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.
STATE OF NEW YORK
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7111
2023-2024 Regular Sessions
IN ASSEMBLY
May 11, 2023
___________
Introduced by M. of A. TAPIA, GONZALEZ-ROJAS -- read once and referred
to the Committee on Housing
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10949-01-3
A. 7111 2
1 individuals' mortgages. The program shall be authorized to purchase
2 mortgages, existing mortgages, and student loans from banks as needed to
3 effectuate the provisions of this section. There shall be no limit to
4 the amount of student loan debt that may be incorporated into a mortgage
5 or existing mortgage pursuant to this section, unless otherwise provided
6 by state or federal law.
7 (b) The program shall establish an application process whereby
8 prospective homeowners who are residents of the state with student debt,
9 may apply to the program for consolidation of such residents' student
10 debt with a mortgage or existing mortgage. In considering an applicant
11 to the program, the program shall not consider foreclosure status, home
12 cleanliness, or whether the home will be such applicant's first home.
13 (c) Individuals who are accepted to the program pursuant to this
14 section shall be required to maintain the purchased home as their prima-
15 ry residence for no less than five years from the date of closing. The
16 commissioner of housing and community renewal shall establish penalties
17 and fees applicable for violations of this paragraph.
18 (d) The program shall comply with all applicable federal laws and
19 regulations.
20 4. Rules and regulations. The commissioner of housing and community
21 renewal shall promulgate any rules and regulations necessary for the
22 establishment and implementation of the program under this section.
23 Further, the commissioner of housing and community renewal shall promul-
24 gate rules and regulations establishing:
25 (a) eligibility requirements for acceptance of individuals who apply
26 to the program; and
27 (b) interest rates and other penalties, charges, and fees in an amount
28 necessary to implement the program.
29 § 3. This act shall take effect on the one hundred eightieth day after
30 it shall have become a law. Effective immediately, the addition, amend-
31 ment and/or repeal of any rule or regulation necessary for the implemen-
32 tation of this act on its effective date are authorized to be made and
33 completed on or before such effective date.
