Homeowners living in Nassau and Suffolk counties may have a new resource available to them to help prevent them from being foreclosed on, thanks to a new piece of legislation written by Assemblyman Steve Labriola and sponsored by Senator Owen Johnson.

The bill would create a new Homeowner's Emergency Mortgage Assistance Program on a temporary basis with one million dollars in state funds earmarked only for Nassau and Suffolk county residents.

According to Labriola, the program is tailored for unemployed or underemployed workers who are unable, due to no fault of their own, to meet their mortgage payments. For example, Labriola said, "in the instance of a former Grumman employee who was earning $100,000 and now only makes $50,000, they would assist him for a period of three years."

"We lost thousands of highly trained professionals who found themselves unemployed," said Labriola. "This program really addresses that program."

If the legislation is passed, the program would review each applicant to determine whether or not the homeowner in danger of foreclosure has a reasonable means of getting work within three years. Similar to a state or federal college loan, the program would assist homeowners for three years without interest accumulation.

The concept for the program was the result of the "Keeping the Dream" summit hosted last year by Congressman Rick Lazio and Long Island Housing Partnership President Jim Morogo to study the problem of foreclosure on Long Island. During the summit a task force was established consisting of representatives from savings banks, civic groups, mortgage bankers, and not-for-profit research groups.

Morogo, who was also a member of the task force, asked Labriola to join as a member. "We certainly endorse Steve's work," said Morogo, adding, "but it still needs some fine-tuning."

"I think the key in all this would be the administration of it," said Morogo. "You want it for people who are in a temporary position."

"This program is not for everyone," said Labriola. "It's for people who will get back on their feet."

The legislation introduced in the state assembly by Labriola and in the senate by Johnson sets up a temporary pilot program in Nassau and Suffolk counties to serve as a study for New York State. Similar programs currently exist in Minnesota and Pennsylvania. This would be the first time Emergency Mortgage Assistance is attempted in New York.

Under the current legislative proposal, in order to qualify for assistance the mortgaged property must be an owner occupied residence and be located in Nassau or Suffolk county, and the homeowner must have a favorable residential mortgage credit history, be suffering from a financial hardship beyond his or her control, and have a reasonable prospect of resuming mortgage payments within 36 months.

"As long as it's administered with some real care, and it is only going to people who get into these problems through no fault of their own," said Morogo, then the program will be successful.

"Foreclosure is so devastating, not just on the family but on the block and the community," said Labriola.

Labriola argues that communities decline where foreclosures have become common. "If we can develop a program that preserves neighborhoods, it is worthy of enacting," he added. "That's why I developed a pilot program so we can judge its effectiveness."