STATE OF NEW YORK ________________________________________________________________________ 2600 2023-2024 Regular Sessions IN ASSEMBLY January 26, 2023 ___________ Introduced by M. of A. VANEL -- read once and referred to the Committee on Housing 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 state shall subsidize a portion of the closing costs required 8 of any buyer who is purchasing a home located within the state if they 9 shall meet the following requirements: 10 (a) the buyer has been a resident of the state for five years prior to 11 entering into a purchase contract to buy a home; and 12 (b) the buyer has been a tenant of a public housing project or in a 13 low income or rent subsidized apartment for the entirety of such five 14 year period. 15 3. If a buyer meets the requirements of subdivision two of this 16 section, the state shall subsidize the following amounts for such buyer 17 to be used towards such closing costs: 18 (a) one thousand dollars if such buyer has resided in a public housing 19 project; or 20 (b) five hundred dollars if such buyer has resided in a low income or 21 rent subsidized apartment unit. 22 4. This section shall apply only to buyers who receive approval and 23 are financing such purchase with a conventional or federal housing 24 administration (FHA) loan. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04754-01-3A. 2600 2 1 5. For any buyer who qualifies and receives any subsidized amount from 2 the state under this section, such buyer shall be prohibited from sell- 3 ing or transferring title of the subject property for a period of three 4 years from the date of closing. 5 § 2. This act shall take effect immediately.