NY S00572

Authorizes cities and towns (excluding New York City) to establish community housing funds through local law, funded by a supplemental real estate transfer tax of up to 0.5% on property conveyances exceeding $500, subject to mandatory voter referendum

Defines eligible recipients as first-time homebuyers who are residents or employees of the city/town, with household income not exceeding 100% of state mortgage agency limits and home purchase prices capped at 150% of state mortgage agency limits

Permits fund expenditures for down payment assistance (grants or loans up to 50% of purchase price), direct production of affordable housing, rehabilitation of existing buildings, and housing counseling services through HUD-authorized nonprofits

Requires cities and towns to adopt a housing plan before spending funds, updated every five years, addressing smart growth principles including infrastructure costs, conservation, mixed-use development, and equitable distribution of housing opportunities

Establishes an advisory board of 7-15 residents including representatives from construction, real estate, banking industries, and housing advocacy organizations to review and make recommendations on the housing plan