NY A05635

Authorizes the New York mortgage agency to purchase labor organization assisted forward commitment mortgages from banks at prices and terms determined by the agency.

Defines "labor organization" as any organization representing employees in New York in dealing with employers or government regarding employment terms, grievances, and labor disputes.

Requires the agency board to establish maximum income limits for mortgage recipients, not exceeding Internal Revenue Code limits for mortgage revenue bonds.

Permits labor organizations to develop additional non-discriminatory eligibility qualifications for members, subject to agency pre-approval, with the labor organization solely responsible for ensuring legality.

Requires participating labor organizations to guarantee payment of up to 20 percent of outstanding mortgage indebtedness for each member who defaults within the first seven years of the loan.