S T A T E O F N E W Y O R K
________________________________________________________________________
8126
2023-2024 Regular Sessions
I N A S S E M B L Y
October 13, 2023
___________
Introduced by M. of A. CUNNINGHAM -- read once and referred to the
Committee on Housing
AN ACT to amend the public authorities law, in relation to establishing
the first-generation homebuyer assistance program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 2428-b to read as follows:
§ 2428-B. FIRST-GENERATION HOMEBUYER ASSISTANCE PROGRAM. 1. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
(A) "DOWN PAYMENT ASSISTANCE" OR "ASSISTANCE" MEANS FINANCIAL ASSIST-
ANCE FOR FIRST-GENERATION HOMEBUYERS TO ACQUIRE SINGLE-FAMILY HOUSING
FOR THEIR PRINCIPAL RESIDENCE THROUGH THE LOAN PROGRAM;
(B) "FIRST-GENERATION HOMEBUYER" MEANS A FIRST-TIME HOMEBUYER, WHO IS:
(I) AN INDIVIDUAL:
(1) WHOSE PARENTS OR LEGAL GUARDIANS DO NOT HAVE ANY PRESENT OWNERSHIP
INTEREST IN ANY RESIDENTIAL REAL PROPERTY IN ANY STATE OR TERRITORY OF
THE UNITED STATES, OR OUTSIDE OF THE UNITED STATES; AND
(2) WHOSE SPOUSE, OR DOMESTIC PARTNER, AND EACH MEMBER OF WHOSE HOUSE-
HOLD HAS NOT, DURING THE THREE YEAR PERIOD ENDING UPON ACQUISITION OF
THE ELIGIBLE HOME TO BE ACQUIRED USING SUCH ASSISTANCE, HAD ANY PRESENT
OWNERSHIP INTEREST IN ANY RESIDENTIAL REAL PROPERTY USED AS THEIR PRIN-
CIPAL RESIDENCE IN ANY STATE OR TERRITORY OF THE UNITED STATES, OR
OUTSIDE OF THE UNITED STATES; OR
(II) AN INDIVIDUAL WHO HAS AT ANY TIME BEEN PLACED IN FOSTER CARE IN
THE STATE;
(C) "FIRST-TIME HOMEBUYER" MEANS A HOMEBUYER WHO, IN ACCORDANCE WITH
RULES AND REGULATIONS ADOPTED BY THE AGENCY, HAS NOT OWNED ANY RESIDEN-
TIAL REAL PROPERTY AS THEIR PRINCIPAL RESIDENCE WITHIN THE PRECEDING
THREE YEARS, AND IS UTILIZING A MORTGAGE PRODUCT OFFERED BY THE AGENCY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13255-01-3
A. 8126 2
THROUGH AN AGENCY HOMEBUYER PROGRAM TO PURCHASE SINGLE-FAMILY HOUSING,
AND HAS A GROSS HOUSEHOLD INCOME THAT DOES NOT EXCEED A LIMITATION
DETERMINED BY THE AGENCY;
(D) "PRINCIPAL RESIDENCE" MEANS A HOMESTEAD THAT IS ACTUALLY AND
CONTINUALLY OCCUPIED AS THE PERMANENT RESIDENCE OF A HOUSEHOLD, AS
DISTINGUISHED FROM A VACATION HOME, REAL PROPERTY OWNED AND RENTED OR
OFFERED FOR RENT BY THE HOUSEHOLD, OR OTHER SECONDARY REAL PROPERTY
HOLDINGS; AND
(E) "SINGLE-FAMILY HOUSING" MEANS A ONE- TO FOUR-FAMILY RESIDENCE, A
CONDOMINIUM UNIT, A COOPERATIVE UNIT, A COMBINATION OF A MANUFACTURED
HOUSING AND LOT, OR A MANUFACTURED HOUSING LOT.
2. (A) THERE IS ESTABLISHED IN THE AGENCY A ZERO-INTEREST, FORGIVABLE
LOAN PROGRAM TO PROVIDE DOWN PAYMENT ASSISTANCE FOR FIRST-GENERATION
HOMEBUYERS TO ACHIEVE HOMEOWNERSHIP. THE LOAN PROGRAM SHALL PROVIDE DOWN
PAYMENT ASSISTANCE TO DEFRAY THE COSTS ASSOCIATED WITH ACQUIRING
SINGLE-FAMILY HOUSING FOR A PRINCIPAL RESIDENCE, AS PROVIDED FOR IN
PARAGRAPH (B) OF THIS SUBDIVISION. A FIRST-GENERATION HOMEBUYER SHALL
COMMIT TO USE THE HOME AS THEIR PRINCIPAL RESIDENCE FOR FIVE YEARS
FOLLOWING THE PURCHASE OF THE HOME. THE AGENCY SHALL FORGIVE THE LOAN,
PROVIDED THAT THE FIVE-YEAR COMMITMENT IS SATISFIED AND THE FIRST-GENER-
ATION HOMEBUYER MEETS THE OTHER REQUIREMENTS ESTABLISHED PURSUANT TO
THIS SECTION.
