BILL NUMBER:  S7895

 TITLE OF BILL :  An act to amend the private housing finance law, in
relation to increasing the bonding authority of the New York city
housing development corporation

 SUMMARY OF PROVISIONS :

Section one of this bill would authorize the New York City Housing
Development Corporation ("HOC") to increase the maximum aggregate
principal amount of its outstanding bonds and notes from $11.25
billion to $12.5 billion.

Section two would provide that this bill take effect immediately.

 REASONS FOR SUPPORT :

By the end of March 2016, HOC had approximately $10.4 billion of bonds
sold or outstanding, leaving the corporation with slightly less than
$850 million of unused bonding authority. HOC has also currently
agreed to finance multi-year projects that will require an additional
$133 million in bonds. In a little over a decade, since January
1,2005, HOC has issued in excess of$15.6 billion in bonds to finance
the construction or preservation of tens of thousands of apartments
throughout the City. These include bonds to finance the preservation
of thousands of Mitchell-Lama apartments as well as Liberty Bonds to
              

finance the construction or conversion from non-residential use of
thousands of apartments in lower Manhattan. This record has made HOC
one of the largest issuers of multi-family affordable housing bonds in
the nation, and frequently the top annual issuer.

Under the City's "Housing New York" plan, as of April 1, 2016, HOC has
financed the construction or preservation of more than 15,000
affordable apartments in less than two years under the plan. HDC
financed over 76,000 affordable apartments under the City's prior
housing plan, far surpassing its original goals. HOC financing
relating to the City's housing plan is provided under a variety of new
programs: (1) the Extremely Low and Low-Income Affordable program
("ELLA"), which provides apartments for low-income people earning 60%
of the Area Median Income ("AMP') or less, including deeply affordable
apartments for people earning no more than 30%, 40% and 50% of AMI or
apartments for the formerly homeless; (2) the Mixed- Middle Income
program ("M2"), which provides apartments for people at a mix of
incomes, including low income people, moderate-income people earning
80-100% of AMI and middle-income people earning 130-165% of AMI; (3)
the "Mix and Match" program, which provides apartments for low-income
and moderate- or middle-income people in the same project; (4) the
"50/30/20" program, which provides apartments for low- and
moderate-income people in projects where half the project is rented at
the market rate; and (5) the Mitchell Lama restructuring program. In
addition, HOC has launched a series of other initiatives that use the
corporation's bonding authority, including programs using taxable
bonds and recycled tax-exempt bonds.

This legislation will strengthen HDC's ability to continue to provide
financing for the creation and preservation of affordable housing in
New York City.

 FISCAL IMPACT :

None to state

 EFFECTIVE DATE :
Immediately