Establishes a five-year moratorium on foreign entities purchasing homes in New York state unless the purchase is for a primary residence; directs the department of state to conduct a study on the effects of the moratorium on the housing market and to send a report on the study to the legislature; specifies data and indicators to analyze for the study; defines terms.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4965
SPONSOR: Zinerman TITLE OF BILL:
An act to amend the real property law, in relation to enacting the
"house New Yorkers first act"; and providing for the repeal of such
provisions upon the expiration thereof
PURPOSE OR GENERAL IDEA OF BILL::
To place a moratorium on the purchase of residential real property by
non-New Yorkers and to obtain data to determine the retention of New
York State residents who live in New York State as their primary resi-
dence or if there is a trend of residents leaving the state.
SUMMARY OF PROVISIONS::
Section 1: Provides the short title of the bill: the "house New Yorkers
first act"
Section 2: The real property law is amended by adding a new section 283.
Section 3 provides the effective date.
JUSTIFICATION::
There are concerns that foreign entities, particularly those purchasing
properties for investment purposes rather than as primary residences,
may contribute to inflated housing prices and reduced availability of
housing for local residents. By restricting foreign entity purchases to
those intending to establish a primary residence within the state, this
legislation aims to mitigate these effects and ensure that housing
remains accessible to New York residents.High levels of real estate
investment by foreign entities can lead to increased transience in
communities, as properties may he bought and sold frequently without any
long-term commitment to the local area. This can disrupt community cohe-
sion and stability'. By encouraging foreign buyers to become permanent
residents, this bill seeks to foster stronger ties between residents and
their communities, promoting stability and social cohesion. In markets
where foreign investment drives up housing prices, local residents,
especially those with lower incomes, may struggle to afford homes in
their own communities. By implementing restrictions on foreign entity
purchases, this bill aims to help maintain or improve housing afforda-
bility for New Yorkers by preventing speculative activity that can arti-
ficially inflate prices.The requirement for a comprehensive study on
residential housing data enables policymakers to better understand the
dynamics of the housing market and assess the impact of this legis-
lation. By analyzing trends in homeownership, foreclosure rates,
evictions, and other key indicators, policymakers can make informed
decisions to address any challenges or disparities in the housing mark-
et.Overall, the House New Yorkers First Act is seen as necessary to
safe- guard the interests of local residents, promote housing afforda-
bilityand stability, and ensure that the housing market serves the needs
of New Yorkers effectively.
PRIOR LEGISLATIVE HISTORY::
Click here to enter text. 2023-2024: A9744-A Died in Committee
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::
None
EFFECTIVE DATE::
This act shall take effect immediately and shall expire and be deemed
repealed on the first day next succeeding five years after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
4965
2025-2026 Regular Sessions
IN ASSEMBLY
February 10, 2025
___________
Introduced by M. of A. ZINERMAN, HYNDMAN, GLICK, CUNNINGHAM -- read once
and referred to the Committee on Housing
AN ACT to amend the real property law, in relation to enacting the
"house New Yorkers first act"; and providing for the repeal of such
provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "house New Yorkers first act".
3 § 2. The real property law is amended by adding a new section 284 to
4 read as follows:
5 § 284. House New Yorkers first act. 1. For purposes of this section,
6 the following terms shall have the following meanings:
7 (a) "Residential real property" means real property improved by a one-
8 to four-family residence, a condominium or a cooperative unit.
9 (b) "Foreign entity" or "foreign entities" means an individual who is
10 not a citizen of the United States, or such individual's successors and
11 assigns, or a corporation, trust, association or partnership organized
12 outside the laws of the United States, or such corporation, trust, asso-
13 ciation or partnership's successors and assigns.
14 2. (a) Notwithstanding any other provision of law, for a five-year
15 period beginning on the effective date of this section, no foreign enti-
16 ty shall purchase any residential real property within the state of New
17 York, unless such foreign entity purchases such property for the purpose
18 of establishing a primary residence within the state.
19 (b) Sellers of residential real property shall verify that purchasers
20 are not foreign entities prior to executing any conveyance.
21 3. (a) In the year two thousand twenty-eight, the department of state,
22 in conjunction with the city of New York department of city, shall
23 conduct a study on residential housing data collected throughout the
24 state. Such study shall analyze such data collected on and after the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09038-01-5
A. 4965 2
1 effective date of this section against data collected from two thousand
2 ten until the date this section took effect and determine if such data
3 indicates a retention of residents who live in the state as their prima-
4 ry residence or a trend of residents leaving the state, based on the
5 indicators set forth in paragraph (b) of this subdivision. Such data to
6 be analyzed shall include, but not be limited to:
7 (i) foreclosure rates in the state as determined by the office of the
8 comptroller;
9 (ii) municipal tax rolls to assess property conveyance rates;
10 (iii) the amount of evictions commenced in the state;
11 (iv) monthly housing market index (HMI) surveys conducted by the
12 national association of home builders; and
13 (v) any other information the department of state or the city of New
14 York department of city deems relevant.
15 (b) Such study shall assess, but not be limited to, the following
16 indicators based on the data collected in accordance with paragraph (a)
17 of this subdivision:
18 (i) the amount of New York state residents who have retained homeown-
19 ership in the state since the moratorium established by this section has
20 gone into effect against the amount of New York state residents who have
21 retained homeownership in the state prior to the moratorium established
22 by this section taking effect; and
23 (ii) the strength and stability of the housing market in the state
24 since the moratorium established by this section has gone into effect
25 against the strength and stability of the housing market in the state
26 prior to the moratorium established by this section taking effect.
27 (c) A report on such study shall be provided to the governor, the
28 speaker of the assembly, and the temporary president of the senate no
29 later than one year following the completion of such study.
30 § 3. This act shall take effect immediately and shall expire and be
31 deemed repealed on the first day next succeeding five years after it
32 shall have become a law.
