The Dormitory Authority of the State of New York will be able to issue tax-exempt bonds for nonprofits in the manner previously handled by Industrial Development Agencies, under legislation Gov. David Paterson submitted Tuesday.
Program bill 311 would allow DASNY to issue bonds for civic facilities on behalf of 501(c)(3) nonprofit corporations. IDAs have been unable to do these kinds of transactions since the law authorizing them expired in 2008.
DASNY has issued bonds for civic facilities in the past with the explicit permission of the Legislature. It would no longer need those case-by-case exceptions under this proposal.
We are committed to supporting the not-for-profit sector in New York, and the Dormitory Authority is well-suited to ensure that they have the means to grow and continue to be a vital part of our state, Paterson said in a press release.
This legislation will promote construction of civic facilities in the state, creating new jobs and opportunities for workers and businesses at a time when economic growth is desperately needed.
DASNY has been trying to expand its authority to issue bonds since former Gov. Eliot Spitzer was in office.
The authority recently modified its security guidelines to allow lower rated entities to borrow through it without requiring special exceptions.
The expiration of the IDA civic facilities law left many projects in the lurch, though some turned to DASNY or found other ways to finance their projects.
Objections to a prevailing wage requirement in an Assembly proposal to extend the IDA law caused negotiations to deadlock.
Program Bill No. 311 authorization includes financing for charter schools, something Paterson has sought in a bid to secure federal funding.
Projects exceeding $15 million would be subject to prevailing wage requirements and labor rules regarding the hiring of minority- and women-owned businesses.