S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5224
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 27, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law and the real property tax law,  in
   relation  to  creating  the New York state home ownership savings plan
   and creating a property tax exemption relating thereto

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York state home ownership savings plan".
   § 2. The state finance law is amended by adding a new section 97-m  to
 read as follows:
   § 97-M. NEW YORK STATE HOME OWNERSHIP SAVINGS PLAN.  1. THE PURPOSE OF
 THE NEW YORK STATE HOME OWNERSHIP SAVINGS PLAN IS TO ATTRACT INDIVIDUALS
 TO  RESIDE  AND  REMAIN IN THE STATE BY AUTHORIZING THE ESTABLISHMENT OF
 HOME OWNERSHIP SAVINGS ACCOUNTS AND PROVIDING GUIDELINES FOR THE MAINTE-
 NANCE OF SUCH ACCOUNTS IN ORDER TO ENABLE  INDIVIDUALS  AND  COUPLES  TO
 RECEIVE A REFUNDABLE TAX CREDIT TO HELP THEM SAVE TOWARD THE PURCHASE OF
 A FIRST HOME IN NEW YORK STATE.
   2. AS USED IN THIS SECTION:
   (A)  "ASSETS  OF THE PLAN" MEANS ALL CONTRIBUTIONS MADE INTO THE PLAN,
 ANY TRANSFERS MADE INTO THE PLAN  UNDER  THIS  SECTION  AND  ALL  INCOME
 EARNED  THEREFROM AND ON ASSETS SUBSTITUTED THEREFOR, WHETHER OR NOT THE
 ASSETS OF THE PLAN ARE IN THE FORM OF QUALIFIED INVESTMENTS.
   (B) "COUPLE" MEANS INDIVIDUALS WHO HAVE COHABITED FOR A PERIOD  OF  AT
 LEAST  FIVE  YEARS IN A CONJUGAL RELATIONSHIP REGARDLESS OF WHETHER THEY
 ARE MARRIED.
   (C) "COMPTROLLER" MEANS THE COMPTROLLER OF THE STATE OF NEW YORK.
   (D) "CONTRIBUTION" MEANS THE AMOUNT OF MONEY PAID BY AN INDIVIDUAL  TO
 A  FINANCIAL  ORGANIZATION  AS  A  PAYMENT INTO A HOME OWNERSHIP SAVINGS
 PLAN.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07562-01-3
 S. 5224                             2
              

 
   (E) "FINANCIAL ORGANIZATION" MEANS A FINANCIAL INSTITUTION  AUTHORIZED
 TO  DO  BUSINESS IN THE STATE OF NEW YORK AND (I) WHICH IS AN AUTHORIZED
 FIDUCIARY TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF  AN  ACT  OF
 CONGRESS  ENTITLED  "EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974" AS
 SUCH PROVISIONS MAY BE AMENDED FROM TIME TO TIME, OR AN INSURANCE COMPA-
 NY; AND
   (II)  (1)  IS  LICENSED  OR  CHARTERED  BY THE DEPARTMENT OF FINANCIAL
 SERVICES;
   (2) IS CHARTERED BY AN AGENCY OF THE FEDERAL GOVERNMENT;
   (3) IS SUBJECT TO THE JURISDICTION AND REGULATION  OF  THE  SECURITIES
 AND EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT; OR
   (4) IS ANY OTHER ENTITY OTHERWISE AUTHORIZED TO ACT IN THIS STATE AS A
 TRUSTEE  PURSUANT  TO  THE  PROVISIONS  OF  AN  ACT OF CONGRESS ENTITLED
 "EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974" AS SUCH PROVISIONS MAY
 BE AMENDED FROM TIME TO TIME.
   (F) "HOMEOWNERSHIP SAVINGS PLAN" MEANS AN ARRANGEMENT ENTERED INTO  BY
 AN  INDIVIDUAL  AND A FINANCIAL ORGANIZATION UNDER WHICH PAYMENT IS MADE
 BY THE INDIVIDUAL TO THE FINANCIAL ORGANIZATION OF AN AMOUNT OF MONEY AS
 A PAYMENT UNDER THE  ARRANGEMENT  TO  BE  USED,  INVESTED  OR  OTHERWISE
 APPLIED  BY  THE  FINANCIAL ORGANIZATION FOR THE PURPOSE OF PROVIDING TO
 THE INDIVIDUAL AS THE PLANHOLDER UNDER  THE  ARRANGEMENT  AN  AMOUNT  OF
 MONEY  TO  BE USED BY THE INDIVIDUAL FOR THE PURCHASE BY HIM OR HER OF A
 QUALIFYING ELIGIBLE HOME.
