N.Y. Private Housing Finance Law § 47-e: Housing program bonds and notes

§ 47-e. Housing program bonds and notes. 1. Definitions. For the

purposes of this section and paragraph (c) of subdivision one of section

forty-seven of this chapter:

(a) "Housing program" shall mean the housing assistance projects or

programs funded from an appropriation or an apportionment to the:

(1) housing assistance fund created by section ninety-two-q of the

state finance law;

(2) the affordable housing corporation and deposited in the affordable

housing development account established pursuant to section fifty-nine-b

of this chapter;

(3) the housing trust fund corporation and deposited in the housing

trust fund account established pursuant to section fifty-nine-a of this

chapter; and

(4) the homeless housing and assistance account established pursuant

to section fifty-nine-i of this chapter.

(5) Housing project repair fund created by section sixty of this

chapter.

(b) "Housing program bonds and housing program notes" shall mean bonds

and notes issued by the agency pursuant to subdivision two of this

section.

(c) "Code" shall mean the federal internal revenue code.

2. (a) Subject to the provisions of chapter fifty-nine of the laws of

two thousand, in order to enhance and encourage the promotion of housing

programs and thereby achieve the stated purposes and objectives of such

housing programs, the agency shall have the power and is hereby

authorized from time to time to issue negotiable housing program bonds

and notes in such principal amount as shall be necessary to provide

sufficient funds for the repayment of amounts disbursed (and not

previously reimbursed) pursuant to law or any prior year making capital

appropriations or reappropriations for the purposes of the housing

program; provided, however, that the agency may issue such bonds and

notes in an aggregate principal amount not exceeding eighteen billion

eighty-four million seven hundred sixty-four thousand dollars

$18,084,764,000, excluding bonds issued after April first, two thousand

twenty-five to (i) fund one or more debt service reserve funds, (ii) pay

costs of issuance of such bonds, and (iii) refund or otherwise repay

such bonds or notes previously issued, provided that nothing herein

shall affect the exclusion of refunding debt issued prior to such date.

No reserve fund securing the housing program bonds shall be entitled or

eligible to receive state funds apportioned or appropriated to maintain

or restore such reserve fund at or to a particular level, except to the

extent of any deficiency resulting directly or indirectly from a failure

of the state to appropriate or pay the agreed amount under any of the

contracts provided for in subdivision four of this section.

(b) In computing for the purposes of this section the aggregate amount

of bonds and notes of the agency issued pursuant to this section, there

shall be excluded (i) the amount of bonds and notes issued that would

constitute interest under the code, and (ii) the amount of bonds and

notes issued to refund bonds and notes, provided, that the amount so

excluded under this subparagraph (ii) may exceed the amount of the bonds

and notes which the refunding bonds or notes were issued to refund only

if the present value of the aggregate debt service on the refunding

bonds or notes does not exceed the present value of the aggregate debt

service of the bonds or notes to be refunded, such present value in each

case to be calculated by using the effective interest rate of the

refunding bonds or notes, which shall be that rate arrived at by

doubling the semi-annual interest rate (compounded semi-annually)

necessary to discount the debt service payments on the refunding bonds

or notes from the payment date thereof to the date of issue of the

refunding bonds or notes and to the price bid therefor, or to the

proceeds received by the agency from the sale thereof, in each case

including estimated accrued interest.

(c) The agency shall annually prepare and approve a bond sale report

which shall include the agency's bond sale guidelines, amendments to

such guidelines since the last agency report, and, if necessary, an

explanation of the bond sale guidelines and the results of any sale

including, but not limited to, the underwriter's discount and net

interest costs of bonds sold during the fiscal year. Such bond sale

report shall also identify which of the agency's bond sales were

conducted as public sales and which were conducted as private sales and

of those, which were taxable, and describe the participation of minority

and women-owned business enterprise firms in such sales. Such bond sale

report may be part of any other annual report that the agency is

required to make. The agency shall annually submit its bond sale report

to the comptroller and copies thereof to the senate finance committee

and the assembly ways and means committee. The agency shall make

available to the public copies of its bond sale report upon reasonable

request therefor. Nothing contained in this subdivision shall be deemed

to alter, affect the validity of, modify the terms of or impair any

contract or agreement made or entered into in violation of, or without

compliance with, the provisions of this subdivision.

