NY State Senate Bill 2021-S3369

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 05, 2022	referred to housing, construction and community development
Jan 29, 2021	referred to housing, construction and community development

co-Sponsors

2021-S3369 (ACTIVE) - Details

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
2017-2018: S3805
2019-2020: S2207
2023-2024: S1280

2021-S3369 (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.

2021-S3369 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3369

SPONSOR: BAILEY
 
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 decisionòbased 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:

2017-18: S.3805/A.4496(Blake)- Referred to Housing, Construction and
Community Development.
2019-20: S.2207/A.4910(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.

2021-S3369 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3369
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced by Sens. BAILEY, SEPULVEDA -- 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.

                                                            LBD07087-01-1

 S. 3369                             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.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed 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 S3369

Sponsored By

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

co-Sponsors

2021-S3369 (ACTIVE) - Details

2021-S3369 (ACTIVE) - Summary

2021-S3369 (ACTIVE) - Sponsor Memo

2021-S3369 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3369

Share this bill

Sponsored By

Jamaal T. Bailey

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

co-Sponsors

Luis R. Sepúlveda

2021-S3369 (ACTIVE) - Details

2021-S3369 (ACTIVE) - Summary

2021-S3369 (ACTIVE) - Sponsor Memo

2021-S3369 (ACTIVE) - Bill Text download pdf

Comments