NY State Senate Bill 2009-S3414

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to housing, construction and community development
Mar 18, 2009	referred to housing, construction and community development

co-Sponsors

2009-S3414 (ACTIVE) - Details

See Assembly Version of this Bill:: A5863
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art 21-A §§1134 - 1149-c, Priv Hous Fin L
Versions Introduced in 2011-2012 Legislative Session:: S802, A2571

2009-S3414 (ACTIVE) - Summary

Creates and provides for a tax increment financing program as a method of reducing the cost of affordable housing in NYS; authorizes issuance of general and special obligation bonds and temporary anticipation notes; authorizes division of housing and community renewal to provide technical services and assistance to municipalities with regard to site selection, financial packaging, and engineering and architectural services necessary for the preparation of project plans.

2009-S3414 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3414

 TITLE OF BILL :

An act to amend the private housing finance law, in relation to the
creation of a tax increment financing program

 PURPOSE :

This bill would authorize municipalities to utilize tax increment
financing as a method to finance affordable housing and infrastructure
improvements necessary for the development of affordable housing.

 SUMMARY OF PROVISIONS :

The bill adds a new Article 21-A to the Private Housing Finance Law to
authorize any city, town, or village to utilize tax increment
financing as a method of financing the construction or rehabilitation
of residential housing for low and moderate income persons and
families. Specifically, the bill authorizes the governing body of any
municipality to adopt a project plan using tax increment financing
for: the development of a tax increment area through the construction
or rehabilitation of residential or commercial dwellings; or the
installation or upgrading of water and sewer lines to a public
connection, the installation or upgrading of private wells and
sanitary systems, storm sewers and road and sidewalk construction, and

the installation of gas and electric lines or other site improvements
which are necessary for the development or rehabilitation of
residential or commercial dwellings.


Any project would not qualify under this article if the fair market
value of the planned improvements which are constructed or
rehabilitated for commercial uses consists of more than one-third of
the total fair market value of the improvements which are constructed
or rehabilitated for commercial uses consists of more than one-third
of the total fair market value of the planned improvements which are
constructed or rehabilitated for commercial uses consists of more than
one-third of the total fair market value of the planned improvements
in the project plan. The bill defines "residential dwellings" as
housing for persons for whom there are no other reasonable and
affordable home ownership, rehabilitation, or rental alternatives in
the private market and who will occupy a dwelling assisted under the
bill's provisions as their principal place of residence.

The bill further defines "tax increment" as the tax levied on the real
and personal property situated in a tax increment area to the extent
that the tax is attributable to an excess of the aggregate taxable
valuation of the property over its aggregate taxable valuation as of
the base date. The latter term refers to the last assessment date next
preceding the adoption of the project plan by the municipality. A tax
increment area or a project area may consist of one or more parcels of
land, whether or not contiguous, which is designated as a single unit
for purposes of assessment. The aggregate taxable valuation of the
property within all tax increment areas within a municipality could
not exceed 25% of the taxable valuation of all property subject to
taxation within the municipality.

Any project plan adopted by a municipality must indicate an estimate
of project costs and the amounts and sources of funds to be used to
defray those costs. The plan must include provisions for tax increment
financing of the project costs in whole or in part and with respect to
these provisions must disclose the estimated amount of indebtedness to
be incurred, the tax increment which will be generated, and the method
of calculating the tax increment. The bill authorizes the municipality
to utilize funds from any source, including the issuance of bonds and
notes, in order to implement the project plan. The plan must also
indicate the location and boundaries of the tax increment area and any
land acquisition, construction, rehabilitation, or demolition which is
necessary for the implementation of the plan.

In adopting a project plan, the governing body of a municipality must
find, with respect to that portion of the plan providing for the
development of residential housing, that there exists within the
municipality a lack of affordable housing within the private market
and that with respect to any portion of the project providing public
facilities or infrastructure improvements that they are needed in
connection with the development of residential housing.

The bill also authorizes every municipality to undertake projects
pursuant to adopted project plans and to acquire certain powers
including the ability to incur indebtedness and to pledge tax
increments for bond repayment. Additional powers include the authority
to: receive loans or grants from any source; to defray project costs;
to purchase or acquire property within a project area; to contract for
the construction, development, or rehabilitation of residential or
commercial dwellings; to undertake authorized public improvements; to
sell, mortgage, or lease any property acquired by the municipality; to
loan the proceeds of any issue of bonds or notes to a private
enterprise to undertake the construction or rehabilitation of any
project; and to invest project revenues as authorized.

The bill further authorizes any city, town, or village to borrow money
through the issuance of special obligation bonds for the purpose of
carrying out a project. Any special obligation bonds which are issued
would have to be payable solely from project revenues and would not be
deemed to be a pledge of faith and credit of the municipality. Any
bonds issued may provide for annual or more frequent installments of
principal in equal, diminishing, or increasing amounts with the first
installment of principal due at any time within five years from the
date of bond issuance. In addition, any bonds could be secured by one
or more trust agreements between the municipality and a corporate
trustee. Any trust agreement could pledge, project, or assign revenues
and could contain provisions for protecting and enforcing the rights
of the bondholders.

The bill also provides that in anticipation of the issuance of bonds,
the municipal officers authorized to sell the bonds could issue
temporary notes without obtaining further authorization. The notes
would be payable within three years; however, the principal of and
interest on notes issued for a shorter period could be refunded by the
issue of other notes.

The governing body of any city, town, or village which has authorized
the issuance of bonds pursuant to the provisions of the bill must
establish and maintain a special fund entitled the "tax increment bond
fund". The uses of the fund may include: receiving the proceeds of
bonds and notes and any other moneys which may be available for the
project; paying project costs and expenses; paying the principal of
and interest on bonds and notes; and paying additional tax increment
revenue, if any, to the municipality where the tax increment area is
located, provided that no less than 20% of this revenue is allocated
by the municipality to the development of low and moderate income
housing.

The bill further designates in which obligations a municipality could
invest bond and note proceeds and also outlines the remedies of
bondholders and noteholders. The bill further designates any bonds and
notes issued pursuant to the provisions of the bill as legal
instruments in which all public officers and fiduciaries may invest
funds. In addition, it provides that the bonds and notes would be at
all times be free from taxation within the state. Each tax increment
area would remain in existence until all bonded obligations for a
project in the area cease to be outstanding except that the tax
increment area could be terminated if sufficient moneys have been
deposited in the tax increment bond fund for the full payment of the
principal of and interest on the bonds at maturity. Upon repayment the
tax increment area would be dissolved. The bill also requires every
municipality in which a project plan is in effect to make a report to
the Commissioner of the Division of Housing and Community Renewal
concerning the activities financed by tax increment financing and the
taxable valuation of the property within the tax increment area, and
the amount used or set aside for the purposes of the plan.

Finally, the Division of Housing and Community Renewal is authorized
to provide technical services and assistance to municipalities with
regard to site selection, financial packaging, and engineering and
architectural services necessary for the preparation of project plans.

