Relates to the bond issuance charge as applied to the New York city housing development corporation.
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.
STATE OF NEW YORK ________________________________________________________________________ 1745 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________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. Effective immediately, the addition, amend- ment and/or repeal of any rule or regulation necessary for the implemen- tation of this act on its effective date is authorized to be made on or before such effective date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05120-01-3