§ 2407 — Bond limits

§ 2407. Bond limits. (1) Except for notes issued in nineteen hundred\nseventy and nineteen hundred seventy-one, the agency shall not issue\nbonds and notes, the interest on which is not included in the gross\nincome of the holders of the bonds and notes under the United States\nInternal Revenue Code of 1986, as amended, or any subsequent\ncorresponding internal revenue law of the United States, in an aggregate\nprincipal amount exceeding ten billion nine hundred twenty million\ndollars, excluding from such limitation (a) an amount equal to any\noriginal issue discount from the principal amount of any bonds or notes\nissued, (b) bonds and notes issued to refund outstanding bonds and\nnotes, and (c) bonds and notes not described in paragraph (b) of this\nsubdivision issued to refund outstanding bonds and notes in accordance\nwith the provisions of the Internal Revenue Code of 1986 or the Tax\nReform Act of 1986, as amended, where such bonds or notes are not\nincluded in the statewide volume cap on private purpose bonds under\nsection 146 of such code provided, however, that upon any refunding\npursuant to this paragraph or paragraph (b) of this subdivision, such\nexclusion shall apply only to the extent that the amount of the\nrefunding bonds or notes does not exceed (i) the outstanding amount of\nthe refunded bonds or notes, plus (ii) to the extent permitted by\napplicable federal tax law, costs of issuance of the refunding bonds or\nnotes to be financed from the proceeds of the refunding bonds or notes.\nNo such bond or note shall be issued by the agency on or after July\ntwenty-third, two thousand twenty-seven, excluding bonds and notes\nissued to refund outstanding bonds and notes. No more than two billion\nfour hundred million dollars of proceeds of bonds or notes issued by the\nagency pursuant to this subdivision shall be used for mortgage purposes\nby blending with proceeds of bonds issued pursuant to subdivision two of\nthis section.\n (2) In connection with the issuance of bonds for the purpose of\nfurthering programs described in this title, the agency is authorized to\ncovenant and consent that the interest on any of its bonds, notes or\nother obligations shall be includable, under the United States Internal\nRevenue Code of 1986, as amended or any subsequent corresponding\ninternal revenue law of the United States, in the gross income of the\nholders of the bonds to the same extent and in the same manner that the\ninterest on bills, bonds, notes or other obligations of the United\nStates is includable in the gross income of the holders thereof under\nsaid Internal Revenue Code or any such subsequent law. Pursuant to this\nsubdivision, the agency shall not issue bonds, notes or other\nobligations in an aggregate principal amount exceeding one billion nine\nhundred fifty million dollars, excluding from such limitation bonds,\nnotes or other obligations issued to refund outstanding bonds, notes or\nother obligations. No such bond, note or other obligation shall be\nissued by the agency on or after July twenty-third, two thousand\ntwenty-seven, excluding bonds, notes or other obligations issued to\nrefund outstanding bonds, notes or other obligations and no mortgages\nshall be purchased with the proceeds of such bonds, notes or other\nobligations after such date. The board of directors of the agency shall\nestablish program guidelines for purposes of bonds, notes or other\nobligations issued pursuant to this subdivision. The board of directors\nshall establish from time to time maximum income limits of persons\neligible to receive mortgages financed by bonds, notes or other\nobligations issued pursuant to this subdivision, which income limits\nwith respect to one-third of the total principal amount of mortgages\nauthorized to be so financed shall not exceed one hundred twenty-five\npercent of the latest maximum income limits permitted under the Internal\nRevenue Code of 1986, as amended, for mortgagors financed by mortgage\nrevenue bonds, with respect to one-third of such principal amount\nauthorized to be so financed, shall not exceed one hundred thirty-five\npercent of such income limits, and with respect to one-third of such\nprincipal amount authorized to be so financed, shall not exceed one\nhundred fifty percent of such limits, provided that notwithstanding the\nforegoing, the maximum income limits of persons eligible to receive\nmortgages financed by the agency under its neighborhood revitalization\nprogram (and any successor program) shall not exceed one hundred fifty\npercent of the latest maximum income limits permitted under the Internal\nRevenue Code of 1986, as amended, for mortgagors financed by mortgage\nrevenue bonds.\n (3) The fixing of the statutory maximums in this section shall not be\nconstrued as constituting a contract between the agency and the holders\nof its bonds or notes that additional bonds and notes may not be issued\nsubsequently by the agency in the event that such statutory maximums\nshall subsequently be increased by law.\n