NY A04678

Authorizes the New York mortgage agency to purchase rehabilitation mortgages from banks when credit supply is inadequate or loans are unaffordable for low and moderate income persons and families.

Requires rehabilitation mortgages to have estimated repair costs of at least 25 percent of the mortgagor's adjusted basis in the property and mandates at least 20 years must have elapsed since the property was first used.

Establishes structural retention requirements: at least 50 percent of external walls, 75 percent of existing walls (internal or external), and 75 percent of existing internal structural framework must remain intact.

Allows the agency to set interest rates independent of general usury laws and requires banks to certify mortgage compliance, monitor repairs through inspections, and represent that mortgages are valid first liens with borrower occupancy within 60 days of completion.

Takes effect 120 days after becoming law; authorizes agencies to adopt implementing regulations immediately upon enactment.