Bill Text: NY A08241 | 2011-2012 | General Assembly | Introduced
Bill Title: Extends the effectiveness of certain powers of the state of New York mortgage agency until July 23, 2012.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-01-04 - referred to housing [A08241 Detail]
Download: New_York-2011-A08241-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
8241
2011-2012 Regular Sessions
I N A S S E M B L Y
June 8, 2011
___________
Introduced by M. of A. V. LOPEZ, FITZPATRICK, CERETTO, FRIEND, GOODELL,
HANNA, JOHNS, KATZ, MOLINARO, RAIA -- Multi-Sponsored by -- M. of A.
BENEDETTO, BING, CAMARA, CASTRO, COOK, GIBSON, HEASTIE, JEFFRIES,
ROBINSON, ROSENTHAL, WRIGHT -- read once and referred to the Committee
on Housing
AN ACT to amend chapter 915 of the laws of 1982 amending the public
authorities law relating to the powers of the state of New York mort-
gage agency and the public authorities law, in relation to extending
the effectiveness of certain powers of the state of New York mortgage
agency
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 16 of chapter 915 of the laws of 1982 amending the
2 public authorities law relating to the powers of the state of New York
3 mortgage agency, as amended by chapter 218 of the laws of 2010, is
4 amended to read as follows:
5 S 16. This act shall take effect immediately except that the amend-
6 ments to law effected by sections one through ten of this act, as
7 amended, shall cease to be of force and effect on and after [July 16,
8 2011] JULY 23, 2012, on which date the provisions of the public authori-
9 ties law amended by such sections shall be as they were in force and
10 effect immediately prior to this act taking effect.
11 S 2. Section 2407 of the public authorities law, as amended by chap-
12 ter 218 of the laws of 2010, is amended to read as follows:
13 S 2407. Bond limits. (1) Except for notes issued in nineteen hundred
14 seventy and nineteen hundred seventy-one, the agency shall not issue
15 bonds and notes, the interest on which is not included in the gross
16 income of the holders of the bonds and notes under the United States
17 Internal Revenue Code of 1986, as amended, or any subsequent correspond-
18 ing internal revenue law of the United States, in an aggregate principal
19 amount exceeding nine billion [two] SEVEN hundred twenty million
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11031-01-1
A. 8241 2
1 dollars, excluding from such limitation (a) an amount equal to any
2 original issue discount from the principal amount of any bonds or notes
3 issued, (b) bonds and notes issued to refund outstanding bonds and
4 notes, and (c) bonds and notes not described in paragraph (b) of this
5 subdivision issued to refund outstanding bonds and notes in accordance
6 with the provisions of the Internal Revenue Code of 1986 or the Tax
7 Reform Act of 1986, as amended, where such bonds or notes are not
8 included in the statewide volume cap on private purpose bonds under
9 section 146 of such code provided, however, that upon any refunding
10 pursuant to this paragraph or paragraph (b) of this subdivision, such
11 exclusion shall apply only to the extent that the amount of the refund-
12 ing bonds or notes does not exceed (i) the outstanding amount of the
13 refunded bonds or notes, plus (ii) to the extent permitted by applicable
14 federal tax law, costs of issuance of the refunding bonds or notes to be
15 financed from the proceeds of the refunding bonds or notes. No such
16 bond or note shall be issued by the agency on or after July [sixteenth]
17 TWENTY-THIRD, two thousand [eleven] TWELVE, excluding bonds and notes
18 issued to refund outstanding bonds and notes. No more than five hundred
19 million dollars of proceeds of bonds or notes issued by the agency
20 pursuant to this subdivision shall be used for mortgage purposes by
21 blending with proceeds of bonds issued pursuant to subdivision two of
22 this section.
23 (2) In connection with the issuance of bonds for the purpose of
24 furthering programs described in this title, the agency is authorized to
25 covenant and consent that the interest on any of its bonds, notes or
26 other obligations shall be includable, under the United States Internal
27 Revenue Code of 1986, as amended or any subsequent corresponding inter-
28 nal revenue law of the United States, in the gross income of the holders
29 of the bonds to the same extent and in the same manner that the interest
30 on bills, bonds, notes or other obligations of the United States is
31 includable in the gross income of the holders thereof under said Inter-
32 nal Revenue Code or any such subsequent law. Pursuant to this subdivi-
33 sion, the agency shall not issue bonds, notes or other obligations in an
34 aggregate principal amount exceeding eight hundred million dollars,
35 excluding from such limitation bonds, notes or other obligations issued
36 to refund outstanding bonds, notes or other obligations. No such bond,
37 note or other obligation shall be issued by the agency on or after July
38 [sixteenth] TWENTY-THIRD, two thousand [eleven] TWELVE, excluding bonds,
39 notes or other obligations issued to refund outstanding bonds, notes or
40 other obligations and no mortgages shall be purchased with the proceeds
41 of such bonds, notes or other obligations after such date. The board of
42 directors of the agency shall establish program guidelines for purposes
43 of bonds, notes or other obligations issued pursuant to this subdivi-
44 sion. The board of directors shall establish from time to time maximum
45 income limits of persons eligible to receive mortgages financed by
46 bonds, notes or other obligations issued pursuant to this subdivision,
47 which income limits with respect to one-third of the total principal
48 amount of mortgages authorized to be so financed shall not exceed one
49 hundred twenty-five percent of the latest maximum income limits permit-
50 ted under the Internal Revenue Code of 1986, as amended, for mortgagors
51 financed by mortgage revenue bonds, with respect to one-third of such
52 principal amount authorized to be so financed, shall not exceed one
53 hundred thirty-five percent of such income limits, and with respect to
54 one-third of such principal amount authorized to be so financed, shall
55 not exceed one hundred fifty percent of such limits.
A. 8241 3
1 (3) The fixing of the statutory maximums in this section shall not be
2 construed as constituting a contract between the agency and the holders
3 of its bonds or notes that additional bonds and notes may not be issued
4 subsequently by the agency in the event that such statutory maximums
5 shall subsequently be increased by law.
6 S 3. This act shall take effect immediately.
