LBD09272-01-9
A. 5163 2
of safe, sanitary and affordable dwelling accommodations for persons and
families for whom the ordinary operations of private enterprise cannot
provide such accommodations as provided herein and that such shortage is
progressively more severe to the degree that the incomes of such persons
are lower; that there exists in such city a significant number of one to
two unit and multiple dwellings which are deteriorated or vacant; that
the existence of such conditions creates a serious threat to the health,
safety, welfare, comfort and security of the people of the state and
further depletes the supply of safe, sanitary and affordable dwelling
accommodations; and that substantial commitments of funds will be
required to alleviate the present shortage of safe, sanitary and afford-
able dwelling accommodations for persons and families of low and moder-
ate income.
The legislature further finds that: (1) in order to assure that funds,
which are now or may in the future become available from public sources
for the provision of dwelling accommodations, are used to benefit
persons of low and moderate income, who face the most serious shortage
of safe, sanitary and affordable housing; (2) in order to assure that
such funds are otherwise used in the most beneficial manner; and (3) in
order to provide new funds for such purposes through the Battery Park
city authority and the subsidiary corporation of the New York city hous-
ing development corporation pursuant to this act, the housing New York
program act for the twenty-first century should be established by the
legislature.
§ 3. Definitions. As used in this act, unless a different meaning
clearly appears from the context:
1. "City" shall mean (a) the city of New York, (b) its agencies and
instrumentalities (other than the housing New York corporation), and (c)
except for the purposes of section twelve of this act, the New York city
housing development corporation;
2. "Housing New York corporation" shall mean the subsidiary corpo-
ration of the New York city housing development corporation created by
section 654-c of the private housing finance law;
3. "Housing New York program for the twenty-first century" shall mean
the housing New York program for the twenty-first century established
pursuant to section four of this act;
4. "Housing program funds" shall mean those moneys described in subdi-
vision one of section four of this act;
5. "Dwelling accommodations" shall mean one or more residential dwell-
ing units, which are located in buildings or structures eligible for
assistance under the programs and activities set forth in subdivision
two of section four of this act;
6. "Median income for the area in which dwelling accommodations are
located" shall mean median income calculated in accordance with the
regulations of the United States department of housing and urban devel-
opment governing eligibility for occupancy as a lower income family by a
family of four in the metropolitan statistical area which includes the
city of New York for purposes of section eight of the United States
housing act of nineteen hundred thirty-seven, as such act is amended to
the date of enactment of this act;
7. "Minority-owned business enterprise" shall mean a business enter-
prise, including a sole proprietorship, partnership or corporation that
is: (a) at least fifty-one percent owned by one or more minority group
members; (b) an enterprise in which such minority ownership is real,
substantial and continuing; (c) an enterprise in which such minority
ownership has and exercises the authority to control independently the
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day-to-day business decisions of the enterprise; and (d) an enterprise
authorized to do business in this state and independently owned and
operated;
8. "Minority group member" shall mean a United States citizen or
permanent resident alien who is and can demonstrate membership in one of
the following groups: (a) Black persons having origins in any of the
Black African racial groups; (b) Hispanic persons of Mexican, Puerto
Rican, Dominican, Cuban, Central or South American of either Indian or
Hispanic origin, regardless of race; (c) Native American or Alaskan
native persons having origins in any of the original peoples of North
America; and (d) Asian and Pacific Islander persons having origins in
any of the Far East countries, South East Asia, the Indian subcontinent
or the Pacific Islands; and
9. "Utilization plan" shall mean a plan prepared by a contractor and
submitted in connection with a proposed state contract. The utilization
plan shall identify certified minority-owned or women-owned business
enterprises, if known, that have committed to perform work in connection
with the proposed state contract as well as any such enterprises, if
known, which the contractor intends to use in connection with the
contractor's performance of the proposed state contract. The plan shall
specifically contain a list, including the name, address and telephone
number, of each certified enterprise with which the contractor intends
to subcontract.
