2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 3 - (40 - 62) 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 two  billion  eight
  hundred  forty-four  million eight hundred ninety-nine thousand dollars,
  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.