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.