(B) (I) THE DOWN PAYMENT ASSISTANCE PROVIDED PURSUANT TO THIS SECTION
SHALL BE IN THE FORM OF A ZERO-INTEREST, FORGIVABLE LOAN AWARD. THE
LOAN AWARD SHALL BE IN THE AMOUNT OF UP TO FIFTEEN THOUSAND DOLLARS.
(II) EACH FIRST-GENERATION HOMEBUYER WHO RECEIVES DOWN PAYMENT ASSIST-
ANCE THROUGH THE LOAN PROGRAM SHALL, PRIOR TO THE AWARD OF DOWN PAYMENT
ASSISTANCE, COMPLETE NOT LESS THAN EIGHT HOURS OF A HOMEBUYER COUNSELING
COURSE, AS DIRECTED BY THE AGENCY. THE HOMEBUYER COUNSELING COURSE SHALL
INCLUDE, BUT NOT BE LIMITED TO, COURSEWORK CONCERNING:
(1) THE MAINTENANCE OF HOUSING COSTS, INCLUDING METHODS FOR BUDGETING
MORTGAGE PAYMENTS, UTILITY CHARGES, PROPERTY TAXES, AND ANY OTHER APPLI-
CABLE HOUSING COST;
(2) THE BASICS OF HOME FINANCE, PROPERTY TAXES, HOME WARRANTIES, AND
HOME INSPECTION;
(3) THE LEGAL COMPONENTS OF FINALIZING A HOME PURCHASE; AND
(4) THE PROCESS OF FINDING AN APPROPRIATE HOUSE, INCLUDING HOW TO
SEARCH REAL ESTATE LISTINGS THROUGH A REAL ESTATE AGENT OR OTHER SOURC-
ES.
(C) THE AGENCY SHALL PROMULGATE RULES AND REGULATIONS TO EFFECTUATE,
ADMINISTER, AND ACCOMPLISH THE PURPOSES OF THE LOAN PROGRAM. THE RULES
AND REGULATIONS SHALL, AT A MINIMUM, SET FORTH THE REQUIREMENTS FOR
APPLICATION SUBMISSIONS, THE CRITERIA FOR APPLICATION SELECTIONS, THE
ELIGIBLE USES OF DOWN PAYMENT ASSISTANCE, ELIGIBILITY AS A FIRST-GENERA-
TION HOMEBUYER, AND THE CURRICULUM AND PROVISION OF THE HOMEBUYER COUN-
SELING COURSE.
(D) THE AGENCY SHALL PERMIT AN INDIVIDUAL TO ESTABLISH ELIGIBILITY FOR
THE LOAN PROGRAM AS A FIRST-GENERATION HOMEBUYER VIA SELF-ATTESTATION,
UNDER PENALTY OF PERJURY. HOWEVER, NOTHING IN THIS PARAGRAPH SHALL
PRECLUDE THE AGENCY FROM ESTABLISHING MEASURES TO IDENTIFY AND DETER
FRAUDULENT ATTESTATIONS. IF IT IS ESTABLISHED THAT AN INDIVIDUAL HAS
RECEIVED ASSISTANCE AS A RESULT OF A FRAUDULENT ATTESTATION, THE INDI-
VIDUAL SHALL REIMBURSE THE AGENCY FOR THE ASSISTANCE.
(E) A DOWN PAYMENT ASSISTANCE LOAN SHALL BE RECOVERABLE AS A LIEN ON
THE REAL PROPERTY THAT THE LOAN IS USED TO PURCHASE, AND SHALL HAVE THE
PRIORITY OF A MORTGAGE LIEN.
A. 8126 3
(F) NO LATER THAN TWO YEARS FOLLOWING THE EFFECTIVE DATE OF THIS
SECTION, THE AGENCY SHALL PREPARE AND SUBMIT A REPORT TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
THE REPORT SHALL ANALYZE THE EFFICACY OF THE LOAN PROGRAM. THE REPORT
SHALL PROVIDE AN OVERVIEW OF THE TOTAL AMOUNT OF DOWN PAYMENT ASSISTANCE
PROVIDED BY THE AGENCY, WITH INFORMATION BY CENSUS TRACT ON THE RACE AND
ETHNICITY OF THE RECIPIENTS OF ASSISTANCE. THE REPORT ALSO SHALL
ANALYZE:
(I) THE IMPACT OF THE DOWN PAYMENT ASSISTANCE ON THE TOTAL HOUSING
COSTS OF THE RECIPIENTS OF SUCH ASSISTANCE;
(II) THE IMPACT OF THE LOAN PROGRAM, ON FIRST-GENERATION HOMEOWNER-
SHIP; AND
(III) ANY OTHER INFORMATION DETERMINED BY THE AGENCY TO BE RELEVANT TO
THE COSTS AND BENEFITS OF THE LOAN PROGRAM.
§ 2. This act shall take effect immediately.