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S04978 Summary:

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S04978 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4978--A
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                     April 27, 2015
                                       ___________
 
        Introduced  by  Sen.  YOUNG  -- (at request of the Division of Housing &
          Community Renewal) -- read twice and ordered printed, and when printed
          to be committed to the Committee on Housing, Construction and Communi-
          ty  Development  --  committee  discharged,  bill   amended,   ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend  the  private housing finance law, in relation to the
          powers of the New York state housing finance agency, with relation  to
          an  increase  in  bond and note authorization; 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 to finance certain multi-family housing and 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 of such chapters; 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  effective  date  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 effective date 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 extending the provisions 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
          extending the provisions 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 extending the
          provisions thereof
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09543-03-5
        S. 4978--A                          2
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph (c) of subdivision 1 of section 47 of the private
     2  housing  finance  law, as amended by chapter 283 of the laws of 2014, is
     3  amended to read as follows:
     4    (c) The agency shall not  issue  bonds  and  notes  other  than  state
     5  university  construction  bonds and state university construction notes,
     6  hospital and nursing home project bonds and hospital  and  nursing  home
     7  project  notes,  health  facilities  bonds  and health facilities notes,
     8  youth facilities project  bonds  and  youth  facilities  project  notes,
     9  community mental health services and mental retardation services project
    10  bonds  and  community  mental  health  services  and  mental retardation
    11  services project notes, community senior citizens services project notes
    12  or community senior citizens services project bonds and  mental  hygiene
    13  improvement  bonds  and  mental  hygiene improvement notes and bonds and
    14  notes for the housing program for any of its corporate  purposes  in  an
    15  aggregate principal amount exceeding [eighteen] twenty-one billion seven
    16  hundred  eighty  million  dollars,  excluding  bonds and notes issued to
    17  refund outstanding bonds and notes.
    18    § 2. Section 6 of chapter 514  of  the  laws  of  1983,  amending  the
    19  private  housing  finance  law and the real property tax law relating to
    20  the powers of the New York  state  housing  finance  agency  to  finance
    21  certain  multi-family  housing, as amended by chapter 152 of the laws of
    22  2013, is amended to read as follows:
    23    § 6. This act shall take effect immediately and shall remain  in  full
    24  force  and  effect  until July 23, [2015] 2017 at which time it shall be
    25  repealed.
    26    § 3. Section 7 of chapter 396  of  the  laws  of  1984,  amending  the
    27  private  housing  finance  law and the real property tax law relating to
    28  the powers of the New York  state  housing  finance  agency  to  finance
    29  certain  mutli-family  housing, as amended by chapter 152 of the laws of
    30  2013, is amended as follows:
    31    § 7. This act shall take effect immediately, except that sections one,
    32  three, four, five and six of this act shall remain  in  full  force  and
    33  effect  until  July 23, [2015] 2017 at which time such sections shall be
    34  repealed.
    35    § 4. Section 16 of chapter 915 of the laws of 1982 amending the public
    36  authorities law relating to the powers of the state of New York mortgage
    37  agency, as amended by chapter 152 of the laws of  2013,  is  amended  to
    38  read as follows:
    39    §  16.  This  act shall take effect immediately except that the amend-
    40  ments to law effected by sections  one  through  ten  of  this  act,  as
    41  amended,  shall  cease  to  be of force and effect on and after July 23,
    42  [2015] 2017, on which date the provisions of the public authorities  law
    43  amended by such sections shall be as they were in force and effect imme-
    44  diately prior to this act taking effect.
    45    § 5. Section 2407 of the public authorities law, as amended by chapter
    46  152 of the laws of 2013, is amended to read as follows:
    47    §  2407.  Bond limits. (1) Except for notes issued in nineteen hundred
    48  seventy and nineteen hundred seventy-one, the  agency  shall  not  issue
    49  bonds  and  notes,  the  interest  on which is not included in the gross
    50  income of the holders of the bonds and notes  under  the  United  States
    51  Internal Revenue Code of 1986, as amended, or any subsequent correspond-
    52  ing internal revenue law of the United States, in an aggregate principal
    53  amount exceeding ten billion two hundred twenty million dollars, exclud-
        S. 4978--A                          3
 
