S T A T E   O F   N E W   Y O R K
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                                  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:

  Section  1. Section 16 of chapter 915 of the laws of 1982 amending the
public authorities law relating to the powers of the state of  New  York
mortgage  agency,  as  amended  by  chapter  218 of the laws of 2010, is
amended to read as follows:
  S 16. This act shall take effect immediately except  that  the  amend-
ments  to  law  effected  by  sections  one  through ten of this act, as
amended, shall cease to be of force and effect on and  after  [July  16,
2011] JULY 23, 2012, on which date the provisions of the public authori-
ties  law  amended  by  such sections shall be as they were in force and
effect immediately prior to this act taking effect.
  S 2.  Section 2407 of the public authorities law, as amended by  chap-
ter 218 of the laws of 2010, is amended to read as follows:
  S  2407.  Bond limits. (1) Except for notes issued in nineteen hundred
seventy and nineteen hundred seventy-one, the  agency  shall  not  issue
bonds  and  notes,  the  interest  on which is not included in the gross
income of the holders of the bonds and notes  under  the  United  States
Internal Revenue Code of 1986, as amended, or any subsequent correspond-
ing internal revenue law of the United States, in an aggregate principal
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
              

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dollars, excluding from such limitation  (a)  an  amount  equal  to  any
original  issue discount from the principal amount of any bonds or notes
issued, (b) bonds and notes  issued  to  refund  outstanding  bonds  and
notes,  and  (c)  bonds and notes not described in paragraph (b) of this
subdivision issued to refund outstanding bonds and notes  in  accordance
with  the  provisions  of  the  Internal Revenue Code of 1986 or the Tax
Reform Act of 1986, as amended,  where  such  bonds  or  notes  are  not
included  in  the  statewide  volume  cap on private purpose bonds under
section 146 of such code provided,  however,  that  upon  any  refunding
pursuant  to  this  paragraph or paragraph (b) of this subdivision, such
exclusion shall apply only to the extent that the amount of the  refund-
ing  bonds  or  notes  does not exceed (i) the outstanding amount of the
refunded bonds or notes, plus (ii) to the extent permitted by applicable
federal tax law, costs of issuance of the refunding bonds or notes to be
financed from the proceeds of the refunding bonds or  notes.    No  such
bond  or note shall be issued by the agency on or after July [sixteenth]
TWENTY-THIRD, two thousand [eleven] TWELVE, excluding  bonds  and  notes
issued  to refund outstanding bonds and notes. No more than five hundred
million dollars of proceeds of bonds  or  notes  issued  by  the  agency
pursuant  to  this  subdivision  shall  be used for mortgage purposes by
blending with proceeds of bonds issued pursuant to  subdivision  two  of
this section.
  (2)  In  connection  with  the  issuance  of  bonds for the purpose of
furthering programs described in this title, the agency is authorized to
covenant and consent that the interest on any of  its  bonds,  notes  or
other  obligations shall be includable, under the United States Internal
Revenue Code of 1986, as amended or any subsequent corresponding  inter-
nal revenue law of the United States, in the gross income of the holders
of the bonds to the same extent and in the same manner that the interest
on  bills,  bonds,  notes  or  other obligations of the United States is
includable in the gross income of the holders thereof under said  Inter-
nal  Revenue  Code or any such subsequent law. Pursuant to this subdivi-
sion, the agency shall not issue bonds, notes or other obligations in an
aggregate principal amount  exceeding  eight  hundred  million  dollars,
excluding  from such limitation bonds, notes or other obligations issued
to refund outstanding bonds, notes or other obligations. No  such  bond,
note  or other obligation shall be issued by the agency on or after July
[sixteenth] TWENTY-THIRD, two thousand [eleven] TWELVE, excluding bonds,
notes or other obligations issued to refund outstanding bonds, notes  or
other  obligations and no mortgages shall be purchased with the proceeds
of such bonds, notes or other obligations after such date. The board  of
directors  of the agency shall establish program guidelines for purposes
of bonds, notes or other obligations issued pursuant  to  this  subdivi-
sion.  The  board of directors shall establish from time to time maximum
income limits of persons  eligible  to  receive  mortgages  financed  by
bonds,  notes  or other obligations issued pursuant to this subdivision,
which income limits with respect to one-third  of  the  total  principal
amount  of  mortgages  authorized to be so financed shall not exceed one
hundred twenty-five percent of the latest maximum income limits  permit-
ted  under the Internal Revenue Code of 1986, as amended, for mortgagors
financed by mortgage revenue bonds, with respect to  one-third  of  such
principal  amount  authorized  to  be  so financed, shall not exceed one
hundred thirty-five percent of such income limits, and with  respect  to
one-third  of  such principal amount authorized to be so financed, shall
not exceed one hundred fifty percent of such limits.

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  (3) The fixing of the statutory maximums in this section shall not  be
construed  as constituting a contract between the agency and the holders
of its bonds or notes that additional bonds and notes may not be  issued
subsequently  by  the  agency  in the event that such statutory maximums
shall subsequently be increased by law.
  S 3. This act shall take effect immediately.