 EXISTING LAW :

The bill adds a new Article 21-A to the Private Housing Finance Law.

 JUSTIFICATION :

Tax increment financing represents a method of local public finance
which captures the expected gains or increments in property tax
revenues generated by new housing development to fund the construction
or rehabilitation of that housing or the public improvements required
by that development. It is based upon a belief that new development
creates higher property tax values in the developed area and, thus,
collections from that area. To the extent that a community attaches a
high priority to the development of affordable housing, the use of tax
increment financing represents an acceptable method of reducing the
housing costs imposed on developers and home buyers.

To initiate a tax increment financing program, the bill provides that
the municipality establish a base line for the proposed project area's
current tax base. Thus, the tax base for the development is frozen at
the base line. The revenues above the frozen base line which accrue
from the new development represent the tax increments collected by the
municipality and, when bonds are utilized to finance residential
housing and any necessary infrastructure improvements, are legally
dedicated to debt service. One can consider tax increment bonds as a
self-supporting financing mechanism, since ultimate security is
provided by the tax base growth they encourage rather than drawing on
the existing tax base. Currently, at least 15 states have enacted tax
increment financing statutes, including California whose
municipalities have been the largest issuers of tax increment bonds in
the nation.

 LEGISLATIVE HISTORY :

S.369  (2008)
S.6233 (2006)
A.4512 (2004)

 FISCAL IMPLICATIONS :

None to the State; however, the bill does authorize municipalities to
issue special obligation bonds.

 EFFECTIVE DATE :
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2009-S3414 (ACTIVE) - Bill Text download pdf

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

                                  3414

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 18, 2009
                               ___________

Introduced by Sens. YOUNG, FARLEY -- read twice and ordered printed, and
  when printed to be committed to the Committee on Housing, Construction
  and Community Development

AN  ACT  to  amend  the  private housing finance law, in relation to the
  creation of a tax increment financing program

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

  Section  1. The private housing finance law is amended by adding a new
article 21-A to read as follows:
                               ARTICLE XXI-A
                       TAX INCREMENT FINANCING ACT
SECTION 1134.   SHORT TITLE.
        1135.   LEGISLATIVE FINDINGS.
        1136.   DEFINITIONS.
        1137.   ADOPTION OF PROJECT PLAN.
        1138.   AUTHORIZATION TO UNDERTAKE PROJECTS; POWERS.
        1139.   ISSUANCE OF SPECIAL OBLIGATION BONDS.
        1140.   SECURITY FOR BONDS.
        1141.   PLEDGE OF PROJECT REVENUES VALIDATED.
        1142.   TEMPORARY ANTICIPATION NOTES.
        1143.   TAX INCREMENT BOND FUNDS.
        1144.   CREDIT OF CITY, TOWN OR VILLAGE NOT PLEDGED.
        1145.   INVESTMENT OF FUNDS.
        1146.   REMEDIES OF BONDHOLDERS AND NOTEHOLDERS.
        1147.   BONDS AND NOTES AS LEGAL INSTRUMENTS.
        1148.   BONDS AND NOTES AS INVESTMENT SECURITIES.
        1149.   EXEMPTION FROM TAXATION.
        1149-A. DURATION OF DISTRICTS.
        1149-B. ANNUAL REPORT.
        1149-C. TECHNICAL ASSISTANCE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03371-01-9

S. 3414                             2

  S 1134. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "TAX INCREMENT FINANCING ACT".
  S  1135. LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS AND DECLARES THAT
IT IS A FUNDAMENTAL PURPOSE OF THE STATE'S  SOCIAL  ECONOMY  TO  PROVIDE
HOUSING AND THAT STATEWIDE THERE IS AN INADEQUATE SUPPLY OF DECENT, SAFE
AND  SANITARY  HOUSING  AFFORDABLE  TO  PERSONS  AND FAMILIES OF LOW AND
MODERATE INCOME WHICH THREATENS STATEWIDE JOB CREATION,  THE  ATTRACTION
OF  NEW  PRIVATE  INVESTMENT,  AND  THE  CREATION OF PHYSICAL, ECONOMIC,
SOCIAL AND ENVIRONMENTAL CONDITIONS TO REMOVE AND PREVENT THE RECURRENCE
OF BLIGHT. THE LEGISLATURE FURTHER FINDS THAT THE USE OF  TAX  INCREMENT
FINANCING  AS  A  METHOD TO REDUCE THE COSTS OF AFFORDABLE HOUSING IS OF
STATEWIDE BENEFIT AND OF PARTICULAR BENEFIT AND ASSISTANCE TO ALL  LOCAL
GOVERNMENTS WHICH WISH TO ENCOURAGE THE FURTHER PROVISION OF HOUSING FOR
ITS RESIDENTS.
  S 1136. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "BASE DATE" SHALL MEAN THE LAST ASSESSMENT DATE NEXT PRECEDING THE
ADOPTION OF THE PROJECT PLAN.
  2. "PROJECT" SHALL MEAN THE UNDERTAKING OF THE FOLLOWING ACTIVITIES IN
ACCORDANCE WITH A PROJECT PLAN:
  A. THE ACQUISITION OF LAND AND IMPROVEMENTS THEREON,  IF  ANY,  WITHIN
THE PROJECT AREA AND THE ASSEMBLY AND CLEARANCE OF THE LAND SO ACQUIRED;
OR
  B.  THE  DEVELOPMENT, REDEVELOPMENT, REVITALIZATION OR CONSERVATION OF
THE PROJECT AREA THROUGH THE CONSTRUCTION OR REHABILITATION OF  RESIDEN-
TIAL  OR  COMMERCIAL DWELLINGS OR OTHER IMPROVEMENTS OR THROUGH ACQUISI-
TION BY GIFT, PURCHASE OR EMINENT DOMAIN OF LAND  AND  ANY  IMPROVEMENTS
THEREON,  AND  DEMOLITION,  REMOVAL  OR REHABILITATION OF THOSE IMPROVE-
MENTS, WHENEVER THE FOREGOING ACTIVITIES ARE NECESSARY TO  PROVIDE  LAND
FOR  NEEDED PUBLIC FACILITIES OR RESIDENTIAL OR COMMERCIAL DWELLINGS, OR
TO ELIMINATE UNHEALTHY, UNSAFE OR  UNSANITARY  CONDITIONS  OR  OTHERWISE
REMOVE OR PREVENT THE SPREAD OF BLIGHT OR DETERIORATION; OR
  C.  THE INSTALLATION OR UPGRADING OF WATER AND SEWER LINES TO A PUBLIC
CONNECTION, THE INSTALLATION OR UPGRADING OF PRIVATE WELLS AND  SANITARY
SYSTEMS,  STORM SEWERS AND ROAD AND SIDEWALK CONSTRUCTION WHERE REQUIRED
BY LOCAL ZONING ORDINANCES AND THE  INSTALLATION  OF  GAS  AND  ELECTRIC
LINES AND OTHER SITE IMPROVEMENTS OR SITE PREPARATION WHICH IS NECESSARY
FOR  THE  DEVELOPMENT  OR  REHABILITATION  OF RESIDENTIAL AND COMMERCIAL
DWELLINGS.
  A PROJECT MAY INVOLVE A COMBINATION OF THE AFOREMENTIONED  ACTIVITIES;
HOWEVER,  A  PROJECT  SHALL  NOT  QUALIFY UNDER THIS ARTICLE IF THE FAIR
MARKET VALUE OF THE IMPROVEMENTS WHICH ARE CONSTRUCTED OR  REHABILITATED
FOR  COMMERCIAL USES OR FOR USES OTHER THAN RESIDENTIAL HOUSING CONSISTS
OF MORE THAN ONE-THIRD OF THE TOTAL FAIR MARKET  VALUE  OF  THE  PLANNED
IMPROVEMENTS  IN THE PROJECT PLAN. THE FAIR MARKET VALUE OF THE IMPROVE-
MENTS SHALL BE DETERMINED USING THE COST  OF  CONSTRUCTION,  CAPITALIZED
INCOME OR OTHER APPROPRIATE METHOD OF ESTIMATING MARKET VALUE.
  3.  "PROJECT  AREA"  SHALL  MEAN  A PARCEL OR PLOT OF LAND ESTABLISHED
PRIOR TO THE CERTIFICATION OF THE PROJECT AS A SINGLE UNIT FOR  PURPOSES
OF  ASSESSMENT  AND  WHICH  SHALL CONSTITUTE THE TAX INCREMENT AREA. THE
PROJECT AREA MAY CONSIST OF ONE OR MORE PARCELS OR PLOTS OF LAND, WHETH-
ER OR NOT CONTIGUOUS.
  4. "PROJECT PLAN" SHALL MEAN A PLAN ADOPTED BY A CITY, TOWN OR VILLAGE
IN THE MANNER PROVIDED IN SECTION ELEVEN HUNDRED  THIRTY-SEVEN  OF  THIS
ARTICLE  FOR  A PROJECT. THE PROJECT PLAN SHALL SET FORTH AN ESTIMATE OF
PROJECT COSTS AND THE AMOUNTS AND SOURCES OF FUNDS TO BE USED TO  DEFRAY
THOSE  COSTS AND SHALL INCLUDE PROVISIONS FOR TAX INCREMENT FINANCING OF