§ 4. Housing New York program for the twenty-first century. 1. There
is hereby established a program to be known as the "housing New York
program for the twenty-first century" pursuant to which the city of New
York, its agencies and instrumentalities (other than the housing New
York corporation) and the New York city housing development corporation
shall acquire, rehabilitate, construct, enlarge, improve and renovate
dwelling accommodations and provide assistance in order to have such
activities performed, subject to the terms and conditions of this act.
Such program shall be financed with the total amount of funds which are
made available from the following sources during the twenty year period
commencing July first, next succeeding the date on which this act shall
have taken effect:
(a) moneys provided to the city by the housing New York corporation
pursuant to section 654-c of the private housing finance law; and
(b) moneys committed to the housing New York program for the twenty-
first century by the city.
2. Housing program funds shall only be utilized in programs and activ-
ities of the city for the provision of dwelling accommodations, and the
real and personal property acquired, owned, constructed, equipped,
improved, enlarged, rehabilitated or renovated to provide such accommo-
dations and incidental and appurtenant commercial, social, recreational
or communal facilities, which programs and activities may include those
under articles 8, 8-A, 11 and 15 of the private housing finance law and
those programs and activities designed to:
(a) preserve, repair, renovate, upgrade, improve, modernize, rehabili-
tate or otherwise prolong the useful life of dwelling accommodations;
(b) construct dwelling accommodations and undertake site preparation
related thereto;
(c) restore abandoned, vacant or occupied city or privately-owned
dwelling accommodations to habitable condition;
(d) assist in the acquisition of buildings which contain or are
expected to contain dwelling accommodations;
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(e) facilitate the disposition of city-owned buildings which contain
or are expected to contain dwelling accommodations; and
(f) provide infrastructure improvements related to and undertaken as
part of programs and activities for owner-occupied buildings which
contain no more than four dwelling accommodations; provided, however,
that no more than ten percent of the amount of housing program funds
shall be utilized for the purposes of this paragraph.
The city is hereby authorized to carry out, by loans or otherwise,
programs and activities designed to achieve the purposes described in
paragraphs (a) through (f) of this subdivision, all in accordance with
any applicable provisions of law.
3. All expenditures by the city of housing program funds shall be
appropriated by the city council of the city of New York.
§ 5. Minimization of displacement. Within nine months following the
effective date of this act, the city shall issue and promulgate, in
accordance with the New York city charter, rules and regulations which
describe the procedures pursuant to which the city shall meet the
following goals:
1. The city shall use its best efforts to ensure that programs and
activities carried out pursuant to the housing New York program for the
twenty-first century are structured so as to minimize the likelihood of
any involuntary physical or economic displacement of tenants and owners
who reside in dwelling accommodations which are the subject of such
programs and activities other than temporarily, as a direct result of
rehabilitation work which is performed in such tenant's or owner's
building or dwelling accommodations, in which case suitable temporary
relocation arrangements shall be provided.
2. In assembling sites for new construction projects which will
utilize housing program funds, and undertaking any demolition work
necessary to prepare such sites, the city shall avoid the displacement
of any existing tenants and owners of structurally sound dwelling accom-
modations to the greatest extent feasible and in addition, give a prior-
ity in occupying the project constructed with housing program funds to
any tenant or owner so displaced, if they are income eligible to do so.
3. The city shall keep a record of all tenants and owners who are
involuntarily physically displaced by virtue of rehabilitation work
carried out with housing program funds or work necessary to prepare new
construction sites which utilize housing program funds and take reason-
able steps to determine the number of tenants economically displaced by
virtue of such work.
Nothing contained in this section shall be deemed to make less
restrictive any inconsistent requirement of state or local law or regu-
lation which provides protections against involuntary displacement of
occupants of housing accommodations.
§ 6. Affordability. In structuring programs and activities pursuant to
the housing New York program for the twenty-first century, the city
shall take reasonable steps to assure that dwelling accommodations
assisted by housing program funds remain affordable to the income groups
occupying such accommodations for a substantially long period of time,
such periods to be determined by the city in accordance with section
eight of this act.
