2023 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  fourteen  billion
five   hundred   twenty-six   million   eighty-nine   thousand   dollars
$14,526,089,000, 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.