S. 3414                             3

PROJECT  COSTS  IN  WHOLE  OR  IN  PART.  THE  TAX  INCREMENT  FINANCING
PROVISIONS  OF  THE PROJECT PLAN SHALL SET FORTH THE ESTIMATED AMOUNT OF
INDEBTEDNESS TO BE INCURRED PURSUANT TO THIS ARTICLE, SHALL SET FORTH AN
ESTIMATE  OF  THE  TAX  INCREMENT  TO  BE  GENERATED  AS A RESULT OF THE
PROJECT, SHALL SET FORTH THE METHOD OF CALCULATING  THE  TAX  INCREMENT,
TOGETHER  WITH  ANY  PROVISIONS  FOR  ADJUSTMENT OF THE METHOD OF CALCU-
LATION, AND SHALL DESIGNATE THE BOARD OR OFFICER OF THE  CITY,  TOWN  OR
VILLAGE  RESPONSIBLE  FOR  CALCULATING  THE  TAX INCREMENT. FUNDS MAY BE
PROVIDED TO CARRY OUT THE PLAN FROM  ANY  LAWFUL  SOURCE  INCLUDING  THE
ISSUANCE  OF  BONDS  AND  NOTES UNDER THIS ARTICLE. THE PLAN MAY INCLUDE
SUCH OTHER PROVISIONS AS MAY BE DEEMED NECESSARY IN ORDER TO  CARRY  OUT
THE  TAX  INCREMENT  FINANCING  OF  THE  PROJECT.  THE  PROJECT SHALL BE
CONSISTENT WITH SUCH COMPREHENSIVE PLAN FOR THE CITY, TOWN OR VILLAGE AS
IS THEN APPLICABLE, SHALL  BE  SUFFICIENTLY  COMPLETE  TO  INDICATE  THE
LOCATION  AND BOUNDARIES OF THE TAX INCREMENT AREA, AND SUCH LAND ACQUI-
SITION, CONSTRUCTION, REHABILITATION, DEMOLITION AND REMOVAL OF RESIDEN-
TIAL AND COMMERCIAL DWELLINGS AND SUCH DEVELOPMENT,  REDEVELOPMENT,  AND
GENERAL PUBLIC IMPROVEMENTS AS ARE PROPOSED TO BE CARRIED OUT WITHIN THE
TAX INCREMENT AREA.
  5.  "PROJECT  REVENUES"  SHALL  MEAN  ANY  RECEIPTS OF A CITY, TOWN OR
VILLAGE WITH RESPECT TO A PROJECT INCLUDING, BUT  NOT  LIMITED  TO,  TAX
INCREMENTS,  REPAYMENTS OF LOANS MADE UNDER SECTION ELEVEN HUNDRED THIR-
TY-EIGHT OF THIS ARTICLE, INVESTMENT EARNINGS, PROCEEDS OF INSURANCE  OR
DISPOSITION OF PROPERTY AND PROCEEDS OF BORROWING UNDER THIS ARTICLE.
  6. "RESIDENTIAL DWELLINGS" OR "RESIDENTIAL HOUSING" SHALL MEAN HOUSING
FOR  PERSONS  FOR WHOM THERE ARE NO OTHER REASONABLE AND AFFORDABLE HOME
OWNERSHIP, REHABILITATION OR RENTAL ALTERNATIVES, AS THE CASE MAY BE, IN
THE PRIVATE MARKET AND WHO SHALL OCCUPY  A  DWELLING  OR  HOME  ASSISTED
UNDER THIS ARTICLE AS THEIR PRINCIPAL PLACE OF RESIDENCE.
  7.  "TAX INCREMENT" SHALL MEAN THE TAX LEVIED ON THE REAL AND PERSONAL
PROPERTY SITUATED IN OR OTHERWISE ASSIGNABLE FOR THE PURPOSES OF PROPER-
TY TAXATION TO A TAX INCREMENT AREA  TO  THE  EXTENT  THAT  THE  TAX  IS
ATTRIBUTABLE  TO  AN  EXCESS  OF  THE AGGREGATE TAXABLE VALUATION OF THE
PROPERTY OVER ITS AGGREGATE TAXABLE VALUATION AS OF THE BASE  DATE.  THE
PORTION  OF  THE  TAX LEVY ATTRIBUTABLE TO THE INCREASED VALUATION AFTER
THE BASE DATE SHALL BE CALCULATED USING THE SAME CLASSIFICATION  FACTORS
AS  WERE  USED AS OF THE BASE DATE, OR WITHOUT CLASSIFICATION FACTORS IF
PROPERTY WAS NOT CLASSIFIED FOR TAX PURPOSES AS OF  THE  BASE  DATE.  IN
CALCULATING  THE TAX INCREMENT, THERE SHALL BE EXCLUDED FROM THE TAX THE
PORTION LEVIED FOR THE PURPOSE OF PAYING THE PRINCIPAL OF OR INTEREST ON
BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS WHICH ARE GENERAL OBLI-
GATIONS OF THE CITY, TOWN OR VILLAGE AND ARE NOT ISSUED PURSUANT TO  THE
PROVISIONS OF THIS ARTICLE.
  8.  "TAX INCREMENT AREA" SHALL MEAN A TAX INCREMENT AREA DESIGNATED IN
A PROJECT PLAN ADOPTED PURSUANT TO SECTION ELEVEN  HUNDRED  THIRTY-SEVEN
OF  THIS  ARTICLE.  THE  TAX  INCREMENT  AREA MAY CONSIST OF ONE OR MORE
PARCELS OR PLOTS OF LAND, WHETHER OR NOT CONTIGUOUS, PROVIDED,  HOWEVER,
THAT  UPON  ADOPTION OF THE PROJECT PLAN THE AGGREGATE TAXABLE VALUATION
OF THE PROPERTY WITHIN ALL TAX INCREMENT AREAS WITHIN THE CITY, TOWN  OR
VILLAGE  DOES NOT EXCEED TWENTY-FIVE PERCENT OF THE TAXABLE VALUATION OF
ALL PROPERTY SUBJECT TO TAXATION WITHIN THE CITY, TOWN OR VILLAGE.
  S 1137. ADOPTION OF PROJECT PLAN. THE GOVERNING BODY OF ANY CITY, TOWN
OR VILLAGE MAY ADOPT A PROJECT PLAN IF A FINDING IS MADE TO  THE  EFFECT
THAT:
  1. WITH RESPECT TO ANY PORTION OF THE PROJECT PROVIDING FOR THE DEVEL-
OPMENT OF RESIDENTIAL HOUSING THAT THERE IS NOT WITHIN THE CITY, TOWN OR

