NY State Senate Bill 2015-S5594

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to housing, construction and community development
May 15, 2015	referred to housing, construction and community development

2015-S5594 (ACTIVE) - Details

See Assembly Version of this Bill:: A6898
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Public Housing Law
Laws Affected:: Add Art 11-A §§250 - 255, Pub Hous L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3805, A4496
2019-2020: S2207, A4910
2021-2022: S3369
2023-2024: S1280

2015-S5594 (ACTIVE) - Summary

Creates a middle income home ownership subsidy program to assist persons with an income below the current median income for the city of New York with the purchase of a residence in an urban area.

2015-S5594 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5594

TITLE OF BILL:

An act to amend the public housing law, in relation to creating a middle
income home ownership subsidy program

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to provide financial assistance to middle
income families under certain conditions as to increase home ownership
among communities of color.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 establishes the criteria for eligibility for application to
this program, and specifies what qualifies a household to receive
assistance. Section 1 also establishes the procedure by which this
program will assist homeowners, and how it will secure funding in order
to do this.

Section 2 defines the effective date of this act.

JUSTIFICATION:

As we continue to identify ways to increase home ownership among commu-

nities of color, especially those in the middle income threshold who we
wish to encourage their returning to and staying in urban communities,
we recognize the importance of such efforts. We have rental subsidies
and concurrently federal tax subsidies for ownership so we should estab-
lish a subsidy for middle income home ownership up to $125,000 to
increase the likelihood of ownership by persons of color in urban commu-
nities.

In a report entitled, Using Tax Policy to Subsidize Homeownership by
Richard K. Green and Andrew Reschovsky, the following is stated:  "Since
the 1950s the homeownership rate in the U.S. has exceeded 60 percent. In
2004 it reached a peak of 69 percent, and in the first quarter of 2010
stood at 67.1 percent. Despite the relatively high overall rate of
homeownership in the U.S., there are large disparities among racial and
income groups (U.S. Census Bureau, 2010). The homeownership rates among
African Americans (46.1 percent) and among Hispanics (48.5 percent) are
both less than two-thirds the rate among non-Hispanic whites (74.5
percent). Despite the relative economic gains of minorities over the
past few decades and government efforts to reduce housing market
discrimination, there has been little reduction in the racial dispari-
ties in homeownership. Between 1989 and 2008, the percentage difference
in homeownership rates between black and non-Hispanic white households
remained virtually unchanged. In 2009, however, the gap grew by one
percent. Hispanic homeownership rates showed a modest two percent
increase relative to rates among non-Hispanic whites over this period
(U.S. Census Bureau, 2009)."

Moreover, it indicates the following that there is, "clear evidence that
federal income tax incentives for homeownership do in fact influence
families' housing tenure-choice decisions (Rosen, 1979a; Rosen, 1979b;
Green and Vandell, 1999). This research presupposes that homeownership
is a decision based on a set of characteristics.  Such characteristics
include income, household size, marital status, race, and what econo-
mists call the user cost of owning relative to renting: the amount of
money a household must spend if it owns rather than rents an identical
house or apartment...tax policy can be used to reduce the user cost of
owning relative to renting and thus potentially influence households'
decisions to purchase a home. For homeowners the before-tax user cost is
the sum of the mortgage interest, the property tax, the net depreci-
ation, and the overall maintenance (which includes insurance and utility
costs). As demonstrated by Green and Vandell (1999), the ability of
homeowners to deduct their mortgage interest and property tax payments
from their gross income reduces the user cost of owner-occupied housing
relative to renter-occupied housing by an amount equal to the federal
marginal tax rate times the deductible portion of total user cost.
Alternatively, giving taxpayers a fixed tax credit for their payment of
mortgage interest and property tax reduces the user cost of owner-occu-
pied housing relative to renter-occupied housing by the amount of the
credit". There is sufficient data backed rationale to indicate that tax
subsidy support to promote home ownership would increase the likelihood
of persons of color not just renting but owning in urban communities.
The effect of this legislation would further inspire young adults and
middle income residents to live in these communities and further lay a
foundation for positive economic development in these communities.

PRIOR LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2015-S5594 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5594

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 15, 2015
                               ___________

Introduced  by  Sen. HASSELL-THOMPSON -- 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 public housing law, in relation to creating a middle
  income home ownership subsidy program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public housing law is amended by adding a  new  article
11-A to read as follows:
                               ARTICLE 11-A
                  MIDDLE INCOME HOME OWNERSHIP SUBSIDY
SECTION 250. DEFINITIONS.
        251. MIDDLE INCOME HOME OWNERSHIP SUBSIDY PROGRAM.
        252. APPLICATIONS.
        253. AMOUNT  AND  PROCEDURE  FOR  MIDDLE  INCOME  HOME OWNERSHIP
               SUBSIDY PAYMENTS.
        254. RULES AND REGULATIONS.
        255. FUNDING  FOR  THE  MIDDLE  INCOME  HOME  OWNERSHIP  SUBSIDY
               PROGRAM.
  S  250. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "ELIGIBLE UNIT" SHALL MEAN:
  A. ANY (I) HOME WITH TWO OR FEWER UNITS; (II)  CONDOMINIUM;  OR  (III)
COOPERATIVE;
  B.  WHERE  THE  PURCHASE  OF SUCH HOME, CONDOMINIUM, OR COOPERATIVE IS
PROVIDED FOR, INSURED, OR GUARANTEED BY THE STATE OR FEDERAL GOVERNMENT;
  C. LOCATED IN AN URBAN AREA AS DEFINED BY THE DIVISION.
  2. "QUALIFIED HOUSEHOLD" SHALL MEAN ANY PERSON OR HIS  OR  HER  FAMILY
MEMBER WHO:
  A.  HAS AN ANNUAL HOUSEHOLD INCOME BELOW THE CURRENT MEDIAN INCOME FOR
THE CITY OF NEW YORK, PROVIDED, THAT ANY SUBSIDY RECEIVED AS A RESULT OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09789-02-5

