NY S05474

Establishes a "community restoration fund" managed by the state comptroller, funded by attorney general settlements from lending institutions related to mortgage fraud, predatory loans, and foreclosure cases, plus federal, state, local, and private contributions.

Authorizes fund use to purchase mortgage notes on one- to four-family homes at discounted rates for loan modification to affordable rates, and to acquire distressed properties for rental, affordable sale, rehabilitation, or demolition.

Designates an urban development corporation-selected fund manager (CDFI) to manage fund receipt and expenditure, acquire distressed assets, and work with a program manager property holding company that will own and manage acquired assets.

Creates a 30-member community restoration fund council including the commissioners of economic development and homes and community renewal, plus 28 community-based nonprofit members (two per regional economic development region, or two per borough in New York City) to advise on asset acquisition and disposition strategies.

Requires the urban development corporation to submit annual reports to the governor and legislature documenting asset purchases, loan modifications, home sales, rentals, rehabilitations, and funds leveraged.