Bill Text: NY S00665 | 2021-2022 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S00665 Detail]

Download: New_York-2021-S00665-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           665

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development

        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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03185-01-1
        S. 665                              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. For any buyer who qualifies and receives any subsidized amount from
     5  the  state under this section, such buyer shall be prohibited from sell-
     6  ing or transferring title of the subject property for a period of  three
     7  years from the date of closing.
     8    § 2. This act shall take effect immediately.