BILL NUMBER: S3190

SPONSOR: KAVANAGH
 
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 standard 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 and other communities
that have been determined to be economically depressed or facing popu-
lation loss.

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 and
other post-industrial cities in New York State, 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 home ownership and to help revitalize New York's struggl-
ing post-industrial cities.

 
PRIOR LEGISLATIVE HISTORY:

2023-24: S.935 Passed Senate

2021-22: S.6232 Passed Senate

2019-20: 5.2701 Passed Senate

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth 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.