NY A09095

Authorizes reverse cooperative apartment unit loans secured by cooperative apartment shares for borrowers age 62 or older, with interest and fees accruing but not due until borrower death, permanent vacancy, or default.

Establishes four payout options: term payments (fixed period), tenure payments (lifetime), line of credit, or lump sum, with closing costs and set-asides for property obligations deductible from proceeds.

Requires lenders to obtain $100,000 surety bonds and maintain $10 million minimum capital or irrevocable letters of credit; prohibits mandatory binding arbitration and restricts loans to non-recourse (secured only by the apartment unit).

Mandates pre-foreclosure protections including mandatory settlement conferences, 45+ days notice before disposal of collateral, third-party contact designation, and 30-day waiting periods after home visits before foreclosure initiation.

Requires independent housing counseling certification, monthly account statements with maintenance fee depletion notices, and prohibits deceptive marketing such as claims of government insurance or public service announcements; effective 180 days after enactment.