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A10223 Summary:

BILL NOA10223
 
SAME ASSAME AS S09052
 
SPONSORRules (Tapia)
 
COSPNSR
 
MLTSPNSR
 
Amd §2407, Pub Auth L
 
Relates to increasing the bond and note authorization of the state of New York mortgage agency from one billion dollars to one billion five hundred million dollars.
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A10223 Actions:

BILL NOA10223
 
05/06/2022referred to housing
05/11/2022reported referred to ways and means
05/11/2022reported referred to rules
05/17/2022reported
05/17/2022rules report cal.278
05/17/2022ordered to third reading rules cal.278
05/17/2022passed assembly
05/17/2022delivered to senate
05/17/2022REFERRED TO RULES
05/25/2022SUBSTITUTED FOR S9052
05/25/20223RD READING CAL.1395
05/25/2022PASSED SENATE
05/25/2022RETURNED TO ASSEMBLY
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A10223 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10223
 
SPONSOR: Rules (Tapia)
  TITLE OF BILL: An act to amend the public authorities law, in relation to increasing the bond and note authorization of the state of New York mortgage agency   PURPOSE OR GENERAL IDEA OF BILL: This bill also increases the taxable bonding authority of SONYMA by $500 million.   SUMMARY OF PROVISIONS: Section 1 of the bill increases the taxable bonding authority by $500 million to a maximum aggregate of $1.5 billion. Section 2 of the bill provides for an immediate effective date.   JUSTIFICATION: SONYMA's taxable bonding authority limit was last increased in 2016, and prior to that in 2007. Currently, only approximately $225 million of the authority remains unused. SONYMA is seeking to increase the authority by $500 million in order to allow it to continue to use taxable bonds to purchase loans that do not qualify under its tax-exempt program due to limitations that restrict that program for use primarily to first time homebuyers. SONYMA uses its taxable bonds to purchase mortgage loans for eligible non first time him buyers under its low and moderate income programs as well as for special programs such as its mobile and manufactured home programs and its neighborhood revitalization programs. In addition, SONYMA is seeking alternative ways of funding its program by among other things entering into a line of credit with the Federal Home Loan Bank. The draws on the line of credit, if done on a taxable basis, would count against the taxable bond limit. Getting this limit increased now, for the first time since 2016, would allow flexibility to SONYMA in conducting its program over the coming years.   PRIOR LEGISLATIVE HISTORY: Chapter 163 of the Laws of 2016 increased the taxable bond limit from $800 million to $1 billion.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: Immediately.
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A10223 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10223
 
                   IN ASSEMBLY
 
                                       May 6, 2022
                                       ___________
 
        Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Tapia) --
          read once and referred to the Committee on Housing
 
        AN ACT to amend the public authorities law, in  relation  to  increasing
          the  bond  and  note  authorization  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:

     1    Section  1.  Subdivision  2  of section 2407 of the public authorities
     2  law, as amended by chapter 232 of the laws of 2021, is amended  to  read
     3  as follows:
     4    (2)  In  connection  with  the  issuance  of  bonds for the purpose of
     5  furthering programs described in this title, the agency is authorized to
     6  covenant and consent that the interest on any of  its  bonds,  notes  or
     7  other  obligations shall be includable, under the United States Internal
     8  Revenue Code of 1986, as amended or any subsequent corresponding  inter-
     9  nal revenue law of the United States, in the gross income of the holders
    10  of the bonds to the same extent and in the same manner that the interest
    11  on  bills,  bonds,  notes  or  other obligations of the United States is
    12  includable in the gross income of the holders thereof under said  Inter-
    13  nal  Revenue  Code or any such subsequent law. Pursuant to this subdivi-
    14  sion, the agency shall not issue bonds, notes or other obligations in an
    15  aggregate principal amount exceeding one billion  five  hundred  million
    16  dollars,  excluding  from  such  limitation  bonds, notes or other obli-
    17  gations issued to refund outstanding bonds, notes or other  obligations.
    18  No  such bond, note or other obligation shall be issued by the agency on
    19  or after July twenty-third, two thousand twenty-three, excluding  bonds,
    20  notes  or other obligations issued to refund outstanding bonds, notes or
    21  other obligations and no mortgages shall be purchased with the  proceeds
    22  of  such bonds, notes or other obligations after such date. The board of
    23  directors of the agency shall establish program guidelines for  purposes
    24  of  bonds,  notes  or other obligations issued pursuant to this subdivi-
    25  sion. The board of directors shall establish from time to  time  maximum
    26  income  limits  of  persons  eligible  to  receive mortgages financed by
    27  bonds, notes or other obligations issued pursuant to  this  subdivision,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15706-01-2

        A. 10223                            2
 
     1  which  income  limits  with  respect to one-third of the total principal
     2  amount of mortgages authorized to be so financed shall  not  exceed  one
     3  hundred  twenty-five percent of the latest maximum income limits permit-
     4  ted  under the Internal Revenue Code of 1986, as amended, for mortgagors
     5  financed by mortgage revenue bonds, with respect to  one-third  of  such
     6  principal  amount  authorized  to  be  so financed, shall not exceed one
     7  hundred thirty-five percent of such income limits, and with  respect  to
     8  one-third  of  such principal amount authorized to be so financed, shall
     9  not exceed one hundred fifty  percent  of  such  limits,  provided  that
    10  notwithstanding  the  foregoing,  the  maximum  income limits of persons
    11  eligible to receive mortgages financed by the agency under its neighbor-
    12  hood revitalization program (and any successor program) shall not exceed
    13  one hundred fifty percent of the latest maximum income limits  permitted
    14  under  the  Internal  Revenue  Code  of 1986, as amended, for mortgagors
    15  financed by mortgage revenue bonds.
    16    § 2.  This act shall take effect immediately.
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