New York 2025-2026 Regular Session

New York Assembly Bill A00787

Introduced
1/8/25  
Refer
1/8/25  

Caption

Establishes the New York state first home grant program; directs the commissioner of homes and community renewal, in consultation with the state comptroller, to implement such program; provides assistance on behalf of a first time home buyer qualified for such program; and for 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; 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 pre-occupancy home modifications required to accommodate qualified home buyers or members of their household with disabilities; excludes 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.

Summary

The bill A00787, known as the 'Home Ownership Market Expansion Act' or 'HOME Act', establishes the New York State First Home Grant Program aimed at assisting first-time home buyers. The program will provide grants of up to $10,000 to eligible individuals to help cover costs associated with purchasing a home, including down payments, closing costs, and interest rate reductions on eligible mortgage loans. Additionally, the program aims to make shared equity homes more affordable and to support necessary home modifications for buyers with disabilities.

Impact

This legislation amends the private housing finance law and the tax law in New York, creating a new framework for first-time home buyer assistance. It will not only provide financial support to individuals entering the housing market for the first time but also exclude these grant amounts from taxable income when calculating New York adjusted gross income. This change is expected to enhance home ownership opportunities and stimulate the housing market by making it more accessible to new buyers.

Sentiment

The sentiment surrounding the bill appears to be generally positive, as it addresses the critical issue of housing affordability for first-time buyers. Discussions in committee have highlighted the importance of supporting new homeowners and the potential economic benefits of increased home ownership. However, there may be concerns regarding the funding and administration of the program, which will need to be addressed as the bill progresses.

Contention

Notable points of contention include the adequacy of funding for the program and the potential administrative burden it may place on the Division of Homes and Community Renewal. Some stakeholders may also raise concerns about the long-term sustainability of the grant program and its impact on the housing market. Additionally, there may be differing opinions on the eligibility criteria for first-time home buyers, particularly regarding those with prior ownership of mobile or manufactured homes.

Companion Bills

NY S03150

Same As Establishes the New York state first home grant program; directs the commissioner of homes and community renewal, in consultation with the state comptroller, to implement such program; provides assistance on behalf of a first time home buyer qualified for such program; and for 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; 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 pre-occupancy home modifications required to accommodate qualified home buyers or members of their household with disabilities; excludes 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.

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