NY State Assembly Bill 2009-A8786

Assembly Bill A8786

2009-2010 Legislative Session

Relates to the powers of the New York state housing finance agency to finance certain multi-family housing projects

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to housing
Jun 08, 2009	referred to housing

2009-A8786 (ACTIVE) - Details

Current Committee:: Assembly Housing
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §44, Priv Hous Fin L

2009-A8786 (ACTIVE) - Summary

Relates to the powers of the New York state housing finance agency to finance certain multi-family housing projects.

2009-A8786 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8786

TITLE  OF  BILL:    An  act to amend the private housing finance law, in
relation to the powers of the New York state housing finance  agency  to
finance certain multi-family housing projects

Purpose  Or  General  Idea Of Bill:   This bill would grant the New York
State Housing Finance Agency (HFA) authority to issue unrated bonds  for
private placement to finance affordable housing programs.

Summary  Of  Specific Provisions:  Section 1 of the bill amends Subdivi-
sion 29-a of Section 44 of the Private Housing Finance Law to grant  HFA
additional  authority to issue bonds for private placement to an accred-
ited investor as defined by section 051 (a) (1), (2), (3) or (7) of part
230 of title 17 of  the  Code  of  Federal  Regulations  that  have  not
received  an investment grade rating from a recognized rating agency, as
well as extend their authority until June 16, 2011.  Obligations  issued
in  this fashion shall not exceed $10 million per project, and shall not
annually exceed ten percent of total bonds issued by HFA in the previous
year. HFA shall include any private placement bonds issued in its annual
report pursuant to Section 2600 of the Public Authorities Law,

Section 2 of the bill provides for an immediate effective date.

Effects Of Present Law Which This Bill Would Alter:   Currently,  SONYMA
must  receive  a rating for any bonds they issue and loans financed with

such obligations must be fully secured as to principal and interest.

Justification:  Private placement of bonds to finance affordable housing
is a proven method of financing for certain local  banks  in  New  York.
However,  HFA  does  not  currently  have  statutory  authority to issue
unrated bonds for private placement beyond HFA financing  of  Article  2
Mitchell-Lama projects.

Loans  financed  with  proceeds  of unrated HFA bonds issued for private
placement offer gains in efficiencies  to  HFA  borrowers.  Without  the
involvement  of  rating agencies, outside underwriters, credit enhancers
and their respective legal counsels, private placement transactions  can
be  completed  at  a  substantially  lower  cost  to the borrower. These
savings are particularly important to smaller 100% affordable  projects,
for  which  the cost of issuance of a public offering are often prohibi-
tive. HFA would set limitations on the end users  of  bonds  issued  for
private placement and would only place bonds with an accredited investor
as such term is defined in Rule 501(a)(1), (2), (3) or (7) of Regulation
D,  as  adopted  by the United States Securities and Exchange Commission
under the United States Securities Act of 1933.

Prior Legislative History:  This is new legislation.

Fiscal Implications For State And Local Governments:  None to the State

Effective Date:  This bill takes effect immediately.

2009-A8786 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8786

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 8, 2009
                               ___________

Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
  tee on Housing

AN  ACT  to  amend  the  private housing finance law, in relation to the
  powers of the New York state housing finance agency to finance certain
  multi-family housing projects

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  29-a  of  section  44 of the private housing
finance law is amended by adding a new paragraph 4 to read as follows:
  (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS  SUBDIVISION,  IN  THE
EVENT  OBLIGATIONS  OF  THE  AGENCY  ISSUED  TO  FUND  THE  LOAN MADE OR
PURCHASED BY THE AGENCY PURSUANT TO THIS SECTION  ARE  PURCHASED  BY  AN
ACCREDITED  INVESTOR  AS  SUCH  TERM  IS  DEFINED  BY SECTION 501(A)(1),
501(A)(2), 501(A)(3), OR 501(A)(7) OF PART 230 OF TITLE 17 OF  THE  CODE
OF  FEDERAL REGULATIONS, THEN SUCH OBLIGATIONS NEED NOT RECEIVE A RATING
FROM A RECOGNIZED RATING AGENCY, AND SUCH LOANS FINANCED WITH SUCH OBLI-
GATIONS NEED NOT BE FULLY SECURED AS TO PRINCIPAL AND INTEREST.    OBLI-
GATIONS OF THE AGENCY ISSUED PURSUANT TO THIS PARAGRAPH SHALL NOT EXCEED
TEN  MILLION  DOLLARS  PER  PROJECT,  AND  SHALL NOT ANNUALLY EXCEED TEN
PERCENT OF TOTAL BONDS ISSUED BY THE AGENCY  IN  THE  PREVIOUS  CALENDAR
YEAR.  THE  AGENCY SHALL INCLUDE ANY OBLIGATIONS ISSUED PURSUANT TO THIS
PARAGRAPH IN ITS ANNUAL REPORT PURSUANT TO SECTION TWENTY-EIGHT  HUNDRED
OF THE PUBLIC AUTHORITIES LAW.
  S  2. This act shall take effect immediately; provided that the amend-
ments to subdivision 29-a of section 44 of the private  housing  finance
law  made by section one of this act shall not affect the repeal of such
subdivision and shall expire and be deemed repealed therewith.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14269-01-9

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