House Bill No. 56

Introduced By r. johnson

By Request of the Board of Housing

A Bill for an Act entitled: "An Act modifying the reverse annuity mortgage loan program to better serve the needs of elderly homeowners; granting greater flexibility to the board of housing in establishing age and property eligibility criteria; amending section 90-6-503, MCA; and providing an immediate effective date."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 90-6-503, MCA, is amended to read:

"90-6-503.   Definitions. As used in this part, unless the context requires otherwise, the following terms apply:

(1)  "Mortgage" means a mortgage as defined in 90-6-103.

(2)  "Mortgagee" means the holder of a mortgage or its assignee.

(3)  "Mortgagor" means a person:

(a)  who is of lower income as determined by the board. In its determination of lower income, the board shall take into consideration the criteria in 90-6-103(16).

(b)  68 years of age or older who is of at least the minimum age established by the board in program guidelines 68 YEARS OF AGE OR OLDER, EXCEPT AS PROVIDED ON A CASE-BY-CASE BASIS IN ACCORDANCE WITH PROGRAM GUIDELINES ESTABLISHED BY THE BOARD OF HOUSING;

(c)  who is the owner and occupant of a single-family dwelling that is unencumbered by any prior mortgage, lien, or pledge; and

(d)  who has completed a reverse annuity mortgage counseling program approved by the board.

(4)  "Reverse annuity mortgage loan" means a loan in which loan proceeds are advanced to the mortgagor to provide a monthly tax-free cash payment for 10 years.

(5)  "Single-family dwelling" means a one- to four-family living unit, excluding a condominium as defined in 70-23-102."

NEW SECTION. Section 2.  Effective date. [This act] is effective on passage and approval.