2006 New York Code - Powers of cities, towns and villages to contract indebtedness in aid of low rent housing and slum clearance projects; restrictions thereon.

 
    §  4.  To  effectuate  any  of  the  purposes  of  this  article,  the
  legislature  may  authorize  any  city,  town  or  village  to  contract
  indebtedness  to  an amount which shall not exceed two per centum of the
  average assessed valuation of the real estate  of  such  city,  town  or
  village  subject  to  taxation,  as  determined  by  the  last completed
  assessment roll and the four preceding assessment rolls  of  such  city,
  town  or  village,  for  city,  town  or  village  taxes  prior  to  the
  contracting of such indebtedness. In ascertaining the power of  a  city,
  or village having a population of five thousand or more as determined by
  the  last  federal  census,  to  contract  indebtedness pursuant to this
  article there may be excluded any such indebtedness if  the  project  or
  projects  aided by guarantees representing such indebtedness or by loans
  for which such indebtedness was contracted shall have yielded during the
  preceding year net revenue to be determined annually by  deducting  from
  the gross revenues, including periodic subsidies therefor, received from
  such  project  or projects, all costs of operation, maintenance, repairs
  and replacements, and the interest on such indebtedness and the  amounts
  required  in  such  year  for the payment of such indebtedness; provided
  that in the case of guarantees such interest and such amounts shall have
  been paid, and in the case of loans an amount equal to such interest and
  such amounts  shall  have  been  paid  to  such  city  or  village.  The
  legislature  shall  prescribe the method by which the amount of any such
  indebtedness  to  be  excluded  shall  be  determined,   and   no   such
  indebtedness   shall   be   excluded  except  in  accordance  with  such
  determination. The legislature may confer  appropriate  jurisdiction  on
  the  appellate division of the supreme court in the judicial departments
  in which such  cities  or  villages  are  located  for  the  purpose  of
  determining the amount of any such indebtedness to be so excluded.
    The  liability  of  a city, town or village on account of any contract
  for capital or periodic subsidies to be  paid  subsequent  to  the  then
  current  year  shall,  for the purpose of ascertaining the power of such
  city, town or village to contract indebtedness, be  deemed  indebtedness
  in  the  amount  of  the  commuted value of the total of such capital or
  periodic subsidies remaining unpaid,  calculated  on  the  basis  of  an
  annual  interest  rate of four per centum. Such periodic subsidies shall
  not be contracted for a period longer than  the  life  of  the  projects
  assisted   thereby,   and  in  no  event  for  more  than  sixty  years.
  Indebtedness contracted pursuant to this article shall  be  excluded  in
  ascertaining  the  power  of  a city or such village otherwise to create
  indebtedness   under   any   other   section   of   this   constitution.
  Notwithstanding  the  foregoing  the legislature shall not authorize any
  city or village having a population of five thousand or more to contract
  indebtedness hereunder in excess of the limitations  prescribed  by  any
  other  article  of this constitution unless at the same time it shall by
  law require such city or village to levy annually a tax or  taxes  other
  than an ad valorem tax on real estate to an extent sufficient to provide
  for   the  payment  of  the  principal  of  and  interest  on  any  such
  indebtedness. Nothing herein contained, however, shall be  construed  to
  prevent  such city or village from pledging its faith and credit for the
  payment of such principal and interest nor shall any  such  law  prevent
  recourse  to an ad valorem tax on real estate to the extent that revenue
  derived from such other tax or taxes in any year, together with revenues
  from the project or projects aided by the proceeds of such indebtedness,
  shall become insufficient to provide fully for payment of such principal
  and interest in that year.