NY A05614

Authorizes the New York State mortgage agency to purchase rehabilitation mortgages from banks when credit supply is inadequate for residential mortgages affordable to low and moderate-income persons and families.

Requires rehabilitation mortgages to meet minimum standards including repair costs of at least 25 percent of the mortgagor's adjusted basis, retention of at least 50 percent of external walls and 75 percent of internal walls, and borrower occupancy within 60 days of completion.

Property must have been in use for at least 20 years before rehabilitation work begins and fall within agency regulations for maximum purchase price.

Banks must certify mortgage compliance, monitor repairs through periodic inspections, and provide final inspection; agency may require banks to repurchase mortgages if representations or warranties prove untrue.

Agency may set interest rates as needed to cover bond and note payments, notwithstanding other state usury laws, and takes effect 120 days after becoming law.