Increases the bonding authority of the New York city housing development corporation from $10,250,000,000 to $11,250,000,000.
Ayes (58): Addabbo, Avella, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Rivera, Robach, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Nays (1): Ball
Excused (4): Adams, Ranzenhofer, Ritchie, Sampson
TITLE OF BILL:
An act to amend the private housing finance law, in relation to increasing the bonding authority of the New York City housing development corporation
PURPOSE OR GENERAL IDEA OF BILL:
To amend the private housing finance law to allow the NYC Housing Development Corporation to increase the maximum aggregate principal amount of outstanding notes and bonds from $10.25 to $11.25 billion.
SUMMARY OF SPECIFIC PROVISIONS:
The Act amends section 656 of the private housing finance law to increase the bond cap of the NYC Housing Development Corporation (HDC) by $1 billion.
By the end of December 2012, HDC had approximately $9.1 billion of bonds sold or outstanding, leaving the City with slightly more than $1 billion dollars of unused bonding authority. HDC expects to issue approximately $500 million in bonds supported by Federal funds to finance capital improvements for the New York City Housing Authority in July. In addition, HDC has previously agreed to finance multi-year projects totaling an additional $200 million. Since January 1, 2005, HDC has issued in excess of $ 6.5 billion in bonds to finance the construction or preservation of some 40,000 apartments throughout the City and the preservation of some 29,650 additional Mitchell-Lama apartments. Separately, HDC has issued in excess of $814 million in Liberty Bonds to finance the construction or conversion from non-residential use of approximately 3,500 units in lower Manhattan since 2003.
Between 2012 and 2014, in the aggregate, HDC has been the largest issuer of affordable multi-family bonds in the United States and has been instrumental in the financing of the Mayor's "New Housing Marketplace Initiative". As of January 1, 2013, HDC has financed the construction of or preservation of 70,000 affordable apartments, far surpassing their original 5 year goal under the Mayor's expanded "New Housing Marketplace Plan". HDC financing for the plan has been through three programs which include the Low- Income Affordable Marketplace Program,(LAMP) which is targeted to for low income people making less than 600 of AMI. The New Housing Opportunities Program (New HOP) which is targeted to middle income wage earners up to 175% of AMI, and the Mitchell-Lama restructuring program.
HDC has also initiated other programs such as the utilization of federal authority and taxable bonds to recycle tax exempt bonds.
This expansion of bonding capacity will allow HDC to continue to run programs that develop and maintain affordable housing in New York City.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
STATE OF NEW YORK ________________________________________________________________________ 5082 2013-2014 Regular Sessions IN SENATE May 8, 2013 ___________Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the private housing finance law, in relation to increas- ing the bonding authority of the New York City housing development corporation THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph c of subdivision 1 of section 656 of the private housing finance law, as amended by chapter 296 of the laws of 2010, is amended to read as follows: c. No bonds or notes of the corporation shall be issued if upon such issuance the aggregate principal amount of bonds and notes of the corpo- ration then outstanding exceeds the lesser of
[ten]ELEVEN billion two hundred fifty million dollars or such amount as would cause the maximum capital reserve fund requirement to exceed eighty-five million dollars; provided that, in determining such aggregate principal amounts there shall be deducted (i) all sums then available for the payment of such bonds or notes either at maturity or through the operation of a sinking fund; (ii) the aggregate principal amount of outstanding bonds issued (a) to refund notes and (b) to refund bonds, theretofore issued and then outstanding; and (iii) the aggregate principal amount of outstanding notes issued to renew notes theretofore issued and then outstanding. The provisions of the prior sentence notwithstanding, the corporation shall not issue bonds if such issuance shall cause the maximum reserve fund requirement to exceed thirty million dollars unless prior to such issu- ance the senate and assembly shall have adopted a concurrent resolution passed by the votes of a majority of all the members elected to each such house and, subsequent thereto, the governor shall evidence in writ- ing the governor's agreement with such resolution to the chairperson of the corporation, which resolution shall be in full force and effect onEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10670-01-3 S. 5082 2
the date of issuance of the bonds, permitting the maximum capital reserve fund requirement to equal or exceed the amount of the maximum capital reserve fund requirement which would be effective upon the issu- ance of the bonds in question, but in no event
[,]shall the maximum capital reserve fund requirement exceed eighty-five million dollars. S 2. This act shall take effect immediately.