Commission on Quality of Care and
Advocacy for
Persons with Disabilities
Home Ownership for New
Yorkers
with Disabilities:
No Longer Just A Dream
by Michael Peluso, NYS Client Assistance Program Coordinator
[First published, Quality of Care Newsletter, Issue 81, Spring 2001]
At the heart of the American dream is home ownership, and several
NYS home ownership programs are making that dream a reality for
thousands of New Yorkers with disabilities.
Home of Your Own - OMRDD
The Office of Mental Retardation and Developmental Disabilities
(OMRDD) and the State Of New York Mortgage Agency (SONYMA)
have partnered to make available $2 million statewide for low interest
mortgage loans (typically 4 percent) to first-time home owners with
developmental disabilities. To qualify, a New Yorker with a
developmental disability must be at least age 18 and identified as an
owner on the mortgage and deed. Loans can be made up to 100% of
the cost of the home. This means there is no down payment required;
however, closing costs, legal fees, tax escrow requirements etc., are
not covered by the mortgage.
OMRDD’s Housing Division accepts initial applications, establishes
eligibility, refers potential borrowers for home buyers training and
provides other necessary technical assistance. Applicants are then
referred to the Mortgage & Trust (M&T) Bank with eleven participating
branches/regional representatives statewide.
M&T will determine the maximum loan limit based on the amount of
monthly resources available for housing payments. Maximum loan
amounts are generally linked to 36 percent of the total borrowers
monthly income. One of the many unique aspects of the program is
M&T’s willingness to rely on unearned income from sources like Social
Security Disability Insurance (SSDI) and Supplemental Security
Income (SSI). The income from family members may also be
considered in qualifying for a loan.
To qualify, the applicants income cannot exceed 80 percent of the
median income for the region in which the applicant resides. In Albany
County for example the applicants income cannot exceed
approximately $30,000 per year.
For additional information and/or an application contact: Mr. Robert
Davies or Mr. Peter Sheridan at OMRDD: (518)-473-1973.
Home of Your Own - OMH
The NYS Office of Mental Health (OMH) and the State Of New York
Mortgage Agency (SONYMA) offers the identical program for New
Yorkers with psychiatric disabilities.
For additional information and/or an application contact: Ms. Sue
Martin at (518) 474-5191.
HOME Program
The U.S. Department of Housing and Urban Development and New
York State offer grants to low income families through the HOME
program. HOME grants are typically used for a down payment on a
first-time home. As recently as last month, HUD Secretary Mel
Martinez and Governor George Pataki awarded statewide HOME grants
to local not-for-profits totaling $21.6 million.
The New York State HOME Program is administered by the New York
State Housing Trust Fund Corporation (HTFC). The program uses
federal HOME Investment Partnership Program funds to expand the
supply of decent, safe, and affordable housing within the State.
The HOME Program funds a variety of activities through partnerships
with counties, towns, cities, villages, private developers, and
community-based non-profit housing organizations. The program
provides funds to acquire, rehabilitate, construct housing, or to provide
assistance to low-income home-buyers and renters. HOME program
funds may only be used to assist households with incomes at or below
80% of area median income.
The nature of each local HOME program varies, based on the priorities
of the local housing program. Many HOME funded programs provide
gap funding for down payments, closing costs, repairs, etc., and offer
home buyer education.
For more information and to identify the agency that administers the
HOME program in your area call the Division of Housing and
Community Renewal (DHCR) 518-402-7377.
Section 8 Housing Vouchers
New Yorkers with disabilities currently receiving a Section 8 rental
subsidy may soon be able to use the subsidy for mortgage payments.
This is a new option limited to existing Section 8 recipients. Local
public housing agencies (PHA’s) can decide whether or not to offer this
option and can limit eligibility for the program. For more information,
or to encourage local participation, call your local PHA.
Under the Section 8 home ownership option, persons with a disability
must secure their own financing for the purchase of the home; the
Section 8 housing assistance will assist with the monthly payments. A
home may be purchased by one or several family members along with
the Section 8 recipient if they hold joint title to the home.
By combining the Home of Your Own financing (above) with the
Section 8 home ownership option, the prospects for home ownership
dramatically improve. For example, a New Yorker with a
developmental disability or psychiatric disability receiving a $750 SSDI
benefit and has a Section 8 housing subsidy could qualify for a
mortgage at approximately $85,000 or higher if another family
member has additional income and shares in the title on the home!
The Section 8 home ownership program is currently available only in
Suffolk, Ulster, Westchester, and Putnam counties, and the City of
Yonkers. Contact your local disability service or advocacy groups and
your local public housing authority to establish this program in your
county.
Real Property Tax Exemptions
New York State Law (Section 459-c of the Real Property Tax Law)
gives local governments and public school districts the option on
granting a reduction in the amount of property taxes paid by qualifying
New Yorkers with disabilities. To qualify, an individual must be
receiving Social Security Disability Insurance (SSDI), and/or
Supplemental Security Income (SSI), or have a significant disability
documented by one of the following: the Railroad Retirement Board,
the State Commission for the Blind and Visually Handicapped (CBVH),
or the United States Postal Service (former postal employees on
disability pension).
The basic exemption is a 50 percent reduction in the assessment value
of the legal residence of the qualifying person with a disability. For the
basic exemption, the laws allow each county, city, town, village, or
school district to set the maximum income limit for participating at any
figure between $3,000 and $20,500 gross income.
Localities have the further option of giving exemptions of less than 50
percent to qualifying individuals with disabilities whose income is more
than $20,500. This" sliding scale" option allows a qualifying owner to
benefit from a 5 percent reduction in the home’s assessed value when
gross family income is up to $28,899 in localities offering the
maximum benefit.
To determine if your county, city, town, village, and/or school district
are participating in these local options, contact your local assessor’s
office, the local government clerk’s office and/or your school district.
For additional information contact the NYS Office of Real Properties at
(518) 486-5446, or visit their website at: www.orps.state.ny.us and
click on "Publications/Forms" and "Q" for questions and answers on
"Exemption for Persons with Disabilities and Limited Incomes."
***
An additional homeownership program available to all low-and
moderate income New Yorkers is SONYMA’s Low Interest Rate
Mortgage Program, call 800-382-4663 ; website: www.nyhomes.org.
If home ownership figures into your American dream, contact the
programs above or the Division of Housing and Community Renewal
(DHCR) upstate/ 518-402-7377, NYC/ 212-480-4543, or the website:
www.dhcr.state.ny.us for more information.
Special thanks to Mr. Rob Davies and Mr. Peter Sheridan at OMRDD,
Mr. Thomas Butch at OMH, and Mr. Stephen Harrison at the Office of
Real Property Services, for their contribution to this summary and to
advancing homeownership for New Yorkers with disabilities.