   (G) "INDIVIDUAL" MEANS A PERSON OTHER THAN A TRUST OR  CORPORATION  AS
 DEFINED BY THE TAX LAW.
   (H)  "PLANHOLDER" MEANS AN INDIVIDUAL EIGHTEEN YEARS OF AGE OR OVER TO
 WHOM, UNDER THE PLAN, A SINGLE PAYMENT IS AGREED TO BE PAID.  PLANHOLDER
 DOES  NOT INCLUDE AN INDIVIDUAL TO WHOM UNDER A PLAN A SINGLE PAYMENT IS
 AGREED TO BE PAID AS A CONSEQUENCE OF THE DEATH OF ANOTHER INDIVIDUAL.
   (I) "ELIGIBLE HOME" MEANS:
   (I) A DETACHED HOUSE;
   (II) A SEMI-DETACHED HOUSE;
   (III) A TOWNHOUSE;
   (IV) A SHARE OR SHARES OF THE CAPITAL STOCK OF A  CO-OPERATIVE  CORPO-
 RATION  IF THE SHARE OR SHARES ARE ACQUIRED FOR THE PURPOSE OF ACQUIRING
 THE RIGHT TO INHABIT A HOUSING UNIT OWNED BY THE CORPORATION;
   (V) A CONDOMINIUM UNIT;
   (VI) A RESIDENTIAL DWELLING THAT IS A DUPLEX, TRIPLEX OR A FOURPLEX;
   (VII) A MOBILE HOME THAT COMPLIES WITH THE PRESCRIBED STANDARDS AND IS
 SUITABLE FOR YEAR ROUND PERMANENT RESIDENTIAL OCCUPATION;
   (VIII) A PARTIAL OWNERSHIP INTEREST AS A  TENANT  IN  COMMON  OF  REAL
 PROPERTY,  IF  THE  OWNERSHIP  INTEREST  WAS ACQUIRED FOR THE PURPOSE OF
 ACQUIRING THE RIGHT TO INHABIT A HOUSING UNIT FORMING PART OF  THE  REAL
 PROPERTY; OR
   (IX) ANY OTHER RESIDENTIAL PROPERTY AS MAY BE PRESCRIBED.
   (J) "OWNERSHIP OF AN ELIGIBLE HOME" MEANS:
   (I)  IN  THE  CASE  OF AN ELIGIBLE HOME AS PRESCRIBED IN SUBPARAGRAPHS
 (I), (II), (III) OR (VI) OF PARAGRAPH (I) OF THIS SUBDIVISION, THE INDI-
 VIDUAL HAS AN OWNERSHIP INTEREST IN THE ELIGIBLE HOME AND OWNS  A  FREE-
 HOLD  ESTATE  IN THE LAND SUBJACENT TO THE ELIGIBLE HOME OTHER THAN AS A
 MORTGAGEE OR IS A LESSEE OF THE LAND SUBJACENT TO THE ELIGIBLE HOME;
   (II) IN THE CASE OF AN ELIGIBLE HOME THAT IS A CONDOMINIUM  UNIT,  THE
 INDIVIDUAL  IS AN OWNER OF THE UNIT AND COMMON ELEMENTS WITHIN THE MEAN-
 ING OF NEW YORK STATE LAW;
   (III) IN THE CASE OF AN ELIGIBLE HOME IN THE FORM OF A SHARE OR SHARES
 OF THE CAPITAL STOCK OF A CO-OPERATIVE CORPORATION  THE  INDIVIDUAL  HAS
 S. 5224                             3
 
 ACQUIRED,  JOINTLY WITH ANOTHER PERSON OR OTHERWISE, THE SHARE OR SHARES
 TO ENABLE THE INDIVIDUAL TO ACQUIRE A RIGHT TO  OCCUPY  A  HOUSING  UNIT
 OWNED  BY THE CO-OPERATIVE CORPORATION, THE INDIVIDUAL AND THE CO-OPERA-
 TIVE CORPORATION HAVE ENTERED INTO AN ENFORCEABLE OCCUPANCY AGREEMENT IN
 RESPECT  OF  THE  HOUSING UNIT, AND THE INDIVIDUAL IS ENTITLED TO VACANT
 POSSESSION OF THE HOUSING UNIT UNDER THE TERMS OF THE  OCCUPANCY  AGREE-
 MENT;
   (IV)  IN  THE  CASE OF AN ELIGIBLE HOME THAT IS A MOBILE HOME SUITABLE
