S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8680
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                            September 25, 2017
                                ___________
 
 Introduced  by M. of A. BARCLAY -- read once and referred to the Commit-
   tee on Higher Education
 
 AN ACT to amend the education law and the  public  authorities  law,  in
   relation to establishing the New York state diplomas to home ownership
   program; and making an appropriation therefor

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The education law is amended by adding a new section  679-j
 to read as follows:
   §  679-J.  NEW YORK STATE DIPLOMAS TO HOMEOWNERSHIP PROGRAM. 1.  DEFI-
 NITIONS. (A) "AWARD" MEANS A NEW YORK STATE  DIPLOMAS  TO  HOMEOWNERSHIP
 PROGRAM AWARD.
   (B) "QUALIFIED PROPERTY" MEANS AN APPROVED LAND BANK PROPERTY PURSUANT
 TO ARTICLE SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW.
   (C) "DELINQUENT" MEANS THE FAILURE TO PAY A REQUIRED SCHEDULED PAYMENT
 ON A FEDERAL STUDENT LOAN WITHIN THIRTY DAYS OF SUCH PAYMENT'S DUE DATE.
   (D)  "PROGRAM"  MEANS  THE  NEW  YORK  STATE DIPLOMAS TO HOMEOWNERSHIP
 PROGRAM.
   2. ELIGIBILITY. TO BE ELIGIBLE FOR AN AWARD PURSUANT TO THIS  SECTION,
 APPLICANTS SHALL:
   (A) HAVE GRADUATED FROM A HIGH SCHOOL LOCATED IN THE STATE OR ATTENDED
 AN  APPROVED  STATE  PROGRAM FOR A STATE HIGH SCHOOL EQUIVALENCY DIPLOMA
 AND RECEIVED SUCH DIPLOMA. AN  APPLICANT  WHO  RECEIVED  A  HIGH  SCHOOL
 DIPLOMA,  OR  ITS  EQUIVALENT,  FROM  ANOTHER  STATE IS INELIGIBLE FOR A
 PROGRAM AWARD;
   (B) HAVE GRADUATED AND OBTAINED AN UNDERGRADUATE DEGREE FROM A COLLEGE
 OR UNIVERSITY LOCATED IN NEW YORK STATE;
   (C) HAVE OUTSTANDING STUDENT LOAN DEBT FROM OBTAINING SUCH DEGREE;
   (D) HAVE NOT PREVIOUSLY PURCHASED A HOME AT THE  TIME  OF  APPLICATION
 FOR THE PROGRAM;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11728-02-7
              

