NYSAR’s Statement on Governor Hochul’s 2025 priorities

Purchasing a home in New York State remains unaffordable for too many, which is why we are happy to learn that Governor Kathy Hochul has incorporated in her 2025 planning a strategy long supported by NYSAR to incentivize down payment savings.

NYSAR has championed legislation to help residents save for down payment and closing costs associated with the purchase of a home.  In 2024, a bill proposed by NYSAR was introduced by Senator Jeremy Cooney (Rochester) and Assemblyman Phil Ramos (Suffolk County) that would create a state tax deductible savings account for New York first-time home buyers, operating like the state’s existing 529 College Savings program.

Although the details of Governor Hochul’s proposal are still unknown, it appears she is considering a similar program, and we urge her to incorporate the NYSAR plan in her budget proposal.

There are many benefits to this approach.  Assisting New Yorkers to afford our state’s notoriously high closing costs would help clear a significant hurdle to home buying.  Additionally, saving to provide larger down payments allows borrowers to avoid higher interest rates and fees, including private mortgage insurance (PMI).

The governor is proposing other home buying incentive programs that NYSAR will evaluate once specifics are available.