Bill Text: NY A02600 | 2023-2024 | General Assembly | Amended

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Bill Title: Calls for the state to subsidize a portion of closing costs for certain individuals who have been tenants of public housing projects or rent subsidized housing for the previous five years.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to housing [A02600 Detail]

Download: New_York-2023-A02600-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         2600--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 26, 2023
                                       ___________

        Introduced  by M. of A. VANEL -- read once and referred to the Committee
          on Housing -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee

        AN ACT to amend the private housing finance law, in relation  to  subsi-
          dizing closing costs for low income tenants who are purchasing a home

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The private housing finance law is amended by adding a  new
     2  section 611 to read as follows:
     3    §  611.  Tenant  to  homeownership initiative. 1. For purposes of this
     4  section, "low income or rent subsidized apartment" shall mean an  apart-
     5  ment  in  which  the  tenant's  household income level qualifies them to
     6  receive state funds used towards the monthly amount of rent owed.
     7    2. The division of housing and  community  renewal  shall  create  the
     8  process,  access  the applications, distribute the funds and provide any
     9  other administrative functions for the tenant  to  homeownership  initi-
    10  ative.    The  state  shall  subsidize  a  portion  of the closing costs
    11  required of any buyer who is purchasing a home located within the  state
    12  if they shall meet the following requirements:
    13    (a) the buyer has been a resident of the state for five years prior to
    14  entering into a purchase contract to buy a home; and
    15    (b)  the  buyer  has been a tenant of a public housing project or in a
    16  low income or rent subsidized apartment for the entirety  of  such  five
    17  year period.
    18    3.  If  a  buyer  meets  the  requirements  of subdivision two of this
    19  section, the state shall subsidize the following amounts for such  buyer
    20  to be used towards such closing costs:
    21    (a) one thousand dollars if such buyer has resided in a public housing
    22  project; or
    23    (b)  five hundred dollars if such buyer has resided in a low income or
    24  rent subsidized apartment unit.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04754-03-3
        A. 2600--A                          2

     1    4. This section shall apply only to buyers who  receive  approval  and
     2  are  financing  such  purchase  with  a  conventional or federal housing
     3  administration (FHA) loan.
     4    5.  The  state  shall  claw back any subsidized amount provided to any
     5  buyer who qualified and received such subsidized amount from  the  state
     6  under  this  section  if  such buyer sells or transfers the title of the
     7  subject property within a period of three years from the date  of  clos-
     8  ing.
     9    § 2. This act shall take effect immediately.