§ 7. Rent regulation. Notwithstanding the provisions of, or any regu-
lation promulgated pursuant to, the rent stabilization law of nineteen
hundred sixty-nine or the emergency tenant protection act of nineteen
seventy-four, in the case of a dwelling accommodation in a multiple
dwelling operated as rental property, which benefits from housing
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program funds, if: (1) such dwelling accommodation at the time
construction or rehabilitation work carried out with housing program
funds is completed, is not subject to the rent stabilization law of
nineteen hundred sixty-nine, the emergency tenant protection act of
nineteen seventy-four, the local emergency housing rent control act or
local law enacted pursuant thereto, or regulation by the city such
dwelling accommodation shall be made subject to the rent stabilization
law of nineteen hundred sixty-nine by the provisions of this section for
a period which shall be determined by the city and thereafter until the
first vacancy which occurs in such dwelling accommodation, or (2) such
dwelling accommodation is subject to any of the laws, acts or regu-
lations described in subdivision one of this section at the time
construction or rehabilitation work carried out with housing program
funds is completed, such dwelling accommodation shall continue to be
subject to such laws, acts or regulations to the same extent, in the
same manner and for the same period of time provided in any statute
which provides coverage for such housing accommodation under such laws,
acts or regulations and shall not be affected by the provisions of this
section for the duration of such coverage, provided, however, that the
city may provide that upon the termination of coverage of such housing
accommodations under any of the laws, acts or regulations described in
subdivision one of this section such housing accommodations shall be
subject to the rent stabilization law of nineteen hundred sixty-nine for
a period which shall be determined by the city and thereafter until the
first vacancy which occurs in such housing accommodation. The provisions
of this act shall not be deemed to provide rent regulation pursuant to
the rent stabilization law of nineteen hundred sixty-nine for any period
of time subsequent to the expiration or termination of such law.
§ 8. Standards and criteria. 1. In determining how long a period of
time the city will seek to retain dwelling accommodations as affordable
to the income groups occupying them, pursuant to section six of this
act, and, where applicable, how long a period of time such dwelling
accommodations shall be subject to the rent stabilization law of nine-
teen hundred sixty-nine, pursuant to section seven of this act, the city
shall be bound by any minimum period required by any federal, state or
local law, and shall also take into consideration the term of any loan
provided to benefit the housing accommodation through such program or
activity. The city may also consider the cost and useful life of the
works or improvements provided for the dwelling accommodation, the city
program or activity through which the dwelling accommodation is
assisted, the category of income of the occupants of such dwelling
accommodation and the area or areas in which such dwelling accommodation
is located. The city shall issue and promulgate, in accordance with the
New York city charter, rules and regulations which outline the criteria
and procedures it shall use to meet the requirements of this section.
2. Notwithstanding the provisions of subdivision one of this section,
in the event housing program funds are provided to the New York city
housing development corporation in connection with any loan made by such
corporation pursuant to subdivision 23-c of section 654 of the private
housing finance law to finance the construction of dwelling accommo-
dations: (a) the period of time such dwelling accommodations shall be
subject to the rent stabilization law of nineteen hundred sixty-nine
shall be a minimum of fifteen years, or such longer period as may be
provided in any law other than this act, and thereafter each such dwell-
ing accommodation shall remain subject to such law until the first
vacancy which occurs in such accommodation subsequent to the expiration
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of such period; and (b) with regard to newly constructed dwelling accom-
modations financed by such corporation which are intended to benefit
persons and families whose incomes do not exceed eighty percent of the
median income for the area in which such dwelling accommodations are
located, for a period of fifteen years persons and families who move
into such dwelling accommodations shall have incomes which do not exceed
eighty percent of such median income and such dwelling accommodations
shall remain affordable to such persons and families for a minimum peri-
od of fifteen years.