 FOR YEAR-ROUND PERMANENT RESIDENTIAL OCCUPATION, THE INDIVIDUAL,  EITHER
 ALONE  OR JOINTLY WITH ANOTHER PERSON, HAS COMPLETED THE PURCHASE OF THE
 MOBILE HOME, THE MOBILE HOME IS SITUATED ON A  FOUNDATION,  WHICH  MEETS
 THE  PRESCRIBED  STANDARDS, ON THE LAND WHERE IT IS TO BE INHABITED, AND
 THE LAND IS OWNED BY THE INDIVIDUAL,  JOINTLY  WITH  ANOTHER  PERSON  OR
 OTHERWISE,  OR  IS  OCCUPIED  BY THE INDIVIDUAL UNDER A LICENSE OR LEASE
 THAT PERMITS THE INDIVIDUAL TO LOCATE THE MOBILE HOME ON THE LAND AND TO
 OCCUPY IT AS A YEAR-ROUND RESIDENCE;
   (V) IN THE CASE OF AN ELIGIBLE HOME REFERRED TO IN SUBPARAGRAPH  (VII)
 OF  PARAGRAPH  (I)  OF  THIS  SUBDIVISION, THE INDIVIDUAL HAS ACQUIRED A
 FREEHOLD ESTATE IN THE REAL PROPERTY, OTHER THAN AS A MORTGAGEE, AND  IS
 ENTITLED TO VACANT POSSESSION OF SAID HOUSING UNIT;
   (VI)  IN THE CASE OF AN ELIGIBLE HOME OF A PRESCRIBED CLASS OR NATURE,
 OR OWNED BY A MEMBER OF A PRESCRIBED CLASS OF  PERSONS,  THE  PRESCRIBED
 TERMS AND CONDITIONS ARE MET;
   (VII)  IN  THE CASE OF A GIFT OR INHERITANCE, A PERSON WHO ACQUIRES AN
 OWNERSHIP INTEREST IN AN ELIGIBLE HOME BY GIFT FROM  THE  OWNER  OF  THE
 INTEREST OR BY REASON OF THE DEATH OF THE OWNER OF THE INTEREST SHALL BE
 DEEMED  TO OWN THE ELIGIBLE HOME FOR THE PURPOSES OF THIS SECTION ON THE
 EARLIEST DATE ON OR AFTER THE DATE OF THE GIFT OR THE DEATH ON WHICH THE
 PERSON RESIDES IN THE ELIGIBLE HOME IS ENTITLED  TO  POSSESSION  OF  THE
 ELIGIBLE  HOME  OR ACQUIRES THE OWNERSHIP INTEREST IN THE ELIGIBLE HOME.
 THIS DEFINITION DOES NOT INCLUDE AN OWNERSHIP  INTEREST  ACQUIRED  UNDER
 THE  TERMS  OF AN AGREEMENT ENFORCEABLE BY OR AGAINST THE PERSON LEGALLY
 OR BENEFICIALLY ENTITLED TO THE INTEREST IMMEDIATELY FOLLOWING THE DEATH
 OF THE OWNER OF THE INTEREST;
   (VIII) IN THE CASE OF A DEEMED OWNER OF AN ELIGIBLE  HOME,  THE  COMP-
 TROLLER  MAY  DEEM  AN  INDIVIDUAL  TO  HAVE OWNED AN ELIGIBLE HOME AT A
 PARTICULAR TIME IF OWNERSHIP WAS AT THAT TIME VESTED IN A  PERSON  UNDER
 THE  TERMS  OF  AN EXPRESS OR IMPLIED TRUST BY WHICH THE PERSON HELD THE
 PROPERTY FOR THE BENEFIT OF THE INDIVIDUAL, EITHER ALONE OR WITH ONE  OR
 MORE OTHER PERSONS, AND THE COMPTROLLER IS OF THE OPINION THAT THE INDI-
 VIDUAL  EXERCISED  EFFECTIVE  CONTROL,  EITHER ALONE OR WITH ONE OR MORE
 OTHER PERSONS, OVER THE ELIGIBLE HOME.
   3. (A) THE COMPTROLLER SHALL IMPLEMENT THE PLAN UNDER  THE  TERMS  AND
 CONDITIONS ESTABLISHED BY THIS SECTION AND A MEMORANDUM OF UNDERSTANDING
 RELATING TO ANY TERMS OR CONDITIONS NOT OTHERWISE EXPRESSLY PROVIDED FOR
 IN THIS SECTION.