     1  ing  from  such  limitation  (a)  an  amount equal to any original issue
     2  discount from the principal amount of any bonds  or  notes  issued,  (b)
     3  bonds  and  notes  issued to refund outstanding bonds and notes, and (c)
     4  bonds  and  notes  not  described  in  paragraph (b) of this subdivision
     5  issued to refund outstanding bonds and  notes  in  accordance  with  the
     6  provisions of the Internal Revenue Code of 1986 or the Tax Reform Act of
     7  1986,  as  amended,  where  such  bonds or notes are not included in the
     8  statewide volume cap on private purpose bonds under section 146 of  such
     9  code  provided,  however, that upon any refunding pursuant to this para-
    10  graph or paragraph (b) of this subdivision, such exclusion  shall  apply
    11  only  to the extent that the amount of the refunding bonds or notes does
    12  not exceed (i) the outstanding amount of the refunded  bonds  or  notes,
    13  plus  (ii)  to the extent permitted by applicable federal tax law, costs
    14  of issuance of the refunding bonds or notes  to  be  financed  from  the
    15  proceeds of the refunding bonds or notes.  No such bond or note shall be
    16  issued  by  the  agency  on  or  after  July  twenty-third, two thousand
    17  [fifteen]  seventeen,  excluding  bonds  and  notes  issued  to   refund
    18  outstanding  bonds  and notes. No more than five hundred million dollars
    19  of proceeds of bonds or notes issued by  the  agency  pursuant  to  this
    20  subdivision  shall  be  used  for  mortgage  purposes  by  blending with
    21  proceeds of bonds issued pursuant to subdivision two of this section.
    22    (2) In connection with the  issuance  of  bonds  for  the  purpose  of
    23  furthering programs described in this title, the agency is authorized to
    24  covenant  and  consent  that  the interest on any of its bonds, notes or
    25  other obligations shall be includable, under the United States  Internal
    26  Revenue  Code of 1986, as amended or any subsequent corresponding inter-
    27  nal revenue law of the United States, in the gross income of the holders
    28  of the bonds to the same extent and in the same manner that the interest
    29  on bills, bonds, notes or other obligations  of  the  United  States  is
    30  includable  in the gross income of the holders thereof under said Inter-
    31  nal Revenue Code or any such subsequent law. Pursuant to  this  subdivi-
    32  sion, the agency shall not issue bonds, notes or other obligations in an
    33  aggregate  principal  amount  exceeding  eight  hundred million dollars,
    34  excluding from such limitation bonds, notes or other obligations  issued
    35  to  refund  outstanding bonds, notes or other obligations. No such bond,
    36  note or other obligation shall be issued by the agency on or after  July
    37  twenty-third,  two  thousand [fifteen] seventeen, excluding bonds, notes
    38  or other obligations issued to refund outstanding bonds, notes or  other
    39  obligations  and  no  mortgages  shall be purchased with the proceeds of
    40  such bonds, notes or other obligations after such  date.  The  board  of
    41  directors  of the agency shall establish program guidelines for purposes
    42  of bonds, notes or other obligations issued pursuant  to  this  subdivi-
    43  sion.  The  board of directors shall establish from time to time maximum
    44  income limits of persons  eligible  to  receive  mortgages  financed  by
    45  bonds,  notes  or other obligations issued pursuant to this subdivision,
    46  which income limits with respect to one-third  of  the  total  principal
    47  amount  of  mortgages  authorized to be so financed shall not exceed one
    48  hundred twenty-five percent of the latest maximum income limits  permit-
    49  ted  under the Internal Revenue Code of 1986, as amended, for mortgagors
    50  financed by mortgage revenue bonds, with respect to  one-third  of  such
    51  principal  amount  authorized  to  be  so financed, shall not exceed one
    52  hundred thirty-five percent of such income limits, and with  respect  to
    53  one-third  of  such principal amount authorized to be so financed, shall
    54  not exceed one hundred fifty percent of such limits.
    55    (3) The fixing of the statutory maximums in this section shall not  be
    56  construed  as constituting a contract between the agency and the holders
        S. 4978--A                          4
 
     1  of its bonds or notes that additional bonds and notes may not be  issued
     2  subsequently  by  the  agency  in the event that such statutory maximums
     3  shall subsequently be increased by law.
     4    § 6. Section 19 of chapter 555 of the laws of 1989 amending the public
     5  authorities law and other laws relating to establishing a New York state
     6  infrastructure  trust  fund,  as  amended  by chapter 152 of the laws of
     7  2013, is amended to read as follows:
     8    § 19. This act shall take effect immediately and shall  be  deemed  to
     9  have  been  in full force and effect on and after June 15, 1989 provided
    10  that the amendments to law effected by sections  six  and  nine  through
    11  seventeen of this act, as amended, shall cease to be of force and effect
    12  on  and  after July 23, [2015] 2017, on which date the provisions of the
    13  public authorities law amended by such sections shall be as they were in
    14  force and effect immediately  prior  to  this  act  taking  effect,  and
    15  provided however that the amendments to law effected by sections six and
    16  nine  through seventeen of this act, as amended, shall continue to apply
    17  to all commitments issued or policies or development corporation  credit
    18  support in force on or before July 23, [2015] 2017, and provided further
    19  that the amendments to section 2429-b of the public authorities law made
    20  by  section  13  of  chapter  3  of  the laws of 2004 which amended this
    21  section shall not cease to be of force and effect prior to the time that
    22  full payment of all development corporation credit  support  obligations
    23  has been made or provided for.
    24    §  7. Section 2 of chapter 172 of the laws of 2002 amending the public
    25  authorities law relating to the powers of the state of New York mortgage
    26  agency, as amended by chapter 152 of the laws of  2013,  is  amended  to
    27  read as follows:
    28    §  2.  This act shall take effect immediately and shall remain in full
    29  force and effect until July 23, [2015] 2017,  whereupon  such  date  the
    30  provisions of this act shall expire and be deemed repealed.
    31    §  8. Section 4 of chapter 208 of the laws of 2010 amending the public
    32  authorities law relating to the powers of the state of New York mortgage
    33  agency, as amended by chapter 280 of the laws of  2014,  is  amended  to
    34  read as follows:
    35    §  4. This act shall take effect immediately, provided that the amend-
    36  ments to subdivision 5 of section 2402 of  the  public  authorities  law
    37  made  by  section one of this act shall be subject to the expiration and
    38  reversion of such subdivision pursuant to section 16 of chapter  915  of
    39  the  laws  of  1982,  as  amended, when upon such date the provisions of
    40  section two of this act shall take effect; further  provided  that  this
    41  act shall expire and be deemed repealed July 23, [2015] 2017.
    42    §  9. Section 5 of chapter 246 of the laws of 2010 amending the public
    43  authorities law relating to the powers of the state of New York mortgage
    44  agency, as amended by chapter 68 of the laws of 2014, is amended to read
    45  as follows:
    46    § 5. This act shall take effect immediately and shall  expire  and  be
    47  deemed  repealed   on and after July 23, [2015] 2017; provided, however,
    48  that the amendments to paragraph (c) of subdivision 8 of section 2428 of
    49  the public authorities law made by section two of  this  act  shall  not
    50  affect  the expiration of such subdivision and shall be deemed to expire
    51  therewith.
    52    § 10. This act shall take effect immediately.