What's happening
This bill creates a state subsidy program to help middle-income New Yorkers buy and rehabilitate homes using community development funds.
Why it matters
Targets New York City’s “middle-income” population. by providing subsidies specifically to households earning less than the city’s median income, but who are not served by existing low-income programs—potentially helping those who are often “too rich” for traditional aid but still priced out of ownership.
Focuses on first-time homebuyers and prevents double-dipping. , as eligibility is limited to people who do not currently own any home or have previously received homeownership assistance—aiming to expand homeownership to new families rather than subsidize repeat buyers.
Promotes rehabilitation of urban housing stock. by requiring that subsidies be used for homes, condos, or co-ops in urban areas that are eligible for state or federal financing, with the explicit purpose being both purchase and rehabilitation—this could improve neighborhood quality and reduce blight.
Uses federal community development funds. (Community Development Block Grant) for the program, which may shift resources from other local development projects, and sets a relatively high per-household subsidy cap (over $125,000)—potentially enabling meaningful assistance, but also limiting the number of households that can be served.
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Who cares
Headline styles
Help Middle-Income Families Buy Homes
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1212
2025-2026 Regular Sessions
IN SENATE
January 8, 2025
Introduced by Sens. BAILEY, MAY, SEPULVEDA -- 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 public housing law, in relation to creating a middle income home ownership subsidy program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public housing law is amended by adding a new article 11-A to read as follows:
ARTICLE 11-A
MIDDLE INCOME HOME OWNERSHIP SUBSIDY Section 250. Definitions.
251. Middle income home ownership subsidy program.
252. Applications.
253. Amount and procedure for middle income home ownership
subsidy payments.
254. Rules and regulations.
255. Funding for the middle income home ownership subsidy
program.
§ 250. Definitions. For purposes of this article, the following terms shall have the following meanings:
1. "Eligible unit" shall mean:
a. any (i) home with two or fewer units; (ii) condominium; or (iii) cooperative;
b. where the purchase of such home, condominium, or cooperative is provided for, insured, or guaranteed by the state or federal government;
c. located in an urban area as defined by the division.
2. "Qualified household" shall mean any person or their family member who:
a. has an annual household income below the current median income for the city of New York, provided, that any subsidy received as a result of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03216-01-5
a social program shall not be considered when calculating an individual's gross income. The division shall determine income eligibility of home buyers using the income determination methodology utilized by the United States department of housing and urban development in accordance with their section 8 housing program.
b. does not currently own a housing unit, including a single family house, condominium unit, cooperative unit, or rental unit that could be owner occupied;
c. has not previously received home ownership assistance.
§ 251. Middle income home ownership subsidy program. There is hereby established a middle income home ownership subsidy program. The purpose of the program is to provide financial assistance to middle income households, with an annual income below the current median income for the city of New York who do not currently own a home, to purchase an eligible unit for purposes of rehabilitation and ownership.
§ 252. Applications. 1. A qualified household must make an application to the division to receive a home ownership subsidy.
2. The division shall approve an individual's application if it finds that:
a. such individual is part of a qualified household as defined in subdivision two of section two hundred fifty of this article;
b. the home to be purchased by the individual is an eligible unit as defined in subdivision one of section two hundred fifty of this article;
c. the home to be purchased has been inspected by a division approved home inspector;
d. the home to be purchased has been appraised at a value not exceeding the maximum purchase price as set by the division.
3. If any qualified household that has been approved and is receiving home ownership assistance payments defaults on its mortgage payment, such home ownership subsidy payments shall automatically cease and be terminated.
§ 253. Amount and procedure for middle income home ownership subsidy payments. Subsidy amounts under this program shall equal more than one hundred twenty-five thousand dollars in the aggregate.
§ 254. Rules and regulations. 1. The division is authorized to implement any rule or regulation necessary for the successful implementation of this program.
2. The division may create any form and require any applicant to fill out such form before receiving departmental approval for the home ownership assistance payments.
