Authorizes the dormitory authority to provide financing to the Dutchess Community College Association, Inc. for the construction of facilities for the purpose of financing or refinancing the acquisition, design, construction, reconstruction, rehabilitation, improvement, furnishing and equipping of, or otherwise providing for residential housing located on the campus of Dutchess Community College.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7994B
SPONSOR: Barrett TITLE OF BILL:
An act to amend the public authorities law, in relation to authorizing
the dormitory authority to provide financing to Dutchess Community
College Association, Inc. for the construction of facilities
PURPOSE OF THE BILL:
To allow Dutchess Community. College Association, inc. to be eligible
for Dormitory Authority of the State of New York (DASNY) financing and
construction services through the Dormitory Authority Act.
SUMMARY OF SPECIFIC PROVISIONS:
§ 1: Amends paragraph (b) of subdivision 2 of Section 1676 of the Public
Authorities Law to add Dutchess Community College Association to the
definition of "dormitories."
§ 2: Amends subdivision 1 of Section 1680 of Public Authorities Law to
add Dutchess Community College Association to the definition of "educa-
tional institutions."
§ 3: Effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
Technical amendment.
JUSTIFICATION:
DASNY, a public benefit corporation authorized to issue bonds on behalf
of the state, was first established in 1944 for the financing and
construction of dormitories at eleven state teachers colleges. The
legislature later expanded the scope of the corporation's work to also
include hospitals with nursing schools, court facilities, private
universities, nonprofit healthcare facilities, government agencies,
school districts, certain nonprofit corporations, and other public-serv-
ing institutions. One of the largest financiers of social infrastructure
in the country, DASNY is able to issue bonds which accrue interest on
which the bondholders do not have to pay taxes, thus allowing DASNY to
offer lower interest rates to its clients compared to those in the
commercial loan market. Beyond purely public works, the flexible and
low-cost nature of DASNY's financing and construction services has
rendered it an attractive option for many nonprofit corporations, like
Dutchess Community College Association, Inc., over the years, all of
whom have been expressly granted the authority to work with DASNY under
Title 4 of Public Authorities Law. This legislation seeks to also extend
this eligibility to Dutchess Community College Association,
Inc.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately
