NY Priv Hous Fin L § 59-C (2021)
2021 New York Laws PVH - Private Housing Finance Article 3 - New York State Housing Finance Agency 59-C - Insured Housing Initiatives Fund.

§  59-c.  Insured housing initiatives fund. 1. The agency shall create   and establish a  special  fund  to  be  known  as  the  insured  housing   initiatives  fund  and  shall pay into such fund any moneys which may be   made available to the agency for the purposes  of  such  fund  from  any   source,  including,  but not limited to, moneys appropriated by and made   available pursuant to appropriation by  the  state  and  any  income  or   interest  earned  by,  or  increment  to, the fund due to the investment   thereof or moneys payable to the agency under any contract entered  into   pursuant  to subdivision two of this section.  Subject to the provisions   of any contract  with  bondholders  and  noteholders  and  any  contract   authorized  pursuant  to  this  section  for the provision of insurance,   letters of credit or other financial mechanisms, the moneys held  in  or   credited  to the insured housing initiatives fund established under this   subdivision, in the discretion of the  agency,  shall  be  used  by  the   agency  in  accordance with subdivision two of this section to enable it   to reduce the debt service that would otherwise be payable by the agency   on its bonds, notes and other obligations issued to make loans  pursuant   to  subdivision twenty-nine-a of section forty-four of this article, and   thereby to reduce the obligations of the borrower  to  the  agency.  The   reduction  in  debt  service  as  a  result of any contract entered into   pursuant to subdivision two of this section shall result solely  in  the   reduction  of  rents  payable  by  low  income  individuals  or families   residing in those units in the housing development assisted by the  fund   that  are  required  to  be occupied by such individuals or families for   interest on obligations issued to finance such housing development to be   exempt from taxation pursuant  to  section  103(b)(4)  of  the  internal   revenue  code of 1954, as amended. Provided, however, to the extent that   such rents for such units are affordable to persons  or  families  whose   income  is  not in excess of sixty-five percent of median income for the   area, as defined by the agency, then any remaining savings  or  benefits   shall  be applied to the further reduction of such rents for such units,   and/or the reduction of rents payable by other low income individuals or   families residing in the  housing  development  assisted  by  such  fund   and/or  the  increase  in  the  occupancy  of  low income individuals or   families residing in such housing development in excess of that required   pursuant to section 103(b)(4) of the internal revenue code of  1954,  as   amended.2. The agency may enter into contracts for the provision of insurance,   letters  of credit or other financial mechanisms designed to reduce such   debt service on bonds, notes and other  obligations  of  the  agency  in   accordance  with  this  section,  so long as such obligations receive an   investment grade rating from a recognized rating agency. The moneys held   in or credited to the fund shall not be used to pay the principal of  or   interest on such obligations of the agency, the principal of or interest   on  the  obligations  of  the  borrower to the agency or any fees of the   agency.3. For the purposes  of  this  section,  "low  income  individuals  or   families"  shall  mean  persons or families with incomes of no more than   eighty percent of the median income for the  area,  as  defined  by  the   agency.4.  The agency shall account separately for all moneys received by the   fund.