§ 9. Allocation of program funds. At least forty percent of the funds
committed to the housing New York program for the twenty-first century
shall be utilized to supply dwelling accommodations for persons and
families whose incomes do not exceed fifty-five percent of the median
income for the area in which such dwelling accommodations are located
and in addition, no more than twenty-five percent of such funds may be
utilized to supply dwelling accommodations for persons and families
whose incomes exceed ninety percent of such median income, but in no
event shall any housing program funds be utilized to provide dwelling
accommodations for persons and families whose incomes are greater than
one hundred seventy-five percent of the median income for the area in
which such dwelling accommodations are located. In addition, the city
shall use its best efforts to achieve by the end of each consecutive
five-year period during which the housing New York program remains in
effect beginning with a five-year period commencing July first, next
succeeding the date on which this act shall have taken effect, the allo-
cation of housing program funds described in the preceding sentence of
this section.
§ 10. Income determinations. In determining which income groups are
being served by housing program funds for the purposes of section nine
of this act, the city shall utilize and may rely on the following
certifications, assumptions and calculations:
1. In the case of vacant dwelling accommodations assisted with housing
program funds or dwelling accommodations newly constructed with housing
program funds, the city shall require that the owners thereof: (a)
certify that each intended occupant has submitted an income affidavit,
in a form prescribed by the city, (b) certify the category of income in
which the occupant belongs, and (c) continue to certify compliance with
respect to the income eligibility of new tenants or purchasers for the
period of affordability established for such dwelling accommodation
pursuant to section eight of this act. The city shall periodically audit
selected certifications provided pursuant to this section to determine
the accuracy of the representations contained therein.
2. In the case of other dwelling accommodations assisted with housing
program funds: (a) occupied dwelling accommodations owned by the city,
dwelling accommodations occupied by persons and families transferred
from emergency shelters for the homeless and dwelling accommodations
occupied by persons and families eligible for or receiving public
assistance as shall be deemed to be occupied by persons and families
whose incomes do not exceed fifty-five percent of median income; and (b)
occupied dwelling accommodations not owned by the city and located in an
area eligible for mortgage insurance provided by the rehabilitation
mortgage insurance corporation which have annual rent levels after the
completion of rehabilitation work carried out pursuant to this act, of
less than thirty percent of ninety percent of median income shall be
deemed to be occupied by persons and families whose incomes are in
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excess of fifty-five percent of median income and equal to or less than
ninety percent of median income.
3. In the case where (a) an entire building or structure is assisted
under the housing New York program for the twenty-first century; (b)
such building or structure contains more than one dwelling accommo-
dation; and (c) the categories of income of the occupants of such build-
ing or structure are not uniform throughout, the city shall determine
the amount of housing program funds which benefit each particular dwell-
ing accommodation by dividing the amount of such funds provided to bene-
fit the building or structure by the number of rental rooms in such
building or structure and multiplying the quotient derived therefrom by
the number of rental rooms for each particular dwelling accommodation.
§ 11. Maintenance of effort. The city shall not use any housing
program funds to substitute for locally funded operating or capital
expenditures which the city would have allocated to programs to provide
dwelling accommodations through its normal budgetary process in the
absence of the housing New York program for the twenty-first century.
All housing program funds shall be utilized by the city to increase
locally funded operating or capital expenditures to provide dwelling
accommodations to a level which is greater than the level which would
have existed if housing program funds had not been available. Nothing in
this section shall require the city to allocate funds for housing
purposes if in the city's judgment such allocation would require an
increase in taxation or reduction in other city services.
§ 12. Contracts. In connection with development and construction
contracts for dwelling accommodations funded with housing program funds,
minority-owned and women-owned business enterprises and minority group
members and women shall be given the opportunity for meaningful partic-
ipation. The city shall establish measures and procedures to secure
meaningful participation by minority-owned and women-owned business
enterprises on contracts for dwelling accommodations funded with housing
program funds, including requiring submission of a utilization plan by
the contractor. Such measures and procedures shall also promote the
employment of minority group members and women on such contracts. The
provisions of this section shall not be construed to limit the ability
of any minority-owned or women-owned business enterprise to bid on any
contract. In order to implement the requirements and objectives of this
section in connection with such dwellings accommodations, the city shall
be responsible for monitoring compliance with the provisions hereof,
providing advice on the availability of competitive qualified minority-
owned and women-owned business enterprises to perform contracts proposed
to be awarded, and making recommendations to improve the access of
minority-owned and women-owned business enterprises to these contracts.