S. 3414                             4

VILLAGE  AN  ADEQUATE  SUPPLY  OF  AFFORDABLE HOUSING WITHIN THE PRIVATE
MARKET AND THAT THE FINANCING OF THAT PORTION OF THE PROJECT IN  ACCORD-
ANCE WITH THE PLAN IS IN THE PUBLIC INTEREST; OR
  2. WITH RESPECT TO ANY PORTION OF THE PROJECT PROVIDING PUBLIC FACILI-
TIES  OR  INFRASTRUCTURE IMPROVEMENTS OR LAND THEREFOR, THAT THE FACILI-
TIES OR THE INFRASTRUCTURE IS NEEDED IN CONNECTION WITH THE  DEVELOPMENT
OF  RESIDENTIAL  HOUSING  AND  THAT THE FINANCING OF THAT PORTION OF THE
PROJECT IN ACCORDANCE WITH THE PLAN IS IN THE PUBLIC INTEREST; OR
  3. WITH RESPECT TO ANY PORTION OF THE PROJECT PROVIDING FOR THE DEVEL-
OPMENT OF COMMERCIAL DWELLINGS THAT THERE EXISTS IN THE  CITY,  TOWN  OR
VILLAGE  UNEMPLOYMENT  OR  THE  THREAT  THEREOF OR THAT SECURITY AGAINST
FUTURE UNEMPLOYMENT IS REQUIRED, THAT THE PROJECT  IS  NEEDED,  THAT  IT
WILL PROVIDE EMPLOYMENT OR SECURITY AGAINST LOSS OF EMPLOYMENT, HAVING A
REASONABLE RELATIONSHIP TO THE PROBABLE COST OF ACQUIRING, ESTABLISHING,
IMPROVING OR REHABILITATING THE FACILITIES IN WHICH THE EMPLOYMENT IS TO
BE PROVIDED OR MAINTAINED, AND THAT THE FINANCING OF THAT PORTION OF THE
PROJECT  IN  ACCORDANCE  WITH  THE  PLAN  IS  IN THE PUBLIC INTEREST. NO
PROJECT SHALL BE UNDERTAKEN PURSUANT TO THIS ARTICLE UNTIL  THE  PROJECT
PLAN HAS BEEN ADOPTED AS PROVIDED IN THIS SECTION.
  S 1138. AUTHORIZATION TO UNDERTAKE PROJECTS; POWERS. CITIES, TOWNS AND
VILLAGES  ARE  HEREBY  AUTHORIZED TO UNDERTAKE PROJECTS PURSUANT TO DULY
ADOPTED PROJECT PLANS. IN ADDITION TO POWERS GRANTED BY ANY  OTHER  LAW,
FOR  THE  PURPOSES OF CARRYING OUT A PROJECT AS AUTHORIZED BY THIS ARTI-
CLE, A CITY, TOWN OR VILLAGE SHALL HAVE THE FOLLOWING POWERS:
  1. TO INCUR INDEBTEDNESS AS PROVIDED IN THIS ARTICLE AND TO PLEDGE TAX
INCREMENTS AND OTHER PROJECT REVENUES FOR REPAYMENT THEREOF;
  2. TO DESIGNATE A BOARD OR OFFICER OF THE CITY, TOWN OR VILLAGE TO  BE
RESPONSIBLE FOR ADMINISTERING THE PROJECT PLAN;
  3.  TO  MAKE  AND ENTER INTO ALL CONTRACTS AND AGREEMENTS NECESSARY IN
ORDER TO UNDERTAKE THE PROJECT;
  4. TO RECEIVE FROM THE FEDERAL  GOVERNMENT  OR  THE  STATE,  LOANS  OR
GRANTS  FOR OR IN AID OF A PROJECT AND TO RECEIVE CONTRIBUTIONS FROM ANY
OTHER SOURCE TO DEFRAY PROJECT COSTS;
  5. TO PURCHASE OR OTHERWISE ACQUIRE SUCH PROPERTY OR INTERESTS THEREIN
WITHIN A PROJECT AREA AS THE CITY, TOWN OR VILLAGE MAY DEEM NECESSARY IN
ORDER TO CARRY OUT THE PROJECT;
  6. TO CLEAR AND IMPROVE  PROPERTY  ACQUIRED  BY  IT  PURSUANT  TO  THE
PROJECT PLAN AND TO CONTRACT FOR THE CONSTRUCTION, DEVELOPMENT, REDEVEL-
OPMENT, REHABILITATION, REMODELING, ALTERATION, OR REPAIR OF RESIDENTIAL
OR COMMERCIAL DWELLINGS ON THE PROPERTY;
  7.  TO  LAY  OUT,  CONSTRUCT OR INSTALL WATER AND SEWER LINES, PRIVATE
WELLS AND SANITARY SYSTEMS, STORM  SEWERS,  ROADS,  SIDEWALKS,  AND  ANY
OTHER  PUBLIC  IMPROVEMENTS  WHICH  IT  IS  AUTHORIZED  TO  UNDERTAKE IN
CONNECTION WITH THE PROJECT;
  8. TO CAUSE PARKS AND PLAYGROUNDS  TO  BE  LAID  OUT,  CONSTRUCTED  OR
FURNISHED IN CONNECTION WITH THE PROJECT;
  9.  TO  ADOPT  ORDINANCES  OR REPEAL OR MODIFY ORDINANCES OR ESTABLISH
EXCEPTIONS TO EXISTING ORDINANCES REGULATING THE  DESIGN,  CONSTRUCTION,
AND USE OF RESIDENTIAL AND COMMERCIAL DWELLINGS;
  10.  TO  SELL, MORTGAGE, LEASE, TRANSFER OR DISPOSE OF ANY PROPERTY OR
INTEREST THEREIN ACQUIRED BY IT PURSUANT TO THE PROJECT PLAN FOR  DEVEL-
OPMENT, REDEVELOPMENT OR REHABILITATION IN ACCORDANCE WITH THE PLAN;
  11.  TO  LOAN  THE PROCEEDS OF ANY ISSUE OF BONDS OR NOTES PURSUANT TO
THIS ARTICLE TO ANY INDUSTRIAL DEVELOPMENT AGENCY, NOT-FOR-PROFIT CORPO-
RATIONS OR CHARITABLE ORGANIZATIONS WHICH HAS  AS  ONE  OF  ITS  PRIMARY
PURPOSES  THE  IMPROVING  OF HOUSING, OR ANY MUNICIPAL HOUSING AGENCY OR

