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This entry was published on 2022-04-22
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Housing program bonds and notes
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 47-e. Housing program bonds and notes. 1. Definitions. For the
purposes of this section and paragraph (c) of subdivision one of section
forty-seven of this chapter:

(a) "Housing program" shall mean the housing assistance projects or
programs funded from an appropriation or an apportionment to the:

(1) housing assistance fund created by section ninety-two-q of the
state finance law;

(2) the affordable housing corporation and deposited in the affordable
housing development account established pursuant to section fifty-nine-b
of this chapter;

(3) the housing trust fund corporation and deposited in the housing
trust fund account established pursuant to section fifty-nine-a of this
chapter; and

(4) the homeless housing and assistance account established pursuant
to section fifty-nine-i of this chapter.

(5) Housing project repair fund created by section sixty of this

(b) "Housing program bonds and housing program notes" shall mean bonds
and notes issued by the agency pursuant to subdivision two of this

(c) "Code" shall mean the federal internal revenue code.

2. (a) Subject to the provisions of chapter fifty-nine of the laws of
two thousand, in order to enhance and encourage the promotion of housing
programs and thereby achieve the stated purposes and objectives of such
housing programs, the agency shall have the power and is hereby
authorized from time to time to issue negotiable housing program bonds
and notes in such principal amount as shall be necessary to provide
sufficient funds for the repayment of amounts disbursed (and not
previously reimbursed) pursuant to law or any prior year making capital
appropriations or reappropriations for the purposes of the housing
program; provided, however, that the agency may issue such bonds and
notes in an aggregate principal amount not exceeding thirteen billion
eighty-two million eight hundred ninety-one thousand dollars
$13,082,891,000, plus a principal amount of bonds issued to fund the
debt service reserve fund in accordance with the debt service reserve
fund requirement established by the agency and to fund any other
reserves that the agency reasonably deems necessary for the security or
marketability of such bonds and to provide for the payment of fees and
other charges and expenses, including underwriters' discount, trustee
and rating agency fees, bond insurance, credit enhancement and liquidity
enhancement related to the issuance of such bonds and notes. No reserve
fund securing the housing program bonds shall be entitled or eligible to
receive state funds apportioned or appropriated to maintain or restore
such reserve fund at or to a particular level, except to the extent of
any deficiency resulting directly or indirectly from a failure of the
state to appropriate or pay the agreed amount under any of the contracts
provided for in subdivision four of this section.

(b) In computing for the purposes of this section the aggregate amount
of bonds and notes of the agency issued pursuant to this section, there
shall be excluded (i) the amount of bonds and notes issued that would
constitute interest under the code, and (ii) the amount of bonds and
notes issued to refund bonds and notes, provided, that the amount so
excluded under this subparagraph (ii) may exceed the amount of the bonds
and notes which the refunding bonds or notes were issued to refund only
if the present value of the aggregate debt service on the refunding
bonds or notes does not exceed the present value of the aggregate debt
service of the bonds or notes to be refunded, such present value in each
case to be calculated by using the effective interest rate of the
refunding bonds or notes, which shall be that rate arrived at by
doubling the semi-annual interest rate (compounded semi-annually)
necessary to discount the debt service payments on the refunding bonds
or notes from the payment date thereof to the date of issue of the
refunding bonds or notes and to the price bid therefor, or to the
proceeds received by the agency from the sale thereof, in each case
including estimated accrued interest.

(c) The agency shall annually prepare and approve a bond sale report
which shall include the agency's bond sale guidelines, amendments to
such guidelines since the last agency report, and, if necessary, an
explanation of the bond sale guidelines and the results of any sale
including, but not limited to, the underwriter's discount and net
interest costs of bonds sold during the fiscal year. Such bond sale
report shall also identify which of the agency's bond sales were
conducted as public sales and which were conducted as private sales and
of those, which were taxable, and describe the participation of minority
and women-owned business enterprise firms in such sales. Such bond sale
report may be part of any other annual report that the agency is
required to make. The agency shall annually submit its bond sale report
to the comptroller and copies thereof to the senate finance committee
and the assembly ways and means committee. The agency shall make
available to the public copies of its bond sale report upon reasonable
request therefor. Nothing contained in this subdivision shall be deemed
to alter, affect the validity of, modify the terms of or impair any
contract or agreement made or entered into in violation of, or without
compliance with, the provisions of this subdivision.

