§ 47-E — Housing program bonds and notes

New York § 47-E

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 3: New York State Housing Finance Agency

Text

§ 47-e. Housing program bonds and notes. 1. Definitions. For the\npurposes of this section and paragraph (c) of subdivision one of section\nforty-seven of this chapter:\n (a) "Housing program" shall mean the housing assistance projects or\nprograms funded from an appropriation or an apportionment to the:\n (1) housing assistance fund created by section ninety-two-q of the\nstate finance law;\n (2) the affordable housing corporation and deposited in the affordable\nhousing development account established pursuant to section fifty-nine-b\nof this chapter;\n (3) the housing trust fund corporation and deposited in the housing\ntrust fund account established pursuant to section fifty-nine-a of this\nchapter; and\n (4) the homeless housing and assistance account established pursuant\nto section fifty-nine-i of this chapter.\n (5) Housing project repair fund created by section sixty of this\nchapter.\n (b) "Housing program bonds and housing program notes" shall mean bonds\nand notes issued by the agency pursuant to subdivision two of this\nsection.\n (c) "Code" shall mean the federal internal revenue code.\n 2. (a) Subject to the provisions of chapter fifty-nine of the laws of\ntwo thousand, in order to enhance and encourage the promotion of housing\nprograms and thereby achieve the stated purposes and objectives of such\nhousing programs, the agency shall have the power and is hereby\nauthorized from time to time to issue negotiable housing program bonds\nand notes in such principal amount as shall be necessary to provide\nsufficient funds for the repayment of amounts disbursed (and not\npreviously reimbursed) pursuant to law or any prior year making capital\nappropriations or reappropriations for the purposes of the housing\nprogram; provided, however, that the agency may issue such bonds and\nnotes in an aggregate principal amount not exceeding sixteen billion\nseven hundred seventy-seven million nine hundred sixty-four thousand\ndollars $16,777,964,000, excluding bonds issued after April first, two\nthousand twenty-five to (i) fund one or more debt service reserve funds,\n(ii) pay costs of issuance of such bonds, and (iii) refund or otherwise\nrepay such bonds or notes previously issued, provided that nothing\nherein shall affect the exclusion of refunding debt issued prior to such\ndate. No reserve fund securing the housing program bonds shall be\nentitled or eligible to receive state funds apportioned or appropriated\nto maintain or restore such reserve fund at or to a particular level,\nexcept to the extent of any deficiency resulting directly or indirectly\nfrom a failure of the state to appropriate or pay the agreed amount\nunder any of the contracts provided for in subdivision four of this\nsection.\n (b) In computing for the purposes of this section the aggregate amount\nof bonds and notes of the agency issued pursuant to this section, there\nshall be excluded (i) the amount of bonds and notes issued that would\nconstitute interest under the code, and (ii) the amount of bonds and\nnotes issued to refund bonds and notes, provided, that the amount so\nexcluded under this subparagraph (ii) may exceed the amount of the bonds\nand notes which the refunding bonds or notes were issued to refund only\nif the present value of the aggregate debt service on the refunding\nbonds or notes does not exceed the present value of the aggregate debt\nservice of the bonds or notes to be refunded, such present value in each\ncase to be calculated by using the effective interest rate of the\nrefunding bonds or notes, which shall be that rate arrived at by\ndoubling the semi-annual interest rate (compounded semi-annually)\nnecessary to discount the debt service payments on the refunding bonds\nor notes from the payment date thereof to the date of issue of the\nrefunding bonds or notes and to the price bid therefor, or to the\nproceeds received by the agency from the sale thereof, in each case\nincluding estimated accrued interest.\n (c) The agency shall annually prepare and approve a bond sale report\nwhich shall include the agency's bond sale guidelines, amendments to\nsuch guidelines since the last agency report, and, if necessary, an\nexplanation of the bond sale guidelines and the results of any sale\nincluding, but not limited to, the underwriter's discount and net\ninterest costs of bonds sold during the fiscal year. Such bond sale\nreport shall also identify which of the agency's bond sales were\nconducted as public sales and which were conducted as private sales and\nof those, which were taxable, and describe the participation of minority\nand women-owned business enterprise firms in such sales. Such bond sale\nreport may be part of any other annual report that the agency is\nrequired to make. The agency shall annually submit its bond sale report\nto the comptroller and copies thereof to the senate finance committee\nand the assembly ways and means committee. The agency shall make\navailable to the public copies of its bond sale report upon reasonable\nrequest therefor. Nothing contained in this subdivision shall be deemed\nto alter, affect the validity of, modify the terms of or impair any\ncontract or agreement made or entered into in violation of, or without\ncompliance with, the provisions of this subdivision.