S. 3414                             5

AUTHORITY IN ORDER TO FINANCE THE COST OF ACQUIRING  LAND,  CONSTRUCTING
OR  REHABILITATING RESIDENTIAL OR COMMERCIAL DWELLINGS, AND CONSTRUCTING
INFRASTRUCTURE IMPROVEMENTS AND PUBLIC  FACILITIES  WITHIN  THE  PROJECT
AREA  IN  ACCORDANCE  WITH  THE PLAN OR TO LOAN BOND OR NOTE PROCEEDS IN
ORDER TO REFINANCE ANY SUCH LOANS;
  12. TO INVEST PROJECT REVENUES AS HEREINAFTER PROVIDED; AND
  13. TO DO ALL THINGS REASONABLY NECESSARY  TO  CARRY  OUT  THE  POWERS
GRANTED IN THIS ARTICLE.
  S  1139.  ISSUANCE  OF  SPECIAL  OBLIGATION  BONDS. 1. A CITY, TOWN OR
VILLAGE MAY BORROW MONEY BY THE ISSUANCE OF SPECIAL OBLIGATION BONDS FOR
THE PURPOSE OF CARRYING OUT A PROJECT PURSUANT TO A DULY ADOPTED PROJECT
PLAN. THE BONDS MAY BE ISSUED FOR PROJECT COSTS WHICH MAY INCLUDE INTER-
EST PRIOR TO AND DURING THE CARRYING OUT OF A PROJECT AND FOR A  REASON-
ABLE  TIME THEREAFTER, SUCH RESERVES AS MAY BE REQUIRED BY ANY AGREEMENT
SECURING THE BONDS AND ALL OTHER EXPENSES INCIDENTAL TO PLANNING, CARRY-
ING OUT AND FINANCING THE PROJECT.  WITH  RESPECT  TO  THE  ISSUANCE  OF
SPECIAL OBLIGATION BONDS, BONDS ISSUED PURSUANT TO THIS SECTION SHALL BE
PAYABLE  SOLELY  FROM  PROJECT  REVENUES AND SHALL NOT BE DEEMED TO BE A
PLEDGE OF FAITH AND CREDIT OF THE CITY, TOWN OR VILLAGE.  EVERY  SPECIAL
OBLIGATION BOND ISSUED PURSUANT TO THIS SECTION SHALL RECITE ON ITS FACE
THAT  IT IS A SPECIAL OBLIGATION BOND PAYABLE SOLELY FROM PROJECT REVEN-
UES PLEDGED FOR ITS REPAYMENT.
  2. THE BONDS OF EACH ISSUE SHALL BE DATED AND MAY BE  MADE  REDEEMABLE
BEFORE  MATURITY  WITH  OR  WITHOUT  PREMIUM. SUBJECT TO THE AUTHORIZING
VOTE, THE OFFICERS AUTHORIZED TO SELL THE BONDS SHALL DETERMINE THE DATE
OR DATES OF THE BONDS, THEIR DENOMINATION OR DENOMINATIONS, THE PLACE OR
PLACES OF PAYMENT OF THE PRINCIPAL AND INTEREST, WHICH  MAY  BE  AT  ANY
BANK  OR  TRUST COMPANY WITHIN OR WITHOUT THE STATE, THEIR INTEREST RATE
OR RATES, MATURITY OR MATURITIES, REDEMPTION PRIVILEGES, IF ANY, AND THE
FORM AND OTHER DETAILS OF THE BONDS INCLUDING  INTEREST  COUPONS  TO  BE
ATTACHED THERETO. THE BONDS SHALL BE SIGNED BY THE CITY, TOWN OR VILLAGE
TREASURER,  SHALL  BE COUNTERSIGNED BY THE MAYOR OF A CITY OR VILLAGE OR
BY THE TOWN SUPERVISOR OF THE TOWN EITHER MANUALLY OR BY FACSIMILE,  AND
SHALL BEAR THE SEAL OF THE CITY, TOWN OR VILLAGE OR A FACSIMILE THEREOF.
ANY  COUPONS  ATTACHED THERETO SHALL BEAR THE FACSIMILE SIGNATURE OF THE
CITY, TOWN OR VILLAGE TREASURER.
  3. IN CASE ANY OFFICER WHOSE SIGNATURE OR A FACSIMILE OF WHOSE  SIGNA-
TURE SHALL APPEAR ON ANY BONDS, COUPONS OR NOTES ISSUED PURSUANT TO THIS
ARTICLE  SHALL  CEASE  TO BE AN OFFICER BEFORE THE DELIVERY THEREOF, THE
SIGNATURE OR THE FACSIMILE SHALL NEVERTHELESS BE  VALID  AND  SUFFICIENT
FOR ALL PURPOSES THE SAME AS IF THE OFFICER HAD REMAINED IN OFFICE UNTIL
THE DELIVERY.
  4.  THE  BONDS  MAY BE ISSUED IN COUPON OR IN REGISTERED FORM OR BOTH,
AND PROVISION MAY BE MADE FOR THE REGISTRATION OF ANY COUPON BONDS AS TO
PRINCIPAL ALONE AND ALSO AS TO PRINCIPAL AND INTEREST, FOR THE RECONVER-
SION INTO COUPON BONDS OR BONDS REGISTERED  AS  TO  BOTH  PRINCIPAL  AND
INTEREST,  AND  FOR  THE  INTERCHANGE  OF  REGISTERED  AND COUPON BONDS.
SUBJECT TO THE AUTHORIZING VOTE, THE OFFICERS  AUTHORIZED  TO  SELL  THE
BONDS  MAY  SELL  THE  BONDS IN SUCH MANNER, EITHER AT PUBLIC OR PRIVATE
SALE, AND FOR SUCH PRICE AS THEY MAY  DETERMINE  WILL  BEST  AFFECT  THE
PURPOSES OF THIS ARTICLE.
  5.  PRIOR  TO  THE  PREPARATION OF DEFINITIVE BONDS, THE CITY, TOWN OR
VILLAGE MAY ISSUE INTERIM RECEIPTS OR TEMPORARY BONDS, WITH  OR  WITHOUT
COUPONS,  EXCHANGEABLE  FOR  DEFINITIVE BONDS WHEN THOSE BONDS HAVE BEEN
EXECUTED AND ARE AVAILABLE FOR DELIVERY. PROVISION MAY BE MADE  FOR  THE

