S4539-2011 Actions

• Jan 4, 2012: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
• Apr 11, 2011: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

S4539-2011 Memo

BILL NUMBER:S4539               REVISED 04/29/11

TITLE OF BILL:
An act
to amend the public authorities law, in relation to the bond issuance
charge

SUMMARY OF PROVISIONS:
This proposed legislation would amend
Subdivision 1 of section 2976 of the public authorities law, as
amended by section 1 of part C of Chapter 19 of the laws of 2010 to
exempt the New York City Housing Development Fund Corporation (NY
HDFC) from the state bond issuance charge with regard to housing
being refinanced for the purpose of preserving, rehabilitating and
extending the life of such developments.

JUSTIFICATION:
The imposition of the Bond Issuance Charge (the "BIC")
on bonds issued by the New York City Housing Development Fund
Corporation ("HDFC" or the "Corporation") on projects that because of
age or other conditions have deteriorated over time and are in need
of restoration, rehabilitation, and physical improvements. The
current imposition of a Bond Issuance Charge on such projects have
an adverse impact on the cost and number of units refinanced to
create safe, sanitary and affordable habitable housing by adding
approximately $6-$10 million per year in bond issuance charges
incurred by the Corporation and its affordable preservation housing
projects.

LEGISLATIVE HISTORY:
The assignment of the Bond Issuance Charge (BIC) was included in
Chapter 19 of the laws of 2010, the Governor's first enacted
extender, and as a consequence could not be segregated.

FISCAL IMPACT:
The projected loss of revenue to the State is projected to be $4.2
million per year as opposed to the current $6-10 million projections.
Notwithstanding, the elimination of the BIC for preservation will
result in the creation of an additional 40 units per year.

EFFECTIVE DATE:
This act shall take effect on the 120th day after it shall become
a law.

S4539-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    4539

                         2011-2012 Regular Sessions

                              I N  SENATE

                               April 11, 2011
                                 ___________

  Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
    printed  to be committed to the Committee on Corporations, Authorities
    and Commissions

  AN ACT to amend the public authorities law,  in  relation  to  the  bond
    issuance charge

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subdivision 1 of section 2976  of  the  public  authorities
  law,  as  amended  by  section  1 of part C of chapter 19 of the laws of
  2010, is amended to read as follows:

    1. Notwithstanding any other  law  to  the  contrary,  public  benefit
  corporations  (which  for  purposes of this section shall include indus-
  trial development agencies created pursuant  to  title  one  of  article
  eighteen-A  of  the  general municipal law or any other provision of law
  and the New York city housing development corporation  created  pursuant
  to article twelve of the private housing finance law) which issue bonds,
  notes or other obligations shall pay to the state a bond issuance charge
  upon  the  issuance  of  such  bonds in an amount determined pursuant to
  subdivision two of this section. Such charge shall be paid to the  state
  department  of  taxation and finance, upon forms prescribed therefor, no
  later than fifteen days from the end of  the  month  within  which  such
  bonds are issued.  WITH RESPECT TO THE NEW YORK CITY HOUSING DEVELOPMENT
  CORPORATION  SUCH  BOND  ISSUANCE CHARGE SHALL BE CALCULATED SOLELY WITH
  RESPECT TO BONDS, NOTES OR OTHER OBLIGATIONS ISSUED THAT REQUIRE  A  NEW
  ALLOCATION  FROM  THE  CURRENT YEAR UNIFIED STATE BOND VOLUME CEILING OF
  NEW PRIVATE ACTIVITY BOND AUTHORITY OR A CARRY-FORWARD OF PRIVATE ACTIV-
  ITY BOND AUTHORITY.
    S 2. This act shall take effect on the one hundred twentieth day after
  it shall have become a law; provided, however, that effective immediate-
  ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
  necessary  for  the  implementation of this act on its effective date is
  authorized and directed to be made  and  completed  on  or  before  such
  effective date.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD10616-01-1