What's happening
This bill provides state subsidies for closing costs to long-term low-income tenants buying homes in New York, with certain restrictions.
Why it matters
Targets long-term low-income tenants. The subsidy is only available to individuals who have lived in public housing or rent-subsidized apartments in New York for at least five consecutive years, focusing the benefit on those with sustained housing needs.
Provides limited but direct financial assistance. Eligible buyers receive either $1,000 (if from public housing) or $500 (if from rent-subsidized apartments) toward closing costs, which can help reduce one of the main upfront barriers to homeownership for low-income individuals.
Restricts quick resale (“flipping”). Recipients of the subsidy cannot sell or transfer the property for three years, helping to ensure the subsidy supports stable homeownership rather than speculative investment.
Applies only to conventional or FHA loans. The subsidy is only available to buyers using specific types of mortgage financing, which may exclude some alternative or unconventional financing paths, potentially limiting participation but also aiming for stable, regulated lending.
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Who cares
Headline styles
Help Tenants Buy Homes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Help Tenants Buy Homes
In Assembly Committee · Housing · Sponsor Clyde Vanel
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7721
IN SENATE
February 11, 2020
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the private housing finance law, in relation to subsidizing closing costs for low income tenants who are purchasing a home
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The private housing finance law is amended by adding a new section 610 to read as follows:
§ 610. Tenant to homeownership initiative. 1. For purposes of this section, "low income or rent subsidized apartment" shall mean an apartment in which the tenant's household income level qualifies them to receive state funds used towards the monthly amount of rent owed.
2. The state shall subsidize a portion of the closing costs required of any buyer who is purchasing a home located within the state if they shall meet the following requirements:
(a) the buyer has been a resident of the state for five years prior to entering into a purchase contract to buy a home; and
(b) the buyer has been a tenant of a public housing project or in a low income or rent subsidized apartment for the entirety of such five year period.
3. If a buyer meets the requirements of subdivision two of this section, the state shall subsidize the following amounts for such buyer to be used towards such closing costs:
(a) one thousand dollars if such buyer has resided in a public housing project; or
(b) five hundred dollars if such buyer has resided in a low income or rent subsidized apartment unit.
4. This section shall apply only to buyers who receive approval and are financing such purchase with a conventional or federal housing administration (FHA) loan.
5. For any buyer who qualifies and receives any subsidized amount from the state under this section, such buyer shall be prohibited from selling or transferring title of the subject property for a period of three years from the date of closing.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13525-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the private housing finance law, in relation to subsi- dizing closing costs for low income tenants who are purchasing a home
Purpose or general idea of bill
To amend the private housing finance law, in relation to subsidizing closing costs for low income tenants who are purchasing a home.
Summary of provisions
Section 1 amends the private housing financing law by adding a new section that defines low income or rent subsidized apartment as an indi- vidual that receives State Funds used towards monthly amount of rent owed. It also states that New York State will subsidize a portion of the closing costs required of any buyer who is purchasing a home located within New York State if they meet the following conditions; buyer is a resident for 5 years prior to purchase agreement and buyer is a resident for 5 years and was tenant of public housing, low income, or rent subsi- dized apartment for 5 years.
Section 1 also identifies the loans available and the quantity.
Section 2 sets the effective date as immediately.
Difference between original and amended version (if applicable)
N/A
Justification
In New York State, the working poor and low income families seem to stay in the same Socio-economic condition from generation to generation. Also in New York, families in public housing and low income housing tend to find it difficult to transition out of assisted rent subsidy. We must find ways to help incentivize wealth building for the families. A major factor that gets families in the middle-class is home ownership. Homeownership in New York State is a pathway towards wealth accumu- lation. This bill will help incentivize those families into becoming homeowners.
Prior legislative history
None
Fiscal implications for state and local governments
N/A
Effective date
Effective Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.