2023 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.