NY A05865

Establishes a disabled and elderly accessory apartment loan program within the private housing finance law to provide loans for constructing or renovating dwelling units for persons with disabilities or those age 62 and older.

Loans must be used to construct an additional unit (up to two bedrooms, minimum 450 square feet) or improve an existing unit in a structure containing no more than two total dwelling units, with at least one unit owner-occupied.

Loan amounts limited to the lesser of 50 percent of total development costs or $50,000, with terms up to 30 years at interest rates set by the director of housing and community development in consultation with the state treasurer.

Requires a deed restriction be recorded on the property for the benefit of the housing corporation, running with the land, until the loan is fully repaid or a mortgage foreclosure deed is recorded.

At least half of loan program beneficiaries must have income below 80 percent of area-wide median income as determined by the U.S. Department of Housing and Urban Development.