Relates to the bond issuance charge as applied to the New York city housing development corporation.
Summary
This bill amends the Public Authorities Law to modify how the state’s bond issuance charge applies to public benefit corporations, with a specific change for the New York City Housing Development Corporation (HDC). Under current law, public benefit corporations that issue bonds, notes, or other obligations must pay a bond issuance charge to the state. The bill keeps that general requirement in place, but narrows the charge for HDC so that it is calculated only on bonds, notes, or other obligations that require a new allocation from the current year’s unified state bond volume ceiling for new private activity bond authority, or a carry-forward of private activity bond authority.
In practical terms, the measure would limit the circumstances under which HDC owes the issuance charge, potentially reducing costs for certain HDC financings. The bill would take effect 120 days after becoming law, with immediate authorization for any needed implementing regulations.
Impact
The bill would amend section 2976 of the Public Authorities Law, affecting the state’s bond issuance charge framework for public benefit corporations and, more narrowly, the New York City Housing Development Corporation. It would not eliminate the charge statewide, but would change the calculation for HDC bond issuances tied to private activity bond volume cap allocations, which could reduce revenue collected by the state from those transactions and lower financing costs for HDC in qualifying cases.
Sentiment
No committee transcript or vote record was provided, so there is no direct evidence of legislative debate or recorded support/opposition in the materials supplied. Based on the bill text and caption, the measure appears technical and finance-oriented rather than controversial, with an apparent policy aim of refining how the charge is applied to HDC rather than changing the broader bond issuance charge regime.
Contention
The main point of contention, if any, would likely be the fiscal and policy tradeoff between reducing financing costs for the New York City Housing Development Corporation and preserving state revenue from bond issuance charges. Supporters would likely view the bill as a targeted adjustment that helps housing finance activity, while potential critics could focus on the loss of state fee revenue or question why HDC should receive a narrower charge calculation than other issuers.
Increases the maximum aggregate principal amount of the outstanding notes and bonds of the New York city housing development corporation from twenty billion dollars to twenty-two billion dollars.
Extends certain provisions relating to the sale of bonds and notes of the city of New York, the issuance of bonds or notes with variable rates of interest, interest rate exchange agreements of the city of New York, the refunding of bonds, and the down payment for projects financed by bonds; extends the New York state financial emergency act for the city of New York; makes further amendments relating to the effectiveness thereof.
Extends certain provisions relating to the sale of bonds and notes of the city of New York, the issuance of bonds or notes with variable rates of interest, interest rate exchange agreements of the city of New York, the refunding of bonds, and the down payment for projects financed by bonds; extends the New York state financial emergency act for the city of New York; makes further amendments relating to the effectiveness thereof.
Extends certain provisions relating to the sale of bonds and notes of the city of New York, the issuance of bonds or notes with variable rates of interest, interest rate exchange agreements of the city of New York, the refunding of bonds, and the down payment for projects financed by bonds; extends the New York state financial emergency act for the city of New York; makes further amendments relating to the effectiveness thereof.
Extends certain provisions relating to the sale of bonds and notes of the city of New York, the issuance of bonds or notes with variable rates of interest, interest rate exchange agreements of the city of New York, the refunding of bonds, and the down payment for projects financed by bonds; extends the New York state financial emergency act for the city of New York; makes further amendments relating to the effectiveness thereof.