   (B)  IN  FURTHERANCE  OF  SUCH IMPLEMENTATION THE MEMORANDUM OF UNDER-
 STANDING SHALL ADDRESS THE AUTHORITY AND  RESPONSIBILITY  OF  THE  COMP-
 TROLLER AND THE CORPORATION TO:
   (I)  DEVELOP  AND  IMPLEMENT  THE PLAN IN A MANNER CONSISTENT WITH THE
 PROVISIONS OF THIS SECTION THROUGH RULES AND REGULATIONS ESTABLISHED  IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
   (II)  ENGAGE  THE  SERVICES  OF  CONSULTANTS  ON  A CONTRACT BASIS FOR
 RENDERING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
 S. 5224                             4
 
   (III) MAKE CHANGES TO THE PLAN REQUIRED FOR THE  PARTICIPANTS  IN  THE
 PLAN TO OBTAIN ANY ELIGIBLE FEDERAL OR STATE BENEFITS OR TREATMENT UNDER
 ANY LEGISLATION;
   (IV)  CHARGE,  IMPOSE,  AND  COLLECT  ADMINISTRATIVE  FEES AND SERVICE
 CHARGES IN CONNECTION WITH ANY AGREEMENT, CONTRACT OR TRANSACTION RELAT-
 ING TO THE PLAN;
   (V) DEVELOP MARKETING PLANS AND PROMOTION MATERIAL;
   (VI) ESTABLISH THE METHODS BY WHICH THE FUNDS HELD IN SUCH ACCOUNTS BE
 DISBURSED;
   (VII) ESTABLISH THE METHOD BY WHICH FUNDS SHALL BE  ALLOCATED  TO  PAY
 FOR ADMINISTRATIVE COSTS; AND
   (VIII) DO ALL THINGS NECESSARY AND PROPER TO CARRY OUT THE PURPOSES OF
 THIS SECTION.
   4.  (A)  THE  COMPTROLLER  SHALL  IMPLEMENT THE PROGRAM THROUGH USE OF
 FINANCIAL ORGANIZATIONS AS ACCOUNT DEPOSITORIES AND MANAGERS. UNDER  THE
 PROGRAM,  INDIVIDUALS  MAY  ESTABLISH  ACCOUNTS DIRECTLY WITH AN ACCOUNT
 DEPOSITORY.
   (B) THE COMPTROLLER MAY SOLICIT PROPOSALS FROM FINANCIAL ORGANIZATIONS
 TO ACT AS DEPOSITORIES AND MANAGERS OF THE PROGRAM. FINANCIAL  ORGANIZA-
 TIONS  SUBMITTING  PROPOSALS  SHALL  DESCRIBE  THE INVESTMENT INSTRUMENT
 WHICH WILL BE HELD IN ACCOUNTS. THE COMPTROLLER SHALL SELECT AS  PROGRAM
 DEPOSITORIES  AND  MANAGERS  THE  FINANCIAL ORGANIZATION, FROM AMONG THE
 BIDDING FINANCIAL ORGANIZATIONS THAT DEMONSTRATES THE MOST  ADVANTAGEOUS
 COMBINATION,  BOTH  TO POTENTIAL PROGRAM PARTICIPANTS AND THIS STATE, OF
 THE FOLLOWING FACTORS:
   (I) FINANCIAL STABILITY AND INTEGRITY OF THE FINANCIAL ORGANIZATION;
   (II) THE SAFETY OF THE INVESTMENT INSTRUMENT BEING OFFERED;
   (III) THE ABILITY OF THE INVESTMENT  INSTRUMENT  TO  TRACK  INCREASING
 COSTS OF THE HOUSING MARKET;
   (IV)  THE ABILITY OF THE FINANCIAL ORGANIZATION TO SATISFY RECORDKEEP-
 ING AND REPORTING REQUIREMENTS;
   (V) THE FINANCIAL ORGANIZATION'S PLAN FOR PROMOTING  THE  PROGRAM  AND
 THE INVESTMENT IT IS WILLING TO MAKE TO PROMOTE THE PROGRAM;
   (VI)  THE  FEES, IF ANY, PROPOSED TO BE CHARGED TO PERSONS FOR OPENING
 ACCOUNTS;
   (VII) THE MINIMUM INITIAL DEPOSIT AND MINIMUM CONTRIBUTIONS  THAT  THE
 FINANCIAL ORGANIZATION WILL REQUIRE;
   (VIII) THE ABILITY OF BANKING ORGANIZATIONS TO ACCEPT ELECTRONIC WITH-
 DRAWALS, INCLUDING PAYROLL DEDUCTION PLANS; AND
   (IX)  OTHER  BENEFITS  TO  THE  STATE OR ITS RESIDENTS INCLUDED IN THE
 PROPOSAL, INCLUDING FEES PAYABLE TO THE STATE TO COVER EXPENSES OF OPER-
 ATION OF THE PROGRAM.
