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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8107
SPONSOR: Vanel TITLE OF BILL:
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
PURPOSE OR GENERAL IDEA OF BILL:
To amend the private housing finance law, in relation to subsidizing
closing costs for low income tenants who are purchasing a home.
SUMMARY OF PROVISIONS:
Section 1 amends the private housing financing law by adding a new
section that defines low income or rent 'subsidized apartment as an
individual that receives State Funds used towards monthly amount of rent
owed. It also states that New York State will subsidize a portion of the
closing costs required of any buyer who is purchasing a home located
within New York State if they meet the following conditions; buyer is a
resident for 5 years prior to purchase agreement and buyer is a resident
for 5 years and was tenant of public housing, low income, or rent subsi-
dized apartment for 5 years.
Section 1 also identifies the loans available and the quantity.
Section 2 sets the effective date as immediately.
JUSTIFICATION:
In New York State, the working poor and low income families seem to stay
in the same Socio-economic condition from generation to. generation.
Also in New York, families in public housing and low income housing tend
to find it difficult to transition out of assisted rent subsidy. We must
find ways to help incentivize wealth building for the families. A major
factor that gets families in the middle-class is home ownership.
Homeownership in New York State is a pathway towards wealth accumu-
lation. This bill will help incentivize those families into becoming
homeowners.
PRIOR LEGISLATIVE HISTORY:
01/28/21 referred to housing
01/05/22 referred to housing
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
N/A
EFFECTIVE DATE:
Effective Immediately
STATE OF NEW YORK
________________________________________________________________________
8107
2025-2026 Regular Sessions
IN ASSEMBLY
April 30, 2025
___________
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 615 to read as follows:
3 § 615. 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
23 (b) five hundred dollars if such buyer has resided in a low income or
24 rent subsidized apartment unit.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05925-01-5
A. 8107 2
1 4. This section shall apply only to buyers who receive approval and
2 are financing such purchase with a conventional or federal housing
3 administration (FHA) loan.
4 5. The state shall claw back any subsidized amount provided to any
5 buyer who qualified and received such subsidized amount from the state
6 under this section if such buyer sells or transfers the title of the
7 subject property within a period of three years from the date of clos-
8 ing.
9 § 2. This act shall take effect immediately.
