What's happening
This bill expands eligibility for New York’s low interest rate mortgage program to recent graduates and skilled workers buying homes in certain struggling areas.
Why it matters
Targets recent graduates and skilled workers. By specifically including individuals who have completed post-secondary education, apprenticeships, or workforce training within the past seven years, the bill incentivizes younger and skilled populations to buy homes in struggling communities.
Focuses on revitalizing struggling areas. The eligibility is limited to municipalities with populations under one million that are either economically depressed or experiencing population loss, aiming to combat urban decline and stimulate local economies.
Provides a substantial financial incentive. Eligible buyers receive a 1.5% reduction on the standard mortgage interest rate for ten years, making homeownership more affordable and potentially increasing property demand in targeted regions.
Sunsets enhanced benefit after a decade. After ten years, the special lower rate ends and the mortgage reverts to the standard program rate, balancing long-term fiscal responsibility with short-term support for new homeowners.
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Who cares
Headline styles
Expand Mortgage Aid Eligibility
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to banks
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1597
- Committee discharged and committed to rules
- Referred to local government
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2701
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property tax law is amended by adding a new section 457-a to read as follows:
§ 457-a. Eligibility for the low interest rate program. Individuals who have graduated from a program in post secondary education or comparable apprenticeship and workforce training programs shall, for a period of seven years after such graduation, be eligible to participate in the low interest rate program of the state of New York mortgage agency. Such eligibility shall be limited to the purchase of residential property which shall be owner-occupied, located in a municipality with a population of less than one million and in an area which is either economically depressed or facing population loss as determined by the division of homes and community renewal. For eligible individuals, the interest rate for thirty-year mortgages shall be 1.5 percent lower than the standard interest rate offered to all other participants in the low interest rate program for a period of ten years after the effective date of this section, after which the interest rate for such individuals shall be the same as the standard rate.
The commissioner of the state of New York mortgage agency shall promulgate such rules and regulations as may be necessary for the administration of this section.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01868-04-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
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 second- ary education or a comparable apprenticeship or workforce training programs for a period of seven years after graduation. Qualifying indi- viduals 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 for the acquisition of owner occupied residential properties in cities under 1 million that have been determined to be economically depressed or facing population loss as determined by the New York State Department of Homes and Community Renewal.
Summary of specific provisions
Section one adds section 457-a which expands eligibility for low inter- est rate program of the State of New York Mortgage Agency
(SONYMA) to graduates of postsecondary education for a period of seven years after graduation to participate in Low Interest Rate Program (LIRP) with SONY-MA; a thirty-year mortgage at 1.5% lower than the stan- dard interest rate offered for a period of 10 years and, directs the Commissioner of SONYMA to promulgate rules and regulations necessary for the adminis- tration of the program.
Section two sets the effective date.
Justification
The purpose of this legislation is to encourage homeownership in regions in New York that are economically distressed neighborhoods by providing support to young professionals with student loan debt as well as young people who have taken advantage of all of New York's investment in work- force development and apprenticeship programs, 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 effort to strengthen area neighborhoods. This legislation will help 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 fami- lies 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
2017-18 S.652 Referred to Local Government
2015-16: S.665 Referred to Rules
2013-14: REFERRED TO RULES
Fiscal implications
Undetermined.
Effective date
This act shall take effect on the thirtieth day after it shall have become law. 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 on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.