BILL NUMBER: S8237
SPONSOR: PARKER
 
TITLE OF BILL:
An act to amend the public authorities law, the public service law and
the real property law, in relation to the green jobs-green New York
program
 
PURPOSE OF THE BILL:
This legislation would amend section 1896 of Public Authorities Law,
section 66-m of Public Service Law and section 242 of the Real Property
Law to increase the maximum residential loan value and allow a revised
On-Bill Recovery (OBR) loan transferability process. This proposal would
increase the maximum loan authorized for residential properties from
$25,000 to $50,000 and modify the payback period for loans in excess of
$13,000.
Additionally, this proposal would allow that, upon sale or transfer of a
property subject to an existing OBR loan, the original borrower(s) may
obtain express written voluntary acceptance by the purchaser/transferee
of a property to accept the remaining charges on the OBR loan in accord-
ance with the OBR loan agreement. If the original borrower is unable to
receive and submit a signed acceptance for the remaining charges from
the purchaser/transferee in accordance with the OBR loan agreement, the
original borrower shall continue to be responsible for direct loan
payments to NYSERDA's loan servicer. As a result of this change, the
recordation of the loan in the municipal recording office would be elim-
inated, because a purchaser/transferee would only be responsible for the
remaining loan charges by voluntary and express written consent. Elimi-
nation of such recording would reduce processing time for borrowers,
reduce confusion during property sale or transfer, provide substantial
program cost savings, and avoid the need to charge municipal and other
fees associated with recording loans to borrowers. The original borrower
would retain the ability to pay off the loan, without penalty, at the
time of transfer or any time prior to final satisfaction
of the loan. This proposal would not change existing OBR loans.
 
SUMMARY OF PROVISIONS:
Section 1: Amends subdivision 2 (b) (ii) of PAL section 1896 to increase
the maximum loan amount for residential properties from $25,000 to
$50,000. This section also removes the payback period of up to 15 years
for loans larger than $13,000 and requires that the payback period does
not exceed the useful life of the energy efficiency measures installed.
Section 2: Amends subdivision 5 (a) of PAL section 1896 to modify the
transferability of loans to allow the loan to be voluntarily assumed by
a subsequent purchaser of a property by written agreement, eliminating
both the requirement for recording loans with these provisions and the
costly fees, confusion and other issues that have arisen with such
recordings and property transfers.
Section 3: Amends paragraph (d) of subdivision (2) of PSL section 66-m
to provide that the OBR loan charges shall survive changes in ownership
if NYSERDA has recorded a declaration, pursuant to article nine of the
real property law, with respect to the existence of an OBR loan.
Section 4: Amends subdivision (4) to section 242 of the Real Property
Law to modify the disclosure of OBR loan requirements to provide that
notice is not necessary if the loan agreement provides that upon trans-
fer of a property the purchaser is only responsible for OBR charges
through written express assumption provided in the OBR loan agreement.
Section 5: Provides that this act shall take effect immediately.
 
JUSTIFICATION:
Costs for the installation of energy efficiency measures have increased
substantially in the past few years, which has led homeowners to obtain
an initial loan through the NYSERDA GJ-GNY Loan Program, and then a
secondary loan, to cover the excess costs, further increasing the cost
of customers`' energy efficiency and renewable energy projects. This
amendment would provide more homeowners with the ability to fund their
projects solely through a NYSERDA GJ-GNY loan, by allowing loans to
cover the higher costs instead of seeking secondary funding. Addi-
tionally, the current required recording process has led to delays in
approval of on-bill recovery loans, has generally been ineffective, is
costly and has led to confusion for prospective purchasers, mortgagees,
title companies, and attorneys during the property sale process. These
amendments will provide clarity and alleviate those costs.
 
PRIOR LEGISLATIVE HISTORY:
2024: S.9744- Parker: Passed Senate (No Same-As)
 
FISCAL IMPLICATIONS:
NYSERDA estimates that this bill would save $225,000 in SFY 23-24 and
save $450,000 in annual costs funded by RGGI proceeds.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8237: 1896 public authorities law, 1896(2) public authorities law, 1896(5) public authorities law, 66-m public service law, 66-m(2) public service law