S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8166
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             October 18, 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-time  homebuyer  assistance program within the state of New
   York mortgage agency
 
   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 2429-g to read as follows:
   § 2429-G. FIRST-TIME HOMEBUYER ASSISTANCE PROGRAM. (1)  ESTABLISHMENT.
 THE  AGENCY  IS  HEREBY  AUTHORIZED  AND DIRECTED TO CREATE, MANAGE, AND
 MAINTAIN THE "FIRST-TIME HOMEBUYER ASSISTANCE PROGRAM". THE AGENCY SHALL
 MAKE SUCH RULES AND REGULATIONS AS ARE NECESSARY TO IMPLEMENT THE FIRST-
 TIME HOMEBUYER ASSISTANCE PROGRAM. THE PURPOSE OF THE PROGRAM  SHALL  BE
 TO  PROVIDE  ASSISTANCE  TO FIRST-TIME HOMEBUYERS OF CERTAIN RESIDENTIAL
 UNITS.
   (2) DEFINITIONS. FOR PURPOSES OF THIS SECTION:
   (A) "FIRST-TIME HOMEBUYER" MEANS A PERSON WHO HAS NOT OWNED A  PRIMARY
 RESIDENTIAL  PROPERTY  AND  IS  NOT  MARRIED TO A PERSON WHO HAS OWNED A
 RESIDENTIAL PROPERTY DURING THE THREE-YEAR PERIOD PRIOR TO  HIS  OR  HER
 PURCHASE  OF  THE  PRIMARY  RESIDENTIAL PROPERTY, AND WHO DOES NOT OWN A
 VACATION OR INVESTMENT HOME.
   (B) "PROGRAM" MEANS THE FIRST-TIME HOMEBUYER ASSISTANCE PROGRAM.
   (C) "PROGRAM FUNDS" MEANS MONEY APPROPRIATED FOR THE PROGRAM.
   (D) "QUALIFYING MORTGAGE LOAN" MEANS A MORTGAGE LOAN THAT:
   (I) IS PURCHASED BY THE AGENCY; AND
   (II) IS SUBJECT TO A DOCUMENT THAT IS RECORDED IN THE  OFFICE  OF  THE
 COUNTY CLERK OF THE COUNTY IN WHICH THE RESIDENTIAL UNIT IS LOCATED.
   (E) "QUALIFYING RESIDENTIAL UNIT" MEANS A RESIDENTIAL UNIT THAT:
   (I) IS LOCATED IN THE STATE OF NEW YORK;
   (II) IS NEW CONSTRUCTION OR NEWLY CONSTRUCTED BUT NOT YET INHABITED;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13374-01-3
              

