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
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1447--A
2023-2024 Regular Sessions
IN SENATE
January 12, 2023
___________
Introduced by Sen. SANDERS -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
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 611 to read as follows:
3 § 611. 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 division of housing and community renewal shall create the
8 process, access the applications, distribute the funds and provide any
9 other administrative functions for the tenant to homeownership initi-
10 ative. The state shall subsidize a portion of the closing costs
11 required of any buyer who is purchasing a home located within the state
12 if they shall meet the following requirements:
13 (a) the buyer has been a resident of the state for five years prior to
14 entering into a purchase contract to buy a home; and
15 (b) the buyer has been a tenant of a public housing project or in a
16 low income or rent subsidized apartment for the entirety of such five
17 year period.
18 3. If a buyer meets the requirements of subdivision two of this
19 section, the state shall subsidize the following amounts for such buyer
20 to be used towards such closing costs:
21 (a) one thousand dollars if such buyer has resided in a public housing
22 project; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04754-02-3
S. 1447--A 2
1 (b) five hundred dollars if such buyer has resided in a low income or
2 rent subsidized apartment unit.
3 4. This section shall apply only to buyers who receive approval and
4 are financing such purchase with a conventional or federal housing
5 administration (FHA) loan.
6 5. The state shall claw back any subsidized amount provided to any
7 buyer who qualified and received such subsidized amount from the state
8 under this section if such buyer sells or transfers the title of the
9 subject property within a period of three years from the date of clos-
10 ing.
11 § 2. This act shall take effect immediately.
