Section 1974-C. Additional powers of the authority

1. It is hereby found
  and declared that the legislature, pursuant  to  the  housing  New  York
  program  act, has established a housing New York program under which the
  city of New York, any agency or instrumentality thereof (other than  the
  housing  New York corporation) and the New York city housing development
  corporation  will  cause  the  acquisition,   construction,   equipping,
  improving,  rehabilitation  and  renovation  of  dwelling accommodations
  within the city of New York  for  persons  and  families  for  whom  the
  ordinary   operations   of   private   enterprise   cannot  supply  such
  accommodations; that such program is necessary in order to increase  the
  presently  inadequate supply of dwelling accommodations in such city for
  persons and families of low and moderate income; that such program shall
  require a substantial commitment of funds from public sources; and  that
  the  need for such moneys necessitates that the authority be granted the
  additional powers and be made subject to the additional requirements  of
  this  section.  The  legislature  therefore  finds  that  the authority,
  subject to the terms and conditions specified herein,  should  be  given
  the power to assign certain excess revenues to secure bonds and notes to
  be issued by the housing New York corporation for use by the city of New
  York,  and any agency or instrumentality thereof (other than the housing
  New  York  corporation)  or  the  New  York  city  housing   development
  corporation in the housing New York program; that the assignment of such
  excess  revenues  for the financing of residential housing facilities in
  accordance with the housing New York program is  a  public  purpose  for
  which  moneys  may  be  granted;  and  that the powers and duties of the
  authority as recited in  this  section  are  necessary  and  proper  for
  achieving the ends herein recited.
    2.  In  addition  to  the powers of the authority set forth in section
  nineteen hundred seventy-four of this title, the  authority  shall  have
  the power:
    (a) to borrow money by issuing bonds and notes and to issue such bonds
  and notes for the purposes of (i) repaying appropriations from the state
  to  the  authority  in  accordance  with the provisions of any repayment
  agreements with the  state,  (ii)  furthering  the  development  of  the
  infrastructure of the Battery Park project area, and (iii) refunding any
  bonds and notes of the authority issued pursuant to this section;
    (b)  subject  to  the  provisions of any contract with noteholders and
  bondholders, to (i) pledge any excess revenues  or  assets  (other  than
  real  property)  of  the  authority,  including, but not limited to such
  excess revenues as the authority shall deem  necessary,  to  secure  any
  bonds or notes issued by the authority pursuant to this section and (ii)
  assign  such  excess  revenues  as the authority shall deem necessary to
  secure any bonds or notes issued or any agreeements entered into by  the
  housing   New   York   corporation   pursuant  to  section  six  hundred
  fifty-four-c of the private housing finance  law  or  pay  any  expenses
  related   thereto   for   the  purpose  of  financing  the  acquisition,
  construction,  equipping,  improvement,  enlargement,  rehabilition  and
  renovation  of  residential  housing  facilities  in accordance with the
  provisions of the housing  New  York  program  and  to  enter  into  any
  agreement or execute any document to accomplish the foregoing;
    (c)   to   procure  insurance,  letters  of  credit  or  other  credit
  enhancements with respect to its bonds or notes issued pursuant to  this
  section and to pay the premiums and fees therefor;
    (d)  to  adopt,  amend or rescind rules and regulations appropriate to
  carry out its corporate purposes and to establish such requirements  and
  enter  into  such  agreements to achieve the objectives of this section;
  and

