New York Governor Kathy Hochul is serious about her “Money in Your Pockets” agenda. One of her latest plans is to assist first-time homebuyers with grants, and she detailed the proposal during the State of the State address on January 14, 2025, in Albany, NY. This program is among several that Governor Hochul has in mind to provide financial relief to residents of her state, and it will likely be added to the budget plan before the end of the month.
Governor Kathy Hochul gives more good news at NY State of the State address
Democrat Governor Kathy Hochul outlined her agenda for 2025 in the New York State of the State speech. Within a few days, she will present her budget detailing the proposals and embark on two months of budget negotiations with state lawmakers.
Governor Hochul’s broader efforts aim to address the state’s stiflingly high costs and make day-to-day living more affordable for New Yorkers. Some efforts have included raising the state’s Child Tax Credit and plans to distribute checks of up to $500 to taxpayers to offset the effects of inflation.
First-time homebuyers can apply for financial assistance with their down payments
New Yorkers looking to buy a first home but struggling to come up with the down payment could be eligible for state assistance. Governor Hochul has proposed setting aside $51 million of state funds to ease citizens into homeownership, which is targeted specifically at low and moderate-income households. Hochul acknowledged the struggles that New Yorkers face:
“The cost of living is just too damn high — especially when it comes to the sky-high rents and mortgages New Yorkers pay every month.”
No details about who qualifies and how much they would receive are available yet, but Governor Hochul made it clear that the intention of the program is to make homeownership more possible for more people on the lower end of the earning scale. More information will be provided in the proposed budget.
Are New Yorkers also in line for a property tax reduction?
In another effort to reduce the pressure of housing costs on New Yorkers’ budgets, Governor Hochul has proposed a property tax reduction for buyers who bought their homes with some form of aid from a government agency or nonprofit organization, or for others who bought homes at below-market prices.
She explained in a press release ahead of the State of the State address that the homes were made affordable for lower-income buyers, but the taxes are still assessed according to market value. Hochul explained that the tax reduction would require “local opt-in” from each jurisdiction (school districts, municipalities, and counties), which could decide whether to offer the reduction to qualifying homeowners or not.
No details are available about who would qualify, how much the tax reduction would be, or how long the plan would be in place, but this information is also expected in the proposed budget.
What other plans does Governor Hochul have for New York?
New York Governor Kathy Hochul has other items on her to-do list under the “Money in Your Pockets” agenda:
- Detering and disincentivizing private equity firms and institutional investors from purchasing homes by outbidding the average buyer just to earn rental income.
- Offering $50 million in state subsidies for construction as incentives for developers to build starter homes.
- Cracking down on discriminatory appraisals that make it more difficult for minorities to buy homes and establish generational wealth.
Governor Hochul hasn’t announced a date for her budget presentation, but it’s required by law that the plans be delivered to the legislature by January 21. With a reelection coming up in 2026, Hochul’s Democratic administration will be hoping that they’re doing enough to improve the lives of their citizens to secure a majority vote next year.
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