   (C) THE COMPTROLLER MAY ENTER INTO A CONTRACT WITH A FINANCIAL  ORGAN-
 IZATION.  SUCH FINANCIAL ORGANIZATION MANAGEMENT MAY PROVIDE ONE OR MORE
 TYPES OF INVESTMENT INSTRUMENT.
   (D) THE COMPTROLLER MAY SELECT MORE THAN  ONE  FINANCIAL  ORGANIZATION
 FOR THE PROGRAM.
   (E) A MANAGEMENT CONTRACT SHALL INCLUDE, AT A MINIMUM, TERMS REQUIRING
 THE FINANCIAL ORGANIZATION TO:
   (I)  TAKE  ANY  ACTION REQUIRED TO KEEP THE PROGRAM IN COMPLIANCE WITH
 REQUIREMENTS OF THIS  SECTION  AND  ANY  ACTIONS  NOT  CONTRARY  TO  ITS
 CONTRACT  TO MANAGE THE PROGRAM TO QUALIFY AS A QUALIFIED "HOMEOWNERSHIP
 SAVINGS PLAN" AS DEFINED BY THIS SECTION;
   (II) KEEP ADEQUATE RECORDS OF EACH ACCOUNT, KEEP EACH  ACCOUNT  SEGRE-
 GATED  FROM  EACH  OTHER  ACCOUNT,  AND PROVIDE THE COMPTROLLER WITH THE
 S. 5224                             5

 INFORMATION  NECESSARY  TO  PREPARE  THE  STATEMENTS  REQUIRED  BY  THIS
 SECTION;
   (III)  COMPILE  AND TOTAL INFORMATION CONTAINED IN STATEMENTS REQUIRED
 TO BE PREPARED UNDER THIS SECTION AND PROVIDE SUCH COMPILATIONS  TO  THE
 COMPTROLLER;
   (IV)  IF  THERE  IS  MORE  THAN ONE PROGRAM MANAGER, PROVIDE THE COMP-
 TROLLER WITH SUCH INFORMATION NECESSARY  TO  DETERMINE  COMPLIANCE  WITH
 THIS SECTION;
   (V)  PROVIDE  THE  COMPTROLLER OR HIS DESIGNEE ACCESS TO THE BOOKS AND
 RECORDS OF THE PROGRAM MANAGER TO THE EXTENT NEEDED TO DETERMINE COMPLI-
 ANCE WITH THE CONTRACT;
   (VI) HOLD ALL ACCOUNTS FOR THE BENEFIT OF THE ACCOUNT OWNER;
   (VII) BE AUDITED AT LEAST ANNUALLY  BY  A  FIRM  OF  CERTIFIED  PUBLIC
 ACCOUNTANTS SELECTED BY THE PROGRAM MANAGER AND THAT THE RESULTS OF SUCH
 AUDIT BE PROVIDED TO THE COMPTROLLER;
   (VIII)  PROVIDE  THE COMPTROLLER WITH COPIES OF ALL REGULATORY FILINGS
 AND REPORTS MADE BY IT DURING THE TERM OF  THE  MANAGEMENT  CONTRACT  OR
 WHILE  IT  IS  HOLDING  ANY ACCOUNTS, OTHER THAN CONFIDENTIAL FILINGS OR
 REPORTS THAT WILL NOT BECOME PART OF THE PROGRAM.  THE  PROGRAM  MANAGER
 SHALL  MAKE  AVAILABLE  FOR REVIEW BY THE COMPTROLLER THE RESULTS OF ANY
 PERIODIC EXAMINATION OF SUCH MANAGER BY ANY STATE  OR  FEDERAL  BANKING,
 INSURANCE,  OR  SECURITIES  COMMISSION,  EXCEPT  TO THE EXTENT THAT SUCH
 REPORT OR REPORTS MAY NOT BE DISCLOSED UNDER APPLICABLE LAW OR THE RULES
 OF SUCH COMMISSION; AND
   (IX) ENSURE THAT ANY DESCRIPTION OF THE PROGRAM, WHETHER IN WRITING OR
 THROUGH THE USE OF ANY MEDIA, IS  CONSISTENT  WITH  THE  MARKETING  PLAN
 DEVELOPED IN COMPLIANCE WITH THIS SECTION.
   (F)  THE  COMPTROLLER  MAY PROVIDE THAT AN AUDIT SHALL BE CONDUCTED OF
 THE OPERATIONS AND FINANCIAL POSITION  OF  THE  PROGRAM  DEPOSITORY  AND
 MANAGER  AT  ANY  TIME IF THE COMPTROLLER HAS ANY REASON TO BE CONCERNED
 ABOUT THE FINANCIAL POSITION, THE RECORDKEEPING PRACTICES, OR THE STATUS
 OF ACCOUNTS OF SUCH PROGRAM DEPOSITORY AND MANAGER.
