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."

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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.