Legislation of the Week: NYS Senate Bill 8521

NYS Senate Bill 8521

An act to amend the public authorities law, in relation to establishing the “New York student loan assistance and home purchase act”

Senator Luis Sepúlveda’s (D-32) Bill 8521 would organize homeownership for New York citizens who are burdened with student debt. It would amend the public authority’s law by creating Section 2405-g, making a “student loan assistance and home purchase program.” The program would help accepted individuals who apply by consolidating their student loans into their mortgages. There would be no limit to the student loan debt number that could be included – unless the law says otherwise. Individuals accepted into this program would have to stay in the purchased home as their primary residence for the minimum of five years from closing.

The bill memo states that “the commissioner of housing and community renewal shall promulgate rules and regulations.” Eligibility requirements for applicants and interest rates, penalties and charges would be determined by the commissioner of housing and community renewal. Bill 8521 is currently residing in the corporations, authorities and commissions committee, where it will be voted on. It is unclear when or if the bill will be voted on this fiscal year. If enacted, the act would take 180 days to become law. Bill 8521 currently has no co-sponsors, making it difficult to move pass the committee and onto the voting floor.