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History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the private housing finance law, in relation to the powers of the New York state housing finance agency to finance certain multi-family housing
Purpose of the bill
This bill would grant the New York State Housing Finance Agency ("HFA") authority to issue unrated bonds for private placement to finance affordable housing programs.
Summary of provisions
Section 1 of the bill amends Subdivision 29-a of Section 44 of the Private Housing Finance Law to grant HFA additional authority to issue bonds for private placement that have not received an investment grade rating from a recognized rating agency.
Section 2 of the bill provides for an immediate effective date.
Existing law
Under current law, HFA does not have authority to issue unrated bonds for private placement beyond HFA's existing authority to use such financing with respect to Article 2 Mitchell-Lama projects.
Prior legislative history
None.
Statement in support
Private placement of bonds to finance affordable housing is a proven method of financing for certain local banks in New York. However, HFA does not currently have statutory authority to issue unrated bonds for private placement beyond HFA financing of Article 2 Mitchell-Lama projects.
Loans financed with proceeds of unrated HFA bonds issued for private placement offer gains in efficiencies to HFA borrowers. Without the involvement of rating agencies, outside underwriters, credit enhancers and their respective legal counsels, private placement transactions can be completed at a substantially lower cost to the borrower. These savings are particularly important to smaller 100% affordable projects, for which the cost of issuance of a public offering are often prohibitive. HFA would set limitations on the end users of bonds issued for private placement and would only place bonds with investors who qualify as sophisticated investors under Federal securities laws.
Budget implications
None.
Effective date
This act takes effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.