I own a home financed by a state program that I wish to sell. What information do I need to know before putting my house on the market?

 The State of New York Mortgage Agency (SONYMA) finances its Low Interest Rate Mortgage Program from the sale of tax-exempt mortgage revenue bonds (MRB's). Federal law provides that after December 31, 1990, homeowners who receive a loan financed with proceeds from MRB's may be required to repay 'recapture tax' at the time of the sale or disposition of the home. For details click on More Info below. A more detailed explanation of recapture tax as it effects your particular situation should be obtained from your tax advisor. SONYMA does not provide individual tax advice. If you are selling a home that was financed with a grant from the New York State Affordable Housing Corporation (AHC) before the 10-year occupancy period has expired, you should contact your local grantee. You may be required to sell to an income eligible buyer who will assume the remaining portion of the grant or you may be responsible for paying back the remaining portion of the grant. You can contact AHC to verify your occupancy period and pay-off amount by sending an e-mail to Carolinet@nyhomes.org.

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Information on recapture tax
List of frequently asked questions about recapture tax.
URL: http://www.nyhomes.org/home/index.asp?page=301