S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3150
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- 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 private housing finance law, in relation to estab-
   lishing the New York state first home grant program; and to amend  the
   tax law, in relation to excluding the amount of any grant to any first
   time  home  buyer  awarded  or any federal first time home buyer grant
   program from taxable income for the purpose of  calculating  New  York
   adjusted gross income
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "Home Ownership Market Expansion Act" or "HOME Act".
   §  2. The private housing finance law is amended by adding a new arti-
 cle 33 to read as follows:
                                ARTICLE 33
                  NEW YORK STATE FIRST HOME GRANT PROGRAM
 SECTION 1300. PROGRAM ESTABLISHED.
         1301. DEFINITIONS.
         1302. FUNCTIONS OF THE COMMISSIONER.
         1303. PROGRAM REQUIREMENTS.
   § 1300. PROGRAM ESTABLISHED. WITHIN AMOUNTS APPROPRIATED OR  OTHERWISE
 AVAILABLE  THEREFOR,  THE  DIVISION OF HOMES AND COMMUNITY RENEWAL SHALL
 ESTABLISH A FIRST HOME GRANT PROGRAM.
   § 1301. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "FIRST TIME HOME BUYER" SHALL MEAN AN INDIVIDUAL OR INDIVIDUALS, AT
 LEAST ONE OF WHOM HAS NOT HAD AN OWNERSHIP INTEREST IN A PRINCIPAL RESI-
 DENCE  AT  ANY  TIME, INCLUDING RESIDENCES OWNED IN THE UNITED STATES OR
 ABROAD. NO SUCH INDIVIDUAL SHALL OWN ANY OTHER HOME  INCLUDING  VACATION
 OR  INVESTMENT  RESIDENCES,  INCLUDING  RESIDENCES  OWNED  IN THE UNITED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00343-01-5
              

 S. 3150                             2
 
 STATES OR ABROAD, EXCEPT AS OTHERWISE PROVIDED IN THIS  SUBDIVISION.  IF
 AN  INDIVIDUAL'S ONLY POTENTIALLY DISQUALIFYING PRESENT OWNERSHIP INTER-
 EST IS OWNERSHIP OF A MOBILE OR MANUFACTURED HOME, THE INDIVIDUAL  SHALL
 BE  CONSIDERED A FIRST TIME HOME BUYER. FOR THE PURPOSES OF THIS ARTICLE
 A "MOBILE OR MANUFACTURED HOME" SHALL MEAN A STRUCTURE THAT IS VALUED AS
 PERSONAL PROPERTY AND NOT REAL PROPERTY. IF, DUE  TO  SUCH  INDIVIDUAL'S
 OWNERSHIP  OF A MOBILE OR MANUFACTURED HOME, SUCH INDIVIDUAL HAS CLAIMED
 A REAL ESTATE TAX  OR  HOME  MORTGAGE  DEDUCTION  ON  SUCH  INDIVIDUAL'S
 PERSONAL  INCOME  TAX RETURNS, SUCH INDIVIDUAL SHALL NOT BE CONSIDERED A
 FIRST TIME HOME BUYER REGARDLESS OF WHETHER THE MOBILE  OR  MANUFACTURED
 HOME WAS CONSIDERED PERSONAL OR REAL PROPERTY.
   2.  "OWNERSHIP  INTEREST"  SHALL  MEAN  A FEE SIMPLE INTEREST, A JOINT
 TENANCY, A TENANCY IN COMMON, A TENANCY BY THE ENTIRETY, THE INTEREST OF
 A TENANT-SHARE HOLDER  IN  A  COOPERATIVE,  A  LIFE  ESTATE  OR  A  LAND
 CONTRACT.  INTERESTS WHICH DO NOT CONSTITUTE OWNERSHIP INTERESTS INCLUDE
 THE  FOLLOWING:  (A) REMAINDER INTERESTS, (B) A LEASE WITH OR WITHOUT AN
 OPTION TO PURCHASE, (C) A MERE EXPECTANCY TO INHERIT AN  INTEREST  IN  A
 RESIDENCE,  (D) THE INTEREST THAT A PURCHASER OF A RESIDENCE ACQUIRES ON
 THE EXECUTION OF A PURCHASE CONTRACT AND (E) AN INTEREST IN REAL  ESTATE
 OTHER THAN A RESIDENCE.
   3.  "PROGRAM"  SHALL MEAN THE NEW YORK FIRST HOME GRANT PROGRAM ESTAB-
 LISHED PURSUANT TO THIS ARTICLE.
   § 1302. FUNCTIONS OF THE COMMISSIONER. 1. THE COMMISSIONER, IN CONSUL-
 TATION WITH THE STATE COMPTROLLER, SHALL IMPLEMENT THE PROGRAM UNDER THE
 TERMS AND CONDITIONS ESTABLISHED BY THIS ARTICLE.
   2. IN FURTHERANCE OF SUCH IMPLEMENTATION THE COMMISSIONER SHALL:
   (A) DEVELOP AND IMPLEMENT THE PROGRAM IN A MANNER CONSISTENT WITH  THE
 PROVISIONS  OF THIS ARTICLE THROUGH RULES AND REGULATIONS ESTABLISHED IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
   (B) ENGAGE THE SERVICES OF CONSULTANTS ON A CONTRACT BASIS FOR RENDER-
 ING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
   (C) MAKE CHANGES TO THE PROGRAM REQUIRED FOR THE PARTICIPANTS  IN  THE
 PROGRAM TO OBTAIN THE STATE BENEFITS OR TREATMENT PROVIDED BY THIS ARTI-
 CLE;
   (D) CHARGE, IMPOSE AND COLLECT ADMINISTRATIVE FEES AND SERVICE CHARGES
 IN  CONNECTION  WITH  ANY AGREEMENT, CONTRACT OR TRANSACTION RELATING TO
 THE PROGRAM;
   (E) DEVELOP MARKETING PLANS AND PROMOTION MATERIALS;
   (F) ESTABLISH THE METHODS BY WHICH THE GRANTS BE DISPERSED;
   (G) ESTABLISH THE METHOD BY WHICH FUNDS SHALL BE ALLOCATED TO PAY  FOR
 ADMINISTRATIVE COSTS; AND
   (H)  DO  ALL  THINGS NECESSARY AND PROPER TO CARRY OUT THE PURPOSES OF
 THIS ARTICLE.
   § 1303. PROGRAM REQUIREMENTS. 1. AMOUNTS FROM A GRANT UNDER THIS ARTI-
 CLE SHALL BE USED ONLY TO PROVIDE ASSISTANCE:
   (A) ON BEHALF OF A FIRST TIME HOME BUYER QUALIFIED UNDER THIS ARTICLE;
 AND
   (B) FOR:
   (I) COSTS IN CONNECTION WITH THE ACQUISITION,  INVOLVING  AN  ELIGIBLE
 MORTGAGE LOAN, OF AN ELIGIBLE HOME, INCLUDING DOWNPAYMENT COSTS, CLOSING
 COSTS,  AND  COSTS  TO REDUCE THE RATES OF INTEREST ON ELIGIBLE MORTGAGE
 LOANS;
   (II) SUBSIDIES TO MAKE SHARED EQUITY HOMES AFFORDABLE TO  HOME  BUYERS
 BY DISCOUNTING THE PRICE FOR WHICH THE HOME WILL BE SOLD AND TO PRESERVE
 THE AFFORDABILITY OF THE HOME FOR SUBSEQUENT HOME BUYERS; AND
 S. 3150                             3
 
