S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2600--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Housing -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 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 611 to read as follows:
   §  611.  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 DIVISION OF HOUSING AND  COMMUNITY  RENEWAL  SHALL  CREATE  THE
 PROCESS,  ACCESS  THE APPLICATIONS, DISTRIBUTE THE FUNDS AND PROVIDE ANY
 OTHER ADMINISTRATIVE FUNCTIONS FOR THE TENANT  TO  HOMEOWNERSHIP  INITI-
 ATIVE.    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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04754-03-3
              

 A. 2600--A                          2
 
   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.  THE  STATE  SHALL  CLAW BACK ANY SUBSIDIZED AMOUNT PROVIDED TO ANY
 BUYER WHO QUALIFIED AND RECEIVED SUCH SUBSIDIZED AMOUNT FROM  THE  STATE
 UNDER  THIS  SECTION  IF  SUCH BUYER SELLS OR TRANSFERS THE TITLE OF THE
 SUBJECT PROPERTY WITHIN A PERIOD OF THREE YEARS FROM THE DATE  OF  CLOS-
 ING.
   § 2. This act shall take effect immediately.