 (5) to allow SONYMA to
purchase mortgages which are not considered as real property under state
law, but are treated as personal property, and corrects a mistake in an
existing reference to the tax law.
Section 3 amends section 2405-b of the Public Authorities Law by amend-
ing certain of the provisions thereof to authorize the purchase of mort-
gage loans treated as personal property under state law.
Section 4 amends section 2428 of the Public Authorities Law to permit
the mortgage insurance fund of SONYMA to provide pool insurance on SONY-
MA loans treated as personal property under state law.
Section 5 of the bill provides for an immediate effective date.
 
JUSTIFICATION:
SONYMA is authorized to purchase only mortgages secured by real property
with pre-existing residential structures. An expansion of SONYMA's
authority to purchase mortgages as personal property, targeted to the
modular/manufactured home market, will enable SONYMA to better meet the
legislative goal of assisting low- and moderate-income New Yorkers to
fmance the purchase of safe and affordable single-family housing. In New
York State, manufactured homes are primarily financed as personal prop-
erty. New York state utilizes a certificate of title process to estab-
lish ownership of, and to perfect a security interest in, a manufactured
home.
SONYMA's statute allows it to purchase mortgage loans from eligible
lenders but each loan must be secured as real property. This amendment
would allow SONYMA to purchase mortgages for manufactured homes as
"personal property" which is consistent with the way New York law
governs the purchase and sale of these properties. The amendment would
also allow the Mortgage Insurance Fund of SONYMA to provide pool insur-
ance on these loans, as it does for all other SONYMA mortgage loans
purchase by SONYMA under its forward commitment program.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
N/A
 
EFFECTIVE DATE:
All provisions of the bill shall be effective immediately.

Statutes affected:
S7541: 2402 public authorities law, 2402(5) public authorities law, 2428 public authorities law, 2428(4) public authorities law