   (G) DURING THE TERM OF ANY CONTRACT WITH A PROGRAM MANAGER, THE  COMP-
 TROLLER SHALL CONDUCT AN EXAMINATION OF SUCH MANAGER AND ITS HANDLING OF
 ACCOUNTS.    SUCH  EXAMINATION SHALL BE CONDUCTED AT LEAST BIENNIALLY IF
 SUCH MANAGER IS NOT OTHERWISE SUBJECT TO  PERIODIC  EXAMINATION  BY  THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES,  THE  FEDERAL DEPOSIT INSURANCE
 CORPORATION OR OTHER SIMILAR ENTITY.
   (H) (I) IF SELECTION OF A FINANCIAL ORGANIZATION AS A PROGRAM  MANAGER
 OR DEPOSITORY IS NOT RENEWED, AFTER THE END OF ITS TERM:
   (1) ACCOUNTS PREVIOUSLY ESTABLISHED AND HELD IN INVESTMENT INSTRUMENTS
 AT SUCH FINANCIAL ORGANIZATION MAY BE TERMINATED;
   (2) ADDITIONAL CONTRIBUTIONS MAY BE MADE TO SUCH ACCOUNTS;
   (3)  NO  NEW  ACCOUNTS MAY BE PLACED WITH SUCH FINANCIAL ORGANIZATION;
 AND
   (4) EXISTING ACCOUNTS HELD BY SUCH DEPOSITORY SHALL REMAIN SUBJECT  TO
 ALL OVERSIGHT AND REPORTING REQUIREMENTS ESTABLISHED BY THE COMPTROLLER.
   (II)  IF  THE  COMPTROLLER  TERMINATES  A  FINANCIAL ORGANIZATION AS A
 PROGRAM MANAGER OR DEPOSITORY, HE OR SHE SHALL TAKE CUSTODY OF  ACCOUNTS
 HELD  BY SUCH FINANCIAL ORGANIZATION AND SHALL SEEK TO PROMPTLY TRANSFER
 SUCH ACCOUNTS TO ANOTHER FINANCIAL ORGANIZATION THAT IS  SELECTED  AS  A
 PROGRAM MANAGER OR DEPOSITORY AND INTO INVESTMENT INSTRUMENTS AS SIMILAR
 TO THE ORIGINAL INSTRUMENTS AS POSSIBLE.
   (I)  THE  COMPTROLLER MAY ENTER INTO SUCH CONTRACTS AS IT DEEMS NECES-
 SARY AND PROPER FOR THE IMPLEMENTATION OF THE PROGRAM.
 S. 5224                             6
 
   5. (A) THE TERMS OF THE PLAN DO NOT PERMIT ANY PAYMENT  TO  THE  PLAN-
 HOLDER OF ANY ASSET OF THE PLAN EXCEPT BY WAY OF:
   (I)  A  SINGLE PAYMENT OF ALL OF THE ASSETS OF THE PLAN TO THE COMMIS-
 SIONER OF HOUSING TO HOLD THE ASSETS OF THE PLAN AS  TRUST  PROPERTY  IN
 TRUST  FOR THE PLANHOLDER AND THE STATE JOINTLY AND TO LEGALLY REPRESENT
 THE PLANHOLDER IN THE PURCHASE BY THE PLANHOLDER OF A QUALIFYING  ELIGI-
 BLE HOME, OR
   (II)  A  SINGLE PAYMENT OF ALL THE ASSETS OF THE PLAN, LESS THE AMOUNT
 TO BE WITHHELD BY THE FINANCIAL ORGANIZATION  OR  THE  AMOUNT,  IF  ANY,
 DIRECTED  BY  THE COMPTROLLER TO THE PLANHOLDER OR TO THE LEGAL PERSONAL
 REPRESENTATIVE OF THE PLANHOLDER UPON THE DEATH OF THE PLANHOLDER.
   (B) THE TERMS OF THE PLAN REQUIRE THE FINANCIAL ORGANIZATION TO  WITH-
 HOLD AND REMIT TO THE COMPTROLLER ANY AMOUNT REQUIRED UNDER THIS SECTION
 ON  ANY  PAYMENT OF ASSETS OF THE PLAN TO THE PLANHOLDER OR TO THE LEGAL
 PERSONAL REPRESENTATIVE OF THE PLANHOLDER ON THE DEATH OF THE  PLANHOLD-
 ER.
