Provides certain tax credits and financial assistance towards home ownership for certain veterans

Summary of specific provisions

Section 1 titles this bill the "New York homes for heroes Act."

Section 2- Authorizes a veteran of the New York National Guard or mili- tary reserve to be allowed a tax credit which is equal to three quarters of one percent difference between fees charged to veterans of National Guard or armed forces reserves and the same fees charged to eligible active duty veterans, under loan guarantee programs administered or funded by the federal home loan mortgage corporation.

Section 3 - Makes the Affordable Home Ownership Development Program available to home buyers who are service related disabled veterans. This section also directs the Affordable Housing Corporation, when determining awards under the Affordable Home Ownership Development Program, to provide a preference to applications based upon the extent to which the proposed project or program will serve households in which the home buyer is a disabled veteran, defined as those with a federal VA disability rating of 40% or higher.

Section 4 - Adds a new Article XIX-A to the Private Housing Finance Law, creating a Home and Land Ownership Loan Fund within the New York State Housing Finance Agency. The agency would be authorized to enter into contracts with eligible veterans to provide loans to assist in the purchase or the purchase and rehabilitation of a dwelling of up to four residential units, provided such persons or family resides in one of the units. The bill defines "eligible person" as a veteran or their surviv- ing unmarried spouse, and contains a definition of a veteran for the purpose of the section. Any such loans could not exceed 20 percent of the cost of acquiring the dwelling or 20 percent of the value of such dwelling after rehabilitation, or $40,000 in the case of the unimproved Real Property. The value of the dwelling unit would be determined from the appraisal required by the lending institution granting the first mortgage loan such dwelling. Any loan would have to be secured by a second mortgage on the dwelling. If the recipient of such loan assigns or conveys his interest in the dwelling or ceases to occupy the dwell- ing, the unpaid principal balance of the mortgage, plus interest, would become due and payable. If the recipient is unable to repay the loan, the agency would have the authority to adjust the interest rate, terms, and conditions of the loan to facilitate repayment. The bill also authorizes the agency to issue bonds and notes to carry out the provisions of that act; however, they could not be issued in excess of

an aggregate amount of $20 million. The maximum maturity of the bonds could not exceed 30 years, while the maximum maturity of the notes or any renewals thereof could not exceed seven years from the date of the original issue. The bonds and notes could be sold at public or private sale.

Section 5 - Authorizes SONYMA to purchase veterans' assisted forward commitment mortgages from banks at such prices and upon such terms and conditions it shall determine. The board of directors of the agency will establish maximum income limits for eligibility to receive such mort- gages, which may not exceed the latest maximum income limits permitted under the internal revenue code of 1986.

Section 6 includes the effective dates

Justification

This bill represents a comprehensive proposal which will provide much deserved assistance to our members of the military in acquiring real property and building a future in New York. Section two corrects an imbalance where members of the armed forces reserve compo- nents are not currently treated equitably in comparison to the Active duty comrades. Section three would help disabled veterans sustain a good quality of life through decent housing, after so many have sacrificed themselves in armed conflict on our behalf. Section four would provide veterans with access to the necessary funds to finance the down payment and closing costs needed to purchase a home, provide needed rehabili- tation funds for repairing distressed (and generally inexpensive) hous- ing stock, or purchasing land upon which to build a new home. Section five will make it easier for veterans to secure low interest and low down payment mortgages through SONYMA.

Prior legislative history

New Bill

Fiscal implications

To be Determined

Effective date

This act shall take effect immediately, provided that Sections two and five will take effect 90 days after the bill has become law, Section three shall take effect 30 days after the bill has become law and Section 4 shall take effect 180 days after the bill has become law..