3. The division may charge an application fee for the processing of a household's home ownership assistance payment application. Such fee shall not exceed one hundred dollars.
§ 255. Funding for the middle income home ownership subsidy program. Funding shall be obtained by using funds from the community development block grant.
§ 2. This act shall take effect on the one hundred eightieth 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 and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public housing law, in relation to creating a middle income home ownership subsidy program
Purpose or general idea of bill
If passed, this bill would help provide financial assistance to middle income families under certain conditions to increase home ownership among communities of color.
Summary of specific provisions
Section one of the bill establishes the eligibility criteria for appli- cation to this program and specifies what qualifies a household to receive assistance. Section one also establishes the procedure by which this program will assist homeowners, and how it will secure funding to do this.
Read the full memo (708 words)
Justification
As we continue to identify ways to increase home ownership among commu- nities of color, especially those in the middle-income threshold who we wish to encourage their return and permanent stay in urban communities, we recognize the importance of such efforts. We have rental subsidies and concurrent federal tax subsidies for ownership, so we should estab- lish a subsidy for middle-income home ownership up to $125,000 to increase the likelihood of ownership by persons of color in urban commu- nities.
In "Using Tax Policy to Subsidize Homeownership," authors Richard K. Green and Andrew Reschovsky state that " Since the late 1950s the homeownership rate in the U.S. has exceeded 60 percent. In 2004 it reached a peak of 69 percent, and in the first quarter of 2010 stood at 67.1 percent. Despite the relatively high overall rate of homeownership in the U.S., there are large disparities among racial and income groups (U.S. Census Bureau, 2010). The homeownership rates among African Ameri- cans (46.1 percent) and among Hispanics (48.5 percent) are both less than two-thirds the rate among non-Hispanic whites (74.5 percent). Despite the relative economic gains of minorities over the past few decades and government efforts to reduce housing market discrimination, there has been little reduction in the racial disparities in homeowner- ship. Between 1989 and 2008, the percentage difference in homeownership rates between black and non-Hispanic white households remained virtually unchanged. In 2009, however, the gap grew by one percent. Hispanic homeownership rates showed a modest two percent increase relative to rates among non-Hispanic whites over this period (U.S. Census Bureau, 2009)."
Moreover, the report observes there is "clear evidence that federal income tax incentives for homeownership do in fact influence families' housing tenure-choice decisions (citing Rosen, 1979a; Rosen, 1979b; Green and Vandell, 1999). This research is based on the assumption that the decision of a renter household o become an owner depends on a set of characteristics, such as income, household size, marital status, race, and what economists call the user cost of owning relative to renting (the amount of money a household must spend if it owns rather than rents an identical house or apartment...tax policy can be used to reduce the user cost of owning relative to renting and thus potentially influence households' decisions to purchase a home. For homeowners the before-tax user cost is the sum of the mortgage interest, the property tax, the net depreciation, and the overall maintenance (which includes insurance and utility costs). As demonstrated by Green and Vandell (1999), the ability of homeowners to deduct their mortgage interest and property tax payments from their gross income reduces the user cost of owner-occupied housing relative to renter-occupied housing by an amount equal to the federal marginal tax rate times the deductible portion of total user cost. Alternatively, giving taxpayers a fixed tax credit for their payment of mortgage interest and property tax reduces th e user cost of owner-occupied housing relative to renter-occupied housing by the amount of the credit".
There is sufficient data backed rationale to indicate that tax subsidy support to promote home ownership would increase the likelihood of persons of color not just renting but owning in urban communities. The effect of this legislation would further inspire young adults and middle-income residents to live in these communities and further lay a foundation for positive economic development in these communities.
Prior legislative history
2021-22: Referred to Housing, Construction and Community Development
2023-24: Referred to Housing, Construction and Community Development
Fiscal implications
To be determined.
Effective date
One hundred eighty days after becoming a law, with provisions that apply effective immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.