   (C) THE TERMS OF THE PLAN PROVIDE THAT THE FINANCIAL ORGANIZATION WILL
 ACCEPT  REPAYMENT OF ASSETS INTO THE PLAN FROM A COMMISSIONER OF HOUSING
 TO WHOM ASSETS OF THE PLAN WERE PAID.
   (D) THE TERMS OF THE PLAN PROVIDE THAT THE PAYMENT TO  THE  PLANHOLDER
 IS  NOT CAPABLE IN WHOLE OR IN PART OF SURRENDER, ASSIGNMENT OR TRANSFER
 EXCEPT AS PERMITTED BY AN ELECTION UNDER THIS SECTION.
   (E) THE PLANHOLDER IS AT LEAST EIGHTEEN YEARS OF AGE AND A RESIDENT OF
 NEW YORK AT THE TIME OF ENTERING INTO THE PLAN.
   (F) THE PLANHOLDER SHALL BE ELIGIBLE FOR THIS PROGRAM IF  THEY  ARE  A
 FIRST TIME HOMEBUYER AS DEFINED UNDER THE FEDERAL SONYMA PROGRAM AND (I)
 HAS  NOT  HAD  ANY OWNERSHIP INTEREST IN HIS OR HER PRIMARY RESIDENCE AT
 ANY TIME DURING THE THREE YEARS PRIOR TO THE DATE OF MAKING AN  APPLICA-
 TION,  AND  (II)  AT  THE  TIME OF MAKING THE APPLICATION DOES NOT OWN A
 VACATION OR INVESTMENT HOME. THIS DEFINITION INCLUDES  RESIDENCES  OWNED
 IN THE UNITED STATES AND ABROAD.
   (G)  THE  TERMS OF THE PLAN PROHIBIT ANY AMENDMENT TO THE TERMS OF THE
 PLAN:
   (I) THAT WOULD RESULT IN THE TERMS OF THE PLAN AS AMENDED  FAILING  TO
 COMPLY WITH THIS SECTION;
   (II)  THAT  WOULD PERMIT OR REQUIRE ANY PERSON TO DO ANYTHING CONTRARY
 TO THIS SECTION; OR
   (III) THAT WOULD PREVENT OR PROHIBIT ANY PERSON  FROM  DOING  ANYTHING
 REQUIRED BY THIS SECTION TO BE DONE.
   (H) THE TERMS OF THE PLAN PROVIDE THAT ON THE DEATH OF THE PLANHOLDER,
 THE  FINANCIAL  ORGANIZATION  SHALL TRANSFER OR DISTRIBUTE ALL ASSETS OF
 THE PLAN, LESS ANY AMOUNT REQUIRED BY THIS SECTION TO  BE  WITHHELD  AND
 REMITTED TO THE COMPTROLLER, IN ACCORDANCE WITH THIS SECTION.
   (I)  THE  TERMS  OF THE PLAN PROHIBIT THE HOLDING OF THE ASSETS OF THE
 PLAN IN ANY FORM OTHER THAN QUALIFIED INVESTMENTS.
   (J) THE PLAN INCLUDES A PROVISION DENYING THE  FINANCIAL  ORGANIZATION
 ANY  RIGHT  OF  SET-OFF  AS REGARDS THE ASSETS OF THE PLAN IN CONNECTION
 WITH ANY DEBT OR OBLIGATION TO THE FINANCIAL ORGANIZATION THAT THE PLAN-
 HOLDER UNDER THE PLAN OWES OR MAY THEREAFTER OWE.
   (K) THE TERMS OF THE PLAN INCLUDE THE ACKNOWLEDGMENT BY THE PLANHOLDER
 THAT HE OR SHE UNDERSTANDS THAT THE AMOUNT OF  A  TAX  CREDIT,  IF  ANY,
 AVAILABLE  WITH  RESPECT  TO  CONTRIBUTIONS MADE TO THE PLAN IN ANY YEAR
 DEPEND ON THE PLANHOLDER'S LEVEL OF INCOME FOR THAT YEAR  AND  THAT  THE
 PROVISIONS OF THIS SECTION APPLY EVEN IF THE PLANHOLDER MAY NOT BE ENTI-
 TLED TO A TAX CREDIT IN ANY YEAR.
 S. 5224                             7
 
   (L) THE TERMS OF THE PLAN CONTAIN THE CONSENT OF THE PLANHOLDER TO THE
 RELEASE  TO THE COMPTROLLER OF ALL INFORMATION OBTAINED BY THE FINANCIAL
 ORGANIZATION  WITH  RESPECT  TO  THE  PLAN,  THE  PLANHOLDER   AND   THE
 PLANHOLDER'S  SPOUSE  OR COMMON-LAW PARTNER, IF ANY, FOR THE PURPOSES OF
 THIS SECTION AND THE OPERATION OF THE PLAN.
