A multimillion-dollar incentive program announced by the state Wednesday will offer financial assistance to recent college graduates looking to buy homes in Oneonta and seven other upstate New York cities.
Oneonta real estate agents and officials said Wednesday that the $5 million "Graduate to Homeownership Program," administered by the State of New York Mortgage Agency, could help keep local college students in the area, strengthening the economy and vitality of the region.
According to a Wednesday media release, the Graduate to Homeownership Program will offer low interest rate mortgages, a down payment assistance loan with no additional fees, and a homebuyer education course to graduates purchasing a home in Oneonta, Jamestown, Geneva, Elmira, Oswego, Plattsburgh, Glens Falls or Middletown, cities that were awarded $10 million Downtown Revitalization Initiative grants last year.
The new program will be available to qualified first-time homebuyers who have graduated from an accredited college or university with an associate's, bachelor's, master's or doctorate degree within the last 48 months, according to the state's release.
"With the launch of this innovative program, we will take our efforts a step further by enticing young graduates to make an investment in these communities and in their future," Cuomo wrote in the announcement. "By removing barriers for talented graduates and allowing them to afford a new home in the Empire State, we are laying the foundation for stronger, more viable communities across New York for generations to come."
There are about 50 single-family homes on the market right now in the city of Oneonta, according to local real estate brokers, and the average price is $128,500.
"Any time there's any kind of incentive to buying local homes, I don't think it could be a bad thing," said Becky Thomas, a broker with Benson Agency Real Estate. "Anything that attracts new buyers and people to the area is good. The State Mortgage Agency offers a very good product. All in all, I don't see a downside."
The State of New York Mortgage Agency provides financing and programs for first-time low- and moderate-income homebuyers in New York, according to the state. Since 2011, SONYMA has provided $1.5 billion in mortgage financing, making homeownership possible for more than 9,000 New Yorkers.
The Graduate to Homeownership Program complements the Downtown Revitalization Initiative, a $100 million program to "transform communities ripe for development into vibrant neighborhoods where the next generation of New Yorkers will want to live and work," according to the state.
Last year, 10 communities across the state — including Oneonta — were awarded $10 million in state funding to revitalize the local neighborhood and generate new opportunities for long-term growth and prosperity.
Mayor of Oneonta, Gary Herzig, said he thinks the Graduate to Homeownership Program is "great news for the city of Oneonta."
"The cities that were chosen for this program are DRI cities with four-year colleges," Herzig explained. "Keeping the young people that graduate from our colleges is a primary goal of ours, and I think this is an important step toward attracting more young people to live and work in the city. We're really trying to build up the affordable housing stock and availability of good-paying jobs at the same time because neither one can be sustained without the other. This program is very exciting."
Barbara Roberts, a broker and realtor with Keller Williams Realty, said "anything we can do to provide an incentive for young people to stay here would be fantastic," but she wasn't so sure the incentive will work.
"Generally speaking, college graduates want to be somewhere exciting," Roberts said. "Those of us who are here love it, but it's not for everyone. It's hard to say whether this would encourage young people to stay here. I think we don't have people coming here because it's an area that appeals to a small pool, not because of a lack of adequate housing. Regardless, we would certainly take advantage of the program and do our best to make young people aware of it."
According to the state, the New York Mortgage Agency is working with a network of homeownership counseling agencies, colleges and universities, and mortgage lenders to ensure participating borrowers are knowledgeable of all resources available to them.
Hal Legg, executive director of communications at SUNY Oneonta, said the college supports "enhancing opportunities for our students to remain members of the community after earning their degrees." Hartwick College officials were not immediately available for comment Wednesday.
"As so many newcomers to our campus discover, the City of Oneonta has much to offer young people," Legg said Wednesday. "The Graduate to Homeownership Program will make living here even more attractive. Helping recent college graduates establish themselves and put down roots will accelerate Oneonta's resurgence."
