New York State Senate Advances Affordable Housing Bill Package Including Incentives for First-Time Homebuyers

ALBANY—The New York State Senate announced on Feb. 4 it had approved legislation to further ensure access to affordable housing for all New Yorkers. The package of bills works to address the needs of homeowners and renters. It establishes the New York State first home savings program to allow first-time homebuyers to open saving accounts that would be eligible for personal income deductions.

The bill package also makes available free homeowner counseling and legal services through the state Homeownership Protection Program and implements a two-year look-back window for Senior Citizen (SCRIE) and Disability Rent (DRIE) increase exemptions to help ensure our state’s seniors and disabled community members can remain in their homes.

Senate Majority Leader Andrea Stewart-Cousins said, “Skyrocketing rents and rising home prices have placed an overwhelming burden on working families, seniors, and those wishing to buy their first home. Since 2019, the Senate Majority has prioritized access to affordable housing with legislative action to protect tenants, build more housing, and create opportunities for homeownership. With this legislative package, we are expanding on those efforts to ensure that renters can stay in their homes, seniors and individuals with disabilities receive the support they need, and first-time homebuyers have the resources to buy a home. Housing should be a source of stability, and we remain committed to ensuring all New Yorkers have access.”

Bill sponsor and Chair of the Senate Committee on Housing, Construction and Community Development, Senator Brian Kavanagh said, “This legislative package exemplifies our commitment to using every tool available to us to ensure that every New Yorker has access to a safe, stable, affordable home. I am proud to sponsor several of these bills, and to work closely with Majority Leader Andrea Stewart-Cousins, all of today’s bill sponsors, and every member of the Democratic Majority, as we continue to address the housing affordability crisis by protecting tenants and homeowners, securing housing for New Yorkers experiencing homelessness, and maintaining and expanding our housing supply.”

New York State Association of Realtors 2025 President Jacqie Rose stated in a report in Harlem World: “We applaud the State Senate for the passage of the New York State First Home Savings Program, modeled after the state’s existing 529 College Savings program. NYSAR is proud to have worked with Senator Cooney in developing the legislation. Our Realtor members see the downpayment hurdles first-time homebuyers face each day, and this legislation provides New Yorkers with an incentive to save for a first home in New York, build generational wealth and achieve the American dream of homeownership.”

The specific legislative measures that were passed by the Senate include:

New York State First Home Savings Program: S.1157, sponsored by Senator Jeremy Cooney, would establish a program to allow first-time homebuyers to establish tax-exempt/deductible savings accounts to buy their first home (Passed Senate Jan. 8).

Establishes a Study on Real Property Tax Saturation: S.265, sponsored by Senator Pete Harckham, would direct the state Board of Real Property Tax Services to conduct a study on real property tax saturation (Passed Senate Dec. 23, 2024).

Transferring Tax Credits for Rehabilitation of Historic Properties: S.2124, sponsored by Senator Brian Kavanagh, would amend the state tax law to authorize the pass-through or transfer of the credits for the rehabilitation of historic properties (Passed Senate Jan. 15).

Ensures Availability of Services through The Homeownership Protection Program: S.2627, sponsored by Senator Brian Kavanagh, will help support the continued availability of free housing counseling and legal services to homeowners through The State Homeowner Protection Program (HOPP) (Passed Senate Jan. 22).

Expands Eligibility for the Low-Interest Rate Program (LIRP): S.3190, sponsored by Senator Brian Kavanagh, would expand eligibility for the Low Interest Rate Program (LIRP) of the State of New York Mortgage Agency (SONYMA) to recent college or apprenticeship graduates and workforce training program graduates for the purchase of mortgages in economically depressed areas (Passed Senate Jan. 24).

Implements an Up to Two-Year Look-Back Period for SCRIE and DRIE: S.2534, sponsored by Senator James Sanders, would provide a lookback period of up to two years to the original date of eligibility for the senior citizen rent increase exemption (SCRIE) and the Disability Rent Increase Exemption (DRIE) (Passed Senate Jan. 21).

Requires Written Justifications for Rent Increases by Home Park Owners: S.228, sponsored by Senator James Skoufis, requires manufactured home park owners to provide a written justification for any rent increases in excess of 3% (Passed Senate Dec. 20, 2024).