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History
- Substituted by A7087A
- Advanced to third reading
- 2nd report cal.
- 1st report cal.368
- Print number 2865a
- Amend (t) and recommit to finance
- Reported and committed to finance
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to powers of N.Y. city housing development corporation and the N.Y. state housing finance agency to finance certain housing
Signed by Governor · Sponsor Inez Barron
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend chapter 514 of the laws of 1983 amending the private housing finance law and the real property tax law relating to the powers of the New York city housing development corporation and the New York state housing finance agency to finance certain multi-family housing, and to amend chapter 396 of the laws of 1984 amending the private housing finance law and the real property tax law relating to the powers of the New York state housing finance agency to finance certain multi-family housing, in relation to the effectiveness of such chapters
Summary of provisions
This proposed legislation would extend the sunset provision of subdivision 23-c of Section 654 of Article 12 of the Private Housing Finance Law, which establishes the New York City Housing Development Corporation ("HDC"). The sunset provision currently calls for subdivision 23-c to expire on June 30, 2009. This bill would preserve subdivision 23-c in full force and effect until June 30, 2011, thereby allowing HDC to continue to issue notes and bonds for the financing of housing developments.
Reasons for support
Enactment of this proposed legislation would allow HDC to continue to assist in the financing of newly constructed and rehabilitated low- and moderate-income housing in the City of New York. The bill would continue HDC's authorization to enter into direct loan agreements with developers of low- and moderate-income housing, as well as joint financing programs with recognized lending institutions. Pursuant to a joint financing program, HDC lends funds obtained from the sale of its securities, both tax-exempt and taxable, to financial institutions, which in turn re-lend the proceeds to private developments for the construction or rehabilitation of low- or moderate-income housing. In cases of conduit lending, the responsibilities of underwriting and servicing the loans are assumed by the lending institutions, which also bear the risks of default under the mortgages. HDC does not rely upon the credit (or tax levy) of either the City or the State of New York to pay bondholders.
Read the full memo (753 words)
Since its creation in 1971, HDC has financed the construction or preservation of more than 135,000 units of affordable housing in New York City. More than 75,000 units have been financed since 1984 pursuant to subdivision 23-c of Section 654. Overall, HDC's portfolio includes a broad array of housing, from low-income tax credit developments to mixed-income developments and aging developments originally financed in conjunction with direct federal subsidies. The vast majority of units financed by HDC are income restricted to be affordable to families and individuals who earn from 40% to 130% of the area median income.
Under Mayor Bloomberg's expanded "New Housing Marketplace" initiative, HDC is responsible for creating or preserving 42,000 units of housing during an eleven year period ending in June 2014. As of January 1, 2009, HDC has financed the construction or preservation of more than 40,000 apartments under the plan, and HDC expects to exceed its goal in 2009. The housing units for the Mayor's plan are financed under three main programs: (1) Low Income Affordable Marketplace Program ("LAMP") which combines tax-exempt bonds and 4% as-of-right low income housing tax credits ("LIHTC") to produce housing affordable to people earning less than 60% of area median income, (2) New Housing Opportunity Program ("New HOP"), a taxable bond program used to finance rental units affordable to middle-income New Yorkers, and (3) Preservation, including its Mitchell-Lama restructuring program (described below) as well as its program for preserving federally assisted developments originally financed under Sections 8, 202 and 236 of the National Housing Act.
In June of 2004 Mayor Bloomberg announced a voluntary Mitchell Lama restructuring program along with a rehabilitation loan program for all Mitchell Lama projects with first or second mortgages that are held by HDC or the City. The program provides for refinancing or restructuring of the Mitchell Lama's existing mortgage in exchange for a commitment to remaining the program for a minimum of an additional 15 years. The response to this program has been significant. To date HDC has restructured 38 projects with more than 18,250 units preserved. HDC is still actively working with Mitchell Lamas in New York City and expects to provide funds to preserve even more units over the next few years.
Overall, in 2009, HDC expects to close on financing or refinancing transactions for over 25 projects involving the construction or preservation of approximately 5,000 units of housing.
Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.