On or before April first, two years after this act shall have taken
effect, and on or before the end of each three month period thereafter
during which housing program funds are expended by the city, the city
shall prepare and make available to the public a report detailing the
measures and procedures established by the city in accordance with this
section, the dollar value of all contracts awarded to such enterprises
and employees and the number of such enterprises and employees which
benefit from such contracts.
§ 13. Reports. On or before January thirty-first, next succeeding the
date on which this act shall have taken effect and on or before January
thirty-first of every calendar year thereafter during which housing
program funds are expended by the city, the city shall submit a report
to the governor, the temporary president of the senate, the speaker of
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the assembly, the minority leader of the senate and the minority leader
of the assembly. Such report shall:
1. Describe the housing New York program for the twenty-first century
activities carried out during the prior calendar year and the housing
New York program for the twenty-first century activities which the city
plans to carry out during the upcoming calendar year. Such report shall
include, but not be limited to:
(a) (i) a description of the specific rehabilitation and construction
work undertaken and anticipated to be undertaken pursuant to the program
including the addresses of all buildings assisted, and for each such
building: the type of rehabilitation or construction work performed, the
status of such work as of the date the report is prepared, the eligibil-
ity and program criteria utilized therefor and the city agency or
instrumentality responsible for the administration and disbursement of
housing program funds; and (ii) for the previous year, the number of
units and the amount of funds utilized to provide such units in each
such building or structure which are occupied by each of the categories
of income described in paragraph (d) of this subdivision and the methods
and calculations used pursuant to section ten of this act to determine
such categories of income;
(b) a breakdown of the amount of program funds obligated and disbursed
and anticipated to be obligated and disbursed to add new units to the
city's housing stock, either by substantial rehabilitation or new
construction and the number of units so added or anticipated to be
added, and the amount obligated and disbursed and anticipated to be
obligated and disbursed to rehabilitate existing occupied units and the
number of such units;
(c) the source and amount of total funds available for the housing New
York program for the twenty-first century and the amount of such funds
obligated and disbursed and anticipated to be obligated and disbursed
during the previous calendar year and the upcoming calendar year;
(d) the number of units, and the amount of housing program funds used
to assist those units, and, as a subcategory, the number of units and
the amount of housing program funds used to assist those units which
funds have been received by the city from the housing New York corpo-
ration pursuant to section 654-c of the private housing finance law, for
units which have been and are expected to be occupied by persons and
families whose incomes do not exceed fifty-five percent of the median
income, for persons and families whose incomes exceed fifty-five percent
but do not exceed ninety percent of median income and for persons and
families whose incomes exceed ninety percent but do not exceed one
hundred seventy-five percent of median income and the methods and calcu-
lations which the city has used pursuant to section ten of this act in
determining that these units have been or are expected to be occupied by
such persons; and
(e) a description of how the city has fulfilled the requirements of
section eleven of this act. Such description shall include, but not be
limited to:
(i) a statement of the aggregate amount of locally funded operating
and capital expenditures the city utilized to provide dwelling accommo-
dations, including, but not limited to, housing program funds, during
the previous and present city fiscal years and the sources of such
funds;
(ii) the aggregate amount, or an estimate of such amount, whichever
the case may be, of locally funded operating and capital expenditures
which were or would have been utilized to provide dwelling accommo-
A. 5163 9
dations in the previous and present fiscal years in the absence of hous-
ing program funds and the percentage change in such amount between the
previous and present fiscal year; and
(iii) in the event the aggregate amount of locally funded expenditures
on housing (exclusive of housing program funds) appropriated in the
expense and capital budgets as adopted in accordance with the charter of
the city of New York is less than the aggregate amount of locally funded
expenditures on housing (exclusive of housing program funds) appropri-
ated in the expense and capital budgets as adopted in accordance with
the charter of the city of New York for the previous fiscal year, the
report shall set forth the reasons for such decline;
(f) a listing, pursuant to the requirements of section five of this
act, of all those cases where tenants and owners have been involuntarily
displaced from their homes by virtue of rehabilitation work carried out
with housing program funds, or demolition work undertaken in order to
construct buildings with housing program funds, and a statement, in each
case as to why such displacement was necessary; and
(g) a summary, prepared on an annual basis of the reports which the
city is required to make available to the public pursuant to section
twelve of this act.