    (e) to exercise any and all other powers authorized by this title  and
  not inconsistent with the provisions of this section.
    3. Notwithstanding any contrary provision of law, general, special, or
  local,  no  moneys  of  the  authority,  or  moneys  received  from  the
  authority, which are expended pursuant to  a  chapter  of  the  laws  of
  nineteen  hundred  eighty-six  entitled "An Act to enact the housing New
  York program act for the purpose of  establishing  a  housing  New  York
  program  and  to  amend  the  public  authorities  law,  in  relation to
  authorizing Battery Park city authority to  assign  excess  revenues  to
  secure  bonds  to  be issued by the housing New York corporation and the
  private housing finance law, in relation to  creating  such  corporation
  and  authorizing  the financing of certain housing accommodations within
  the city of New York", shall be  used  by  the  authority,  directly  or
  indirectly,   for   the   design,   planning,   acquisition,  financing,
  construction  or  implementation  of  any  landfill  or   any   pilings,
  platforms,  decks or similar structures and in addition, any dredging or
  filling activities, in the Hudson river between the northern boundary of
  the Battery Park project area as provided for  in  subdivision  five  of
  section  nineteen  hundred  seventy-two  of  this title and forty-second
  street in the city of New York except to the extent that such activities
  are necessary to maintain the Battery Park project area  landfill  site,
  nor  shall  any such moneys authorized to be assigned or pledged by such
  act be assigned or pledged, directly or indirectly, to secure or pay the
  debt service on any bonds or notes issued or any agreements entered into
  by the housing New York corporation if the proceeds  of  such  bonds  or
  notes  are  to  be  used  directly or indirectly, or the purpose of such
  agreements  is  to  accomplish  directly  or  indirectly,  any  of   the
  prohibited activities listed in this subdivision.
    4.  No excess revenues may be assigned by the authority to the housing
  New York corporation to finance residential housing facilities  pursuant
  to  section  six hundred fifty-four-c of the private housing finance law
  unless the authority has entered into an agreement  or  agreements  with
  the  housing  New  York  corporation, which provides, in addition to any
  other terms and conditions, that:
    (a) such  residential  housing  facilities  are  to  provide  dwelling
  accommodations which are to be occupied by persons and families for whom
  the ordinary operations of private enterprise cannot provide an adequate
  supply of safe, sanitary and affordable dwelling accommodations;
    (b) neither the state nor the authority are to have any responsibility
  as  to  the  financing,  operation,  maintenance,  repair or use of such
  residential housing facilities unless otherwise specifically provided by
  law;
    (c) the housing New York corporation shall use the moneys assigned  to
  it by the authority pursuant to this section to secure and pay bonds and
  notes  issued  to  finance  residential housing facilities in accordance
  with provisions of the housing New York program and  shall  comply  with
  the  terms  and  conditions of the housing New York program act and this
  section; and
    (d) the timing, amount, maturity schedule  and  all  other  terms  and
  conditions  of  any  issuance  of bonds or notes by the housing New York
  corporation pursuant to section six hundred fifty-four-c of the  private
  housing finance law, will provide for the authority's requirements as to
  the  development,  management or operation of the project and the effect
  of such terms and conditions on the availability of excess revenues  and
  the pledge or assignment thereof.
    5.   For   the   purposes   of   furthering  the  development  of  the
  infrastructure  of  the  Battery  Park   project   area   and   repaying
  appropriations from the state to the authority pursuant to this section,

  the  authority  may,  in  addition  to  the  authorization  contained in
  subdivision one of section  nineteen  hundred  seventy-seven-a  of  this
  title,  borrow money by issuing bonds or notes in an aggregate principal
  amount not exceeding one hundred million dollars plus a principal amount
  of  bonds  or  notes issued (i) to fund any related debt service reserve
  fund, (ii) to provide capitalized interest, and (iii)  to  provide  fees
  and  other  charges  and  expenses,  including  underwriters'  discount,
  related to the issuance of such bonds or notes and  the  maintenance  of
  such  reserves,  all as determined by the authority, excluding bonds and
  notes issued to refund outstanding bonds and notes  issued  pursuant  to
  this section.
    In computing the total principal amount of bonds and notes that may at
  any  time  be issued for any purpose under this title, the amount of the
  outstanding bonds or notes that constitutes interest  under  the  United
  States  Internal Revenue Code of nineteen hundred fifty-four, as amended
  to the effective date of this section, shall be excluded.
    6. The authority may covenant and consent that the interest on any  of
  its  bonds  or notes issued pursuant to subdivision five of this section
  shall be includible, under the United States Internal  Revenue  Code  of
  nineteen  hundred  fifty-four  or  any subsequent corresponding internal
  revenue law of the United States, in the gross income of the holders  of
  the  bonds  or  notes to the same extent and in the same manner that the
  interest on bills, bonds, notes  or  other  obligations  of  the  United
  States  is  includible  in the gross income of the holders thereof under
  said Internal Revenue Code or any such subsequent law.
    7. The state of New York does pledge to and agree with the holders  of
  any  bonds  or  notes  issued  by the housing New York corporation under
  section six hundred fifty-four-c of the  private  housing  finance  law,
  that  the  state will not limit or alter the rights hereby vested in the
  authority to  fulfill  the  terms  of  any  agreements  made  with  such
  corporation  to  assign  any  excess  revenues, or in any way impair the
  rights and remedies of such corporation thereunder, until the bonds  and
  notes,   together   with   interest  thereon,  interest  on  any  unpaid
  installments of interest, and all costs and expenses in connection  with
  any  action  or  proceeding  by  or  on  behalf  of  the bondholders and
  noteholders are fully met and discharged.
    8. It is the intention of  the  legislature  that  any  assignment  of
  excess  revenues  or  portion  thereof by the authority pursuant to this
  section shall be valid and binding from the time when the assignment  is
  made  in accordance with its terms; that the excess revenues so assigned
  by the authority shall immediately  be  subject  to  the  lien  of  such
  assignment  without  any  physical  delivery thereof or further act, and
  that the lien of any such assignment  shall  be  valid  and  binding  as
  against  all  parties  having  claims  of  any kind in tort, contract or
  otherwise against the authority irrespective  of  whether  such  parties
  have  notice  thereof. Neither the resolution or any other instrument by
  which an assignment is created need be recorded.