N.Y. Public Authorities Law § 1974-c: Additional powers of the authority

§ 1974-c. Additional powers of the authority. 1. It is hereby found

and declared that the legislature, pursuant to the housing New York

program act, has established a housing New York program under which the

city of New York, any agency or instrumentality thereof (other than the

housing New York corporation) and the New York city housing development

corporation will cause the acquisition, construction, equipping,

improving, rehabilitation and renovation of dwelling accommodations

within the city of New York for persons and families for whom the

ordinary operations of private enterprise cannot supply such

accommodations; that such program is necessary in order to increase the

presently inadequate supply of dwelling accommodations in such city for

persons and families of low and moderate income; that such program shall

require a substantial commitment of funds from public sources; and that

the need for such moneys necessitates that the authority be granted the

additional powers and be made subject to the additional requirements of

this section. The legislature therefore finds that the authority,

subject to the terms and conditions specified herein, should be given

the power to assign certain excess revenues to secure bonds and notes to

be issued by the housing New York corporation for use by the city of New

York, and any agency or instrumentality thereof (other than the housing

New York corporation) or the New York city housing development

corporation in the housing New York program; that the assignment of such

excess revenues for the financing of residential housing facilities in

accordance with the housing New York program is a public purpose for

which moneys may be granted; and that the powers and duties of the

authority as recited in this section are necessary and proper for

achieving the ends herein recited.

2. In addition to the powers of the authority set forth in section

nineteen hundred seventy-four of this title, the authority shall have

the power:

(a) to borrow money by issuing bonds and notes and to issue such bonds

and notes for the purposes of (i) repaying appropriations from the state

to the authority in accordance with the provisions of any repayment

agreements with the state, (ii) furthering the development of the

infrastructure of the Battery Park project area, and (iii) refunding any

bonds and notes of the authority issued pursuant to this section;

(b) subject to the provisions of any contract with noteholders and

bondholders, to (i) pledge any excess revenues or assets (other than

real property) of the authority, including, but not limited to such

excess revenues as the authority shall deem necessary, to secure any

bonds or notes issued by the authority pursuant to this section and (ii)

assign such excess revenues as the authority shall deem necessary to

secure any bonds or notes issued or any agreeements entered into by the

housing New York corporation pursuant to section six hundred

fifty-four-c of the private housing finance law or pay any expenses

related thereto for the purpose of financing the acquisition,

construction, equipping, improvement, enlargement, rehabilition and

renovation of residential housing facilities in accordance with the

provisions of the housing New York program and to enter into any

agreement or execute any document to accomplish the foregoing;

(c) to procure insurance, letters of credit or other credit

enhancements with respect to its bonds or notes issued pursuant to this

section and to pay the premiums and fees therefor;

(d) to adopt, amend or rescind rules and regulations appropriate to

carry out its corporate purposes and to establish such requirements and

enter into such agreements to achieve the objectives of this section;

and

(e) to exercise any and all other powers authorized by this title and

not inconsistent with the provisions of this section.

3. Notwithstanding any contrary provision of law, general, special, or

local, no moneys of the authority, or moneys received from the

authority, which are expended pursuant to a chapter of the laws of

nineteen hundred eighty-six entitled "An Act to enact the housing New

York program act for the purpose of establishing a housing New York

program and to amend the public authorities law, in relation to

authorizing Battery Park city authority to assign excess revenues to

secure bonds to be issued by the housing New York corporation and the

private housing finance law, in relation to creating such corporation

and authorizing the financing of certain housing accommodations within

the city of New York", shall be used by the authority, directly or

indirectly, for the design, planning, acquisition, financing,

construction or implementation of any landfill or any pilings,

platforms, decks or similar structures and in addition, any dredging or

filling activities, in the Hudson river between the northern boundary of

the Battery Park project area as provided for in subdivision five of

section nineteen hundred seventy-two of this title and forty-second

street in the city of New York except to the extent that such activities

are necessary to maintain the Battery Park project area landfill site,

nor shall any such moneys authorized to be assigned or pledged by such

act be assigned or pledged, directly or indirectly, to secure or pay the

debt service on any bonds or notes issued or any agreements entered into

by the housing New York corporation if the proceeds of such bonds or

notes are to be used directly or indirectly, or the purpose of such

agreements is to accomplish directly or indirectly, any of the

prohibited activities listed in this subdivision.

