N.Y. Private Housing Finance Law Section 59-C
Insured housing initiatives fund

1.

The agency shall create and establish a special fund to be known as the insured housing initiatives fund and shall pay into such fund any moneys which may be made available to the agency for the purposes of such fund from any source, including, but not limited to, moneys appropriated by and made available pursuant to appropriation by the state and any income or interest earned by, or increment to, the fund due to the investment thereof or moneys payable to the agency under any contract entered into pursuant to subdivision two of this section. Subject to the provisions of any contract with bondholders and noteholders and any contract authorized pursuant to this section for the provision of insurance, letters of credit or other financial mechanisms, the moneys held in or credited to the insured housing initiatives fund established under this subdivision, in the discretion of the agency, shall be used by the agency in accordance with subdivision two of this section to enable it to reduce the debt service that would otherwise be payable by the agency on its bonds, notes and other obligations issued to make loans pursuant to subdivision twenty-nine-a of § 44 (Powers of the agency)section forty-four of this article, and thereby to reduce the obligations of the borrower to the agency. The reduction in debt service as a result of any contract entered into pursuant to subdivision two of this section shall result solely in the reduction of rents payable by low income individuals or families residing in those units in the housing development assisted by the fund that are required to be occupied by such individuals or families for interest on obligations issued to finance such housing development to be exempt from taxation pursuant to section 103(b)(4) of the internal revenue code of 1954, as amended. Provided, however, to the extent that such rents for such units are affordable to persons or families whose income is not in excess of sixty-five percent of median income for the area, as defined by the agency, then any remaining savings or benefits shall be applied to the further reduction of such rents for such units, and/or the reduction of rents payable by other low income individuals or families residing in the housing development assisted by such fund and/or the increase in the occupancy of low income individuals or families residing in such housing development in excess of that required pursuant to section 103(b)(4) of the internal revenue code of 1954, as amended.

2.

The agency may enter into contracts for the provision of insurance, letters of credit or other financial mechanisms designed to reduce such debt service on bonds, notes and other obligations of the agency in accordance with this section, so long as such obligations receive an investment grade rating from a recognized rating agency. The moneys held in or credited to the fund shall not be used to pay the principal of or interest on such obligations of the agency, the principal of or interest on the obligations of the borrower to the agency or any fees of the agency.

3.

For the purposes of this section, “low income individuals or families” shall mean persons or families with incomes of no more than eighty percent of the median income for the area, as defined by the agency.

4.

The agency shall account separately for all moneys received by the fund.

Source: Section 59-C — Insured housing initiatives fund, https://www.­nysenate.­gov/legislation/laws/PVH/59-C (updated Sep. 22, 2014; accessed Apr. 27, 2024).

40
Short title 41
Statement of legislative findings and purposes 42
Definitions 43
New York state housing finance agency 44
Powers of the agency 44‑A
Low rent dwelling accommodations 44‑B
Mortgage modifications, evidence of pre-existing indebtedness 44‑C
Federally-aided mortgage loans 45
Transfer of officers and employees 45‑A
Housing trust fund corporation 45‑B
Affordable housing corporation 45‑C
Homeless housing and assistance corporation 46
Notes and bonds of the agency 47
Reserve funds and appropriations 47‑A
State university construction bonds and notes 47‑B
Mental hygiene improvement bonds and notes 47‑C
Special provisions related to certain bonds and notes 47‑D
Health facilities bonds and notes 47‑E
Housing program bonds and notes 48
Agreement with the state 49
State’s right to require redemption of bonds 50
Remedies of noteholders and bondholders 51
Monies of the agency 51‑A
Federal rental assistance program administrative fees 52
Notes and bonds as legal investment 53
Exemption from taxation of property and income 54
Exemption from taxation of notes and bonds 55
Assistance by state officers, departments, boards and commissions 56
Reports 56‑A
Indemnification of members, officers and employees 57
Insured mortgage reserve fund 58
Special revenue housing coverage reserve funds 59
Bond reserve insurance fund 59‑A
Housing trust fund account 59‑B
Affordable housing development account 59‑C
Insured housing initiatives fund 59‑D
Turnkey/enhanced housing account 59‑E
Infrastructure development fund 59‑G
Permanent housing for homeless families fund 59‑H
Manufactured home cooperative fund 59‑I
Homeless housing and assistance account 60
Housing project repair fund 61
Inconsistent provisions in other laws superseded 61‑A
Actions 62
Article not affected if in part unconstitutional
Green check means up to date. Up to date

Accessed:
Apr. 27, 2024

Last modified:
Sep. 22, 2014

§ 59-C’s source at nysenate​.gov

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