S T A T E O F N E W Y O R K
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4400
2013-2014 Regular Sessions
I N S E N A T E
March 26, 2013
___________
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
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 to finance certain
multi-family housing; to amend chapter 396 of the laws of 1984, amend-
ing 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 infrastructure trust fund, in relation
to the effective date thereof; and 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
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 6 of 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, as amended by chapter 100 of the laws of
2011, is amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09100-01-3
S. 4400 2
S 6. This act shall take effect immediately and shall remain in full
force and effect until July 23, [2013] 2015 at which time it shall be
repealed.
S 2. Section 7 of 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, as amended by chapter 100 of the laws of
2011, is amended to read as follows:
S 7. This act shall take effect immediately, except that sections one,
three, four, five and six of this act shall remain in full force and
effect until July 23, [2013] 2015 at which time such sections shall be
repealed.
S 3. Section 16 of chapter 915 of the laws of 1982, amending the
public authorities law relating to the powers of the state of New York
mortgage agency, as amended by chapter 100 of the laws of 2011, is
amended to read as follows:
S 16. This act shall take effect immediately except that the amend-
ments to law effected by sections one through ten of this act, as
amended, shall cease to be of force and effect on and after July 23,
[2013] 2015, on which date the provisions of the public authorities law
amended by such sections shall be as they were in force and effect imme-
diately prior to this act taking effect.
S 4. Section 2407 of the public authorities law, as amended by chapter
100 of the laws of 2011, is amended to read as follows:
S 2407. Bond limits. (1) Except for notes issued in nineteen hundred
seventy and nineteen hundred seventy-one, the agency shall not issue
bonds and notes, the interest on which is not included in the gross
income of the holders of the bonds and notes under the United States
Internal Revenue Code of 1986, as amended, or any subsequent correspond-
ing internal revenue law of the United States, in an aggregate principal
amount exceeding ten billion two hundred twenty million dollars, exclud-
ing from such limitation (a) an amount equal to any original issue
discount from the principal amount of any bonds or notes issued, (b)
bonds and notes issued to refund outstanding bonds and notes, and (c)
bonds and notes not described in paragraph (b) of this subdivision
issued to refund outstanding bonds and notes in accordance with the
provisions of the Internal Revenue Code of 1986 or the Tax Reform Act of
1986, as amended, where such bonds or notes are not included in the
statewide volume cap on private purpose bonds under section 146 of such
code provided, however, that upon any refunding pursuant to this para-
graph or paragraph (b) of this subdivision, such exclusion shall apply
only to the extent that the amount of the refunding bonds or notes does
not exceed (i) the outstanding amount of the refunded bonds or notes,
plus (ii) to the extent permitted by applicable federal tax law, costs
of issuance of the refunding bonds or notes to be financed from the
proceeds of the refunding bonds or notes. No such bond or note shall be
issued by the agency on or after July twenty-third, two thousand [thir-
teen] FIFTEEN, excluding bonds and notes issued to refund outstanding
bonds and notes. No more than five hundred million dollars of proceeds
of bonds or notes issued by the agency pursuant to this subdivision
shall be used for mortgage purposes by blending with proceeds of bonds
issued pursuant to subdivision two of this section.
(2) In connection with the issuance of bonds for the purpose of
furthering programs described in this title, the agency is authorized to
covenant and consent that the interest on any of its bonds, notes or
other obligations shall be includable, under the United States Internal
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Revenue Code of 1986, as amended or any subsequent corresponding inter-
nal revenue law of the United States, in the gross income of the holders
of the bonds to the same extent and in the same manner that the interest
on bills, bonds, notes or other obligations of the United States is
includable in the gross income of the holders thereof under said Inter-
nal Revenue Code or any such subsequent law. Pursuant to this subdivi-
sion, the agency shall not issue bonds, notes or other obligations in an
aggregate principal amount exceeding eight hundred million dollars,
excluding from such limitation bonds, notes or other obligations issued
to refund outstanding bonds, notes or other obligations. No such bond,
note or other obligation shall be issued by the agency on or after July
twenty-third, two thousand [thirteen] FIFTEEN, excluding bonds, notes or
other obligations issued to refund outstanding bonds, notes or other
obligations and no mortgages shall be purchased with the proceeds of
such bonds, notes or other obligations after such date. The board of
directors of the agency shall establish program guidelines for purposes
of bonds, notes or other obligations issued pursuant to this subdivi-
sion. The board of directors shall establish from time to time maximum
income limits of persons eligible to receive mortgages financed by
bonds, notes or other obligations issued pursuant to this subdivision,
which income limits with respect to one-third of the total principal
amount of mortgages authorized to be so financed shall not exceed one
hundred twenty-five percent of the latest maximum income limits permit-
ted under the Internal Revenue Code of 1986, as amended, for mortgagors
financed by mortgage revenue bonds, with respect to one-third of such
principal amount authorized to be so financed, shall not exceed one
hundred thirty-five percent of such income limits, and with respect to
one-third of such principal amount authorized to be so financed, shall
not exceed one hundred fifty percent of such limits.
(3) The fixing of the statutory maximums in this section shall not be
construed as constituting a contract between the agency and the holders
of its bonds or notes that additional bonds and notes may not be issued
subsequently by the agency in the event that such statutory maximums
shall subsequently be increased by law.
S 5. Section 19 of chapter 555 of the laws of 1989, amending the
public authorities law and other laws relating to establishing a New
York state infrastructure trust fund, as amended by chapter 100 of the
laws of 2011, is amended to read as follows:
S 19. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 15, 1989 provided
that the amendments to law effected by sections six and nine through
seventeen of this act, as amended, shall cease to be of force and effect
on and after July[,] 23 [2013], 2015, on which date the provisions of
the public authorities law amended by such sections shall be as they
were in force and effect immediately prior to this act taking effect,
and provided however that the amendments to law effected by sections six
and nine through seventeen of this act, as amended, shall continue to
apply to all commitments issued or policies or development corporation
credit support in force on or before July 23, [2013] 2015, and provided
further that the amendments to section 2429-b of the public authorities
law made by section 13 of chapter 3 of the laws of 2004 which amended
this section shall not cease to be of force and effect prior to the time
that full payment of all development corporation credit support obli-
gations has been made or provided for.
S 6. Section 2 of chapter 172 of the laws of 2002, amending the public
authorities law relating to the powers of the state of New York mortgage
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agency, as amended by chapter 100 of the laws of 2011, is amended to
read as follows:
S 2. This act shall take effect immediately and shall remain in full
force and effect until July 23, [2013] 2015, whereupon such date the
provisions of this act shall expire and be deemed repealed.
S 7. This act shall take effect immediately.