   (III)  PRE-OCCUPANCY HOME MODIFICATIONS REQUIRED TO ACCOMMODATE QUALI-
 FIED HOME BUYERS OR MEMBERS OF THE HOME BUYER'S HOUSEHOLD WITH DISABILI-
 TIES.
   2. ANY GRANT AWARDED PURSUANT TO THIS ARTICLE:
   (A)  MAY BE PROVIDED ON BEHALF OF ANY FIRST TIME HOME BUYER ONLY ONCE;
 AND
   (B) SHALL BE IN THE TOTAL AMOUNT OF TEN THOUSAND DOLLARS.
   3. GRANT AMOUNTS RECEIVED BY A FIRST TIME HOME BUYER PURSUANT TO  THIS
 ARTICLE  SHALL  BE  CONSIDERED  TO SUPPLEMENT ANY OTHER STATE OR FEDERAL
 ASSISTANCE PROVIDED TO SUCH HOME BUYER FOR THE ACQUISITION OF SUCH HOME.
   4. ANY FIRST TIME HOME BUYER AWARDED A GRANT PURSUANT TO THIS  ARTICLE
 SHALL MAINTAIN PRIMARY RESIDENCE AT SUCH PROPERTY FOR A FIVE YEAR PERIOD
 FOLLOWING  ACQUISITION  OF SUCH PROPERTY. THE COMMISSIONER SHALL REQUIRE
 THAT ANY FIRST TIME HOME BUYER AWARDED A GRANT PURSUANT TO THIS  ARTICLE
 WHO  FAILS  OR CEASES TO OCCUPY THE PROPERTY ACQUIRED USING SUCH ASSIST-
 ANCE AS THE PRIMARY RESIDENCE OF SUCH HOME BUYER, EXCEPT IN THE CASE  OF
 ASSISTANCE PROVIDED IN CONNECTION WITH THE PURCHASE OF A PRINCIPAL RESI-
 DENCE  THROUGH  A  SHARED  EQUITY HOMEOWNERSHIP PROGRAM, SUCH HOME BUYER
 SHALL REPAY TO THE COMMISSIONER A PROPORTIONAL AMOUNT OF THE  ASSISTANCE
 SUCH HOME BUYER RECEIVES BASED ON THE NUMBER OF YEARS THE HOME BUYER HAS
 OCCUPIED THE ELIGIBLE HOME.
   § 3. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 48 to read as follows:
   (48)  THE  AMOUNT  OF  ANY  GRANT TO ANY FIRST TIME HOME BUYER AWARDED
 PURSUANT TO ARTICLE THIRTY-THREE OF THE PRIVATE HOUSING FINANCE  LAW  OR
 ANY  FEDERAL FIRST TIME HOME BUYER GRANT PROGRAM SHALL NOT BE CONSIDERED
 TAXABLE INCOME FOR THE PURPOSE OF CALCULATING NEW  YORK  ADJUSTED  GROSS
 INCOME,  IRRESPECTIVE  OF  WHETHER  IT  IS CONSIDERED TAXABLE INCOME FOR
 FEDERAL INCOME TAX PURPOSES.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the  commissioner  of
 the  division  of  housing and community renewal and the comptroller are
 authorized to promulgate any rules or regulations necessary to implement
 the provisions of this act on its  effective  date  on  or  before  such
 effective date.