Bill Text: NY A08490 | 2019-2020 | General Assembly | Introduced


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 4-0)

Status: (Introduced) 2019-08-07 - referred to housing [A08490 Detail]

Download: New_York-2019-A08490-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8490

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                     August 7, 2019
                                       ___________

        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 610 to read as follows:
     3    §  610.  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.
                                                                   LBD13525-01-9

        A. 8490                             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.
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