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

                                  10668

                          I N  A S S E M B L Y

                              June 10, 2016
                               ___________

Introduced  by  COMMITTEE  ON  RULES  -- (at request of M. of A. Gjonaj,
  Wright) -- read once and referred to the Committee on Housing

AN ACT to amend the private housing finance law and the public  authori-
  ties  law,  in  relation  to  providing  an  increase in bond and note
  authorization

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

  Section 1. Paragraph (c) of subdivision 1 of section 47 of the private
housing  finance  law,  as amended by chapter 85 of the laws of 2015, is
amended to read as follows:
  (c) The agency shall not  issue  bonds  and  notes  other  than  state
university  construction  bonds and state university construction notes,
hospital and nursing home project bonds and hospital  and  nursing  home
project  notes,  health  facilities  bonds  and health facilities notes,
youth facilities project  bonds  and  youth  facilities  project  notes,
community mental health services and mental retardation services project
bonds  and  community  mental  health  services  and  mental retardation
services project notes, community senior citizens services project notes
or community senior citizens services project bonds and  mental  hygiene
improvement  bonds  and  mental  hygiene improvement notes and bonds and
notes for the housing program for any of its corporate  purposes  in  an
aggregate  principal  amount  exceeding [twenty-one] TWENTY-FOUR billion
[seven] TWO hundred eighty million dollars, excluding  bonds  and  notes
issued to refund outstanding bonds and notes.
  S2.  Subdivision  2  of section 2407 of the public authorities law, as
amended by chapter 85 of the  laws  of  2015,  is  amended  to  read  as
follows:
  (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
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

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

                                                           LBD14180-05-6

A. 10668                            2

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] ONE BILLION
dollars,  excluding  from  such  limitation  bonds, notes or other obli-
gations 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  seventeen,  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, PROVIDED THAT
NOTWITHSTANDING THE FOREGOING, THE  MAXIMUM  INCOME  LIMITS  OF  PERSONS
ELIGIBLE TO RECEIVE MORTGAGES FINANCED BY THE AGENCY UNDER ITS NEIGHBOR-
HOOD REVITALIZATION PROGRAM (AND ANY SUCCESSOR PROGRAM) SHALL NOT EXCEED
ONE  HUNDRED FIFTY PERCENT OF THE LATEST MAXIMUM INCOME LIMITS PERMITTED
UNDER THE INTERNAL REVENUE CODE OF  1986,  AS  AMENDED,  FOR  MORTGAGORS
FINANCED BY MORTGAGE REVENUE BONDS.
  S 3. This act shall take effect immediately.