NY S08141

Establishes the New York State Community Restoration Fund administered by the State Mortgage Agency to assist homeowners affected by the mortgage crisis who are delinquent, in default, facing foreclosure, or have abandoned homes due to economic hardship.

Authorizes the agency to acquire residences and purchase mortgages and mortgage notes, or provide funds to eligible institutions (community development financial institutions, nonprofits, housing counselors, land banks, and local government entities) to carry out these acquisitions.

Creates a subsidiary corporation called the "State of New York Mortgage Agency Community Restoration Fund" established as a public benefit corporation with powers to own, acquire, dispose of real property, service mortgages, and foreclose when necessary.

Allows fund monies to be used for loan modifications to keep homeowners in properties, transferring ownership to the agency or eligible institutions while remaining as tenants, rehabilitating distressed properties, demolishing dilapidated homes, and making grants and loans to eligible homeowners and buyers in economically distressed areas.

Requires the agency to establish an advisory council with at least seven members (majority from nonprofits with foreclosure and housing expertise) to develop program guidelines, selection criteria for eligible institutions, and submit annual reports to state leadership on fund usage.