S. 3414                             6

REPLACEMENT OF ANY BONDS WHICH SHALL HAVE BECOME MUTILATED OR SHALL HAVE
BEEN DESTROYED OR LOST.
  6.  NOTWITHSTANDING ANY PROVISIONS OF ANY MUNICIPAL CHARTER OR GENERAL
OR SPECIAL LAW TO THE CONTRARY, BONDS ISSUED PURSUANT  TO  THIS  SECTION
MAY  PROVIDE  FOR  ANNUAL  OR MORE FREQUENT INSTALLMENTS OF PRINCIPAL IN
EQUAL, DIMINISHING OR INCREASING AMOUNTS WITH THE FIRST  INSTALLMENT  OF
PRINCIPAL  TO  BE DUE AT ANY TIME WITHIN FIVE YEARS FROM THE DATE OF THE
ISSUANCE OF THE BONDS.
  S 1140. SECURITY FOR BONDS. 1.  IN  THE  DISCRETION  OF  THE  OFFICERS
AUTHORIZED  TO SELL THE BONDS, BUT SUBJECT TO THE PROVISIONS OF THE VOTE
AUTHORIZING THE BONDS, BONDS ISSUED PURSUANT  TO  THIS  ARTICLE  MAY  BE
SECURED  BY  ONE  OR  MORE  TRUST  AGREEMENTS  BETWEEN THE CITY, TOWN OR
VILLAGE AND A CORPORATE TRUSTEE OR TRUSTEES,  WHICH  MAY  BE  ANY  TRUST
COMPANY  OR  BANK HAVING THE POWERS OF A TRUST COMPANY WITHIN OR WITHOUT
THE STATE. A TRUST AGREEMENT PURSUANT TO THIS SECTION SHALL BE  IN  SUCH
FORM AND EXECUTED IN SUCH MANNER AS MAY BE DETERMINED BY THE OFFICERS. A
TRUST  AGREEMENT  MAY  PLEDGE OR ASSIGN PROJECT REVENUES, IN WHOLE OR IN
PART. IT MAY CONTAIN SUCH PROVISIONS FOR PROTECTING  AND  ENFORCING  THE
RIGHTS,  SECURITY  AND  REMEDIES OF THE BONDHOLDERS AS MAY BE REASONABLE
AND PROPER AND NOT IN VIOLATION OF LAW, INCLUDING WITHOUT  LIMITING  THE
GENERALITY  OF THE FOREGOING, PROVISIONS DEFINING DEFAULTS AND PROVIDING
FOR REMEDIES IN THE EVENT THEREOF, WHICH MAY INCLUDE THE ACCELERATION OF
MATURITIES, AND COVENANTS SETTING FORTH DUTIES OF,  AND  LIMITATIONS  ON
THE  CITY,  TOWN  OR  VILLAGE  IN RELATION TO CARRYING OUT AND OTHERWISE
ADMINISTERING  THE  PROJECT  OR  PROJECTS,  THE  CUSTODY,  SAFEGUARDING,
INVESTMENT  AND APPLICATION OF PROJECT REVENUES, THE ISSUE OF ADDITIONAL
BONDS PURSUANT TO THIS ARTICLE, THE DETERMINATION OF TAX INCREMENTS, THE
FIXING OF FEES AND CHARGES, IF  ANY,  IN  RELATION  TO  THE  PROJECT  OR
PROJECTS,  THE  COLLECTION  OF  PROJECT REVENUES, THE USE OF ANY SURPLUS
BOND PROCEEDS, THE ESTABLISHMENT OF RESERVES,  AND  THE  REPLACEMENT  OF
BONDS  OR  COUPONS WHICH SHALL BECOME MUTILATED OR BE DESTROYED OR LOST.
SUBJECT TO THE PROVISIONS OF THIS ARTICLE, MONEYS SUBJECT TO  THE  TRUST
AGREEMENT  SHALL  BE  HELD,  INVESTED  AND  APPLIED AS PROVIDED THEREIN,
PROVIDED THAT MONEYS NOT DEPOSITED IN TRUST  WITH  A  CORPORATE  TRUSTEE
SHALL  BE IN THE CUSTODY OF THE CITY, TOWN OR VILLAGE TREASURER PURSUANT
TO THE PROVISIONS OF SECTION ELEVEN HUNDRED FORTY-THREE OF THIS ARTICLE.
  2. IT SHALL BE UNLAWFUL FOR ANY BANK OR TRUST  COMPANY  TO  ACT  AS  A
DEPOSITORY  OR TRUSTEE OF THE PROCEEDS OF BONDS OR OF OTHER MONEYS UNDER
ANY TRUST AGREEMENT AND TO FURNISH SUCH INDEMNIFYING BONDS OR TO  PLEDGE
SUCH  SECURITIES  AS  MAY  BE REQUIRED BY THE TRUST AGREEMENT. THE TRUST
AGREEMENT OR RESOLUTION MAY SET FORTH THE RIGHTS  AND  REMEDIES  OF  THE
BONDHOLDERS AND OF THE TRUSTEE, AND MAY RESTRICT THE INDIVIDUAL RIGHT OF
ACTION  BY  BONDHOLDERS.  ALL  EXPENSES  INCURRED  IN  CARRYING  OUT THE
PROVISIONS OF THE TRUST  AGREEMENT  OR  RESOLUTION  MAY  BE  TREATED  AS
CURRENT OPERATING EXPENSES.
  S  1141.  PLEDGE OF PROJECT REVENUES VALIDATED. 1. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, INCLUDING, BUT  NOT  LIMITED  TO
THE UNIFORM COMMERCIAL CODE:
  A.  ANY PLEDGE PURSUANT TO THIS ARTICLE SHALL BE VALID AND BINDING AND
SHALL BE DEEMED CONTINUOUSLY PERFECTED FROM THE TIME IT IS MADE;
  B. NO FILING NEED BE MADE UNDER THE UNIFORM COMMERCIAL CODE OR  OTHER-
WISE;
  C. UNLESS OTHERWISE PROVIDED IN THE FINANCING INSTRUMENTS, A PLEDGE OF
PROJECT  REVENUES SHALL BE DEEMED TO INCLUDE A PLEDGE OF ANY ACCOUNTS OR
GENERAL INTANGIBLES FROM WHICH REVENUES ARE DERIVED, WHETHER EXISTING AT