(d) The bonding authority granted by this section and the issuance of
bonds for the purposes described therein shall in no way act to:

(i) delay or impede the obligation, encumbrance and timely
disbursement of funds appropriated or reappropriated for the housing
program, or any financial commitments made pursuant to such program as
defined in this section;

(ii) impair or impede the continued operation and administration of
such program by the agency, any of its subsidiaries or the division of
housing and community renewal pursuant to law and rules and regulations
thereby established.

3. Subject to any agreements with the holders of particular bonds or
notes pledging any specified portions thereof, the housing program bonds
and notes shall be secured by a pledge to the payment thereof of the
state payments made pursuant to the service contracts referred to in
subdivision four of this section.

4. (a) Notwithstanding the provisions of any general or special law to
the contrary, and subject to the making of annual appropriations
therefor by the legislature, in order to assist the agency and its
subsidiary corporations in undertaking and providing services with
respect to housing programs and in consideration of the undertaking
thereof and the benefits to be derived therefrom by the people of the
state, the director of the budget is authorized in any state fiscal year
to enter into one or more service contracts, none of which shall exceed
thirty years in duration, with the agency, upon such terms as the
director of the budget and the agency agree, so as to provide annually
to the agency in the aggregate a sum not to exceed the annual debt
service payments required for the bonds and notes issued pursuant to
this section.

(b) Any service contract entered into pursuant to paragraph (a) of
this subdivision shall provide that the obligation of the director of
the budget or of the state to fund or to pay the amounts therein
provided for shall not constitute a debt of the state within the meaning
of any constitutional or statutory provision and shall be deemed
executory only to the extent of moneys available and that no liability
shall be incurred by the state beyond the moneys available for the
purpose, and that such obligation is subject to annual appropriation by
the legislature.

(c) Any such contract or any payments made or to be made thereunder
may be assigned and pledged by the agency as security for its bonds and
notes authorized by this section.

5. (a) Subject to the provisions of chapter fifty-nine of the laws of
two thousand, upon the issuance of housing program bonds or notes, the
agency shall apply such amount of the proceeds thereof as shall be
designated and specified in the bond or note resolution or resolutions
authorizing the issuance of such bonds or notes to the specific funds
and/or accounts of one or more housing programs. The bond resolution or
resolutions authorizing the issuance of such bonds or notes shall only
allocate net proceeds of bonds or notes to a particular fund or account
of a housing program if the legislature has authorized pursuant to law
or any prior year an advance to such fund or account, and the amount of
such bond or note proceeds so allocated to such fund or account shall
not exceed the total amount so authorized to be advanced. Such proceeds
shall be disbursed to such a fund or account in accordance with such
allocation only for application to the repayment of advances previously
or thereupon made and not previously repaid. Such proceeds may not be
transferred from an entity authorized to administer a housing program to
the state or a fund of the state, except in repayment of such advances.
Except in the case of refunding bonds or notes authorized hereunder, any
net proceeds not so allocated or disbursed shall be utilized first to
pay debt service on the applicable bonds or notes in the current or the
succeeding fiscal year and second to the redemption of such bonds;
provided that such application may be adjusted to comply with applicable
federal law as to federal tax exemption. For purposes of this paragraph,
earnings from the investment of net proceeds shall be treated as net

(b) Each of the entities authorized to administer the respective
housing programs is hereby authorized to accept advances of funds
referred to in paragraph (a) of this subdivision and to apply any such
advances in such manner authorized by law and to repay any such advances
from the proceeds of housing program bonds or notes deposited therewith
pursuant to paragraph (a) of this subdivision.

(c) The state comptroller is hereby authorized to receive from the
agency repayments of moneys, if any, advanced by the state for purposes
of the housing program and to deposit the same to the credit of the
capital projects fund, the housing program fund, the housing assistance
fund or other appropriate fund.