New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENT
Subtitle C - Division of the Budget
Part 153 - Guidelines For Mortgage Modification Agreements
Section 153.1 - Introduction-statutory authority of director of division of the budget to approve guidelines

Universal Citation: 9 NY Comp Codes Rules and Regs ยง 153.1

Current through Register Vol. 46, No. 12, March 20, 2024

(a) The guidelines contained herein are promulgated pursuant to the authority of the director of the Division of the Budget (the director) to establish guidelines for future mortgage modifications as set forth in chapter 888 of the Laws of 1980 (the amendment).

(b) Chapter 888 of the Laws of 1980, which was signed into law by the Governor on November 26, 1980, amended the Private Housing Finance Law and required the Housing Finance Agency (HFA) to establish a Housing Project Repair Fund (PRF or the fund). Monies appropriated to or deposited in the fund, may be used for the correction of construction-related problems in housing projects financed by HFA or for the repair, reconstruction or replacement of facilities and infrastructure related to those projects. Fifteen percent of the monies in the fund must be allocated to HFA and State-financed projects for energy conservation projects or for improvements to protect the safety and health of tenants.

(c) In some instances, a housing project may be required to enter into a mortgage modification agreement in order to qualify for project repair funds. A mortgage modification agreement is a document which restructures mortgage payment requirements and allows the mortgagor (the housing company), for a limited period of time, to make mortgage payments lower than those required by the original mortgage agreement. Subdivision 3 of section 60 of the Private Housing Finance Law provides that the agency "shall not expend moneys from the fund as payment to any housing company for the correction of a construction-related problem unless the following conditions have been met." Among the conditions specified is the requirement that, pursuant to section 60(3)(ii) of the Private Housing Finance Law, "a mortgage modification agreement has been entered into with the housing company which operates the project, after consultation with the commissioner and in accordance with guidelines approved by the Director of the Budget."

(d) The amendment specifies both:

(1) the circumstances under which a project must obtain a mortgage modification agreement in order to qualify for the receipt of money from the Project Repair Fund; and

(2) the major terms and conditions of such mortgage modification agreements.

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