S. 3414                             7

THE TIME OF THE PLEDGE OR THEREAFTER  ACQUIRED  BY  THE  CITY,  TOWN  OR
VILLAGE AND THE PROCEEDS OF THE ACCOUNTS OR GENERAL INTANGIBLES; AND
  D.  THE  PLEDGE  OF PROJECT REVENUES, ACCOUNTS AND GENERAL INTANGIBLES
SHALL BE SUBJECT TO THE LIEN OF THE PLEDGE WITHOUT  DELIVERY  OR  SEGRE-
GATION AND THE LIEN OF THE PLEDGE SHALL BE VALID AND BINDING AGAINST ALL
PARTIES HAVING CLAIMS OF CONTRACT OR TORT OR OTHERWISE AGAINST THE CITY,
TOWN OR VILLAGE.
  2.  A PLEDGE OF PROJECT REVENUES UNDER THIS ARTICLE SHALL CONSTITUTE A
SUFFICIENT APPROPRIATION THEREOF FOR THE PURPOSES OF ANY  PROVISION  FOR
APPROPRIATION  AND THE REVENUES MAY BE APPLIED AS REQUIRED BY THE PLEDGE
WITHOUT FURTHER APPROPRIATION.
  3. FOR THE PURPOSES OF  THIS  SECTION,  THE  TERM  "PLEDGE"  SHALL  BE
CONSTRUED  TO INCLUDE THE GRANT OF A SECURITY INTEREST UNDER THE UNIFORM
COMMERCIAL CODE.
  S 1142. TEMPORARY ANTICIPATION NOTES. IN ANTICIPATION OF THE  ISSUANCE
OF  BONDS  PURSUANT TO THIS ARTICLE AND SUBJECT TO ANY PROVISIONS OF THE
VOTE AUTHORIZING THE BONDS, THE OFFICERS AUTHORIZED TO  SELL  THE  BONDS
MAY  WITHOUT  FURTHER AUTHORIZATION ISSUE TEMPORARY NOTES. THE NOTES MAY
BE SECURED AS IN THE CASE OF BONDS AND, EXCEPT AS OTHERWISE PROVIDED  IN
THIS  SECTION,  THE  PROVISIONS OF THIS ARTICLE REFERRING TO BONDS SHALL
ALSO BE DEEMED TO REFER TO THE NOTES. THE NOTES NEED NOT BEAR  THE  SEAL
OF  THE CITY, TOWN OR VILLAGE OR A FACSIMILE THEREOF. THE NOTES SHALL BE
PAYABLE WITHIN THREE YEARS FROM THEIR RESPECTIVE DATES, BUT THE  PRINCI-
PAL OF AND INTEREST ON NOTES ISSUED FOR A SHORTER PERIOD MAY BE REFUNDED
FROM  TIME  TO  TIME  BY  THE ISSUE OF OTHER NOTES MATURING WITHIN THREE
YEARS FROM  THE  ORIGINAL  DATE  OF  ISSUE  OF  THE  INDEBTEDNESS  BEING
REFUNDED.
  S  1143.  TAX INCREMENT BOND FUNDS. 1. THE GOVERNING BODY OF ANY CITY,
TOWN OR VILLAGE WHICH HAS AUTHORIZED THE ISSUANCE OF BONDS  PURSUANT  TO
THE  PROVISIONS  OF  THIS ARTICLE SHALL ESTABLISH AND MAINTAIN A SPECIAL
FUND ENTITLED THE "TAX INCREMENT BOND FUND".
  2. FOR THE PURPOSES OF THIS ARTICLE, THE USES OF THE FUND BY THE CITY,
TOWN OR VILLAGE MAY INCLUDE, BUT NOT BE LIMITED TO THE FOLLOWING:
  A. RECEIVING THE PROCEEDS OF BONDS AND NOTES ISSUED PURSUANT  TO  THIS
ARTICLE AND ANY OTHER MONEYS WHICH MAY BE AVAILABLE TO THE CITY, TOWN OR
VILLAGE FOR THE PROJECT FROM ANY OTHER SOURCE;
  B. PAYING THE PROJECT COSTS AND EXPENSES;
  C.  PAYING  THE  PRINCIPAL  OF  AND INTEREST ON BONDS AND NOTES ISSUED
PURSUANT TO THIS ARTICLE; AND
  D. PAYING ADDITIONAL TAX INCREMENT REVENUE, IF ANY, TO THE CITY,  TOWN
OR  VILLAGE  IN WHICH THE TAX INCREMENT AREA IS LOCATED PROVIDED THAT NO
LESS THAN TWENTY PERCENT OF SUCH REVENUES BE ALLOCATED BY THE CITY, TOWN
OR VILLAGE TO THE DEVELOPMENT, REDEVELOPMENT, CONSTRUCTION OR  REHABILI-
TATION OF RESIDENTIAL HOUSING.
  S 1144. CREDIT OF CITY, TOWN OR VILLAGE NOT PLEDGED. ANY SPECIAL OBLI-
GATION BONDS AND NOTES ISSUED UNDER THIS ARTICLE SHALL BE PAYABLE SOLELY
FROM  PROJECT  REVENUES.  THESE BONDS AND NOTES SHALL NOT AT ANY TIME BE
INCLUDED IN THE DEBT OF THE CITY, TOWN OR VILLAGE  FOR  THE  PURPOSE  OF
ASCERTAINING ITS LEGAL BORROWING CAPACITY.
  S  1145.  INVESTMENT OF FUNDS. SUBJECT TO ANY AGREEMENT SECURING BONDS
OR NOTES ISSUED UNDER THIS ARTICLE, THE PROCEEDS OF THE BONDS AND NOTES,
PLEDGED TAX INCREMENTS, AND OTHER PROJECT REVENUES MAY BE  DEPOSITED  OR
INVESTED IN:
  1. OBLIGATIONS OF THE STATE OR THE UNITED STATES;
  2.  OBLIGATIONS  OF THE PRINCIPAL AND INTEREST OF WHICH ARE GUARANTEED
BY THE STATE OR THE UNITED STATES;

