Creates a pilot program to encourage homeownership among persons and groups who are currently underrepresented in homeownership and/or have seen a marked decline in rates of homeownership over the last decade; provides for the repeal of such provisions upon the expiration thereof.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5749
SPONSOR: Solages TITLE OF BILL:
An act to create a pilot program to encourage homeownership among
persons and groups who are currently underrepresented in homeownership
and/or have seen a marked decline in rates of homeownership over the
last decade; and providing for the repeal of such provisions upon expi-
ration thereof
PURPOSE:
Relates to affordable housing corporation grants by increasing the
amount that can be granted through acquisition and rehabilitation for
the purpose of down payment assistance.
SUMMARY:
Section 1. Establishes a pilot program.
Section 2. Clarifies the geographic scope of the pilot and who shall be
served through the pilot.
Section 3. Sets the amount of funding to be made available for the pilot
and for what purposes. Increases subsidy availability for projects in
high-cost markets for the purposes of acquisition and rehabilitation
from $40,000 per dwelling unit to up to $75,000 per dwelling unit.
Section 4. Enumerates other organizations that may participate in this
program.
Section 5. Details the individuals, organizations, and governmental
institutions to whom the report shall be sent.
Section 6. Details reporting requirements.
Section 7. Sets the effective date.
JUSTIFICATION:
The New York State Affordable Housing Corporation (AHC) is a public
benefit corporation, established in 1965 pursuant to Section 45-b of the
Private Housing Finance Law (PHFL) as a subsidiary of the New York State
Housing Finance Agency, to administer the Affordable Home Ownership
Development Program under PHFL Article 19. This bill will facilitate
these goals and support affordable homeownership through a trial initi-
ative. The purpose of the pilot program is to promote homeownership by
persons of low aid and moderate income who have seen their opportunities
for homeownership diminish in recent years due to the escalating cost of
housing, which has not kept pace with salaries.
Homeownership is a key component for the stabilization and preservation
of neighborhoods and communities. To achieve these goals, AHC provides
financial assistance, in conjunction with other private and public
investments, for the construction, acquisition, rehabilitation; and
improvement of owner-occupied housing.
RACIAL JUSTICE IMPACT:
Homeownership is a leading factor in generational wealth and financial
stability. People of color disproportionately face a range of housing
issues, including a lack of homeownership. In New York City, the
homeownership rate for White people is 42% compared to a much lower 27%
and 17% for Black and Hispanic individuals.
1 This bill will bridge
these differences, which reflect a current homeownership issue impacting
people of color across New York.
GENDER JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY:
2021-22: A7862; referred to housing.
FISCAL IMPLICATIONS:
TBD.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire April 1, 2026
when upon such date the provisions of this act shall be deemed repealed.
1https://www.nytimes.coni/2022/11
/24/nyregion/home-ownership-new-york-city.html
STATE OF NEW YORK
________________________________________________________________________
5749
2025-2026 Regular Sessions
IN ASSEMBLY
February 20, 2025
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Housing
AN ACT to create a pilot program to encourage homeownership among
persons and groups who are currently underrepresented in homeownership
and/or have seen a marked decline in rates of homeownership over the
last decade; and providing for the repeal of such provisions upon
expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Notwithstanding any other provision of law to the contrary,
2 the division of homes and community renewal, in conjunction with the
3 office of community renewal and the affordable housing corporation,
4 shall conduct a pilot program to provide people in New York state who
5 are presently and who have been historically underrepresented in
6 homeownership with the resources they need, including outreach, educa-
7 tion, and financial assistance, to achieve the dream of homeownership in
8 a sustainable manner.
9 § 2. Such pilot program shall be conducted in three areas around our
10 state that have seen declines in homeownership among underrepresented
11 persons and groups. The division of homes and community renewal shall
12 choose the three areas in which the pilot program will be conducted,
13 considering such factors including, but not limited to, population
14 growth among underrepresented persons or groups that is not reflected in
15 an increase in homeownership among those same persons and groups, popu-
16 lation changes that have resulted in displacement of underrepresented
17 persons and groups, and declines in homeownership among underrepresented
18 persons or groups during the period since the financial crisis of 2008.
19 § 3. Such pilot program shall make use of up to $2,000,000 of existing
20 funding from the affordable housing corporation, section 45-b of the
21 private housing finance law, to ensure equity in the utilization of
22 currently available downpayment assistance funding and to promote
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05989-01-5
A. 5749 2
1 homeownership more broadly to low- and moderate-income residents of New
2 York state, and shall increase the amount of the downpayment assistance
3 to up to $75,000 per eligible homebuyer as is needed and deemed neces-
4 sary without imposing an increase to the existing regulatory period.
5 § 4. The division of homes and community renewal shall also utilize
6 the state's existing network of nonprofit housing organizations, includ-
7 ing, but not limited to, the Neighborhood and Rural Preservation Compa-
8 nies, local community development corporations, and other community-
9 based housing organizations, that provide financial management and
10 housing counseling services to support low- and moderate-income homebuy-
11 ers.
12 § 5. The division of homes and community renewal shall issue a joint
13 report on the status of the pilot program to the chair of the New York
14 state senate standing committee on housing, construction and community
15 development, and the chair of the New York state assembly standing
16 committee on housing by December 31, 2025.
17 § 6. Such report shall include, but not be limited to, the status of
18 the program, the areas identified for the pilot, the nonprofit housing
19 organizations identified as service providers, and the number of people
20 participating in the program.
21 § 7. This act shall take effect immediately and shall expire April 1,
22 2026 when upon such date the provisions of this act shall be deemed
23 repealed.
