SONYMA Offers Closing Cost Assistance and Low Cost Mortgages to Buyers of New Energy Efficient Homes

NEW YORK, NY (04/08/2008)(readMedia)-- The State of New York Mortgage Agency (SONYMA) announced today that it will offer closing cost assistance and low cost mortgages to homebuyers who purchase new energy efficient homes under the New York ENERGY STAR® Labeled Homes Program, which encourages the construction of energy efficient homes.

“Energy efficiency is a key component to building affordable housing because efficient homes are less costly to maintain,” said Priscilla Almodovar, President and Chief Executive Officer of SONYMA. “With this new mortgage product, we encourage the construction of more energy efficient homes, while at the same time offering low cost financing to homeowners who buy an ENERGY STAR home. I’m glad that SONYMA was able to partner with NYSERDA, LIPA and the New York State Builders Association to make this program a reality.”

Paul D. Tonko, President and CEO of New York State Energy Research and Development Authority (NYSERDA), said, “I applaud SONYMA’s plan to offer help to New Yorkers who participate in the ENERGY STAR Labeled Homes Program. NYSERDA has actively worked to address the challenges facing low- and moderate-income families who want to become homeowners. Now, in alliance with SONYMA, we wholeheartedly pledge our commitment to this honorable cause.”

Philip LaRocque, Executive Vice President of New York State Builders Association (NYSBA), said, "The New York State Builders Association is very proud to be a strategic partner with SONYMA in the development of its ENERGY STAR Mortgage program. From the beginning, we saw this exceptional initiative as an opportunity to accomplish two of our key objectives at NYSBA: promote homeownership and encourage energy efficiency through market incentives. We would also like to thank our local affiliate, the Long Island Builders Institute (LIBI), for their part in building a strong bridge to LIPA to get this program started."

Kevin S. Law, President and CEO of Long Island Power Authority (LIPA), said, “LIPA commends the joint efforts of SONYMA and the New York State Builders Association to offer savings to new home owners who purchase ENERGY STAR homes in New York State. To date, seven of Long Island’s 13 towns have passed laws requiring new construction of homes to meet ENERGY STAR Homes Standards resulting in over 500 ENERGY STAR homes built throughout LIPA’s service territory. The financial assistance that will be offered by SONYMA will enhance the incentives currently offered by LIPA and set bold new models not only for New York, but for the rest of the country.”

The New York ENERGY STAR Labeled Homes Program was created by NYSERDA and the NYSBA to encourage the construction of energy efficient one- to four-family homes in New York State. LIPA also participates in the New York ENERGY STAR Labeled Homes Program for Long Island residents.

Under the program, builders who construct homes that are 30% more efficient than the average home are entitled to marketing support, technical support, sales tools, training, and financial incentives. In addition, builders and other participants are able to use the ENERGY STAR logo on their homes and corporate promotional materials.

The new SONYMA program will enable borrowers who purchase an ENERGY STAR home and who require closing cost assistance to obtain a SONYMA mortgage at a lower interest rate. The interest rate on SONYMA mortgages obtained with closing cost assistance is normally one-half of one percent higher than the standard SONYMA mortgage. This interest rate differential will be eliminated for purchasers of ENERGY STAR homes who finance their homes with a SONYMA mortgage.

Under SONYMA’s closing cost assistance program, homeowners can borrow up to $5,000 or 5% of the SONYMA mortgage loan amount (whichever is higher) to help pay closing costs. No monthly payments are required and the closing cost assistance loan is forgiven after 10 years.

The program also features:

• Financing up to 100%;
• No borrower points;
• 240-day rate locks;
• Minimum cash contribution of 1% from borrower’s own funds;
• Flexible underwriting guidelines.

More than 11,000 homes have been built under NYSERDA’s New York ENERGY STAR Labeled Homes Program since 2001. Collectively, the program has helped New Yorkers save more than 29 million kilowatt hours of electricity and 1.2 trillion BTUs of gas and oil.

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The State of New York Mortgage Agency was created in 1970 with the mission of helping low- and moderate-income families become homeowners. It offers a variety of low down payment mortgages that provide below-market fixed interest rates, as well as closing cost assistance through a network of participating lenders across the state.

The New York State Energy Research and Development Authority uses innovation and technology to solve some of New York’s most difficult energy and environmental problems in ways that improve the state’s economy.

The New York State Builders Association is the voice of the building industry in New York. Through partnership with its 16 local affiliates and the National Association of Home Builders, it strives to create a favorable business environment and enhance its members’ ability to provide quality housing for all New Yorkers.

The Long Island Power Authority, a non-profit municipal electric provider, owns the transmission and distribution system on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA is the 2nd largest municipal electric utility in the nation in terms of electric revenues, 3rd in terms of customers served and the 7th largest in terms of electricity delivered. In 2006, LIPA outperformed all other overhead electric utilities in New York State in all three major reliability categories. LIPA does not provide natural gas service or own any on-island generating assets. More information about LIPA can be found online at: www.lipower.org.

SONYMA Contact: Philip Lentz, Director of Communications, 212-688-4000 ext. 679, plentz@nyhomes.org

NYSERDA Contact: Colleen Ryan, Director of Communications, 518-862-1090 ext. 3359, cqr@nyserda.org, www.nyserda.org

NYSBA Contact: Lewis A. Dubuque, Director of Communications and Government Relations, (518) 465-2492 ext. 113, lewisd@nysba.com

LIPA Contact: Ed Dumas, Vice President of Communications, (516) 525-LIPA, edumas@lipower.org

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Posted Tuesday April 08, 2008 at 10:00 am by New York State Housing Finance Agency