 A. 8166                             2
 
   (III) IS FINANCED BY A QUALIFYING MORTGAGE LOAN;
   (IV) IS OWNER-OCCUPIED UPON PURCHASE; AND
   (V) IS PURCHASED FOR AN AMOUNT THAT DOES NOT EXCEED:
   (A) FOUR HUNDRED FIFTY THOUSAND DOLLARS; OR
   (B) IF APPLICABLE, THE MAXIMUM PURCHASE PRICE ESTABLISHED BY THE AGEN-
 CY UNDER SUBDIVISION SIX OF THIS SECTION.
   (F)  "RECIPIENT"  MEANS  A  FIRST-TIME  HOMEBUYER WHO RECEIVED PROGRAM
 FUNDS.
   (G) "RESIDENTIAL UNIT" INCLUDES A HOUSE, CONDOMINIUM, TOWNHOME,  MANU-
 FACTURED  OR MODULAR HOME THAT IS ATTACHED TO A PERMANENT FOUNDATION, OR
 SIMILAR RESIDENTIAL STRUCTURE THAT SERVES AS A ONE-UNIT DWELLING.
   (H) "HOME EQUITY AMOUNT" MEANS THE DIFFERENCE BETWEEN:
   (I) (A) IN THE CASE OF A SALE, THE SALES PRICE FOR WHICH THE  QUALIFY-
 ING  RESIDENTIAL  UNIT IS SOLD BY THE RECIPIENT IN A BONA FIDE SALE TO A
 THIRD PARTY WITH NO RIGHT TO REPURCHASE; OR
   (B) IN THE CASE OF A REFINANCE, THE CURRENT  APPRAISED  VALUE  OF  THE
 QUALIFYING RESIDENTIAL UNIT; AND
   (II)  THE TOTAL PAYOFF AMOUNT OF ANY QUALIFYING MORTGAGE LOAN THAT WAS
 USED TO FINANCE THE PURCHASE OF THE QUALIFYING RESIDENTIAL UNIT.
   (3) THE MAXIMUM AMOUNT OF PROGRAM FUNDS THAT  A  FIRST-TIME  HOMEBUYER
 MAY RECEIVE UNDER THE PROGRAM SHALL BE TWENTY THOUSAND DOLLARS.
   (4) (A) A RECIPIENT MAY USE PROGRAM FUNDS TO PAY FOR:
   (I) THE DOWN PAYMENT ON A QUALIFYING RESIDENTIAL UNIT;
   (II)  CLOSING COSTS ASSOCIATED WITH THE PURCHASE OF A QUALIFYING RESI-
 DENTIAL UNIT;
   (III) A PERMANENT REDUCTION IN THE ADVERTISED PAR INTEREST RATE  ON  A
 QUALIFYING  MORTGAGE  LOAN THAT IS USED TO FINANCE A QUALIFYING RESIDEN-
 TIAL UNIT; OR
   (IV) ANY COMBINATION OF SUBPARAGRAPHS (I), (II),  AND  (III)  OF  THIS
 PARAGRAPH.
   (B)  THE AGENCY SHALL DIRECT THE DISBURSEMENT OF PROGRAM FUNDS FOR ANY
 PURPOSE AUTHORIZED IN PARAGRAPH (A) OF THIS SUBDIVISION.
   (C) A RECIPIENT MAY NOT RECEIVE A PAYOUT OR  DISTRIBUTION  OF  PROGRAM
 FUNDS UPON CLOSING.
   (5)  THE BUILDER OR DEVELOPER OF A QUALIFYING RESIDENTIAL UNIT MAY NOT
 INCREASE THE PRICE OF THE QUALIFYING RESIDENTIAL UNIT ON  THE  BASIS  OF
 PROGRAM  FUNDS  BEING USED TOWARDS THE PURCHASE OF THAT QUALIFYING RESI-
 DENTIAL UNIT.
   (6) IN ACCORDANCE WITH RULES MADE BY THE AGENCY PURSUANT  TO  SUBDIVI-
 SION  NINE  OF  THIS SECTION, THE AGENCY MAY ADJUST THE MAXIMUM PURCHASE
 PRICE OF A QUALIFYING RESIDENTIAL UNIT FOR WHICH A FIRST-TIME  HOMEBUYER
 QUALIFIES  TO  RECEIVE  PROGRAM FUNDS IN ORDER TO REFLECT CURRENT MARKET
 CONDITIONS, PROVIDED THAT THE AGENCY ADJUSTS THE MAXIMUM PURCHASE  PRICE
 UNDER THIS SUBDIVISION NO MORE FREQUENTLY THAN ONCE EACH CALENDAR YEAR.
   (7)  IF  THE  RECIPIENT SELLS THE QUALIFYING RESIDENTIAL UNIT OR REFI-
 NANCES THE QUALIFYING  MORTGAGE  LOAN  THAT  WAS  USED  TO  FINANCE  THE
 PURCHASE  OF  THE  QUALIFYING  RESIDENTIAL  UNIT  BEFORE  THE END OF THE
 ORIGINAL TERM OF THE QUALIFYING MORTGAGE LOAN, THE RECIPIENT SHALL REPAY
 TO THE AGENCY AN AMOUNT EQUAL TO THE LESSER OF:
   (A) THE AMOUNT OF PROGRAM FUNDS THE RECIPIENT RECEIVED; OR
   (B) FIFTY PERCENT OF THE RECIPIENT'S HOME EQUITY AMOUNT.
   (8) ANY FUNDS REPAID TO THE AGENCY UNDER  SUBDIVISION  SEVEN  OF  THIS
 SECTION SHALL BE USED FOR PROGRAM DISTRIBUTIONS.
   (9)  THE AGENCY SHALL MAKE RULES GOVERNING THE APPLICATION FORM, PROC-
 ESS, AND CRITERIA THE AGENCY SHALL USE TO DISTRIBUTE  PROGRAM  FUNDS  TO
 FIRST-TIME HOMEBUYERS.
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   (10) THE AGENCY MAY USE UP TO FIVE PERCENT OF PROGRAM FUNDS FOR ADMIN-
 ISTRATION.
   (11)  THE AGENCY SHALL REPORT ANNUALLY TO THE GOVERNOR, THE SPEAKER OF
 THE ASSEMBLY, AND THE TEMPORARY PRESIDENT OF THE SENATE ON DISBURSEMENTS
 FROM THE PROGRAM AND ANY ADJUSTMENTS MADE TO THE MAXIMUM PURCHASE  PRICE
 OF  A  QUALIFYING  RESIDENTIAL  UNIT PURSUANT TO SUBDIVISION SIX OF THIS
 SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.