NY Priv Hous Fin L § 47-E (2021)
2021 New York Laws PVH - Private Housing Finance Article 3 - New York State Housing Finance Agency 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 seven billion  five hundred   forty-five   million   one   hundred  seven  thousand  dollars $7,545,107,000, plus a principal amount of bonds issued to fund the debt service reserve fund in accordance with the debt  service  reserve  fund requirement  established  by  the  agency and to fund any other reserves that  the  agency  reasonably  deems  necessary  for  the  security   or marketability  of  such bonds and to provide for the payment of fees and other charges and expenses, including  underwriters'  discount,  trustee and rating agency fees, bond insurance, credit enhancement and liquidity enhancement  related to the issuance of such bonds and notes. 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.