senate Bill S4400

Signed By Governor
2013-2014 Legislative Session

State Housing Finance Authority power extenders

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Archive: Last Bill Status - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 12, 2013 signed chap.152
Jul 02, 2013 delivered to governor
Jun 10, 2013 returned to senate
passed assembly
ordered to third reading cal.500
substituted for a7137
May 20, 2013 referred to ways and means
delivered to assembly
passed senate
May 01, 2013 advanced to third reading
Apr 30, 2013 2nd report cal.
Apr 29, 2013 1st report cal.438
Mar 26, 2013 referred to housing, construction and community development

Votes

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Apr 29, 2013 - Housing, Construction and Community Development committee Vote

S4400
7
0
committee
7
Aye
0
Nay
0
Aye with Reservations
0
Absent
1
Excused
0
Abstained
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Housing, Construction and Community Development Committee Vote: Apr 29, 2013

excused (1)

S4400 - Bill Details

See Assembly Version of this Bill:
A7137
Law Section:
Public Authorities Law
Laws Affected:
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

S4400 - Bill Texts

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Relates to the state Housing Finance Authority power extensions.

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BILL NUMBER:S4400

TITLE OF BILL: 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, 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 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

Purpose of Bill:

This bill would extend certain statutory authorizations of the New
York State Housing Finance Agency (HFA), State of New York Mortgage
Agency (SONYMA) and SONYMA Mortgage Insurance Fund (MIF) for two
years.

Summary of provisions:

HFA: Sections 1 and 2 of the bill would extend HFA's authority to
finance certain multifamily housing projects until July 23, 2015.

SONYMA: Section 3 of the bill would extend SONYMA's authority to
purchase forward commitment mortgages until July 23, 2015.

Section 4 of the bill would extend SONYMA's authority to issue new
money taxable and tax-exempt bonds until July 23, 2015.

MIF: Section 5 would extend until July 23, 2015, the sunset date of
(i) sections six and nine through seventeen of legislation enacted in
1989 that broadened the scope of MIF to provide primary mortgage
insurance on a statewide basis to individual homeowners and to provide
pool insurance to all of SONYMA's loans, and (ii) section 13 of
legislation enacted in 2004 concerning development corporation credit
support relating to the Jacob Javits Convention Center.

Section 6 would extend until July 23, 2015, the sunset date of the
requirement that at least 20% of a rehabilitation loan given by SONYMA
be used for rehabilitation or construction of improvements.

Section 7 of the bill provides for an immediate effective date.

Existing law:

HFA's authority to finance certain multi-family housing projects is
scheduled to sunset on July 23, 2013.


SONYMA's authority to purchase forward commitment mortgages and to
issue new money taxable and tax-exempt bonds is scheduled to sunset on
July 23, 2013. SONYMA is authorized through July 23, 2013 to insure
rehabilitation loans, which are defined in Public Authorities Law
2426 (12) as loans wherein at least 20% of the mortgage loan amount is
attributable to the cost of rehabilitation or construction of
improvements.

MIF is authorized pursuant to Chapter 55 of the Laws of 1989, as
amended, to provide primary mortgage insurance on a statewide basis to
individual homeowners and to provide pool insurance to all of SONYMA's
loans and is scheduled to sunset on July 23, 2013.

Prior Legislative history:

HFA: Chapter 100 of the Laws of 2011; Chapter 407 of the Laws of 2010;
Chapter 176 of the Laws of 2009; Chapter 151 of the laws of 2008;
Chapter 85 of the Laws of 2007; Chapter 398 of the Laws of 2006;
Chapter 124 of the Laws of 2005; Chapter 204 of the Laws of 2004;
Chapter 99 of the Laws of 2003; Chapter 48 of the Laws of 2002;
Chapter 363 of the Laws of 2001; and Chapter 131 of the Laws of 2000.

SONYMA: Chapter 100 of the Laws of 2011; Chapter 218 of the Laws of
2010; Chapter 177 of the Laws of 2009; Chapter 148 of the Laws of
2008; Chapter 227 of the Laws of 2007; Chapter 138 of the Laws of
2006; Chapter 121 of the Laws of 2005; Chapter 347 of the Laws of
2004; Chapter 141 of the Laws of 2003; Chapter 103 of the Laws of
2002; Chapter 111 of the Laws of 2001; and Chapter 132 of the Laws of
2000.

MIF: Chapter 100 of the Laws of 2011: Chapter 192 of the Laws of 2009;
Chapter 230 of the Laws of 2007; Chapter 125 of the Laws of 2005;
Chapter 145 of the Laws of 2003; Chapter 110 of the Laws of 2001.
Also, Chapter 100 of the Laws of 2011; Chapter 162 of the Laws of
2010; Chapter 150 of the Laws of 2008; Chapter 137 of the Laws of
2006; Chapter 309 of the Laws of 2005; and Chapter 172 of the Laws of
2002.

Statement in support:

HFA: This bill would increase the maximum amount of new money bonds
which HFA is authorized to issue, and would extend HFA's authority to
finance certain multifamily housing projects until July 23, 2015. The
Agency currently has a substantial pipeline of financing requests that
will result in both creating and preserving affordable housing across
New York State. The bill will enable the Agency to continue to meet
the housing demands of New Yorkers, as well as creating jobs and
providing economic stimulus.

SONYMA: SONYMA's statutory authorizations to issue new money
tax-exempt bonds and to purchase forward commitment mortgages are
scheduled to sunset on July 23, 2013. SONYMA's statutory authorization
to issue new money taxable bonds is also scheduled to sunset on July
23, 2013. This bill would extend the sunset dates for the issuance of
new money tax-exempt bonds and new money taxable bonds, and for the
purchase of forward commitment mortgages until July 23, 2015.


MIF: Enactment of Chapter 555 of the Laws of 1989 and of Chapter 3 of
the Laws of 2004 enabled SONYMA to provide primary mortgage insurance
on a statewide basis, provide pool insurance for mortgages on
one-to-four family homes and on multi-family projects where the loans
are made by lenders who meet certain criteria and to provide credit
support to the Jacob Javits Convention Center. However, these
provisions will sunset on July 23, 2013. The bill extends these sunset
provisions until July 23, 2015.

SONYMA's primary tool for promoting new construction and
rehabilitation of affordable housing is its authority to insure
Rehabilitation Loans. The statutory authority that reduced the
percentage of a rehabilitation loan that must be attributable by
SONYMA to the cost of rehabilitation or new improvements from 25% to
20% of the mortgage loan is set to expire on July 23, 2013.

The 25% requirement is inconsistent with the provisions of the
Internal Revenue Code concerning the issuance of tax-exempt bonds for
multifamily housing. Under the Code a minimum of 15% of such bonds
must fund construction or rehabilitation costs. Several of the most
important users of SONYMA's mortgage insurance are public benefit
corporations, such as the New York State Housing Finance Agency, that
issue tax-exempt bonds subject to the standards set by the Code. The
reduction of the percentage requirement from 25% to 20% has resulted
in SONYMA's insurance product matching more closely the needs of some
of its primary users without negatively affecting the programmatic or
financial integrity of the MIF.

Budget implications:

None.

Local Impact:

None.

Effective Date:

The bill would take effect immediately.

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

                                  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

S. 4400                             3

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

S. 4400                             4

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.

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