Bill Text: NY S08521 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes the "New York student loan assistance and home purchase act", for the purposes of facilitating the purchase of homes by individuals who are burdened by student debt, by providing financing opportunities for the consolidation of student debt into a mortgage.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-08 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S08521 Detail]

Download: New_York-2023-S08521-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8521

                    IN SENATE

                                    February 8, 2024
                                       ___________

        Introduced by Sen. SEPULVEDA -- 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  establishing
          the "New York student loan assistance and home purchase act"

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

     1    Section 1. This act shall be known and may be cited as the  "New  York
     2  student loan assistance and home purchase act".
     3    §  2.  The  public  authorities law is amended by adding a new section
     4  2405-g to read as follows:
     5    § 2405-g. Student loan assistance and home purchase program. 1.  Defi-
     6  nitions. For the purposes of this section,  the  following  terms  shall
     7  have the following meanings:
     8    (a)  "Program"  means  the  student  loan assistance and home purchase
     9  program established pursuant to subdivision two of this section.
    10    (b) "Student loan" means any loan to a borrower to finance post-secon-
    11  dary education or expenses related to post-secondary education. For  the
    12  purposes  of  this section, the term "student loan" shall not be limited
    13  to loans, as such term is defined by subdivision ten of section  twenty-
    14  four hundred two of this part.
    15    2.  Program  established.  The  agency shall establish a "student loan
    16  assistance and home purchase program", to be administered by the agency,
    17  for the purposes of facilitating the purchase of  homes  by  individuals
    18  who  are  burdened by student debt, by providing financing opportunities
    19  pursuant to subdivision three of this section. The chair of  the  agency
    20  shall appoint a director of the program to oversee the implementation of
    21  the program.
    22    3.  Student loan assistance and home purchase program; implementation.
    23  (a) The program shall assist individuals who apply and are  accepted  to
    24  the  program  pursuant  to paragraph (b) of this subdivision, by consol-
    25  idating all or a portion of such individuals' student  loans  into  such
    26  individuals'  mortgages.  The  program  shall  be authorized to purchase
    27  mortgages, existing mortgages, and student loans from banks as needed to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10949-01-3
        S. 8521                             2

     1  effectuate the provisions of this section. There shall be  no  limit  to
     2  the amount of student loan debt that may be incorporated into a mortgage
     3  or existing mortgage pursuant to this section, unless otherwise provided
     4  by state or federal law.
     5    (b)  The  program  shall  establish  an  application  process  whereby
     6  prospective homeowners who are residents of the state with student debt,
     7  may apply to the program for consolidation of  such  residents'  student
     8  debt  with  a mortgage or existing mortgage. In considering an applicant
     9  to the program, the program shall not consider foreclosure status,  home
    10  cleanliness, or whether the home will be such applicant's first home.
    11    (c)  Individuals  who  are  accepted  to  the program pursuant to this
    12  section shall be required to maintain the purchased home as their prima-
    13  ry residence for no less than five years from the date of  closing.  The
    14  commissioner  of housing and community renewal shall establish penalties
    15  and fees applicable for violations of this paragraph.
    16    (d) The program shall comply with  all  applicable  federal  laws  and
    17  regulations.
    18    4.  Rules  and  regulations. The commissioner of housing and community
    19  renewal shall promulgate any rules and  regulations  necessary  for  the
    20  establishment  and  implementation  of  the  program under this section.
    21  Further, the commissioner of housing and community renewal shall promul-
    22  gate rules and regulations establishing:
    23    (a) eligibility requirements for acceptance of individuals  who  apply
    24  to the program; and
    25    (b) interest rates and other penalties, charges, and fees in an amount
    26  necessary to implement the program.
    27    § 3. This act shall take effect on the one hundred eightieth day after
    28  it  shall have become a law. Effective immediately, the addition, amend-
    29  ment and/or repeal of any rule or regulation necessary for the implemen-
    30  tation of this act on its effective date are authorized to be  made  and
    31  completed on or before such effective date.