Amd §6, Chap 514 of 1983; amd §7, Chap 396 of 1984; amd §16, Chap 915 of 1982; amd §2407, Pub Auth L; amd
§19, Chap 555 of 1989; amd §2, Chap 172 of 2002; amd §4, Chap 208 of 2010; amd §5, Chap 246 of 2010
Makes certain powers of the New York state housing finance agency permanent.
STATE OF NEW YORK
________________________________________________________________________
10446
IN SENATE
May 15, 2026
___________
Introduced by Sen. KAVANAGH -- (at request of the New York State Homes
and Community Renewal) -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development
AN ACT to amend chapter 514 of the laws of 1983 amending the private
housing finance law and the real property tax law relating to the
powers of the New York state housing finance agency and the New York
city housing development corporation to finance certain multi-family
housing, in relation to the effectiveness thereof; to amend chapter
396 of the laws of 1984 amending the private housing finance law and
the real property tax law relating to the powers of the New York state
housing finance agency to finance certain multi-family housing, in
relation to the effectiveness thereof; to amend chapter 915 of the
laws of 1982 amending the public authorities law relating to the
powers of the state of New York mortgage agency, in relation to the
effectiveness thereof; to amend the public authorities law, in
relation to the powers of the state of New York mortgage agency; to
amend chapter 555 of the laws of 1989 amending the public authorities
law and other laws relating to establishing a New York state infras-
tructure trust fund, in relation to the effectiveness thereof; to
amend chapter 172 of the laws of 2002, amending the public authorities
law relating to the powers of the state of New York mortgage agency,
in relation to the effectiveness thereof; to amend chapter 208 of the
laws of 2010 amending the public authorities law relating to the
powers of the state of New York mortgage agency, in relation to the
effectiveness thereof; and to amend chapter 246 of the laws of 2010
amending the public authorities law relating to the powers of the
state of New York mortgage agency, in relation to the effectiveness
thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 6 of chapter 514 of the laws of 1983, amending the
2 private housing finance law and the real property tax law relating to
3 the powers of the New York state housing finance agency and the New York
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15014-01-6
S. 10446 2
1 city housing development corporation to finance certain multi-family
2 housing, as amended by chapter 170 of the laws of 2025, is amended to
3 read as follows:
4 § 6. This act shall take effect immediately [and shall remain in full
5 force and effect until July 23, 2027 at which time it shall be
6 repealed].
7 § 2. Section 7 of chapter 396 of the laws of 1984, amending the
8 private housing finance law and the real property tax law relating to
9 the powers of the New York state housing finance agency to finance
10 certain multi-family housing, as amended by chapter 170 of the laws of
11 2025, is amended to read as follows:
12 § 7. This act shall take effect immediately[, except that sections
13 one, three, four, five and six of this act shall remain in full force
14 and effect until July 23, 2027 at which time such sections shall be
15 repealed].
16 § 3. Section 16 of chapter 915 of the laws of 1982 amending the public
17 authorities law relating to the powers of the state of New York mortgage
18 agency, as amended by chapter 170 of the laws of 2025, is amended to
19 read as follows:
20 § 16. This act shall take effect immediately [except that the amend-
21 ments to law effected by sections one through ten of this act, as
22 amended, shall cease to be of force and effect on and after July 23,
23 2027, on which date the provisions of the public authorities law amended
24 by such sections shall be as they were in force and effect immediately
25 prior to this act taking effect].
26 § 4. Section 2407 of the public authorities law, as amended by chapter
27 170 of the laws of 2025, is amended to read as follows:
28 § 2407. Bond limits. (1) Except for notes issued in nineteen hundred
29 seventy and nineteen hundred seventy-one, the agency shall not issue
30 bonds and notes, the interest on which is not included in the gross
31 income of the holders of the bonds and notes under the United States
32 Internal Revenue Code of 1986, as amended, or any subsequent correspond-
33 ing internal revenue law of the United States, in an aggregate principal
34 amount exceeding ten billion nine hundred twenty million dollars,
35 excluding from such limitation (a) an amount equal to any original issue
36 discount from the principal amount of any bonds or notes issued, (b)
37 bonds and notes issued to refund outstanding bonds and notes, and (c)
38 bonds and notes not described in paragraph (b) of this subdivision
39 issued to refund outstanding bonds and notes in accordance with the
40 provisions of the Internal Revenue Code of 1986 or the Tax Reform Act of
41 1986, as amended, where such bonds or notes are not included in the
42 statewide volume cap on private purpose bonds under section 146 of such
43 code provided, however, that upon any refunding pursuant to this para-
44 graph or paragraph (b) of this subdivision, such exclusion shall apply
45 only to the extent that the amount of the refunding bonds or notes does
46 not exceed (i) the outstanding amount of the refunded bonds or notes,
47 plus (ii) to the extent permitted by applicable federal tax law, costs
48 of issuance of the refunding bonds or notes to be financed from the
49 proceeds of the refunding bonds or notes. [No such bond or note shall
50 be issued by the agency on or after July twenty-third, two thousand
51 twenty-seven, excluding bonds and notes issued to refund outstanding
52 bonds and notes.] No more than two billion four hundred million dollars
53 of proceeds of bonds or notes issued by the agency pursuant to this
54 subdivision shall be used for mortgage purposes by blending with
55 proceeds of bonds issued pursuant to subdivision two of this section.
