§ 1974-C — Additional powers of the authority

New York § 1974-C

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 12: No title
• Art. 8: Miscellaneous Authorities

Text

§ 1974-c. Additional powers of the authority. 1. It is hereby found\nand declared that the legislature, pursuant to the housing New York\nprogram act, has established a housing New York program under which the\ncity of New York, any agency or instrumentality thereof (other than the\nhousing New York corporation) and the New York city housing development\ncorporation will cause the acquisition, construction, equipping,\nimproving, rehabilitation and renovation of dwelling accommodations\nwithin the city of New York for persons and families for whom the\nordinary operations of private enterprise cannot supply such\naccommodations; that such program is necessary in order to increase the\npresently inadequate supply of dwelling accommodations in such city for\npersons and families of low and moderate income; that such program shall\nrequire a substantial commitment of funds from public sources; and that\nthe need for such moneys necessitates that the authority be granted the\nadditional powers and be made subject to the additional requirements of\nthis section. The legislature therefore finds that the authority,\nsubject to the terms and conditions specified herein, should be given\nthe power to assign certain excess revenues to secure bonds and notes to\nbe issued by the housing New York corporation for use by the city of New\nYork, and any agency or instrumentality thereof (other than the housing\nNew York corporation) or the New York city housing development\ncorporation in the housing New York program; that the assignment of such\nexcess revenues for the financing of residential housing facilities in\naccordance with the housing New York program is a public purpose for\nwhich moneys may be granted; and that the powers and duties of the\nauthority as recited in this section are necessary and proper for\nachieving the ends herein recited.\n 2. In addition to the powers of the authority set forth in section\nnineteen hundred seventy-four of this title, the authority shall have\nthe power:\n (a) to borrow money by issuing bonds and notes and to issue such bonds\nand notes for the purposes of (i) repaying appropriations from the state\nto the authority in accordance with the provisions of any repayment\nagreements with the state, (ii) furthering the development of the\ninfrastructure of the Battery Park project area, and (iii) refunding any\nbonds and notes of the authority issued pursuant to this section;\n (b) subject to the provisions of any contract with noteholders and\nbondholders, to (i) pledge any excess revenues or assets (other than\nreal property) of the authority, including, but not limited to such\nexcess revenues as the authority shall deem necessary, to secure any\nbonds or notes issued by the authority pursuant to this section and (ii)\nassign such excess revenues as the authority shall deem necessary to\nsecure any bonds or notes issued or any agreeements entered into by the\nhousing New York corporation pursuant to section six hundred\nfifty-four-c of the private housing finance law or pay any expenses\nrelated thereto for the purpose of financing the acquisition,\nconstruction, equipping, improvement, enlargement, rehabilition and\nrenovation of residential housing facilities in accordance with the\nprovisions of the housing New York program and to enter into any\nagreement or execute any document to accomplish the foregoing;\n (c) to procure insurance, letters of credit or other credit\nenhancements with respect to its bonds or notes issued pursuant to this\nsection and to pay the premiums and fees therefor;\n (d) to adopt, amend or rescind rules and regulations appropriate to\ncarry out its corporate purposes and to establish such requirements and\nenter into such agreements to achieve the objectives of this section;\nand\n (e) to exercise any and all other powers authorized by this title and\nnot inconsistent with the provisions of this section.\n 3. Notwithstanding any contrary provision of law, general, special, or\nlocal, no moneys of the authority, or moneys received from the\nauthority, which are expended pursuant to a chapter of the laws of\nnineteen hundred eighty-six entitled "An Act to enact the housing New\nYork program act for the purpose of establishing a housing New York\nprogram and to amend the public authorities law, in relation to\nauthorizing Battery Park city authority to assign excess revenues to\nsecure bonds to be issued by the housing New York corporation and the\nprivate housing finance law, in relation to creating such corporation\nand authorizing the financing of certain housing accommodations within\nthe city of New York", shall be used by the authority, directly or\nindirectly, for the design, planning, acquisition, financing,\nconstruction or implementation of any landfill or any pilings,\nplatforms, decks or similar structures and in addition, any dredging or\nfilling activities, in the Hudson river between the northern boundary of\nthe Battery Park project area as provided for in subdivision five of\nsection nineteen hundred seventy-two of this title and forty-second\nstreet in the city of New York except to the extent that such activities\nare necessary to maintain the Battery Park project area landfill site,\nnor shall any such moneys authorized to be assigned or pledged by such\nact be assigned or pledged, directly or indirectly, to secure or pay the\ndebt service on any bonds or notes issued or any agreements entered into\nby the housing New York corporation if the proceeds of such bonds or\nnotes are to be used directly or indirectly, or the purpose of such\nagreements is to accomplish directly or indirectly, any of the\nprohibited activities listed in this subdivision.