BILL NUMBER: S8675
SPONSOR: FAHY
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to "CareForce
first-time homebuyers act"
 
PURPOSE:
This legislation directs the State of New York Mortgage Agency (SONYMA)
to establish a dedicated first-time homebuyer program for members of New
York's care workforce, providing below-market mortgage financing and
forgivable down payment assistance to improve housing stability, work-
force retention, and community integration for this essential workforce.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 sets forth the short title of the act as the "CareForce First-
Time Homebuyers Act."
Section 2 contains legislative findings and intent, recognizing that
housing affordability challenges facing New York's care workforce
threaten workforce stability, retention, and quality of care. The
section establishes the Legislature's intent to improve retention and
community integration by directing the State of New York Mortgage Agency
(SONYMA) to provide discounted mortgage financing and forgivable down
payment assistance to eligible care workers.
Section 3 amends section 2404 of the Public Authorities Law to add a new
subdivision authorizing SONYMA to establish and administer the CareForce
First-Time Homebuyers Program pursuant to a new section 2405-g.
Section 4 amends the Public Authorities Law by adding a new section
2405-g to establish the CareForce First-Time Homebuyers Program within
the State of New York Mortgage Agency. The section defines eligible care
workforce occupations; directs the agency to provide below-market mort-
gage financing and forgivable down payment assistance to first-time
homebuyers employed in the care workforce; sets eligibility criteria
related to income, hours worked, and proximity of the purchased home to
employment; requires a 50basis-point mortgage interest rate reduction;
authorizes up to $20,000 in subordinate, forgivable down payment assist-
ance with recapture provisions; permits layering with other housing
assistance programs; authorizes funding through existing bonding author-
ity and appropriations; directs the promulgation of implementing regu-
lations; and requires annual reporting to the Governor and Legislature
on program utilization and workforce outcomes.
Section 5 contains a severability clause to ensure that if any provision
of the act is found invalid, the remainder remains in effect.
Section 6 provides that the act shall take effect on the one hundred
eightieth day after enactment, while authorizing immediate rulemaking to
ensure timely implementation.
 
JUSTIFICATION:
New York's care workforce-particularly direct support professionals,
nursing staff, behavioral health workers, and early intervention and
special education therapists-faces persistent housing affordability
challenges that undermine workforce stability across the state. These
workers provide essential services to older adults, individuals with
disabilities, children, and people with behavioral health and substance
use needs, yet are often priced out of homeownership in the very commu-
nities where they are needed most.
High housing costs contribute directly to turnover, staffing shortages,
and service disruptions across Medicaid-funded and community-based
systems. Research and workforce experience consistently show that stable
housing, including homeownership near one's place of employment,
improves retention, reduces recruitment costs, and strengthens community
ties.
This legislation addresses those challenges by leveraging existing SONY-
MA infrastructure to create a targeted, fiscally responsible homeowner-
ship pathway for the care workforce. The combination of modest interest
rate reductions and forgivable down payment assistance lowers barriers
to entry without creating an ongoing subsidy obligation, while recapture
and forgiveness provisions protect public investment.
By explicitly allowing coordination with local, employer-based, and
federal programs, the bill ensures that the CareForce program comple-
ments-not replaces-existing housing tools. In doing so, the State recog-
nizes the need for this vital workforce to be supported not only through
wages and benefits, but through long-term housing stability that
strengthens both the workforce and the communities they serve.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
Any fiscal impact is expected to be minimal and manageable within exist-
ing SONYMA bonding authority and housing finance mechanisms. Down
payment assistance loans are forgivable only after sustained owner-occu-
pancy or under defined conditions, limiting long-term exposure.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law. Authorization for necessary rulemaking is
effective immediately.

Statutes affected:
S8675: 2404 public authorities law