\n (d) The bonding authority granted by this section and the issuance of\nbonds for the purposes described therein shall in no way act to:\n (i) delay or impede the obligation, encumbrance and timely\ndisbursement of funds appropriated or reappropriated for the housing\nprogram, or any financial commitments made pursuant to such program as\ndefined in this section;\n (ii) impair or impede the continued operation and administration of\nsuch program by the agency, any of its subsidiaries or the division of\nhousing and community renewal pursuant to law and rules and regulations\nthereby established.\n 3. Subject to any agreements with the holders of particular bonds or\nnotes pledging any specified portions thereof, the housing program bonds\nand notes shall be secured by a pledge to the payment thereof of the\nstate payments made pursuant to the service contracts referred to in\nsubdivision four of this section.\n 4. (a) Notwithstanding the provisions of any general or special law to\nthe contrary, and subject to the making of annual appropriations\ntherefor by the legislature, in order to assist the agency and its\nsubsidiary corporations in undertaking and providing services with\nrespect to housing programs and in consideration of the undertaking\nthereof and the benefits to be derived therefrom by the people of the\nstate, the director of the budget is authorized in any state fiscal year\nto enter into one or more service contracts, none of which shall exceed\nthirty years in duration, with the agency, upon such terms as the\ndirector of the budget and the agency agree, so as to provide annually\nto the agency in the aggregate a sum not to exceed the annual debt\nservice payments required for the bonds and notes issued pursuant to\nthis section.\n (b) Any service contract entered into pursuant to paragraph (a) of\nthis subdivision shall provide that the obligation of the director of\nthe budget or of the state to fund or to pay the amounts therein\nprovided for shall not constitute a debt of the state within the meaning\nof any constitutional or statutory provision and shall be deemed\nexecutory only to the extent of moneys available and that no liability\nshall be incurred by the state beyond the moneys available for the\npurpose, and that such obligation is subject to annual appropriation by\nthe legislature.\n (c) Any such contract or any payments made or to be made thereunder\nmay be assigned and pledged by the agency as security for its bonds and\nnotes authorized by this section.\n 5. (a) Subject to the provisions of chapter fifty-nine of the laws of\ntwo thousand, upon the issuance of housing program bonds or notes, the\nagency shall apply such amount of the proceeds thereof as shall be\ndesignated and specified in the bond or note resolution or resolutions\nauthorizing the issuance of such bonds or notes to the specific funds\nand/or accounts of one or more housing programs. The bond resolution or\nresolutions authorizing the issuance of such bonds or notes shall only\nallocate net proceeds of bonds or notes to a particular fund or account\nof a housing program if the legislature has authorized pursuant to law\nor any prior year an advance to such fund or account, and the amount of\nsuch bond or note proceeds so allocated to such fund or account shall\nnot exceed the total amount so authorized to be advanced. Such proceeds\nshall be disbursed to such a fund or account in accordance with such\nallocation only for application to the repayment of advances previously\nor thereupon made and not previously repaid. Such proceeds may not be\ntransferred from an entity authorized to administer a housing program to\nthe state or a fund of the state, except in repayment of such advances.\nExcept in the case of refunding bonds or notes authorized hereunder, any\nnet proceeds not so allocated or disbursed shall be utilized first to\npay debt service on the applicable bonds or notes in the current or the\nsucceeding fiscal year and second to the redemption of such bonds;\nprovided that such application may be adjusted to comply with applicable\nfederal law as to federal tax exemption. For purposes of this paragraph,\nearnings from the investment of net proceeds shall be treated as net\nproceeds.\n (b) Each of the entities authorized to administer the respective\nhousing programs is hereby authorized to accept advances of funds\nreferred to in paragraph (a) of this subdivision and to apply any such\nadvances in such manner authorized by law and to repay any such advances\nfrom the proceeds of housing program bonds or notes deposited therewith\npursuant to paragraph (a) of this subdivision.\n (c) The state comptroller is hereby authorized to receive from the\nagency repayments of moneys, if any, advanced by the state for purposes\nof the housing program and to deposit the same to the credit of the\ncapital projects fund, the housing program fund, the housing assistance\nfund or other appropriate fund.\n