BILL NUMBER: S8177
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend chapter 514 of the laws of 1983 amending the private
housing finance law and the real property tax law relating to the powers
of the New York state housing finance agency and the New York city hous-
ing development corporation to finance certain multi-family housing, in
relation to the effectiveness thereof; to amend chapter 396 of the laws
of 1984 amending the private housing finance law and the real property
tax law relating to the powers of the New York state housing finance
agency to finance certain multi-family housing, in relation to the
effectiveness thereof; to amend chapter 915 of the laws of 1982 amending
the public authorities law relating to the powers of the state of New
York mortgage agency, in relation to the effectiveness thereof; to amend
the public authorities law, in relation to the powers of the state of
New York mortgage agency; to amend chapter 555 of the laws of 1989
amending the public authorities law and other laws relating to estab-
lishing a New York state infrastructure trust fund, in relation to the
effectiveness thereof; to amend chapter 172 of the laws of 2002, amend-
ing the public authorities law relating to the powers of the state of
New York mortgage agency, in relation to the effectiveness thereof; to
amend chapter 208 of the laws of 2010 amending the public authorities
law relating to the powers of the state of New York mortgage agency, in
relation to the effectiveness thereof; and to amend chapter 246 of the
laws of 2010 amending the public authorities law relating to the powers
of the state of New York mortgage agency, in relation to the effective-
ness thereof
 
PURPOSE OF THE BILL:
This bill would extend certain statutory authorizations of the New York
State Housing Finance Agency ("HFA"), the State of New York Mortgage
Agency ("SONYMA"), the New York City Housing Development Corporation
("HDC"), and the SONYMA Mortgage Insurance Fund ("MIF").
 
SUMMARY OF PROVISIONS:
Section 1 of the bill extends, until July 23, 2027, HFA's and HDC's
authority to finance certain multifamily housing projects.
Section 2 of the bill extends, until July 23, 2027, HFA's authority to
finance certain multifamily housing projects.
Section 3 of the bill extends, until July 23, 2027, SONYMA's authority
to purchase forward commitment mortgages.
Section 4 of the bill extends, until July 23, 2027, SONYMA's authority
to issue new money taxable and tax-exempt bonds, increases certain
limits on SONYMA' s authority to issue such bonds, and increases the cap
on the amount of tax-exempt bonds that can be blended with proceeds of
taxable bonds by SONYMA.
Section 5 of the bill extends, until July 23, 2027, the sunset date of
(i) sections six and nine through seventeen of legislation enacted in
1989 that broadened the scope of the MIF to provide primary mortgage
insurance on a statewide basis to individual homeowners and to provide
pool insurance to all of SONYMA's loans, and (ii) section 13 of legis-
lation enacted in 2004 concerning development corporation credit support
relating to the Jacob Javits Convention Center.
Section 6 of the bill extends, until July 23, 2027, the sunset date of
the requirement that at least 20% of a rehabilitation loan given by
SONYMA be used for rehabilitation or construction of improvementi.
Section 7 of the bill extends, until July 23, 2027, the sunset date
regarding the definition of government sponsored enterprises ("GSE").
Section 8 of the bill extends, until July 23, 2027, the sunset date
regarding the authorization of the MIF to provide one hundred percent
mortgage insurance on certain loans extended for the sole purpose of
refinancing existing indebtedness which relates to over-leveraged
multi-family residential buildings.
Section 9 of the bill provides for an immediate effective date.
 
JUSTIFICATION:
This bill extends until 2027 certain key program authorities of HFA,
SONYMA, HDC, and the MIF. HFA and HDC are the multi-family housing
finance agencies serving the state and New York City, respectively, and
together are national leaders in multi-family housing bond financings.
SONYMA is the state's only issuer of single-family housing bonds and
provides mortgage financing to low- and- moderate income first-time
homebuyers. SONYMA's MIF provides mortgage insurance, including pool
insurance, for SONYMA's programs and also provides project insurance on
multi-family mortgage loans made by HFA, HDC, and other issuers in the
state.
SONYMA issues tax-exempt bonds to offer low interest rate fixed rate
mortgage financing to eligible first-time homebuyers. The bill would
increase SONYMA's authority to issue additional tax-exempt bonds and
notes up to a total maximum amount of $10.92 billion which will enable
SONYMA to satisfy its expected mortgage loan demand.
In addition, the bill increases SONYMA's authority to issue taxable
bonds up to a total maximum of $1.95 billion and increases the cap on
the amount of tax-exempt bonds that can be blended with proceeds of
taxable bonds by SONYMA, up to a total maximum of $2.4 billion. These
changes will allow SONYMA to continue its good work of issuing bonds to
enable low- and moderate-income homebuyers to purchase their first
homes.
 
PRIOR LEGISLATIVE HISTORY:
These provisions are routinely extended. Most recently, these provisions
were extended by Chapter 205 of the Laws of 2023.
 
FISCAL IMPLICATIONS:
N/A
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8177: 2407 public authorities law