New York Assembly Bill A04089

New York 2025-2026 Regular Session

• Introduced: 1/31/25
• Refer: 1/31/25
• Refer: 1/7/26

Caption

Establishes the first-time homebuyer assistance program within the state of New York mortgage agency to provide assistance to first-time homebuyers of certain residential units.

Summary

This bill would create a new first-time homebuyer assistance program within the New York State Mortgage Agency. The agency would be directed to establish rules and administer assistance for eligible first-time buyers purchasing qualifying residential units in New York, with the program aimed at helping with down payments, closing costs, or reducing the interest rate on a mortgage loan. The bill defines a first-time homebuyer, a qualifying residential unit, and a qualifying mortgage loan, and limits eligible properties to new construction or newly constructed, owner-occupied homes purchased for no more than $450,000 unless the agency later adjusts that cap under market-based rules. The maximum benefit a buyer could receive is $20,000, and the bill prohibits the developer or builder from raising the home price because program funds are being used. If a recipient sells or refinances before the original mortgage term ends, they must repay the lesser of the assistance received or 50 percent of the home equity amount. The bill also allows the agency to use up to 5 percent of program funds for administration and requires annual reporting to state leaders on program disbursements and any changes to the purchase-price cap.

Impact

The bill would amend the Public Authorities Law by adding a new section authorizing the New York State Mortgage Agency to create and operate a state-funded homebuyer assistance program. It would affect first-time homebuyers, builders and developers of qualifying new residential units, and the agency itself by setting eligibility rules, repayment conditions, administrative limits, and reporting requirements. The measure would also create a new statutory framework for using appropriated funds to support home purchases and for recapturing assistance when homes are sold or refinanced early.

Sentiment

No committee transcript or vote record was provided, so there is no documented debate or recorded sentiment to assess from legislative discussion. Based on the bill text alone, the measure appears to be framed as a housing-affordability and homeownership-support proposal, with a consumer-assistance orientation rather than a regulatory or enforcement focus.

Contention

The main potential points of contention are likely to be the use of public funds for direct homebuyer subsidies, the $450,000 purchase-price cap and the agency’s authority to adjust it, and the restriction to new construction only, which may limit access for buyers of existing homes. Other possible concerns include whether the $20,000 cap is sufficient, whether the repayment/clawback provision is fair to recipients who move or refinance, and whether the program could indirectly affect housing prices despite the anti-price-increase provision. No specific opposing or supporting stakeholders are identified in the provided materials.