N.Y. Local Finance Law § 152.00: Deductions for self-liquidating housing projects

§ 152.00 Deductions for self-liquidating housing projects. a. As used

in this section:

1. The term "authority" shall mean a housing authority owning or

operating a project or projects aided by (a) a guarantee or guarantees

of the city representing indebtedness which the city is seeking to

exclude pursuant to this section, or (b) a loan or loans from the city

for which the city contracted indebtedness, which indebtedness the city

is seeking to exclude pursuant to this section.

2. The term "housing company" shall mean a housing company organized

under article two or article four of the private housing finance law, as

amended from time to time, owning or operating a project or projects

aided by a loan or loans from a city for which the city has contracted

indebtedness, which indebtedness it is seeking to exclude pursuant to

this section.

3. The term "project" shall mean that term as defined in section three

of the public housing law and section two of article two of the private

housing finance law as amended from time to time. Such term shall also

include an existing multiple dwelling aided by a loan pursuant to

article eight of the private housing finance law.

4. The term "fiscal year" shall mean the fiscal year of the city.

b. In ascertaining the power of any city to contract indebtedness to

effectuate any of the purposes of article eighteen of the state

constitution, as implemented by the public housing law and any other

laws, there may be excluded any indebtedness contracted by a city for

any project or projects aided by a guarantee or guarantees representing

such indebtedness or by a loan or loans for which such indebtedness was

contracted if such project or projects shall have yielded net revenue

during the preceding fiscal year, provided that in the case of

guarantees, the interest on such indebtedness and the amounts required

in such fiscal year for the payment of such indebtedness shall have been

paid and that in the case of loans, the amount the city shall have been

required to pay in such fiscal year for interest on and principal of

such indebtedness shall have been paid to the city.

c. In determining whether or not a project or projects have yielded

net revenue during the preceding fiscal year:

1. Periodic subsidies shall be included in computing gross revenues.

2. There shall be deducted from the gross revenues received from such

project or projects during such preceding fiscal year an amount equal to

all costs of operation, maintenance, repairs and replacements, and the

interest on such indebtedness and the amounts required in such fiscal

year for the payment of such indebtedness.

d. At any time after the close of the fiscal year of such city, the

chief fiscal officer thereof may, in his discretion, file with the state

comptroller a financial statement of such project or projects for the

purpose of obtaining the exclusion referred to in paragraph b of this

section if

1. In the case of a project or projects aided by a guarantee, or

guarantees, interest on and the amount required for the payment of such

indebtedness in such preceding fiscal year shall have been paid,

2. In the case of a loan or loans, the amount the city was required to

pay in such preceding fiscal year for interest on and principal of such

indebtedness shall have been paid to such city,

and the chief fiscal officer is of the opinion that the project has

yielded net revenue during such preceding fiscal year.

e. The officers, boards and agencies of the authority, housing company

or owner of an existing multiple dwelling aided by a loan pursuant to

article eight of the private housing finance law, as the case may be,

shall furnish to the chief fiscal officer of such city such data and

information in their possession with respect to the project or projects

as he shall require to enable him to determine whether the project or

projects have yielded net revenue. The statement submitted to the state

comptroller by the chief fiscal officer of the city shall be verified by

the chief fiscal officer and shall be in such form and shall contain

such information as shall be prescribed by the state comptroller;

provided, however, that it shall contain a declaration that the payments

required under subdivisions one and two of paragraph d of this section

have been made.

f. However, prior to the submission of such financial statement to the

state comptroller, the chief fiscal officer of such municipality shall

cause to be published a notice that on the date specified therein, which

date shall be at least two weeks subsequent to the date of the

publication of such notice, such financial statement will be filed with

the state comptroller. Such notice shall be published in the official

newspaper or newspapers of the municipality or if there be no such

newspaper or newspapers then the finance board shall designate one or

more newspapers having a general circulation in such municipality for

the publication of such notice. The notice shall also contain a

statement of the amount of indebtedness sought to be excluded and a

brief description of the project or projects. A copy of the financial

statement and of all documents, computations and other data and

information which will be submitted by the chief fiscal officer to the

state comptroller in support of such financial statement shall be filed

in the office of such chief fiscal officer and shall be public records.

g. Upon the receipt of such a financial statement from the chief

fiscal officer of such city, the state comptroller forthwith shall

review the facts set forth therein. The state comptroller shall have

power to examine the accounts and records of the city and of the

authority, housing company or owner of an existing multiple dwelling

aided by a loan pursuant to article eight of the private housing finance

law, as the case may be, with respect to the project or projects. He may

also require the chief fiscal officer and other officers, boards and

agencies of the city and of the authority or housing company, as the

case may be, and any such owner of an existing multiple dwelling, to

furnish such additional data and information in their possession as he

deems necessary to enable him to make his determination.

h. The state comptroller shall issue a written certificate setting

forth his determination as to whether such indebtedness may be excluded.

If the exclusion is allowed by the state comptroller, the certificate

shall constitute the authorization for the exclusion of such

indebtedness in ascertaining the power of such city to contract

indebtedness to effectuate any of the purposes of article eighteen of

the state constitution as implemented by the public housing law and any

other laws. Such authorization shall remain effective until the last day

of the seventh month following the close of the fiscal year in which

such financial statement shall have been submitted. If the state

comptroller disallows the claims of the municipality for the exclusion,

he shall set forth the reasons for such disallowance. The determination

of the state comptroller shall be conclusive. The certificate of the

state comptroller shall be executed under his hand and seal in

triplicate. One of such triplicates shall be filed in the department of

audit and control, one in the office of the state commissioner of

housing and one in the office of the chief fiscal officer of such city.

All such triplicates shall be public records.