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.
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.