Kemp Hannon announced, following the Long Island Senate Delegation's request, Long Island's purchase price and income eligibility limits for State of New York Mortgage Agency (SONYMA) financing have been increased. SONYMA offers mortgages with low-interest rates, low down payments and closing-cost assistance to eligible homebuyers.

"Since 1995, New York State has spent over $1.5 billion to expand the availability of affordable housing on Long Island," Senator Hannon said. "Ensuring that our children have the opportunity to raise their own families on Long Island is critically important and the SONYMA program is one way that New York State helps to make that possible. I thank the federal government for responding to our request and enabling more Long Islanders to realize the 'American dream.'"

Since 2000, median home prices in Nassau and Suffolk counties have risen by over 90 percent. Currently, Nassau and Suffolk counties' median home prices are $477,355 and $397,450, respectively. These figures dramatically exceeded the maximum $370,530 purchase price for SONYMA mortgages on Long Island.

Because SONYMA mortgages are funded through the issuance of special bonds authorized by the federal Internal Revenue Code, Senator Hannon and Long Island's nine-member State Senate Delegation contacted the United States Internal Revenue Service (IRS) to petition for an increase in the applicable purchase price Feb. 27.

Following the Long Island Senate Delegation's request, the IRS issued new regulations increasing the maximum purchase price on Long Island for SONYMA mortgages to $429,610 (90 percent of Long Island's median home value).

Under federal law, SONYMA's purchase price limit cannot exceed 90 percent of the region's median home price. This figure rises to $525,090 for homes located in "target" areas and higher for multi-family homes, which on Long Island are Glen Cove, Village of Hempstead, Freeport, Island Park, Long Beach, Bay Shore and Noyack. Moreover, Long Island's household income limit was raised to $91,770 (from $88,850) for one- and two-family homes in non-target areas and $109,200 (from $106,620) in target areas.

Long Island families with a household income less than $64,240 are now eligible for even lower interest rates through SONYMA's "Achieving the Dream" mortgage program. In addition, Long Island was separated from the New York City region. This will enable SONYMA's maximum purchase price to more accurately reflect the tremendous growth in Long Island's housing market.

Between 1995 and August 2005, SONYMA financed 2,085 mortgages in Nassau County (totaling $264 million) and 6,825 in Suffolk County (totaling $863 million). These sums represent nearly 27 percent of all SONYMA's loans - or almost twice Long Island's share of the state population.