NY State Senate Bill 2025-S8675

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 07, 2026	referred to corporations, authorities and commissions

2025-S8675 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §2404, add §2405-g, Pub Auth L

2025-S8675 (ACTIVE) - Summary

Establishes the CareForce first-time homebuyers program under which certain first-time homebuyers may receive below-market mortgage financing and forgivable down payment assistance.

2025-S8675 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8675

SPONSOR: FAHY
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to "CareForce
first-time homebuyers act"

 
PURPOSE:

This legislation directs the State of New York Mortgage Agency (SONYMA)
to establish a dedicated first-time homebuyer program for members of New
York's care workforce, providing below-market mortgage financing and
forgivable down payment assistance to improve housing stability, work-
force retention, and community integration for this essential workforce.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 sets forth the short title of the act as the "CareForce First-
Time Homebuyers Act."

Section 2 contains legislative findings and intent, recognizing that

housing affordability challenges facing New York's care workforce
threaten workforce stability, retention, and quality of care. The
section establishes the Legislature's intent to improve retention and
community integration by directing the State of New York Mortgage Agency
(SONYMA) to provide discounted mortgage financing and forgivable down
payment assistance to eligible care workers.

Section 3 amends section 2404 of the Public Authorities Law to add a new
subdivision authorizing SONYMA to establish and administer the CareForce
First-Time Homebuyers Program pursuant to a new section 2405-g.

Section 4 amends the Public Authorities Law by adding a new section
2405-g to establish the CareForce First-Time Homebuyers Program within
the State of New York Mortgage Agency. The section defines eligible care
workforce occupations; directs the agency to provide below-market mort-
gage financing and forgivable down payment assistance to first-time
homebuyers employed in the care workforce; sets eligibility criteria
related to income, hours worked, and proximity of the purchased home to
employment; requires a 50basis-point mortgage interest rate reduction;
authorizes up to $20,000 in subordinate, forgivable down payment assist-
ance with recapture provisions; permits layering with other housing
assistance programs; authorizes funding through existing bonding author-
ity and appropriations; directs the promulgation of implementing regu-
lations; and requires annual reporting to the Governor and Legislature
on program utilization and workforce outcomes.

Section 5 contains a severability clause to ensure that if any provision
of the act is found invalid, the remainder remains in effect.

Section 6 provides that the act shall take effect on the one hundred
eightieth day after enactment, while authorizing immediate rulemaking to
ensure timely implementation.

 
JUSTIFICATION:

New York's care workforce-particularly direct support professionals,
nursing staff, behavioral health workers, and early intervention and
special education therapists-faces persistent housing affordability
challenges that undermine workforce stability across the state. These
workers provide essential services to older adults, individuals with
disabilities, children, and people with behavioral health and substance
use needs, yet are often priced out of homeownership in the very commu-
nities where they are needed most.

High housing costs contribute directly to turnover, staffing shortages,
and service disruptions across Medicaid-funded and community-based
systems. Research and workforce experience consistently show that stable
housing, including homeownership near one's place of employment,
improves retention, reduces recruitment costs, and strengthens community
ties.

This legislation addresses those challenges by leveraging existing SONY-
MA infrastructure to create a targeted, fiscally responsible homeowner-
ship pathway for the care workforce. The combination of modest interest
rate reductions and forgivable down payment assistance lowers barriers
to entry without creating an ongoing subsidy obligation, while recapture
and forgiveness provisions protect public investment.

By explicitly allowing coordination with local, employer-based, and
federal programs, the bill ensures that the CareForce program comple-
ments-not replaces-existing housing tools. In doing so, the State recog-
nizes the need for this vital workforce to be supported not only through
wages and benefits, but through long-term housing stability that
strengthens both the workforce and the communities they serve.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Any fiscal impact is expected to be minimal and manageable within exist-
ing SONYMA bonding authority and housing finance mechanisms.  Down
payment assistance loans are forgivable only after sustained owner-occu-
pancy or under defined conditions, limiting long-term exposure.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law. Authorization for necessary rulemaking is
effective immediately.

2025-S8675 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8675
 
                             I N  S E N A T E
 
                              January 7, 2026
                                ___________
 
 Introduced  by  Sen.  FAHY  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend the public authorities law, in relation to "CareForce
   first-time homebuyers act"
 
