NY Pub Auth L § 1974-C (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 12 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.