S. 3414                             8

  3. OBLIGATIONS OF AGENCIES AND INSTRUMENTALITIES OF THE STATE  OR  THE
UNITED STATES; OR
  4.  CERTIFICATES  OF DEPOSIT OF, AND REPURCHASE AGREEMENTS, SO-CALLED,
ISSUED WITH RESPECT TO OBLIGATIONS OF THE UNITED  STATES  BY  BANKS  AND
TRUST  COMPANIES ORGANIZED UNDER THE LAWS OF THE STATE OR DOING BUSINESS
IN THE STATE.
  S 1146. REMEDIES OF BONDHOLDERS AND NOTEHOLDERS. ANY HOLDER  OF  BONDS
OR  NOTES ISSUED UNDER THIS ARTICLE, OR OF ANY OF THE COUPONS APPERTAIN-
ING THERETO, AND THE TRUSTEE UNDER  ANY  TRUST  AGREEMENT  SECURING  THE
BONDS OR NOTES, EXCEPT TO THE EXTENT THE RIGHTS GRANTED PURSUANT TO THIS
SECTION  MAY BE RESTRICTED BY ANY AGREEMENT SECURING THE BONDS OR NOTES,
MAY BRING SUIT UPON THE BONDS, NOTES OR COUPONS AND MAY, EITHER  AT  LAW
OR  IN  EQUITY,  BY SUIT, ACTION, MANDAMUS OR OTHER PROCEEDINGS, PROTECT
AND ENFORCE ANY AND ALL RIGHTS UNDER THE LAWS OF THE  STATE  OR  GRANTED
UNDER  THIS  ARTICLE  OR  UNDER  ANY  SUCH AGREEMENT, AND MAY ENFORCE OR
COMPEL THE PERFORMANCE OF ALL DUTIES REQUIRED BY THIS ARTICLE OR  BY  AN
AGREEMENT TO BE PERFORMED BY THE CITY, TOWN OR VILLAGE OR BY ANY OFFICER
THEREOF.
  S  1147.  BONDS AND NOTES AS LEGAL INSTRUMENTS. BONDS AND NOTES ISSUED
UNDER THE PROVISIONS OF THIS ARTICLE ARE HEREBY MADE SECURITIES IN WHICH
ALL PUBLIC OFFICERS AND PUBLIC BODIES OF THE  STATE  AND  ITS  POLITICAL
SUBDIVISIONS,  ALL INSURANCE COMPANIES, TRUST COMPANIES IN THEIR COMMER-
CIAL DEPARTMENTS, SAVINGS  BANKS,  COOPERATIVE  BANKS,  BANKING  ASSOCI-
ATIONS,  INVESTMENT  COMPANIES, EXECUTORS, ADMINISTRATORS, TRUSTEES, AND
OTHER FIDUCIARIES MAY PROPERLY AND LEGALLY INVEST FUNDS, INCLUDING CAPI-
TAL IN THEIR CONTROL OR BELONGING TO THEM. THESE BONDS ARE  HEREBY  MADE
SECURITIES WHICH MAY PROPERLY AND LEGALLY BE DEPOSITED WITH AND RECEIVED
BY ANY STATE OR MUNICIPAL OFFICER OR ANY AGENCY OR POLITICAL SUBDIVISION
OF  THE  STATE  FOR  ANY PURPOSE FOR WHICH THE DEPOSIT OF BONDS OR OBLI-
GATIONS OF THE STATE IS NOW OR MAY HEREAFTER BE AUTHORIZED BY LAW.
  S 1148. BONDS AND NOTES AS INVESTMENT SECURITIES.  NOTWITHSTANDING ANY
OTHER PROVISION OF THIS ARTICLE, OR ANY RECITALS IN ANY BONDS  OR  NOTES
ISSUED  UNDER  THIS ARTICLE, ALL SUCH BONDS AND NOTES SHALL BE DEEMED TO
BE INVESTMENT SECURITIES UNDER THE UNIFORM COMMERCIAL CODE.
  S 1149. EXEMPTION FROM TAXATION. THE BONDS AND NOTES ISSUED UNDER THIS
ARTICLE, TOGETHER WITH THE INCOME THEREFROM, SHALL AT ALL TIMES BE  FREE
OF TAXATION.
  S  1149-A.  DURATION  OF  DISTRICTS.  1.  SUBJECT  TO  THE LIMITATIONS
CONTAINED IN THIS ARTICLE, EACH  TAX  INCREMENT  AREA  SHALL  REMAIN  IN
EXISTENCE  UNTIL THE BONDED OBLIGATIONS FOR A PROJECT IN SUCH AREA CEASE
TO BE OUTSTANDING; HOWEVER, THE TAX INCREMENT AREA MAY BE TERMINATED  IF
SUFFICIENT MONEYS HAVE BEEN DEPOSITED IN THE TAX INCREMENT BOND FUND FOR
THE  FULL PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS AT MATU-
RITY.
  2. WHEN THE BONDED OBLIGATIONS OF THE TAX  INCREMENT  AREA  HAVE  BEEN
PAID  IN  FULL  OR MONEY SUFFICIENT TO PAY ALL THE OUTSTANDING PRINCIPAL
AND INTEREST ON THE BONDS AT MATURITY HAS  BEEN  DEPOSITED  IN  THE  TAX
INCREMENT BOND FUND, THE TAX INCREMENT AREA SHALL BE DISSOLVED.
  S  1149-B.  ANNUAL REPORT. NO LATER THAN SEPTEMBER FIRST OF EACH YEAR,
EVERY CITY, TOWN OR VILLAGE IN WHICH A PROJECT PLAN CREATED PURSUANT  TO
THIS ARTICLE IS IN EFFECT, SHALL MAKE A REPORT TO THE COMMISSIONER.  THE
ANNUAL  REPORT  SHALL SET FORTH FOR THE PRECEDING FISCAL YEAR THE ACTIV-
ITIES FINANCED BY TAX INCREMENT FINANCING, THE TAXABLE VALUATION OF  THE
CITY,  TOWN  OR VILLAGE AND FOR EACH TAX INCREMENT AREA WITHIN THE CITY,
TOWN OR VILLAGE, THE TAXABLE VALUATION OF THE PROPERTY  WITHIN  THE  TAX
INCREMENT  AREA, THE AMOUNT OF THE TAX INCREMENT, AND THE AMOUNT USED OR

S. 3414                             9

SET ASIDE FOR THE PURPOSES OF THE PLAN. THE REPORT  SHALL  ALSO  INCLUDE
ANY OTHER RELEVANT INFORMATION REQUESTED BY THE COMMISSIONER.
  S  1149-C. TECHNICAL ASSISTANCE. THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL MAY PROVIDE TECHNICAL SERVICES AND  ASSISTANCE  OR  CONTRACT  TO
PROVIDE  TECHNICAL SERVICES AND ASSISTANCE TO CITIES, TOWNS AND VILLAGES
TO COMPLY WITH THE PROVISIONS AND INTENT OF THIS ARTICLE WHICH  SERVICES
AND  ASSISTANCE MAY INCLUDE BUT SHALL NOT NECESSARILY BE LIMITED TO SITE
SELECTION,  FINANCIAL  PACKAGING,  AND  ENGINEERING  AND   ARCHITECTURAL
SERVICES NECESSARY FOR THE PREPARATION OF PROJECT PLANS.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S3414

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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Sponsored By

Catharine Young

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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co-Sponsors

Hugh T. Farley

2009-S3414 (ACTIVE) - Details

2009-S3414 (ACTIVE) - Summary

2009-S3414 (ACTIVE) - Sponsor Memo

2009-S3414 (ACTIVE) - Bill Text download pdf

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