NY State Senate Bill 2019-S7721

Senate Bill S7721

2019-2020 Legislative Session

Relates to subsidizing closing costs for low income current tenants who are purchasing a home

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 11, 2020	referred to housing, construction and community development

2019-S7721 (ACTIVE) - Details

See Assembly Version of this Bill:: A8490
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add §610, Priv Hous Fin L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S665, A3838
2023-2024: S1447, A2600

2019-S7721 (ACTIVE) - Summary

Calls for the state to subsidize a portion of closing costs for certain individuals who have been tenants of public housing projects or rent subsidized housing for the previous five years.

2019-S7721 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7721

SPONSOR: SANDERS
 
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

2019-S7721 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7721
 
                             I N  S E N A T E
 
                             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 subsi-
   dizing closing costs for low income tenants who are purchasing a home
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, 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 APART-
 MENT 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  SELL-
 ING  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

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