LEGISLATIVE VICTORY: TITLE SURRENDER

The New York Housing Association has been trying to pass legislation that would allow for Title Surrender for close to 20 years. This year, we were successful! Many thanks to our Lobbyist, Jane McLaughlin, Esq., from Greenberg Traurig, and additional support from the NY Mortgage Bankers Association, Rural Housing Coalition, and others in the industry.

We can no longer say, “Of the 44 states that title Manufactured Homes, only New York does not provide a formal statutory procedure for electing to convey and encumber a home as real property.”

There are approximately 100,000 units of manufactured housing in rural areas of the state, comprising 10% of the housing stock. This housing stock is an important source of affordable home ownership in rural communities. Currently, loans on manufactured homes are generally financed as personal property, which are available from a small number of niche lenders and, as a result, may not have as favorable financing terms as a mortgage loan that could be offered by a broader number of lenders. The current lack of a title conversion procedure in New York discourages lenders from entering the market, thus depressing competition that would result in more favorable financing terms for consumers. 

This newly passed legislation will establish an elective process for homeowners to convert manufactured homes into real property, bringing New York into alignment with 43 other states that provide this pathway. This legislation provides a pivotal opportunity to enhance homeownership opportunities for rural New Yorkers and expands access to financing for low- and moderate-income households in these areas.

Thanks to Senator Sean Ryan (D - Buffalo) Assemblyman D. Billy Jones (D – Chateaugay Lake) for introducing this legislation again this session. AM Jones issued a press release stating: “Constituents have reached out to my office with titling issues for manufactured homes for years, which has either delayed or prevented them from home ownership. This law will make it easier for New Yorkers to buy or sell manufactured homes as well as create more opportunities for workforce and affordable housing. Considering 43 states already have a process like this, it is about time New York addressed this issue and I am proud to sponsor this bill.”

SO, WHAT’S NEXT? The legislation will be delivered to Governor Hochul for her signature within the coming weeks. We encourage you to show support by contacting her office at: https://www.governor.ny.gov/content/governor-contact-form

This is a victory for the Manufactured Housing industry in NY!