S. 10446 3
1 (2) In connection with the issuance of bonds for the purpose of
2 furthering programs described in this title, the agency is authorized to
3 covenant and consent that the interest on any of its bonds, notes or
4 other obligations shall be includable, under the United States Internal
5 Revenue Code of 1986, as amended or any subsequent corresponding inter-
6 nal revenue law of the United States, in the gross income of the holders
7 of the bonds to the same extent and in the same manner that the interest
8 on bills, bonds, notes or other obligations of the United States is
9 includable in the gross income of the holders thereof under said Inter-
10 nal Revenue Code or any such subsequent law. Pursuant to this subdivi-
11 sion, the agency shall not issue bonds, notes or other obligations in an
12 aggregate principal amount exceeding one billion nine hundred fifty
13 million dollars, excluding from such limitation bonds, notes or other
14 obligations issued to refund outstanding bonds, notes or other obli-
15 gations. [No such bond, note or other obligation shall be issued by the
16 agency on or after July twenty-third, two thousand twenty-seven, exclud-
17 ing bonds, notes or other obligations issued to refund outstanding
18 bonds, notes or other obligations and no mortgages shall be purchased
19 with the proceeds of such bonds, notes or other obligations after such
20 date.] The board of directors of the agency shall establish program
21 guidelines for purposes of bonds, notes or other obligations issued
22 pursuant to this subdivision. The board of directors shall establish
23 from time to time maximum income limits of persons eligible to receive
24 mortgages financed by bonds, notes or other obligations issued pursuant
25 to this subdivision, which income limits with respect to one-third of
26 the total principal amount of mortgages authorized to be so financed
27 shall not exceed one hundred twenty-five percent of the latest maximum
28 income limits permitted under the Internal Revenue Code of 1986, as
29 amended, for mortgagors financed by mortgage revenue bonds, with respect
30 to one-third of such principal amount authorized to be so financed,
31 shall not exceed one hundred thirty-five percent of such income limits,
32 and with respect to one-third of such principal amount authorized to be
33 so financed, shall not exceed one hundred fifty percent of such limits,
34 provided that notwithstanding the foregoing, the maximum income limits
35 of persons eligible to receive mortgages financed by the agency under
36 its neighborhood revitalization program (and any successor program)
37 shall not exceed one hundred fifty percent of the latest maximum income
38 limits permitted under the Internal Revenue Code of 1986, as amended,
39 for mortgagors financed by mortgage revenue bonds.
40 (3) The fixing of the statutory maximums in this section shall not be
41 construed as constituting a contract between the agency and the holders
42 of its bonds or notes that additional bonds and notes may not be issued
43 subsequently by the agency in the event that such statutory maximums
44 shall subsequently be increased by law.
45 § 5. Section 19 of chapter 555 of the laws of 1989 amending the public
46 authorities law and other laws relating to establishing a New York state
47 infrastructure trust fund, as amended by chapter 170 of the laws of
48 2025, is amended to read as follows:
49 § 19. This act shall take effect immediately and shall be deemed to
50 have been in full force and effect on and after June 15, 1989 [provided
51 that the amendments to law effected by sections six and nine through
52 seventeen of this act, as amended, shall cease to be of force and effect
53 on and after July 23, 2027, on which date the provisions of the public
54 authorities law amended by such sections shall be as they were in force
55 and effect immediately prior to this act taking effect, and provided
56 however that the amendments to law effected by sections six and nine
S. 10446 4
1 through seventeen of this act, as amended, shall continue to apply to
2 all commitments issued or policies or development corporation credit
3 support in force on or before July 23, 2027, and provided further that
4 the amendments to section 2429-b of the public authorities law made by
5 section 13 of chapter 3 of the laws of 2004 which amended this section
6 shall not cease to be of force and effect prior to the time that full
7 payment of all development corporation credit support obligations has
8 been made or provided for].
9 § 6. Section 2 of chapter 172 of the laws of 2002 amending the public
10 authorities law relating to the powers of the state of New York mortgage
11 agency, as amended by chapter 170 of the laws of 2025, is amended to
12 read as follows:
13 § 2. This act shall take effect immediately [and shall remain in full
14 force and effect until July 23, 2027, whereupon such date the provisions
15 of this act shall expire and be deemed repealed].
16 § 7. Section 4 of chapter 208 of the laws of 2010 amending the public
17 authorities law relating to the powers of the state of New York mortgage
18 agency, as amended by chapter 170 of the laws of 2025, is amended to
19 read as follows:
20 § 4. This act shall take effect immediately[, provided that the amend-
21 ments to subdivision 5 of section 2402 of the public authorities law
22 made by section one of this act shall be subject to the expiration and
23 reversion of such subdivision pursuant to section 16 of chapter 915 of
24 the laws of 1982, as amended, when upon such date the provisions of
25 section two of this act shall take effect; further provided that this
26 act shall expire and be deemed repealed July 23, 2027].
27 § 8. Section 5 of chapter 246 of the laws of 2010 amending the public
28 authorities law relating to the powers of the state of New York mortgage
29 agency, as amended by chapter 170 of the laws of 2025, is amended to
30 read as follows:
31 § 5. This act shall take effect immediately [and shall expire and be
32 deemed repealed on and after July 23, 2027; provided, however, that the
33 amendments to paragraph (c) of subdivision 8 of section 2428 of the
34 public authorities law made by section two of this act shall not affect
35 the expiration of such subdivision and shall be deemed to expire there-
36 with].
37 § 9. This act shall take effect immediately.