4. No excess revenues may be assigned by the authority to the housing

New York corporation to finance residential housing facilities pursuant

to section six hundred fifty-four-c of the private housing finance law

unless the authority has entered into an agreement or agreements with

the housing New York corporation, which provides, in addition to any

other terms and conditions, that:

(a) such residential housing facilities are to provide dwelling

accommodations which are to be occupied by persons and families for whom

the ordinary operations of private enterprise cannot provide an adequate

supply of safe, sanitary and affordable dwelling accommodations;

(b) neither the state nor the authority are to have any responsibility

as to the financing, operation, maintenance, repair or use of such

residential housing facilities unless otherwise specifically provided by

law;

(c) the housing New York corporation shall use the moneys assigned to

it by the authority pursuant to this section to secure and pay bonds and

notes issued to finance residential housing facilities in accordance

with provisions of the housing New York program and shall comply with

the terms and conditions of the housing New York program act and this

section; and

(d) the timing, amount, maturity schedule and all other terms and

conditions of any issuance of bonds or notes by the housing New York

corporation pursuant to section six hundred fifty-four-c of the private

housing finance law, will provide for the authority's requirements as to

the development, management or operation of the project and the effect

of such terms and conditions on the availability of excess revenues and

the pledge or assignment thereof.

5. For the purposes of furthering the development of the

infrastructure of the Battery Park project area and repaying

appropriations from the state to the authority pursuant to this section,

the authority may, in addition to the authorization contained in

subdivision one of section nineteen hundred seventy-seven-a of this

title, borrow money by issuing bonds or notes in an aggregate principal

amount not exceeding one hundred million dollars plus a principal amount

of bonds or notes issued (i) to fund any related debt service reserve

fund, (ii) to provide capitalized interest, and (iii) to provide fees

and other charges and expenses, including underwriters' discount,

related to the issuance of such bonds or notes and the maintenance of

such reserves, all as determined by the authority, excluding bonds and

notes issued to refund outstanding bonds and notes issued pursuant to

this section.

In computing the total principal amount of bonds and notes that may at

any time be issued for any purpose under this title, the amount of the

outstanding bonds or notes that constitutes interest under the United

States Internal Revenue Code of nineteen hundred fifty-four, as amended

to the effective date of this section, shall be excluded.

6. The authority may covenant and consent that the interest on any of

its bonds or notes issued pursuant to subdivision five of this section

shall be includible, under the United States Internal Revenue Code of

nineteen hundred fifty-four or any subsequent corresponding internal

revenue law of the United States, in the gross income of the holders of

the bonds or notes to the same extent and in the same manner that the

interest on bills, bonds, notes or other obligations of the United

States is includible in the gross income of the holders thereof under

said Internal Revenue Code or any such subsequent law.

7. The state of New York does pledge to and agree with the holders of

any bonds or notes issued by the housing New York corporation under

section six hundred fifty-four-c of the private housing finance law,

that the state will not limit or alter the rights hereby vested in the

authority to fulfill the terms of any agreements made with such

corporation to assign any excess revenues, or in any way impair the

rights and remedies of such corporation thereunder, until the bonds and

notes, together with interest thereon, interest on any unpaid

installments of interest, and all costs and expenses in connection with

any action or proceeding by or on behalf of the bondholders and

noteholders are fully met and discharged.

8. It is the intention of the legislature that any assignment of

excess revenues or portion thereof by the authority pursuant to this

section shall be valid and binding from the time when the assignment is

made in accordance with its terms; that the excess revenues so assigned

by the authority shall immediately be subject to the lien of such

assignment without any physical delivery thereof or further act, and

that the lien of any such assignment shall be valid and binding as

against all parties having claims of any kind in tort, contract or

otherwise against the authority irrespective of whether such parties

have notice thereof. Neither the resolution or any other instrument by

which an assignment is created need be recorded.