S. 5594                             2

A SOCIAL PROGRAM SHALL NOT BE CONSIDERED WHEN  CALCULATING  AN  INDIVID-
UAL'S  GROSS  INCOME. THE DIVISION SHALL DETERMINE INCOME ELIGIBILITY OF
HOME BUYERS USING THE INCOME DETERMINATION METHODOLOGY UTILIZED  BY  THE
UNITED  STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN ACCORDANCE
WITH THEIR SECTION 8 HOUSING PROGRAM.
  B. DOES NOT CURRENTLY OWN A HOUSING UNIT, INCLUDING  A  SINGLE  FAMILY
HOUSE,  CONDOMINIUM UNIT, COOPERATIVE UNIT, OR RENTAL UNIT THAT COULD BE
OWNER OCCUPIED;
  C. HAS NOT PREVIOUSLY RECEIVED HOME OWNERSHIP ASSISTANCE.
  S 251. MIDDLE INCOME HOME OWNERSHIP SUBSIDY PROGRAM. THERE  IS  HEREBY
ESTABLISHED  A MIDDLE INCOME HOME OWNERSHIP SUBSIDY PROGRAM. THE PURPOSE
OF THE PROGRAM IS TO  PROVIDE  FINANCIAL  ASSISTANCE  TO  MIDDLE  INCOME
HOUSEHOLDS,  WITH  AN  ANNUAL INCOME BELOW THE CURRENT MEDIAN INCOME FOR
THE CITY OF NEW YORK WHO DO NOT CURRENTLY OWN A  HOME,  TO  PURCHASE  AN
ELIGIBLE UNIT FOR PURPOSES OF REHABILITATION AND OWNERSHIP.
  S 252. APPLICATIONS. 1. A QUALIFIED HOUSEHOLD MUST MAKE AN APPLICATION
TO THE DIVISION TO RECEIVE A HOME OWNERSHIP SUBSIDY.
  2.  THE DIVISION SHALL APPROVE AN INDIVIDUAL'S APPLICATION IF IT FINDS
THAT:
  A. SUCH INDIVIDUAL IS PART OF A  QUALIFIED  HOUSEHOLD  AS  DEFINED  IN
SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY OF THIS ARTICLE;
  B.  THE  HOME TO BE PURCHASED BY THE INDIVIDUAL IS AN ELIGIBLE UNIT AS
DEFINED IN SUBDIVISION ONE OF SECTION TWO HUNDRED FIFTY OF THIS ARTICLE;
  C. THE HOME TO BE PURCHASED HAS BEEN INSPECTED BY A DIVISION  APPROVED
HOME INSPECTOR;
  D.  THE HOME TO BE PURCHASED HAS BEEN APPRAISED AT A VALUE NOT EXCEED-
ING THE MAXIMUM PURCHASE PRICE AS SET BY THE DIVISION.
  3. IF ANY QUALIFIED HOUSEHOLD THAT HAS BEEN APPROVED AND IS  RECEIVING
HOME  OWNERSHIP  ASSISTANCE  PAYMENTS  DEFAULTS ON ITS MORTGAGE PAYMENT,
SUCH HOME OWNERSHIP SUBSIDY PAYMENTS SHALL AUTOMATICALLY  CEASE  AND  BE
TERMINATED.
  S  253.  AMOUNT AND PROCEDURE FOR MIDDLE INCOME HOME OWNERSHIP SUBSIDY
PAYMENTS. SUBSIDY AMOUNTS UNDER THIS PROGRAM SHALL EQUAL MORE  THAN  ONE
HUNDRED TWENTY-FIVE THOUSAND DOLLARS IN THE AGGREGATE.
  S  254. RULES AND REGULATIONS. 1. THE DIVISION IS AUTHORIZED TO IMPLE-
MENT ANY RULE OR REGULATION NECESSARY FOR THE SUCCESSFUL  IMPLEMENTATION
OF THIS PROGRAM.
  2.  THE DIVISION MAY CREATE ANY FORM AND REQUIRE ANY APPLICANT TO FILL
OUT SUCH FORM BEFORE RECEIVING DEPARTMENTAL APPROVAL FOR THE HOME OWNER-
SHIP ASSISTANCE PAYMENTS.
  3. THE DIVISION MAY CHARGE AN APPLICATION FEE FOR THE PROCESSING OF  A
HOUSEHOLD'S  HOME  OWNERSHIP  ASSISTANCE  PAYMENT  APPLICATION. SUCH FEE
SHALL NOT EXCEED ONE HUNDRED DOLLARS.
  S 255. FUNDING FOR THE MIDDLE INCOME HOME OWNERSHIP  SUBSIDY  PROGRAM.
FUNDING  SHALL BE OBTAINED BY USING FUNDS FROM THE COMMUNITY DEVELOPMENT
BLOCK GRANT.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
necessary  for  the  timely  implementation of this act on its effective
date is hereby authorized and directed to be  made  on  or  before  such
effective date.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S5594

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2015-S5594 (ACTIVE) - Details

2015-S5594 (ACTIVE) - Summary

2015-S5594 (ACTIVE) - Sponsor Memo

2015-S5594 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5594

Share this bill

Sponsored By

Ruth Hassell-Thompson

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2015-S5594 (ACTIVE) - Details

2015-S5594 (ACTIVE) - Summary

2015-S5594 (ACTIVE) - Sponsor Memo

2015-S5594 (ACTIVE) - Bill Text download pdf

Comments