\n 4. No excess revenues may be assigned by the authority to the housing\nNew York corporation to finance residential housing facilities pursuant\nto section six hundred fifty-four-c of the private housing finance law\nunless the authority has entered into an agreement or agreements with\nthe housing New York corporation, which provides, in addition to any\nother terms and conditions, that:\n (a) such residential housing facilities are to provide dwelling\naccommodations which are to be occupied by persons and families for whom\nthe ordinary operations of private enterprise cannot provide an adequate\nsupply of safe, sanitary and affordable dwelling accommodations;\n (b) neither the state nor the authority are to have any responsibility\nas to the financing, operation, maintenance, repair or use of such\nresidential housing facilities unless otherwise specifically provided by\nlaw;\n (c) the housing New York corporation shall use the moneys assigned to\nit by the authority pursuant to this section to secure and pay bonds and\nnotes issued to finance residential housing facilities in accordance\nwith provisions of the housing New York program and shall comply with\nthe terms and conditions of the housing New York program act and this\nsection; and\n (d) the timing, amount, maturity schedule and all other terms and\nconditions of any issuance of bonds or notes by the housing New York\ncorporation pursuant to section six hundred fifty-four-c of the private\nhousing finance law, will provide for the authority's requirements as to\nthe development, management or operation of the project and the effect\nof such terms and conditions on the availability of excess revenues and\nthe pledge or assignment thereof.\n 5. For the purposes of furthering the development of the\ninfrastructure of the Battery Park project area and repaying\nappropriations from the state to the authority pursuant to this section,\nthe authority may, in addition to the authorization contained in\nsubdivision one of section nineteen hundred seventy-seven-a of this\ntitle, borrow money by issuing bonds or notes in an aggregate principal\namount not exceeding one hundred million dollars plus a principal amount\nof bonds or notes issued (i) to fund any related debt service reserve\nfund, (ii) to provide capitalized interest, and (iii) to provide fees\nand other charges and expenses, including underwriters' discount,\nrelated to the issuance of such bonds or notes and the maintenance of\nsuch reserves, all as determined by the authority, excluding bonds and\nnotes issued to refund outstanding bonds and notes issued pursuant to\nthis section.\n In computing the total principal amount of bonds and notes that may at\nany time be issued for any purpose under this title, the amount of the\noutstanding bonds or notes that constitutes interest under the United\nStates Internal Revenue Code of nineteen hundred fifty-four, as amended\nto the effective date of this section, shall be excluded.\n 6. The authority may covenant and consent that the interest on any of\nits bonds or notes issued pursuant to subdivision five of this section\nshall be includible, under the United States Internal Revenue Code of\nnineteen hundred fifty-four or any subsequent corresponding internal\nrevenue law of the United States, in the gross income of the holders of\nthe bonds or notes to the same extent and in the same manner that the\ninterest on bills, bonds, notes or other obligations of the United\nStates is includible in the gross income of the holders thereof under\nsaid Internal Revenue Code or any such subsequent law.\n 7. The state of New York does pledge to and agree with the holders of\nany bonds or notes issued by the housing New York corporation under\nsection six hundred fifty-four-c of the private housing finance law,\nthat the state will not limit or alter the rights hereby vested in the\nauthority to fulfill the terms of any agreements made with such\ncorporation to assign any excess revenues, or in any way impair the\nrights and remedies of such corporation thereunder, until the bonds and\nnotes, together with interest thereon, interest on any unpaid\ninstallments of interest, and all costs and expenses in connection with\nany action or proceeding by or on behalf of the bondholders and\nnoteholders are fully met and discharged.\n 8. It is the intention of the legislature that any assignment of\nexcess revenues or portion thereof by the authority pursuant to this\nsection shall be valid and binding from the time when the assignment is\nmade in accordance with its terms; that the excess revenues so assigned\nby the authority shall immediately be subject to the lien of such\nassignment without any physical delivery thereof or further act, and\nthat the lien of any such assignment shall be valid and binding as\nagainst all parties having claims of any kind in tort, contract or\notherwise against the authority irrespective of whether such parties\nhave notice thereof. Neither the resolution or any other instrument by\nwhich an assignment is created need be recorded.\n