 A. 8680                             2
 
   (E)  NOT  BE  DELINQUENT  ON A FEDERAL STUDENT LOAN OR IN DEFAULT ON A
 STUDENT LOAN MADE UNDER ANY STATUTORY NEW YORK STATE OR  FEDERAL  EDUCA-
 TION LOAN PROGRAM; AND
   (F) BE IN THE PROCESS OF PURCHASING A QUALIFIED PROPERTY; AND
   (G)  NOT  BE  RECEIVED  IN CONJUNCTION WITH ANY OTHER STATE HOMEBUYERS
 INCENTIVES PROGRAMS.
   3. ADMINISTRATION. AN APPLICANT FOR AN AWARD SHALL APPLY  FOR  PROGRAM
 ELIGIBILITY  AT  SUCH  TIMES, ON FORMS AND IN A MANNER PRESCRIBED BY THE
 CORPORATION.  THE CORPORATION MAY REQUIRE APPLICANTS  TO  PROVIDE  ADDI-
 TIONAL  DOCUMENTATION  EVIDENCING ELIGIBILITY, INCLUDING BUT NOT LIMITED
 TO PROOF OF LOAN AMOUNTS, AND QUALIFIED PROPERTY  ASSESSMENT  AND  VALU-
 ATION.
   4. AMOUNTS AND DURATION. (A) THE AMOUNT OF THE AWARD SHALL BE EQUAL TO
 TEN  PERCENT  OF  THE  PURCHASE  PRICE OF THE QUALIFIED PROPERTY, NOT TO
 EXCEED FIFTEEN THOUSAND DOLLARS.
   (B) IN THE EVENT THAT TEN PERCENT OF THE PURCHASE PRICE OF A QUALIFIED
 PROPERTY EXCEEDS THE REMAINING BALANCE OF THE RECIPIENT'S  STUDENT  LOAN
 DEBT,  THE AMOUNT SHALL BE EQUAL TO THE AMOUNT OF DEBT REMAINING, NOT TO
 EXCEED FIFTEEN THOUSAND DOLLARS.
   (C) THE AWARD SHALL ONLY BE USED AS PAYMENT  TOWARDS  ANY  OUTSTANDING
 FEDERAL STUDENT LOAN OR EDUCATION LOANS TAKEN OUT BY THE RECIPIENT.
   (D)  PAYMENTS  SHALL  BE  MADE  DIRECTLY  TO  THE ENTITY THAT COLLECTS
 PAYMENTS ON THE FEDERAL STUDENT LOAN OR LOANS ON BEHALF OF THE RECIPIENT
 ON A MONTHLY BASIS.
   (E) PROOF OF PAYMENT SHALL BE PROVIDED TO THE CORPORATION WITHIN NINE-
 TY DAYS OF RECEIPT OF THE AWARD. FAILURE TO  PROVIDE  PROOF  OF  PAYMENT
 WILL  RESULT  IN FULL REPAYMENT OF THE AWARD AMOUNT BY THE AWARD RECIPI-
 ENT.
   (F) A MAXIMUM FIFTEEN THOUSAND DOLLARS MAY BE AWARDED.
   5. DISTRIBUTION OF AWARD. SUCH AWARD SHALL BE GIVEN TO  THE  RECIPIENT
 IN  THE  FORM  OF  A  STATE OF NEW YORK MORTGAGE AGENCY LOAN PURSUANT TO
 SUBDIVISION SEVENTEEN-A OF  SECTION  TWENTY-FOUR  HUNDRED  FOUR  OF  THE
 PUBLIC AUTHORITIES LAW.
   6. REPAYMENT. (A) A RECIPIENT OF AN AWARD PURSUANT TO THIS SECTION WHO
 IS NOT A RESIDENT OF THE QUALIFIED PROPERTY FOR A PERIOD OF FIVE CONTIN-
 UOUS  YEARS  SHALL  BE  REQUIRED TO REPAY SUCH AWARD TO THE STATE OF NEW
 YORK MORTGAGE AGENCY.
   (B) IF A RECIPIENT IS REQUIRED TO REPAY ANY PAYMENT OR PAYMENTS TO THE
 AGENCY, THE FOLLOWING PROVISIONS SHALL APPLY:
   (1) IF THE RECIPIENT MOVES LESS THAN TWELVE MONTHS AFTER THE AWARD WAS
 MADE ONE HUNDRED PERCENT OF THE LOAN AMOUNT SHALL BE DUE;
   (2) IF THE RECIPIENT MOVES TWELVE MONTHS TO TWENTY-FOUR  MONTHS  AFTER
 THE AWARD WAS MADE EIGHTY PERCENT OF THE LOAN AMOUNT SHALL BE DUE;
   (3)  IF  THE  RECIPIENT  MOVES TWENTY-FOUR MONTHS TO THIRTY-SIX MONTHS
 AFTER THE AWARD WAS MADE SIXTY PERCENT OF THE LOAN AMOUNT SHALL BE DUE;
   (4) IF THE RECIPIENT MOVES THIRTY-SIX  MONTHS  TO  FORTY-EIGHT  MONTHS
 AFTER  THE AWARD WAS MADE FORTY PERCENT OF THE LOAN AMOUNT SHALL BE DUE;
 AND
   (5) IF THE RECIPIENT MOVES FORTY-EIGHT MONTHS TO  SIXTY  MONTHS  AFTER
 THE AWARD WAS MADE TWENTY PERCENT OF THE LOAN AMOUNT SHALL BE DUE;
   (C) THE INTEREST RATE SHALL BE FIXED AND EQUAL TO THE RATE ESTABLISHED
 BY SECTION EIGHTEEN OF THE STATE FINANCE LAW.
   (D) WHERE A RECIPIENT HAS DEMONSTRATED EXTREME HARDSHIP AS A RESULT OF
 A  DISABILITY, LABOR MARKET CONDITIONS, OR OTHER SUCH CIRCUMSTANCES, THE
 AGENCY MAY, IN ITS DISCRETION, WAIVE OR DEFER PAYMENT, EXTEND THE REPAY-
 MENT PERIOD, OR TAKE SUCH OTHER APPROPRIATE ACTION.

 A. 8680                             3
 
   § 2. Section 2404 of the public authorities law is amended by adding a
 new subdivision 17-a to read as follows:
   (17-A)  TO ISSUE LOANS TO RECIPIENTS OF THE NEW YORK STATE DIPLOMAS TO
 HOMEOWNERSHIP PROGRAM PURSUANT TO SECTION SIX HUNDRED SEVENTY-NINE-J  OF
 THE EDUCATION LAW;
   §  3. The sum of five million dollars ($5,000,000), or so much thereof
 as may necessary, is hereby appropriated to the state of New York  mort-
 gage  agency out of any moneys in the state treasury in the general fund
 to the credit of the New York state diplomas to  homeownership  program,
 not  otherwise  appropriated,  and  made  immediately available, for the
 purpose of carrying out the provisions of this act. Such moneys shall be
 payable on the audit and warrant of the comptroller on  vouchers  certi-
 fied  or approved by the state of New York mortgage agency in the manner
 prescribed by law.
   § 4. This act shall take effect immediately.