Bill S7225-2009

Increases the bonding authority of the NYC housing development corporation

Increases the bonding authority of the NYC housing development corporation.

Details

Actions

  • Jul 30, 2010: SIGNED CHAP.296
  • Jul 19, 2010: DELIVERED TO GOVERNOR
  • Jun 24, 2010: returned to senate
  • Jun 24, 2010: passed assembly
  • Jun 24, 2010: ordered to third reading rules cal.371
  • Jun 24, 2010: substituted for a11248
  • Jun 10, 2010: referred to housing
  • Jun 10, 2010: DELIVERED TO ASSEMBLY
  • Jun 10, 2010: PASSED SENATE
  • May 27, 2010: ADVANCED TO THIRD READING
  • May 26, 2010: 2ND REPORT CAL.
  • May 25, 2010: 1ST REPORT CAL.632
  • May 10, 2010: REPORTED AND COMMITTED TO FINANCE
  • Mar 24, 2010: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Votes

VOTE: COMMITTEE VOTE: - Housing, Construction and Community Development - May 10, 2010
Ayes (8): Espada, Hassell-Thompson, Krueger, Diaz, Squadron, Bonacic, Leibell, Young

Memo

 BILL NUMBER:  S7225

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

SUMMARY OF PROVISIONS :

This proposed legislation would amend the Private Housing Finance Law to allow the New York City Housing Development Corporation ("HDC") to increase the maximum aggregate principal amount of its outstanding notes and bonds from $8.75 billion to $10.25 billion.

JUSTIFICATION :

Since January 7, 2005, HDC has issued in excess of $6.5 billion in bonds to finance the construction or preservation of some 20,000 apartments throughout the City and the preservation of approximately 13,800 additional Mitchell-Lama apartments. Separately, HDC has issued a total of $814 million in Liberty Bonds to finance the construction or conversion from nonresidential use of approximately 3,500 units in Lower Manhattan since 2003. Over the last five years, in the aggregate, HDC has been the largest issuer of affordable multi-family housing bonds in the United States. However, by the end of December 2009, HDC was left with just slightly more than $500 million of unused bonding authority. This legislation will enable HDC to continue to run programs that develop and maintain affordable housing in New York City by increasing its bonding authority.

HDC finances affordable housing primarily through three programs: (1) Low-Income Affordable Marketplace Program ("LAMP"), which is targeted to low income people making less than 60% of Area Median income ("AMI"); (2) New Housing Opportunities Program ("New HOP"), which is targeted for middle income people with incomes up to a maximum of 175% of AMI; and (3) the Mitchell-Lama restricting program. In addition to these three programs, HDC has launched a series of other initiatives that necessitate the proposed increase in bonding authority, including a variety of programs using taxable bonds and new Federal authority to recycle tax exempt bonds.

LEGISLATIVE HISTORY : New bill.

FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : Immediately.

Text

STATE OF NEW YORK ________________________________________________________________________ 7225 IN SENATE March 24, 2010 ___________
Introduced by Sen. ESPADA -- 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 129 of the laws of 2008, 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 [eight] TEN billion [seven] 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 opera- tion of a sinking fund; (ii) the aggregate principal amount of outstand- ing bonds issued (a) to refund notes and (b) to refund bonds, thereto- fore 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 issuance 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 writing the governor's agreement with such resolution to the chairperson of the corporation, which resolution shall be in full force and effect on 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 issuance 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.

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