NY State Senate Bill 2025-S8177

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 19, 2025	referred to housing, construction and community development

2025-S8177 (ACTIVE) - Details

See Assembly Version of this Bill:: A8571
Current Committee:: Senate Housing, Construction And Community Development
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; amd §4, Chap 208 of 2010; amd §5, Chap 246 of 2010

2025-S8177 (ACTIVE) - Summary

Extends certain powers of the New York state housing finance agency.

2025-S8177 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8177

SPONSOR: KAVANAGH
 
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 and the New York city hous-
ing 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 estab-
lishing a New York state infrastructure trust fund, in relation to the
effectiveness thereof; to amend chapter 172 of the laws of 2002, amend-
ing 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 effective-
ness thereof

 
PURPOSE OF THE BILL:

This bill would extend certain statutory authorizations of the New York
State Housing Finance Agency ("HFA"), the State of New York Mortgage
Agency ("SONYMA"), the New York City Housing Development Corporation
("HDC"), and the SONYMA Mortgage Insurance Fund ("MIF").

 
SUMMARY OF PROVISIONS:

Section 1 of the bill extends, until July 23, 2027, HFA's and HDC's
authority to finance certain multifamily housing projects.

Section 2 of the bill extends, until July 23, 2027, HFA's authority to
finance certain multifamily housing projects.

Section 3 of the bill extends, until July 23, 2027, SONYMA's authority
to purchase forward commitment mortgages.

Section 4 of the bill extends, until July 23, 2027, SONYMA's authority
to issue new money taxable and tax-exempt bonds, increases certain
limits on SONYMA' s authority to issue such bonds, and increases the cap
on the amount of tax-exempt bonds that can be blended with proceeds of
taxable bonds by SONYMA.

Section 5 of the bill extends, until July 23, 2027, the sunset date of
(i) sections six and nine through seventeen of legislation enacted in
1989 that broadened the scope of the 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 legis-
lation enacted in 2004 concerning development corporation credit support
relating to the Jacob Javits Convention Center.

Section 6 of the bill extends, until July 23, 2027, the sunset date of
the requirement that at least 20% of a rehabilitation loan given by
SONYMA be used for rehabilitation or construction of improvementi.

Section 7 of the bill extends, until July 23, 2027, the sunset date
regarding the definition of government sponsored enterprises ("GSE").

Section 8 of the bill extends, until July 23, 2027, the sunset date
regarding the authorization of the MIF to provide one hundred percent
mortgage insurance on certain loans extended for the sole purpose of
refinancing existing indebtedness which relates to over-leveraged
multi-family residential buildings.

Section 9 of the bill provides for an immediate effective date.

 
JUSTIFICATION:

This bill extends until 2027 certain key program authorities of HFA,
SONYMA, HDC, and the MIF. HFA and HDC are the multi-family housing
finance agencies serving the state and New York City, respectively, and
together are national leaders in multi-family housing bond financings.
SONYMA is the state's only issuer of single-family housing bonds and
provides mortgage financing to low- and- moderate income first-time
homebuyers. SONYMA's MIF provides mortgage insurance, including pool
insurance, for SONYMA's programs and also provides project insurance on
multi-family mortgage loans made by HFA, HDC, and other issuers in the
state.

SONYMA issues tax-exempt bonds to offer low interest rate fixed rate
mortgage financing to eligible first-time homebuyers. The bill would
increase SONYMA's authority to issue additional tax-exempt bonds and
notes up to a total maximum amount of $10.92 billion which will enable
SONYMA to satisfy its expected mortgage loan demand.

In addition, the bill increases SONYMA's authority to issue taxable
bonds up to a total maximum of $1.95 billion and increases the cap on
the amount of tax-exempt bonds that can be blended with proceeds of
taxable bonds by SONYMA, up to a total maximum of $2.4 billion. These
changes will allow SONYMA to continue its good work of issuing bonds to
enable low- and moderate-income homebuyers to purchase their first
homes.

 
PRIOR LEGISLATIVE HISTORY:

These provisions are routinely extended. Most recently, these provisions
were extended by Chapter 205 of the Laws of 2023.

 
FISCAL IMPLICATIONS:

N/A

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S8177 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8177
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2025
                                ___________
 
 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10187-01-5
 S. 8177                             2

 
   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
 city  housing  development  corporation  to finance certain multi-family
 housing,  as  amended  by chapter 205 of the laws of 2023, is amended to
 read as follows:
   § 6. This act shall take effect immediately and shall remain  in  full
 force  and  effect  until July 23, [2025] 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 205 of the laws of
 2023, 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, [2025] 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 205 of the laws of  2023,  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,
 [2025] 2027, 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.
   § 4. Section 2407 of the public authorities law, as amended by chapter
 205 of the laws of 2023, 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  [seven]  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  paragraph or paragraph (b) of this subdivision, such
 exclusion shall apply only to the extent that the amount of the  refund-
 ing  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-five]  TWENTY-SEVEN,  excluding  bonds  and
 notes  issued  to refund outstanding bonds and notes. No more than [one]
 TWO billion FOUR HUNDRED MILLION dollars of proceeds of bonds  or  notes
 S. 8177                             3
 
 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
 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  [five]  NINE  hundred
 FIFTY  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  [twenty-five]
 TWENTY-SEVEN,  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 obli-
 gations  after  such  date.  The  board of directors of the agency shall
 establish program guidelines for purposes of bonds, notes or other obli-
 gations 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  obli-
 gations  issued  pursuant  to this subdivision, which income limits with
 respect to one-third of the total principal amount of mortgages  author-
 ized  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 maxi-
 mum 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 205 of the laws of
 2023, 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, [2025] 2027, on which date the provisions of the
 S. 8177                             4
 
 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, [2025] 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 205 of the laws of  2023,  is  amended  to
 read as follows:
   §  2.  This act shall take effect immediately and shall remain in full
 force and effect until July 23, [2025] 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 205 of the laws of  2023,  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, [2025] 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 205 of the laws of  2023,  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, [2025] 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
 therewith.
   § 9. This act shall take effect immediately.

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Senate Bill S8177

Sponsored By

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2025-S8177 (ACTIVE) - Details

2025-S8177 (ACTIVE) - Summary

2025-S8177 (ACTIVE) - Sponsor Memo

2025-S8177 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8177

Share this bill

Sponsored By

Brian Kavanagh

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2025-S8177 (ACTIVE) - Details

2025-S8177 (ACTIVE) - Summary

2025-S8177 (ACTIVE) - Sponsor Memo

2025-S8177 (ACTIVE) - Bill Text download pdf

Comments