Relating to the powers of subsidiaries of the Educational Housing Services Inc.

BILL NUMBER:S5211

Title of bill

An act to amend the public authorities law, in relation to the powers of subsidiaries of the Educational Housing Services Inc.; and to amend chapter 376 of the laws of 1998 amending the public authorities law relating to the powers of the Educational Housing Services Inc., in relation to extending the effectiveness thereof

Purpose

To extend the powers granted to Educational Housing Services Inc. for an additional five years to 2018.

Summary of provisions

This bill amends Chapter 352 of the laws of 2008 to allow Educational Housing Services Inc. to continue its utilization of Section 1676 of the Public Authorities Law until 2018. Chapter 352 allows Educational Housing Services Inc. to finance new housing utilizing the Dormitory Authority of New York State.

Justification

For over 25 years Educational Housing Services Inc., a not-for-profit organization, has provided dormitory housing to college and university students in the New York City area. It currently utilizes eight properties in Manhattan and Brooklyn and has an inventory of over 4,400 beds serving 10,000 students annually. Educational Housing Services Inc. does not own these residences but rather leases buildings or portions thereof. The one exception is the dormitory constructed for the uptown CUNY campus in 2005 which was financed with DASNY bonds. Currently 25 institutions of higher education utilize Educational Housing Services Inc. housing. The economic welfare and 110,000 jobs generated by these colleges is directly linked to the ability of Educational Housing Services Inc. to meet some of the housing needs of these institutions. There is a dramatic need for student housing in New York City due to the fact that almost 500,000 students are enrolled in colleges in this region. Educational Housing Services Inc. is the only non-profit organization that is directly meeting the enormous demand for student housing. Previous legislation made reference to a number of Educational Housing Services Inc. sites, some of which will not continue as student housing due to the removal of some buildings from the leasing market. This proposed legislation will allow Educational Housing Services Inc. to continue its important housing functions without being restricted to properties whose leases have expired or terminated.

Educational Housing Services Inc., in cooperation with the office of the Attorney General, has recently undergone a complete restructuring with a new board whose members, and new CEO, are individuals who are very experienced in the fields of education, finance, real estate, public private partnerships and public service.

Legislative history

New legislation which amends previous statutes extending Educational Housing Services Inc. powers.

Fiscal implications

None

Effective date

This act shall take effect immediately.