   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 "CareForce first-time homebuyers act".
   § 2. Legislative findings and intent.  The  legislature  hereby  finds
 that  the affordability crisis facing New York's care workforce, includ-
 ing direct support professionals, certified nursing assistants,  nurses,
 behavioral  health  and human services staff, and early intervention and
 special education therapists--threatens workforce stability and  quality
 of  care for vulnerable populations. Stable homeownership near places of
 work improves retention, reduces turnover, and supports community  inte-
 gration.  The state of New York mortgage agency is therefore directed to
 establish  a  dedicated  program  to  provide  discounted  financing and
 forgivable down payment assistance to this workforce.
   § 3. Section 2404 of the public authorities law is amended by adding a
 new subdivision 34 to read as follows:
   (34) TO ESTABLISH AND ADMINISTER THE  CAREFORCE  FIRT-TIME  HOMEBUYERS
 PROGRAM PURSUANT TO SECTION TWENTY-FOUR HUNDRED FIVE-G OF THIS PART.
   §  4.  The  public  authorities law is amended by adding a new section
 2405-g to read as follows:
   § 2405-G. CAREFORCE FIRST-TIME HOMEBUYERS  PROGRAM.  (1)  DEFINITIONS.
 FOR  THE  PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "PROGRAM" MEANS THE CAREFORCE FIRST-TIME HOMEBUYERS PROGRAM ESTAB-
 LISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   (B) "ELIGIBLE BORROWER" MEANS AN ELIGIBLE BORROWER AS DESCRIBED  UNDER
 SUBDIVISION THREE OF THIS SECTION.
   (C)  "QUALIFYING  CARE WORKFORCE OCCUPATION" MEANS HEALTHCARE WORKERS,
 DETERMINED BY THE COMMISSIONER OF  HOUSING  AND  COMMUNITY  RENEWAL,  IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14254-01-5
 S. 8675                             2
 
 CONSULTATION  WITH  THE  COMMISSIONER  OF  THE DEPARTMENT OF HEALTH, THE
 COMMISSIONER OF THE OFFICE FOR PEOPLE WITH  DEVELOPMENTAL  DISABILITIES,
 THE COMMISSIONER OF THE OFFICE OF MENTAL HEALTH, THE COMMISSIONER OF THE
 OFFICE  OF  ADDICTION  SERVICES  AND  SUPPORTS,  THE COMMISSIONER OF THE
 OFFICE OF CHILDREN AND FAMILY SERVICES, AND SHALL  INCLUDE  BUT  NOT  BE
 LIMITED  TO  DIRECT SUPPORT PROFESSIONALS, CERTIFIED NURSING ASSISTANTS,
 LICENSED PRACTICAL NURSES, REGISTERED NURSES, BEHAVIORAL HEALTH OR HUMAN
 SERVICES STAFF, AND EARLY INTERVENTION AND SPECIAL EDUCATION THERAPISTS.
   2. ESTABLISHMENT. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL  SHALL
 ESTABLISH  A  CAREFORCE  FIRST-TIME HOMEBUYERS PROGRAM TO PROVIDE BELOW-
 MARKET MORTGAGE FINANCING AND  FORGIVABLE  DOWN  PAYMENT  ASSISTANCE  TO
 ELIGIBLE BORROWERS OF THE CARE WORKFORCE.
   3. ELIGIBLE BORROWERS. A BORROWER FINANCING A MORTGAGE SHALL BE ELIGI-
 BLE FOR THE PROGRAM IF SUCH BORROWER:
   (A)  IS A FIRST-TIME HOMEBUYER, AS DEFINED IN SECTION FOURTEEN HUNDRED
 FORTY OF THE TAX LAW, OR IF OTHERWISE PERMITTED BY FEDERAL LAW;
   (B) HAS HOUSEHOLD INCOME AND IS PURCHASING A HOME WITHIN  THE  COUNTY-
 SPECIFIC INCOME AND PURCHASE PRICE LIMITS ESTABLISHED BY THE AGENCY;
   (C)  IS EMPLOYED IN A QUALIFYING CARE WORKFORCE OCCUPATION AT THE TIME
 OF MORTGAGE APPLICATION;
   (D) WORKS AN AVERAGE OF NOT LESS THAN TWENTY HOURS PER WEEK; AND
   (E) IS PURCHASING A PRIMARY  RESIDENCE  LOCATED  WITHIN  A  REASONABLE
 COMMUTING  DISTANCE  OF  SUCH EMPLOYMENT, AS DETERMINED BY THE AGENCY AS
 BEING WITHIN TWENTY-FIVE MILES WITHIN THE  COUNTY  OF  EMPLOYMENT  OR  A
 CONTIGUOUS COUNTY, OR WITHIN SIXTY MINUTES BY AUTOMOBILE OR PUBLIC TRAN-
 SIT, AS DETERMINED BY THE AGENCY.
   4.  MORTGAGE  RATE  REDUCTION. MORTGAGES ORIGINATED UNDER THIS SECTION
 SHALL CARRY AN INTEREST  RATE  FIFTY  BASIS  POINTS  (0.50%)  BELOW  THE
 PREVAILING AGENCY INTEREST RATE FOR OTHERWISE COMPARABLE LOANS.
   5.  DOWN PAYMENT ASSISTANCE LOANS. (A) THE AGENCY SHALL PROVIDE A DOWN
 PAYMENT ASSISTANCE LOAN IN THE AMOUNT OF UP TO TWENTY THOUSAND DOLLARS.
   (B) SUCH LOAN SHALL BE SECURED BY A SUBORDINATE LIEN AGAINST THE PROP-
 ERTY AND SHALL BE NON-AMORTIZING.
   (C) THE DOWN PAYMENT ASSISTANCE LOAN SHALL BE FORGIVEN  IN  FULL  UPON
 THE EARLIER OF:
   (I) TEN YEARS OF CONTINUOUS OWNER-OCCUPANCY;
   (II)  TRANSFER  OF  THE MORTGAGE INTO ANOTHER AGENCY-FINANCED MORTGAGE
 PRODUCT; OR
   (III) DOCUMENTED HARDSHIP, AS DEFINED BY THE COMMISSIONER  OF  HOUSING
 AND COMMUNITY RENEWAL.
   (D)  IN  THE  EVENT  OF SALE, TRANSFER, OR NON-OCCUPANCY PRIOR TO FULL
 FORGIVENESS, THE UNFORGIVEN BALANCE SHALL BE  SUBJECT  TO  REPAYMENT  OR
 RECAPTURE  AS  ESTABLISHED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL.
   6. PROGRAM COMPATIBILITY. ELIGIBLE BORROWERS UNDER THIS SECTION  SHALL
 NOT  BE PROHIBITED FROM RECEIVING OTHER HOUSING ASSISTANCE INCLUDING BUT
 NOT LIMITED TO:
   (A) EMPLOYER-ASSISTED HOUSING BENEFITS;
   (B) LOCAL GOVERNMENT DOWN PAYMENT OR  HOMEBUYER  ASSISTANCE  PROGRAMS;
 AND
   (C)  FEDERAL  HOMEOWNERSHIP VOUCHERS, INCLUDING BUT NOT LIMITED TO THE
 HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM.
   7. FUNDING. (A) THE AGENCY MAY  FINANCE  MORTGAGES  AND  DOWN  PAYMENT
 ASSISTANCE  LOANS  AUTHORIZED  UNDER  THIS  SECTION THROUGH ITS EXISTING
 BONDING AUTHORITY.
 S. 8675                             3
 
