BILL NUMBER: S9120
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to establishing
the senior homeowner foreclosure and rehabilitation revolving loan
program administered by the state of New York mortgage agency (SONYMA)
 
PURPOSE OF GENERAL IDEA OF BILL:
To create a dedicated, flexible financial assistance program within the
New York State Housing Finance Agency (HFA) to help senior homeowners,
age 62 or more, avoid foreclosure, address critical home repair needs,
and preserve homeownership
 
SUMMARY OF PROVISIONS:
Section 1 creates a new 2405-g of public authorities law establishing
the Senior Homeowner Foreclosure and Rehabilitation Revolving Loan
Program within the Housing Finance Agency; authorizes the agency to
provide low interest, deferred, forgivable, or combination loans to
eligible senior homeowners. Loan terms may include below-market interest
rates, extended amortization, interest only or deferred payment periods,
and technical assistance. Loans are to be secured unless structured as
forgivable, and administrative, outreach, and marketing costs are capped
at 1% of the annual appropriation.
Eligibility Criteria (§ 2405-g(4)): To receive assistance, a senior
homeowner must: Demonstrate financial need and inability to maintain
mortgage payments or essential home systems without help; certify the
property is their primary residence, and agree to comply with applicable
housing, building, and fire codes. As conditions of assistance, no
senior may be displaced due to rehabilitation, and the agency may
require affordability covenants tied to the amount of assistance.
Prioritization (§ 2405-g(5)): Directs SONYMA to prioritize senior home-
owners at imminent risk of foreclosure; with properties needing immedi-
ate repair or replacement of essential systems (i.e., heating, boiler);
and with documented financial hardship limiting their ability to main-
tain the home or make mortgage payments.
Reporting and Oversight (§ 2405-g(6)): requires the agency to submit an
annual report to the Governor, Temporary President of the Senate, and
Speaker of the Assembly detailing program activity. The program is
subject to audit by the State Comptroller.
Severability (§ 2405-g(7)): ensures that if any provision of the section
is held invalid, the remainder remains in effect.
Section 2 is an immediate effective date with authorization for rules or
regulations necessary for implementation to be adopted on or before the
effective date.
 
JUSTIFICATION:
By preventing foreclosure and helping seniors maintain their homes, the
program promotes housing security, preserves neighborhood stability, and
protects the health and safety of some of New York's most vulnerable
residents.
Senior homeowners in New York State face a growing and acute housing
insecurity crisis that threatens their ability to remain in their homes
as they age. Nearly 64% of New Yorkers age 60 and over own their homes,
many on fixed incomes with limited ability to absorb rising costs for
taxes, insurance, and essential repairs like heating, plumbing, and
electrical systems - expenditures that often exceed 30% of income, the
threshold for cost-burdened households.
Statewide data shows that 37% of households age 62-74 and 43% of those
over 75 face housing insecurity, substantially above national averages,
signaling intensified financial strain for older owners. In New York
City alone, there are more than 1.36 million residents aged 65 and
older, a population that has grown over 30% in the last decade and
includes a large share of homeowners with little to no retirement
income. Meanwhile, senior poverty has surged statewide numbers over age
65 living below the poverty line have risen by nearly 50% in recent
years, demonstrating the widening gap between living costs and fixed
retirement resources for older adults.
Traditional financing remains out of reach for many of these households,
leaving them unable to secure affordable loans for critical repairs or
mortgage support. Without intervention, these pressures contribute to
foreclosure risk, displacement, deteriorating housing conditions, and
negative health and community outcomes. We all live on the back of the
efforts of our older adult population and it's essential we provide the
needed tools to allow folks to retain investments they have built over
their lifetimes.
 
FISCAL IMPLICATIONS:
TBD.
 
EFFECTIVE DATE:
This act shall take effect immediately, with authority granted to adopt
implementing regulations on or before the effective date.