BILL NUMBER: S2701

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to expanding
eligibility for the low interest rate program of the state of New York
mortgage agency

 
PURPOSE OR GENERAL IDEA OF BILL:

To expand eligibility for the Low Interest Rate Program (LIRP) of the
State of New York Mortgage Agency (SONYMA) to graduates of post second-
ary education or a comparable apprenticeship or workforce training
programs for a period of seven years after graduation.  Qualifying indi-
viduals will be eligible for a thirty-year mortgage at a rate of 1.5%
lower than the standard interest rate offered for a period of 10 years
for the acquisition of owner occupied residential properties in cities
under 1 million that have been determined to be economically depressed
or facing population loss as determined by the New York State Department
of Homes and Community Renewal.

              

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one adds section 457-a which expands eligibility for low inter-
est rate program of the State of New York Mortgage Agency

(SONYMA) to graduates of postsecondary education for a period of seven
years after graduation to participate in Low Interest Rate Program
(LIRP) with SONY-MA; a thirty-year mortgage at 1.5% lower than the stan-
dard interest rate offered for a period of 10 years and, directs the
Commissioner of SONYMA to promulgate rules and regulations necessary for
the adminis- tration of the program.

Section two sets the effective date.

 
JUSTIFICATION:

The purpose of this legislation is to encourage homeownership in regions
in New York that are economically distressed neighborhoods by providing
support to young professionals with student loan debt as well as young
people who have taken advantage of all of New York's investment in work-
force development and apprenticeship programs, to help them purchase
homes and grow their roots in Western New York.

Support to first-time homebuyers is a sound investment and a critical
component of our overall effort to strengthen area neighborhoods.  This
legislation will help address several issues facing Western New York,
including the exodus of college graduates from the City of Buffalo,
blight created by vacant housing within the City, and the low rate of
home ownership in distressed neighborhoods. It aims to entice recent
college graduates, who are often balancing rent and student loans, to
make a long-term investment in Buffalo's future by buying homes in
disadvantaged areas of Western New York.

While Buffalo is in the midst of an economic resurgence, it still faces
a housing crisis. As of the 2010 Census, Buffalo had a vacancy rate of
over 15 percent, with the 2012 American Community Survey reporting over
23,000 vacant units throughout the city. At the same time, local fami-
lies continue to watch their children and grandchildren leave the area
after graduating from college. As growth continues through the region
and new jobs are created, this bill will encourage more of these new
workers to buy homes in the city.

 
PRIOR LEGISLATIVE HISTORY:

2017-18 S.652 Referred to Local Government

2015-16: S.665 Referred to Rules

2013-14: REFERRED TO RULES

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law. Effective immediately, the addition, amendment and/or repeal
of any rule or regulation necessary for the implementation of this act
on its effective date is authorized and directed to be made on or before
such effective date.