   (B) DOWN PAYMENT ASSISTANCE LOANS MAY ALSO BE FUNDED, IN WHOLE  OR  IN
 PART,  THROUGH  STATE APPROPRIATIONS MADE TO THE HOUSING FINANCE FUND OR
 ANY OTHER FUND DESIGNATED BY THE LEGISLATURE.
   (C)  THE  AGENCY  MAY  ESTABLISH A DEDICATED ACCOUNT TO RECEIVE STATE,
 FEDERAL, OR PRIVATE FUNDS TO SUPPORT THE PROGRAM.
   8. ADMINISTRATION. (A) THE AGENCY SHALL  PROMULGATE  RULES  AND  REGU-
 LATIONS  NECESSARY FOR IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION,
 INCLUDING ELIGIBILITY VERIFICATION, LOAN  FORGIVENESS,  HARDSHIP  STAND-
 ARDS,  RECAPTURE  PROVISIONS,  AND  PROCEDURES  FOR  LAYERING WITH OTHER
 PROGRAMS.
   (B) THE AGENCY MAY DELEGATE LOAN SERVICING FUNCTIONS TO  PARTICIPATING
 LENDERS SUBJECT TO OVERSIGHT.
   (C)  THE  AGENCY  SHALL  ENSURE THAT PROGRAM MATERIALS ARE ACCESSIBLE,
 INCLUDING MULTIPLE LANGUAGES AND EVENING/WEEKEND ASSISTANCE WHERE FEASI-
 BLE.
   9. REPORTING. THE AGENCY SHALL SUBMIT AN ANNUAL REPORT TO THE GOVERNOR
 AND THE LEGISLATURE DETAILING:
   (A) THE NUMBER OF LOANS ORIGINATED;
   (B) THE GEOGRAPHIC DISTRIBUTION OF BORROWERS;
   (C) THE AGGREGATE AMOUNT OF INTEREST RATE REDUCTIONS AND DOWN  PAYMENT
 ASSISTANCE PROVIDED; AND
   (D) PROGRAM OUTCOMES INCLUDING RECRUITMENT AND RETENTION IN CARE WORK-
 FORCE OCCUPATIONS.
   § 5. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 6. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

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Senate Bill S8675

Sponsored By

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

2025-S8675 (ACTIVE) - Details

2025-S8675 (ACTIVE) - Summary

2025-S8675 (ACTIVE) - Sponsor Memo

2025-S8675 (ACTIVE) - Bill Text download pdf

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Sponsored By

Patricia Fahy

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

2025-S8675 (ACTIVE) - Details

2025-S8675 (ACTIVE) - Summary

2025-S8675 (ACTIVE) - Sponsor Memo

2025-S8675 (ACTIVE) - Bill Text download pdf

Comments