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STATE OF NEW YORK MORTGAGE AGENCY 


                            Adjusted     Executive   Legislative                       
                             Approp.       Request       Approp.
                             2000-01       2001-02       2001-02   Change


STATE OPERATIONS
  General Fund            76,800,000    76,800,000    76,800,000        0 
  Total for 
  STATE OPERATIONS:       76,800,000    76,800,000    76,800,000        0 

AID TO LOCALITIES
  General Fund            95,981,000    93,791,100    93,791,100        0 
  Total for 
  AID TO LOCALITIES:      95,981,000    93,791,100    93,791,100        0

Agency Mission

The State of New York Mortgage Agency (SONYMA) is a public benefit corporation that uses tax-exempt and taxable bond sale proceeds to fund low-interest mortgages for low to moderate income first-time and other qualifying homebuyers. SONYMA also issues mortgage insurance to promote stabilization of neighborhoods throughout the State.

Year-to-Year Change

The Executive requests appropriations totaling $170,591,100 for State Fiscal Year (SFY) 2001-02, a decrease of $2,189,900 or 1.27 percent from SFY 2000-01 levels.

Legislative Proposals

The Assembly plan directs SONYMA to issue $200,000,000 in tax-exempt bonds that shall be made available exclusively to purchase mortgages issued for the construction and rehabilitation of mixed-use projects consisting of affordable housing and commercial and public use space, such as daycare and pre-kindergarten facilities, to be located in Empire Zones and Empowerment Zones.

The Assembly plan further directs the SONYMA Mortgage Insurance Fund to insure these mortgages using reserves currently existing in the SONYMA Project Account and to pay where necessary a percentage of the interest on residential mortgages from the reserves in the SONYMA Mortgage Insurance Fund, whether from the Project Account or the Single Family Account, that are in excess of the minimum statutory requirements as of March 1, 2001. The Assembly plan also creates an exemption from state sales taxes on construction materials for these mixed-use construction and rehabilitation projects in Empire Zones and Empowerment Zones.

The Assembly directs SONYMA to establish a fiscal year of April 1 to March 31. On or before March 15th, the Board of Directors will determine the balances existing in all accounts within SONYMA. No later than May 15, SONYMA shall provide a comprehensive annual report to the Executive and to the Legislature concerning all activities.

The Assembly plan also directs SONYMA to create the Teacher Housing Assistance Program to help teachers serving in high need school districts purchase a single or multi-family house, condominium, or co-op in the school district in which they are teaching.

The Assembly proposal involves partnerships with organizations such as Fannie Mae to implement a statewide program to allow teachers who agree to a term of service in a high need school district to purchase a home with little or no downpayment or closing costs. SONYMA shall provide New York State's contribution of collateral necessary in order to leverage the necessary funds for the Teacher Housing Assistance Program.