What's happening
This bill limits the bond issuance charge for the New York City Housing Development Corporation to only bonds requiring new or carry-forward private activity bond allocations.
Why it matters
Reduces Costs for Affordable Housing Development. By limiting the bond issuance charge to only those bonds that require a new or carry-forward private activity bond allocation, the bill could lower financing costs for projects backed by the New York City Housing Development Corporation, potentially freeing up more resources for affordable housing.
Targets State Revenue Collection More Precisely. The bill narrows the circumstances under which the state can collect the bond issuance charge from the NYC Housing Development Corporation, focusing state revenue collection on bonds that utilize scarce federal and state bond allocation authority.
Encourages Efficient Use of Bond Authority. By linking the charge only to bonds that tap into the unified state bond volume ceiling or use carry-forward authority, the change may incentivize the Housing Development Corporation to prioritize and better manage its use of this limited bonding capacity.
Could Influence the Financing Structure of Housing Projects. This adjustment may encourage the NYC Housing Development Corporation to structure more of its financing in ways that do not require a new or carry-forward bond allocation, potentially changing how affordable housing projects are funded in the city.
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Who cares
Headline styles
Limit Bond Issuance Fees
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3201
2019-2020 Regular Sessions
IN SENATE
February 4, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the bond issuance charge
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 2976 of the public authorities law, as amended by section 1 of part C of chapter 19 of the laws of 2010, is amended to read as follows:
1. Notwithstanding any other law to the contrary, public benefit corporations (which for purposes of this section shall include industrial development agencies created pursuant to title one of article eighteen-A of the general municipal law or any other provision of law and the New York city housing development corporation created pursuant to article twelve of the private housing finance law) which issue bonds, notes or other obligations shall pay to the state a bond issuance charge upon the issuance of such bonds in an amount determined pursuant to subdivision two of this section. Such charge shall be paid to the state department of taxation and finance, upon forms prescribed therefor, no later than fifteen days from the end of the month within which such bonds are issued. With respect to the New York city housing development corporation such bond issuance charge shall be calculated solely with respect to bonds, notes or other obligations issued that require a new allocation from the current year unified state bond volume ceiling of new private activity bond authority or a carry-forward of private activity bond authority.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06229-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to the bond issuance charge
Summary of provisions
This proposed legislation would amend Subdivision 1 of section 2976 of the public authorities law, as amended by section 1 of part C of Chapter 19 of the laws of 2010 to exempt the New York City Housing Development Fund Corporation (NY HDFC) from the state bond issuance charge with regard to housing being refinanced for the Purpose of preserving, reha- bilitating and extending the life of such developments.
Justification
The imposition of the Bond Issuance Charge (the "BIC") on bonds issued by the New York City Housing Development Fund Corporation ("HDFC" or the "Corporation") on projects that because of age or other conditions have deteriorated over time and are in need of restoration, rehabilitation, and physical improvements. The current imposition of a Bond Issuance Charge on such projects have an adverse impact on the cost and number of units refinanced to create safe, sanitary and affordable habitable hous- ing by adding approximately $6-$10 million per year in bond issuance charges incurred by the Corporation and its affordable Preservation housing projects.
Legislative history
Senate Bill 2376 of 2017-18. The assignment of the Bond Issuance Charge (BIC) was included in Chapter 19 of the laws of 2010, the Governor's first enacted extender, and as a consequence could not be segregated.
Fiscal impact
The projected loss of revenue to the state is projected to be $4.2 million per year as opposed to the current $6-10 million projections. Notwithstanding, the elimination of the BIC for preservation will result in the creation of an additional 40 units per year.
Effective date
This act shall take effect on the 120th day after it shall become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.