Authorizes municipalities to sell certain municipally owned dwellings to low/moderate income persons for nominal consideration

3 Co-sponsors

• Marcus Molinaro
• Andrew Raia
• Joseph Saladino

BILL NUMBER:A10675

Title of bill

An act to amend the private housing finance law, in relation to enacting the state homesteading act

Purpose or general idea of bill

To authorize any municipality to sell residential dwellings that require rehabilitation for nominal consider- ation to low and moderate income persons who are first-time homebuyers.

Summary of specific provisions

This bill adds a new Article 3-C to the Private Housing Finance Law to authorize any city, town, village, or county to sell unoccupied municipally-owned one- to four-family residen- tial dwellings that require rehabilitation to persons and families of low and moderate income, who are first-time homebuyers, for nominal consideration. It defines "persons and families of low and moderate income" as persons and families who are determined by the municipality to be in the low and moderate income groups and who cannot afford to pay enough to cause private enterprise in their municipality to build a sufficient supply of adequate, safe, and sanitary dwellings. The bill further provides that any contract between the municipality and the eligible purchaser must provide that all closing costs be paid by the purchaser and that the purchaser occupy the residential dwelling within 60 days of the title closing or of the completion of the repair or reha- bilitation work. In addition, after the contract has been executed by the municipality and the purchaser, the municipality is authorized to provide the purchaser with technical assistance concerning rehabili- tation planning and home repair, financing, the mortgage application process, and property management. As part of any such assistance, the municipality would have to advise the purchaser as to the availability of any financing directly through the municipality or through state and federal agencies.

EFFECTS OF PRESENT LAW WHICH. THIS BILL WOULD ALTER: Adds a new Article 8-C to the Private Housing Finance Law.

Justification

Many municipalities throughout the State contain older homes which have fallen into disrepair and which have been foreclosed upon by a municipality for non-payment of taxes. This housing stock represents a potential source of housing for many low and moderate income homebuyers who are willing to undertake rehabilitation or repair work. Thus, this bill authorizes any city, town, village, or county to sell unoccupied residential property that is owned by the municipality to low and moderate income persons and families who are first-time home- buyers. Not only will the legislation help encourage increased homeown- ership opportunities, but it can also lend to the increased rehabili- tation of many deteriorated homes throughout the State.

Prior legislative history

A.5180 of 2004. A.10013 of 2006. A.05692 of 2008. A.3798 of 2009

Fiscal

None.

Effective date

This act shall take effect immediately.