Relates to expanding eligibility for the low interest rate program of the state of New York mortgage agency to certain graduates of post secondary programs

BILL NUMBER:S7936

Title of bill

An act to amend the real property tax law, in relation to expanding eligibility for the low interest rate program of the state of New York mortgage agency to certain graduates of post secondary education programs

Purpose or general idea of bill

To expand eligibility for the Low Interest Rate Program (LIRP) of the State of New York Mortgage Agency (SONYMA) to graduates of post secondary education for a period of seven years after graduation. Qualifying individuals will be eligible for a thirty-year mortgage at a rate of 1.5% lower than the standard interest rate offered for a period of 10 years.

Summary of specific provisions

Section one adds section 457-a which expands eligibility for low interest rate program of the State of New York Mortgage Agency (SONYMA) to graduates of post secondary education for a period of seven years after graduation to participate in Low Interest Rate Program (LIRP) with SONYMA; a thirty-year mortgage at 1.5% lower than the standard interest rate offered for a period of 10 years and, directs the Commissioner of SONYMA to promulgate rules and regulations necessary for the administration of the program.

Section two sets the effective date.

Justification

The purpose of this legislation is to encourage homeownership in local neighborhoods by providing support to young professionals with student loan debt to help them purchase homes and grow their roots in Western New York.

Support to first-time homebuyers is a sound investment and a critical component of our overall efforts to strengthen area neighborhoods. This legislation will help to address several issues facing Western New York, including the exodus of college graduates from the City of Buffalo, blight created by vacant housing within the City, and the low rate of home ownership in distressed neighborhoods. It aims to entice recent college graduates, who are often balancing rent and student loans, to make a long-term investment in Buffalo's future by buying homes in disadvantaged areas of Western New York.

While Buffalo is in the midst of an economic resurgence, it still faces a housing crisis. As of the 2010 Census, Buffalo had a vacancy rate of over 15 percent, with the 2012 American Community Survey reporting over 23,000 vacant units throughout the city. At the same time, local families continue to watch their children and grandchildren leave the area after graduating from college. As growth continues through the region and new jobs are created, this bill will encourage more of these new workers to buy homes in the city.

Prior legislative history

This is a new bill.

Fiscal implications

Undetermined.

Effective date

This act shall take effect on the thirteenth day after it shall have become law; however, provided that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized and directed to be made and completed on or before such effective date.