2. Such report shall also include the percentage of total housing
program funds which have been utilized, up to the date of preparation of
the report, to provide dwelling accommodations to persons and families
in each of the categories of income described in paragraph (d) of subdi-
vision one of this section and, if such percentages differ from that
required by section nine of this act, a description of how the city
plans to meet the requirements of such section.
3. On or before July first, two years after this act shall have taken
effect, and on or before the termination of each three year period ther-
eafter during which housing program funds are expended by the city, the
city shall submit, to the governor, the temporary president of the
senate, the speaker of the assembly, the minority leader of the senate
and the minority leader of the assembly a projected plan for how the
total amount of housing program funds will be spent over the life of the
housing New York program for the twenty-first century. Such plan shall
include, but not be limited to, all of the information, to the extent
known, required by this section.
§ 14. Act not to supersede other requirements. Nothing in this act
shall be deemed to make less restrictive any inconsistent requirement of
state law or regulation relating to the financing, construction or reno-
vation of dwelling accommodations assisted with housing program funds.
§ 15. Severability. If any clause, sentence, paragraph, section, or
part of this act shall be adjudged by any court of competent jurisdic-
tion to be invalid such judgment shall not affect, impair, or invalidate
the remainder thereof, but shall be confined in its operation to the
clause, sentence, paragraph, section or part thereof directly involved
in the controversy in which such judgment shall have been rendered.
§ 2. Paragraph (a) of subdivision 1, subdivisions 2 and 3, paragraph
(c) of subdivision 12 and subdivision 14 of section 654-c of the private
housing finance law, as added by chapter 32 of the laws of 1986, are
amended to read as follows:
(a) "Housing New York program" shall mean the housing New York program
established pursuant to section four of the housing New York program act
AND THE "HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY" SHALL
MEAN THE HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY ESTAB-
A. 5163 10
LISHED PURSUANT TO SECTION FOUR OF THE HOUSING NEW YORK PROGRAM ACT FOR
THE TWENTY-FIRST CENTURY.
2. There is hereby established a public benefit corporation known as
the "housing New York corporation" as a subsidiary corporation of the
corporation solely for the purpose of borrowing money and granting such
moneys to the city for the purposes and in accordance with the
provisions of the housing New York program AND THE HOUSING NEW YORK
PROGRAM FOR THE TWENTY-FIRST CENTURY.
