NY State Senate Bill 2017-S3805

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to housing, construction and community development
Jan 27, 2017	referred to housing, construction and community development

co-Sponsors

2017-S3805 (ACTIVE) - Details

See Assembly Version of this Bill:: A4496
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:: 2015-2016: S5594, A6898
2019-2020: S2207, A4910
2021-2022: S3369
2023-2024: S1280

2017-S3805 (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.

2017-S3805 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3805

 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
communities 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 establish a subsidy for middle income home ownership up
to $125,000 to increase the likelihood of ownership by persons of
color in urban communities.

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 disparities 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 economists 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 depreciation, 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-occupied 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 :

2015-16: S.5594/A.6898(Blake)- Referred to Housing, Construction and
Community Development.

 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.

2017-S3805 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3805
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2017
                                ___________
 
 Introduced  by  Sen.  BAILEY -- 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.
   §  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.

                                                            LBD00164-01-7

 S. 3805                             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.
   § 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.
   § 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.
   §  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.
   §  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.
   § 255. FUNDING FOR THE MIDDLE INCOME HOME OWNERSHIP  SUBSIDY  PROGRAM.
 FUNDING  SHALL BE OBTAINED BY USING FUNDS FROM THE COMMUNITY DEVELOPMENT
 BLOCK GRANT.
   § 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.

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Senate Bill S3805

Sponsored By

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

co-Sponsors

2017-S3805 (ACTIVE) - Details

2017-S3805 (ACTIVE) - Summary

2017-S3805 (ACTIVE) - Sponsor Memo

2017-S3805 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3805

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Sponsored By

Jamaal T. Bailey

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

co-Sponsors

Luis R. Sepúlveda

2017-S3805 (ACTIVE) - Details

2017-S3805 (ACTIVE) - Summary

2017-S3805 (ACTIVE) - Sponsor Memo

2017-S3805 (ACTIVE) - Bill Text download pdf

Comments