BILL NUMBER: S7364B
SPONSOR: ROLISON
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to authorizing
the dormitory authority to provide financing to Dutchess Community
College Association, Inc. for the construction of facilities
 
PURPOSE OF THE BILL:
To allow Dutchess Community College Association, Inc. to be eligible for
Dormitory Authority of the State of New York (DASNY) financing and
construction services through the Dormitory Authority Act.
 
SUMMARY OF SPECIFIC PROVISIONS:
§ 1: Amends paragraph (b) of subdivision 2 of Section 1676 of the Public
Authorities Law is amended by adding a new undesignated paragraph to
read as follows: Dutchess Community College Association, Inc. for the
purpose of financing or refinancing the acquisition, design,
construction, reconstruction, rehabilitation, improvement, furnishing
and equipping of, or otherwise providing for residential housing located
on the campus of Dutchess Community College.
§ 2: Amends subdivision 1 of Section 1680 of Public Authorities Law is
amended by adding a new undesignated paragraph to read as follows:
Dutchess Community College Association, Inc. for the purpose of financ-
ing or refinancing the acquisition, design, construction, recon-
struction, rehabilitation, improvement, furnishing and equipping of, or
otherwise providing for residential housing located on the campus of
Dutchess Community College.
§ 3: Effective date.
 
JUSTIFICATION:
DASNY, a public benefit corporation authorized to issue bonds on behalf
of the state, was first established in 1944 for the financing and
construction of dormitories at eleven state teachers colleges. The
legislature later expanded the scope of the corporation's work to also
include hospitals with nursing schools, court facilities, private
universities, nonprofit healthcare facilities, government agencies,
school districts, and other public-serving institutions. One of the
largest financiers of social infrastructure in the country, DASNY is
able to issue bonds which accrue interest on which the bondholders do
not have to pay taxes, thus allowing DASNY to offer lower interest rates
to its clients compared to those in the commercial loan market. In
exchange, the state-backed nature of DASNY's debt guarantees its bond-
holders a steady stream of income payments while boosting DASNY's credit
ratings. Beyond purely public works, the flexible and low-cost nature of
DASNY's financing and construction services has rendered it an attrac-
tive option for a great many other cultural and educational institutions
over the years, all of whom have been expressly granted the authority to
contract with DASNY under Title 4 of Public Authorities Law. This legis-
lation seeks to also extend this eligibility to Dutchess Community
College Association, Inc.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7364: 1676 public authorities law, 1676(2) public authorities law, 1680 public authorities law, 1680(1) public authorities law
S7364A: 1676 public authorities law, 1676(2) public authorities law, 1680 public authorities law, 1680(1) public authorities law
S7364B: 1676 public authorities law, 1676(2) public authorities law, 1680 public authorities law, 1680(1) public authorities law