§ 1974-c. Additional powers of the authority. 1. It is hereby found
and declared that the legislature, pursuant to the housing New York
program act, has established a housing New York program under which the
city of New York, any agency or instrumentality thereof (other than the
housing New York corporation) and the New York city housing development
corporation will cause the acquisition, construction, equipping,
improving, rehabilitation and renovation of dwelling accommodations
within the city of New York for persons and families for whom the
ordinary operations of private enterprise cannot supply such
accommodations; that such program is necessary in order to increase the
presently inadequate supply of dwelling accommodations in such city for
persons and families of low and moderate income; that such program shall
require a substantial commitment of funds from public sources; and that
the need for such moneys necessitates that the authority be granted the
additional powers and be made subject to the additional requirements of
this section. The legislature therefore finds that the authority,
subject to the terms and conditions specified herein, should be given
the power to assign certain excess revenues to secure bonds and notes to
be issued by the housing New York corporation for use by the city of New
York, and any agency or instrumentality thereof (other than the housing
New York corporation) or the New York city housing development
corporation in the housing New York program; that the assignment of such
excess revenues for the financing of residential housing facilities in
accordance with the housing New York program is a public purpose for
which moneys may be granted; and that the powers and duties of the
authority as recited in this section are necessary and proper for
achieving the ends herein recited.

2. In addition to the powers of the authority set forth in section
nineteen hundred seventy-four of this title, the authority shall have
the power:

(a) to borrow money by issuing bonds and notes and to issue such bonds
and notes for the purposes of (i) repaying appropriations from the state
to the authority in accordance with the provisions of any repayment
agreements with the state, (ii) furthering the development of the
infrastructure of the Battery Park project area, and (iii) refunding any
bonds and notes of the authority issued pursuant to this section;

(b) subject to the provisions of any contract with noteholders and
bondholders, to (i) pledge any excess revenues or assets (other than
real property) of the authority, including, but not limited to such
excess revenues as the authority shall deem necessary, to secure any
bonds or notes issued by the authority pursuant to this section and (ii)
assign such excess revenues as the authority shall deem necessary to
secure any bonds or notes issued or any agreeements entered into by the
housing New York corporation pursuant to section six hundred
fifty-four-c of the private housing finance law or pay any expenses
related thereto for the purpose of financing the acquisition,
construction, equipping, improvement, enlargement, rehabilition and
renovation of residential housing facilities in accordance with the
provisions of the housing New York program and to enter into any
agreement or execute any document to accomplish the foregoing;

(c) to procure insurance, letters of credit or other credit
enhancements with respect to its bonds or notes issued pursuant to this
section and to pay the premiums and fees therefor;

(d) 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

(e) to exercise any and all other powers authorized by this title and
not inconsistent with the provisions of this section.

3. Notwithstanding any contrary provision of law, general, special, or
local, no moneys of the authority, or moneys received from the
authority, which are expended pursuant to a chapter of the laws of
nineteen hundred eighty-six entitled "An Act to enact the housing New
York program act for the purpose of establishing a housing New York
program and to amend the public authorities law, in relation to
authorizing Battery Park city authority to assign excess revenues to
secure bonds to be issued by the housing New York corporation and the
private housing finance law, in relation to creating such corporation
and authorizing the financing of certain housing accommodations within
the city of New York", shall be used by the authority, directly or
indirectly, for the design, planning, acquisition, financing,
construction or implementation of any landfill or any pilings,
platforms, decks or similar structures and in addition, any dredging or
filling activities, in the Hudson river between the northern boundary of
the Battery Park project area as provided for in subdivision five of
section nineteen hundred seventy-two of this title and forty-second
street in the city of New York except to the extent that such activities
are necessary to maintain the Battery Park project area landfill site,
nor shall any such moneys authorized to be assigned or pledged by such
act be assigned or pledged, directly or indirectly, to secure or pay the
debt service on any bonds or notes issued or any agreements entered into
by the housing New York corporation if the proceeds of such bonds or
notes are to be used directly or indirectly, or the purpose of such
agreements is to accomplish directly or indirectly, any of the
prohibited activities listed in this subdivision.

4. No excess revenues may be assigned by the authority to the housing
New York corporation to finance residential housing facilities pursuant
to section six hundred fifty-four-c of the private housing finance law
unless the authority has entered into an agreement or agreements with
the housing New York corporation, which provides, in addition to any
other terms and conditions, that:

(a) such residential housing facilities are to provide dwelling
accommodations which are to be occupied by persons and families for whom
the ordinary operations of private enterprise cannot provide an adequate
supply of safe, sanitary and affordable dwelling accommodations;

(b) neither the state nor the authority are to have any responsibility
as to the financing, operation, maintenance, repair or use of such
residential housing facilities unless otherwise specifically provided by
law;

(c) the housing New York corporation shall use the moneys assigned to
it by the authority pursuant to this section to secure and pay bonds and
notes issued to finance residential housing facilities in accordance
with provisions of the housing New York program and shall comply with
the terms and conditions of the housing New York program act and this
section; and

(d) the timing, amount, maturity schedule and all other terms and
conditions of any issuance of bonds or notes by the housing New York
corporation pursuant to section six hundred fifty-four-c of the private
housing finance law, will provide for the authority's requirements as to
the development, management or operation of the project and the effect
of such terms and conditions on the availability of excess revenues and
the pledge or assignment thereof.

5. For the purposes of furthering the development of the
infrastructure of the Battery Park project area and repaying
appropriations from the state to the authority pursuant to this section,
the authority may, in addition to the authorization contained in
subdivision one of section nineteen hundred seventy-seven-a of this
title, borrow money by issuing bonds or notes in an aggregate principal
amount not exceeding one 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 maintenance of
such reserves, all as determined by the authority, excluding bonds and
notes issued to refund outstanding bonds and notes issued pursuant to
this section.

In computing the total principal amount of bonds and notes that may at
any time be issued for any purpose under this title, 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.

6. The authority may covenant and consent that the interest on any of
its bonds or notes issued pursuant to subdivision five of this section
shall be includible, under the United States Internal Revenue Code of
nineteen hundred fifty-four or any subsequent corresponding internal
revenue law of the United States, in the gross income of the holders of
the bonds or notes to the same extent and in the same manner that the
interest on bills, bonds, notes or other obligations of the United
States is includible in the gross income of the holders thereof under
said Internal Revenue Code or any such subsequent law.

7. The state of New York does pledge to and agree with the holders of
any bonds or notes issued by the housing New York corporation under
section six hundred fifty-four-c of the private housing finance law,
that the state will not limit or alter the rights hereby vested in the
authority to fulfill the terms of any agreements made with such
corporation to assign any excess revenues, or in any way impair the
rights and remedies of such corporation thereunder, until the bonds and
notes, together with interest thereon, interest on any unpaid
installments of interest, and all costs and expenses in connection with
any action or proceeding by or on behalf of the bondholders and
noteholders are fully met and discharged.

8. It is the intention of the legislature that any assignment of
excess revenues or portion thereof by the authority pursuant to this
section shall be valid and binding from the time when the assignment is
made in accordance with its terms; that the excess revenues so assigned
by the authority shall immediately be subject to the lien of such
assignment without any physical delivery thereof or further act, and
that the lien of any such assignment shall be valid and binding as
against all parties having claims of any kind in tort, contract or
otherwise against the authority irrespective of whether such parties
have notice thereof. Neither the resolution or any other instrument by
which an assignment is created need be recorded.