Memorandum In Support of A8018 Sweeney

The Long Island Builders Institute is pleased to support A8018 Sweeney that would establish a mortgage tax exemption for developers of affordable housing.

The bill would make eligible for a mortgage tax exemption for single family homes sold to individuals and families whose income does not exceed 120% of the HUD’s median income guideline by County based on family size.

Additionally development of rental housing with at least 40% of apartments to be occupied by persons and families whose income does not exceed 120% of the HUD median income would be entitled to a mortgage tax exemption.

The mortgage tax is 1% of a home or apartment project mortgage. The homeowner exemption could mean reductions of up to $2500 on closing costs. The exemption on rental housing could provide savings for $100,000 for every $10 million of construction.

The proposal will add another tool to the public’s toolbox for providing badly needed decent homes affordable to working families and seniors.

In the absence of increased State subsidies for affordable housing, mortgage tax exemptions would appear to be a useful method of reducing cost of providing affordable housing.

Respectfully submitted,
Robert A. Wieboldt
Executive Vice President
Legislative Agent