§ 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
corresponding internal revenue law of the United States, in an aggregate
principal amount exceeding ten billion seven hundred twenty million
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
refunding 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
twenty-third, two thousand twenty-five, excluding bonds and notes issued
to refund outstanding bonds and notes. No more than one billion 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
internal 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 Internal Revenue Code or any such subsequent law. Pursuant to this
subdivision, the agency shall not issue bonds, notes or other
obligations in an aggregate principal amount exceeding one billion five
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 twenty-third, two thousand twenty-five,
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 subdivision. 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 permitted 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,
provided that notwithstanding the foregoing, the maximum income limits
of persons eligible to receive mortgages financed by the agency under
its neighborhood revitalization program (and any successor program)
shall not exceed one hundred fifty percent of the latest maximum income
limits permitted under the Internal Revenue Code of 1986, as amended,
for mortgagors financed by mortgage revenue bonds.

(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.