3. It is hereby found and declared that the legislature, pursuant to
the housing New York program act AND THE HOUSING NEW YORK PROGRAM ACT
FOR THE TWENTY-FIRST CENTURY, has established [a] THE housing New York
program AND THE HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY
under which the city will cause the acquisition, construction, equip-
ping, improving, rehabilitation and renovation of dwelling accommo-
dations within the city of New York for persons and families for whom
the ordinary operations of private enterprise cannot supply such accom-
modations; that such [program is] PROGRAMS ARE necessary in order to
increase the presently inadequate supply of dwelling accommodations in
such city for such persons and families; that such [program shall]
PROGRAMS require a substantial commitment of funds from public sources;
and that the need for such moneys necessitates that the subsidiary
corporation created by this section be granted the powers and be made
subject to the requirements of this section. The legislature therefore
finds that such subsidiary corporation, subject to the terms and condi-
tions specified herein, should be given the power to borrow funds and
grant such moneys to the city of New York, and any agency or instrumen-
tality thereof (other than such subsidiary corporation) or the corpo-
ration for use by such entity in the housing New York program AND THE
HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY; that the financ-
ing of residential housing facilities in accordance with the housing New
York program AND THE HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST
CENTURY is a public purpose for which moneys may be granted, and
exemptions from taxation on the income of bonds or notes of such subsid-
iary corporation and on such subsidiary corporation's income and proper-
ty granted, as specified herein; and that the powers and duties of such
subsidiary corporation as recited in this section are necessary and
proper for achieving the ends herein recited. Therefore such subsidiary
corporation is hereby authorized and empowered:
(a) to borrow money by issuing bonds and notes for the purposes of (i)
granting such moneys to the city to finance the acquisition,
construction, equipping, improvement, enlargement, rehabilitation and
renovation of residential housing facilities for the purposes and in
accordance with the provisions of the housing New York program AND THE
HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY and (ii) refunding
any bonds or notes of such subsidiary corporation issued pursuant to
this section;
(b) to grant moneys to the city for the purpose of financing the
acquisition, construction, equipping, improvement, enlargement, rehabil-
itation and renovation of residential housing facilities for the
purposes and in accordance with the provisions of the housing New York
program AND THE HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY
and to enter into any agreement specifying terms and conditions with
respect thereto;
(c) subject to the provisions of any contract with the holders of any
of its bonds or notes, to pledge any revenues or assets of such subsid-
iary corporation, including, but not limited to, any excess revenues of
A. 5163 11
the Battery Park city authority as shall be payable to such subsidiary
corporation pursuant to an agreement between the Battery Park city
authority and such subsidiary corporation as such subsidiary corporation
shall deem necessary, to secure any bonds or notes issued or any agree-
ments entered into pursuant to this section;
(d) to procure insurance, letters of credit or other credit enhance-
ments with respect to its bonds or notes issued pursuant to this section
and to pay the premiums and fees therefor;
(e) to adopt, amend or rescind rules and regulations appropriate to
carry out its corporate purposes and to establish such requirements and
enter into such agreements to achieve the objectives of this section;
and
(f) to exercise any and all other powers authorized by this section
and not inconsistent with the provisions of this section.
(c) the city shall use the moneys granted to it pursuant to this
section to finance residential housing facilities in accordance with the
provisions of the housing New York program AND THE HOUSING NEW YORK
PROGRAM FOR THE TWENTY-FIRST CENTURY and shall comply with the terms and
conditions of the housing New York program act, THE HOUSING NEW YORK
PROGRAM ACT FOR THE TWENTY-FIRST CENTURY and this section; and
14. For the purposes of financing the acquisition, construction,
equipping, improvement, enlargement, rehabilitation and renovation of
residential housing facilities pursuant to this section, such subsidiary
corporation may borrow money by issuing bonds or notes in an aggregate
principal amount not exceeding [four] EIGHT hundred million dollars plus
a principal amount of bonds or notes issued (i) to fund any related debt
service reserve fund, (ii) to provide capitalized interest, and (iii) to
provide fees and other charges and expenses, including underwriters'
discount, related to the issuance of such bonds or notes and the mainte-
nance of such reserves, all as determined by such subsidiary corpo-
ration, excluding bonds or notes issued to refund outstanding bonds or
notes issued pursuant to this section. Any bonds or notes of such
subsidiary corporation shall not be or be deemed to be obligations of
the corporation or subject to or included in any authorization of or
limitation on indebtedness of the corporation.
In computing the total principal amount of bonds or notes that may at
any time be issued for any purpose under this section, the amount of the
outstanding bonds or notes that constitutes interest under the United
States Internal Revenue Code of nineteen hundred fifty-four, as amended
to the effective date of this section, shall be excluded.
§ 3. This act shall take effect immediately.