S T A T E O F N E W Y O R K
________________________________________________________________________
10446
I N S E N A T E
May 15, 2026
___________
Introduced by Sen. KAVANAGH -- (at request of the New York State Homes
and Community Renewal) -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community 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 and the New York
city housing development corporation to finance certain multi-family
housing, in relation to the effectiveness thereof; 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 thereof; 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
effectiveness 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 infras-
tructure trust fund, in relation to the effectiveness thereof; 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 the effectiveness thereof; to amend chapter 208 of the
laws of 2010 amending the public authorities law relating to the
powers of the state of New York mortgage agency, in relation to the
effectiveness thereof; and to amend chapter 246 of the laws of 2010
amending the public authorities law relating to the powers of the
state of New York mortgage agency, in relation to the effectiveness
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 and the New York
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15014-01-6
S. 10446 2
city housing development corporation to finance certain multi-family
housing, as amended by chapter 170 of the laws of 2025, is amended to
read as follows:
§ 6. This act shall take effect immediately [and shall remain in full
force and effect until July 23, 2027 at which time it shall be
repealed].
§ 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 170 of the laws of
2025, is amended to read as follows:
§ 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, 2027 at which time such sections shall be
repealed].
§ 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 170 of the laws of 2025, is amended to
read as follows:
§ 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,
2027, 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].
§ 4. Section 2407 of the public authorities law, as amended by chapter
170 of the laws of 2025, is amended to read as follows:
§ 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 nine hundred twenty million dollars,
excluding 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
twenty-seven, excluding bonds and notes issued to refund outstanding
bonds and notes.] No more than two billion four 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.
S. 10446 3
(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
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 one billion nine hundred fifty
million dollars, excluding from such limitation bonds, notes or other
obligations issued to refund outstanding bonds, notes or other obli-
gations. [No such bond, note or other obligation shall be issued by the
agency on or after July twenty-third, two thousand twenty-seven, exclud-
ing 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 subdivision. 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 permitted 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 neighborhood 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.
(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.
§ 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 170 of the laws of
2025, is amended to read as follows:
§ 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, 2027, 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
S. 10446 4
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, 2027, 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 obligations has
been made or provided for].
§ 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
agency, as amended by chapter 170 of the laws of 2025, is amended to
read as follows:
§ 2. This act shall take effect immediately [and shall remain in full
force and effect until July 23, 2027, whereupon such date the provisions
of this act shall expire and be deemed repealed].
§ 7. Section 4 of chapter 208 of the laws of 2010 amending the public
authorities law relating to the powers of the state of New York mortgage
agency, as amended by chapter 170 of the laws of 2025, is amended to
read as follows:
§ 4. This act shall take effect immediately[, provided that the amend-
ments to subdivision 5 of section 2402 of the public authorities law
made by section one of this act shall be subject to the expiration and
reversion of such subdivision pursuant to section 16 of chapter 915 of
the laws of 1982, as amended, when upon such date the provisions of
section two of this act shall take effect; further provided that this
act shall expire and be deemed repealed July 23, 2027].
§ 8. Section 5 of chapter 246 of the laws of 2010 amending the public
authorities law relating to the powers of the state of New York mortgage
agency, as amended by chapter 170 of the laws of 2025, is amended to
read as follows:
§ 5. This act shall take effect immediately [and shall expire and be
deemed repealed on and after July 23, 2027; provided, however, that the
amendments to paragraph (c) of subdivision 8 of section 2428 of the
public authorities law made by section two of this act shall not affect
the expiration of such subdivision and shall be deemed to expire there-
with].
§ 9. This act shall take effect immediately.
