* 1252. Definitions. As used in this article, the following terms shall have the following meanings:
1. "Account" or "first home savings account" shall mean an individual savings account established in accordance with the provisions of this article for the exclusive benefit of the account owner or designated beneficiary that is the first time buyer of a home, townhome, condominium or unit in a cooperative housing corporation.
2. "Account owner" shall mean a taxpayer who enters into a first home savings agreement pursuant to the provisions of this article, including a person who enters into such an agreement as a fiduciary or agent on behalf of a trust, estate, partnership, association, company or corporation.
3. "Designated beneficiary" shall mean, with respect to an account or accounts, the designated individual or individuals whose first home purchase expenses are expected to be paid from the account or accounts.
4. "Financial organization" shall mean an organization authorized to do business in the state, and (a) which is an authorized fiduciary to act as a trustee pursuant to the provisions of an act of congress entitled "Employee Retirement Income Security Act of 1974", as such provisions may be amended from time to time, or an insurance company; and (b)(i) is licensed or chartered by the department of financial services, (ii) is chartered by an agency of the federal government, (iii) is subject to the jurisdiction and regulation of the securities and exchange commission of the federal government, (iv) is any other entity otherwise authorized to act in this state as a trustee pursuant to the provisions of an act of congress entitled "Employee Retirement Income Security Act of 1974", as such provisions may be amended from time to time, (v) or any banking organization as defined in subdivision eleven of section two of the banking law, national banking association, state chartered credit union, federal mutual savings bank, federal savings and loan association or federal credit union.
5. "First time home buyer" shall mean an individual or individuals, neither of whom has or had an ownership interest in a principal residence at any time, including residences owned in the United States or abroad. No such person shall own any other home including vacation or investment residences, including residences owned in the United States or abroad, except as otherwise provided in this subdivision. If either the individual or individuals are not first time home buyers, neither the individual or individuals shall be considered a first time home buyer. If an individual's only potentially disqualifying present ownership interest is ownership of a mobile or manufactured home, the individual shall be considered a first time home buyer and shall be eligible for a first home account deduction. For the purposes of this article a "mobile or manufactured home" shall mean a structure that is valued as personal property and not real property. If, due to his or her ownership of a mobile or manufactured home, the individual has claimed a real estate tax or home mortgage deduction on his or her personal income tax returns, such individual shall not be considered a first time home buyer regardless of whether the mobile of manufactured home was considered personal or real property.
6. "Ownership interest" shall mean a fee simple interest, a joint tenancy, a tenancy in common, a tenancy by the entirety, the interest of a tenant-share holder in a cooperative, a life estate or a land contract. Interests which do not constitute ownership interests include the following: (a) remainder interests, (b) a lease with or without an option to purchase, (c) a mere expectancy to inherit an interest in a residence, (d) the interest that a purchaser of a residence acquires on the execution of a purchase contract and (e) an interest in real estate other than a residence.
7. "Program" shall mean the New York first home savings program established pursuant to this article.
8. "Qualified first home purchase expenses" shall mean monies applied for the purchase or construction of a house, townhouse, condominium or unit in a cooperative housing corporation within the state to be used as a primary residence of the account owner or designated beneficiary for a period of not less than two years after purchase.
9. "Qualified residential housing" shall mean a house, townhouse, condominium or unit in a cooperative housing corporation within the state.
10. "Qualified withdrawal" shall mean a withdrawal from an account to pay the qualified first home purchase expense of the account owner or designated beneficiary of the account.
11. "Nonqualified withdrawal" shall mean a withdrawal from an account but shall not include:
(a) a qualified withdrawal;
(b) a withdrawal made as the result of death;
(c) an unforeseeable emergency; or
(d) need based upon qualifying for military service in the armed forces of the United States as determined by rules an regulations promulgated by the comptroller.
12. "Comptroller" shall mean the state comptroller.
13. "Management contract" shall mean the contract executed by the comptroller and a financial organization selected to act as a depository and manager of the program.
14. "First home savings agreement" shall mean an agreement between the comptroller or a financial organization and the account owner.
15. "Program manager" shall mean a financial organization selected by the comptroller to act as a depository and manager of the program.
16. "Commissioner" shall mean the commissioner of taxation and finance.
* NB Effective June 16, 2018
Last modified: February 3, 2019