NY Reverse Mortgage Co-op Bill Issued To Governor Hochul Months After Passed
A bill that would allow people aged 70 or older living in New York State to take out a reverse mortgage on a co-op living space was handed to Gov. Kathy Hochul almost six months after it was originally passed in the two legislative chambers of the state. This is according to the latest information available regarding the bill made available by the New York State Assembly and the New York State Senate.
The latest version of the bill – which is the culmination of a years-long effort by members of the reverse mortgage industry and New York State lawmakers – was drafted after a similar bill that would allow reverse mortgages on co-ops failed to overcome a veto by the government of the day. Andrew Cuomo. The latest version of the bill was passed less than 60 days before Cuomo stepped down over allegations of sexual misconduct, and appeared to be in legislative limbo precisely because of the governor’s office turnover.
The bill was passed in the State Assembly in mid-June, when Governor Cuomo saw an increase in the number of allegations of sexual misconduct. New York Attorney General Letitia James launched an official investigation that released a report in August that found Cuomo allegedly sexually harassed 11 women during his tenure. A week after the report was released, Cuomo announced he would step down as of August 24, when Hochul – who had served as lieutenant governor – would assume the governorship.
Once a bill has been officially delivered to the governor’s office, the governor typically has 10 days from receipt – not including Sunday – to sign or veto the bill and send it back to the government. state legislature. However, since the New York legislature is technically out of session at the moment, the governor has 30 days, including Sunday, to make a decision. Not acting at all – in a move known as the “pocket veto” – acts as if it has actively chosen to veto the bill and send it back to the legislature.
In April, the reverse mortgage industry said it would prepare to make another attempt to get approval for reverse mortgages on co-ops in New York City during a presentation by outside counsel for the association at the NRMLA virtual political conference in April.
While new movements on the subject seemed encouraging at the time, the likelihood of full passage and codification by the government of the day. Cuomo was not guaranteed, due to the similarities between the new version of the bill and a previously passed version that Cuomo vetoed in late 2019.
The bill requires the New York Department of Financial Services (NYDFS) to issue regulations relating to the new type of loan, which could mean that even if the bill passes, additional requirements for these types of loans. may be required.
However, the bill was eventually passed in June, with the State Assembly passing a revised version of the bill with a vote of 148 to 1, while the State Senate passed its version of the bill. bill sponsored by State Senator Alessandra Biaggi (D) with a vote of 62-1.
RMD will inform readers of any further movement on legislation by the governor or the legislature when such information becomes available.