   6.  NO  TAX  CREDIT  SHALL  BE  ISSUED TO INDIVIDUALS OR COUPLES WHOSE
 INCOME EXCEEDS THE MAXIMUM INCOME LIMITS ESTABLISHED BY THE STATE OF NEW
 YORK MORTGAGE AGENCY.
   7. (A) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO:
   (I) GIVE ANY DESIGNATED BENEFICIARY ANY RIGHTS OR LEGAL INTEREST  WITH
 RESPECT  TO  AN ACCOUNT UNLESS THE DESIGNATED BENEFICIARY IS THE ACCOUNT
 OWNER;
   (II) GUARANTEE THAT A DESIGNATED BENEFICIARY WILL BE QUALIFIED  FOR  A
 HOME LOAN;
   (III)  CREATE  STATE  RESIDENCY  FOR  AN INDIVIDUAL MERELY BECAUSE THE
 INDIVIDUAL IS A DESIGNATED BENEFICIARY; OR
   (IV) GUARANTEE THAT AMOUNTS SAVED PURSUANT  TO  THE  PROGRAM  WILL  BE
 SUFFICIENT  TO  COVER  THE QUALIFIED HOME OWNERSHIP EXPENSES OF A DESIG-
 NATED BENEFICIARY.
   (B) (I) NOTHING IN THIS SECTION SHALL CREATE OR BE CONSTRUED TO CREATE
 ANY OBLIGATION OF THE COMPTROLLER, THE STATE, OR ANY AGENCY  OR  INSTRU-
 MENTALITY OF THE STATE TO GUARANTEE FOR THE BENEFIT OF ANY ACCOUNT OWNER
 OR DESIGNATED BENEFICIARY WITH RESPECT TO:
   (1) THE RATE OF INTEREST OR OTHER RETURN ON ANY ACCOUNT; AND
   (2) THE PAYMENT OF INTEREST OR OTHER RETURN ON ANY ACCOUNT.
   (II)  THE  COMPTROLLER AND THE CORPORATION BY RULE OR REGULATION SHALL
 PROVIDE THAT EVERY CONTRACT, APPLICATION, DEPOSIT SLIP, OR OTHER SIMILAR
 DOCUMENT THAT MAY BE USED  IN  CONNECTION  WITH  A  CONTRIBUTION  TO  AN
 ACCOUNT  CLEARLY  INDICATE  THAT THE ACCOUNT IS NOT INSURED BY THE STATE
 AND NEITHER THE PRINCIPAL DEPOSITED NOR THE INVESTMENT RETURN IS GUARAN-
 TEED BY THE STATE.
   § 3. The real property tax law is amended  by  adding  a  new  section
 421-p to read as follows:
   § 421-P. EXEMPTION FOR PROPERTIES PURCHASED IN TARGET AREAS WITH A NEW
 YORK  STATE HOME OWNERSHIP SAVINGS PLAN. 1. RESIDENTIAL PROPERTIES WHICH
 HAVE BEEN PURCHASED IN TARGET AREAS THROUGH A NEW YORK STATE HOME OWNER-
 SHIP SAVINGS PLAN  PURSUANT  TO  SECTION  NINETY-SEVEN-M  OF  THE  STATE
 FINANCE LAW SHALL BE EXEMPT FROM ALL LOCAL AND MUNICIPAL TAXES.
   2. FOR THE PURPOSES OF THIS SECTION "TARGET AREAS" SHALL HAVE THE SAME
 MEANING AS DEFINED BY THE STATE OF NEW YORK MORTGAGE AGENCY.
   3.  (A)  APPLICATIONS  FOR EXEMPTION UNDER THIS SECTION SHALL BE FILED
 WITH THE ASSESSORS BETWEEN FEBRUARY FIRST AND  MARCH  FIFTEENTH  OF  THE
 CALENDAR  YEAR AND THE ASSESSORS SHALL CERTIFY TO THE COLLECTING OFFICER
 THE AMOUNT OF EXEMPTION FROM LOCAL AND MUNICIPAL TAXES.
   (B) THE ASSESSOR AND LOCAL HOUSING AGENCY  MAY  PROMULGATE  RULES  AND
 REGULATIONS  TO CARRY OUT THE PROVISIONS OF THIS SECTION AND MAY REQUIRE
 PAYMENT OF A REASONABLE FILING FEE.
   § 4. This act shall take effect immediately.