(d) The bonding authority granted by this section and the issuance of

bonds for the purposes described therein shall in no way act to:

(i) delay or impede the obligation, encumbrance and timely

disbursement of funds appropriated or reappropriated for the housing

program, or any financial commitments made pursuant to such program as

defined in this section;

(ii) impair or impede the continued operation and administration of

such program by the agency, any of its subsidiaries or the division of

housing and community renewal pursuant to law and rules and regulations

thereby established.

3. Subject to any agreements with the holders of particular bonds or

notes pledging any specified portions thereof, the housing program bonds

and notes shall be secured by a pledge to the payment thereof of the

state payments made pursuant to the service contracts referred to in

subdivision four of this section.

4. (a) Notwithstanding the provisions of any general or special law to

the contrary, and subject to the making of annual appropriations

therefor by the legislature, in order to assist the agency and its

subsidiary corporations in undertaking and providing services with

respect to housing programs and in consideration of the undertaking

thereof and the benefits to be derived therefrom by the people of the

state, the director of the budget is authorized in any state fiscal year

to enter into one or more service contracts, none of which shall exceed

thirty years in duration, with the agency, upon such terms as the

director of the budget and the agency agree, so as to provide annually

to the agency in the aggregate a sum not to exceed the annual debt

service payments required for the bonds and notes issued pursuant to

this section.

(b) Any service contract entered into pursuant to paragraph (a) of

this subdivision shall provide that the obligation of the director of

the budget or of the state to fund or to pay the amounts therein

provided for shall not constitute a debt of the state within the meaning

of any constitutional or statutory provision and shall be deemed

executory only to the extent of moneys available and that no liability

shall be incurred by the state beyond the moneys available for the

purpose, and that such obligation is subject to annual appropriation by

the legislature.

(c) Any such contract or any payments made or to be made thereunder

may be assigned and pledged by the agency as security for its bonds and

notes authorized by this section.

5. (a) Subject to the provisions of chapter fifty-nine of the laws of

two thousand, upon the issuance of housing program bonds or notes, the

agency shall apply such amount of the proceeds thereof as shall be

designated and specified in the bond or note resolution or resolutions

authorizing the issuance of such bonds or notes to the specific funds

and/or accounts of one or more housing programs. The bond resolution or

resolutions authorizing the issuance of such bonds or notes shall only

allocate net proceeds of bonds or notes to a particular fund or account

of a housing program if the legislature has authorized pursuant to law

or any prior year an advance to such fund or account, and the amount of

such bond or note proceeds so allocated to such fund or account shall

not exceed the total amount so authorized to be advanced. Such proceeds

shall be disbursed to such a fund or account in accordance with such

allocation only for application to the repayment of advances previously

or thereupon made and not previously repaid. Such proceeds may not be

transferred from an entity authorized to administer a housing program to

the state or a fund of the state, except in repayment of such advances.

Except in the case of refunding bonds or notes authorized hereunder, any

net proceeds not so allocated or disbursed shall be utilized first to

pay debt service on the applicable bonds or notes in the current or the

succeeding fiscal year and second to the redemption of such bonds;

provided that such application may be adjusted to comply with applicable

federal law as to federal tax exemption. For purposes of this paragraph,

earnings from the investment of net proceeds shall be treated as net

proceeds.

(b) Each of the entities authorized to administer the respective

housing programs is hereby authorized to accept advances of funds

referred to in paragraph (a) of this subdivision and to apply any such

advances in such manner authorized by law and to repay any such advances

from the proceeds of housing program bonds or notes deposited therewith

pursuant to paragraph (a) of this subdivision.

(c) The state comptroller is hereby authorized to receive from the

agency repayments of moneys, if any, advanced by the state for purposes

of the housing program and to deposit the same to the credit of the

capital projects fund, the housing program fund, the housing assistance

fund or other appropriate fund.