BILL NUMBER:  S5265

 TITLE OF BILL :

An act to amend chapter 376 of the laws of 1998 amending the public
authorities law relating to the powers of the Educational Housing
Services Inc., in relation to the effectiveness thereof

 PURPOSE OR GENERAL IDEA OF BILL :

To make permanent the powers granted to Educational Housing Services,
Inc.

 SUMMARY OF PROVISIONS :

Section one of this bill amends Section 5 of Chapter 376 of the Laws
of 1998 by striking the sunset date.

Section two of this bill provides that this act shall take effect
immediately.

 JUSTIFICATION :

Educational Housing Services Inc., a not-for-profit organization, has
provided dormitory housing to college and university students in New
York City for over 25 years. It currently utilizes properties in
              

Manhattan and Brooklyn and has an inventory of over 4,400 beds serving
10,000 students annually. Educational Housing Services, Inc.  does not
own these residences but rather leases buildings or portions thereof.
The one exception is the dormitory constructed for the uptown CUNY
campus in 2005, which was financed with DASNY bonds.  Currently 25
institutions of higher education utilize Educational Housing Services
Inc. housing. The economy of the downstate region and the 110,000 jobs
generated by these colleges is directly linked to the ability of
Educational Housing Services Inc. to meet the needs of the
institutions it serves. There is a dramatic need for student housing
in New York City due to the fact that almost 500,000 students are
enrolled in colleges in this region. Educational Housing Services Inc.
is the only non-profit organization that is directly meeting the
enormous demand for student housing.

Since 1998, the legislature has granted Educational Housing Services
Inc. the ability to use DASNY in order to finance student housing
projects. The original grant of power to Educational Housing Services
Inc. was for five year periods commencing in 1998, and extended at the
legislative sessions of 2003, 2008 and 2013. The five-year restriction
has inhibited Educational Housing Services Inc. from entering into
leases for a longer period beyond the five-year limit. This
legislation would eliminate the five-year restriction. Educational
Housing Services Inc. is not seeking a special privilege, as there are
227 organizations whose ability to utilize DASNY is not subject to any
sunset language.

Educational Housing Services Inc., in cooperation with the office of
the Attorney General, has undergone a complete restructuring with a
new board whose members, and its CEO, are individuals who are very
experienced in the fields of education, finance, real estate, public
private partnerships and public service.

This bill allows Educational Housing Services Inc. to continue its
utilization of Section 1676 of the Public Authorities Law on a
permanent basis, as the current expiration date does not allow long
term planning for the creation of student dormitories.

 PRIOR LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.