 Governor Paterson Submits Legislation to Assist Non-Profits in Financing Construction Projects |
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On Tuesday, Governor David A. Paterson submitted to the Legislature Program Bill No. 311, which would provide access to cost-effective financing for not-for-profit corporations seeking to construct civic facilities in New York State. The bill would enable 501(c)(3) non-profits to take advantage of the New York State Dormitory Authority's (DASNY) tax-exempt debt to finance their projects, providing a boost to construction in the State and supporting well-paying jobs. "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," Governor Paterson said. "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." Governor Paterson's Program Bill would authorize DASNY to provide financing for construction undertaken by not-for-profit corporations for projects such as civic facilities and charter schools. These organizations would be eligible for DASNY financing for projects located in the State. If the cost of a proposed project financed under this bill exceeds $15 million, or if the project is for use by a public corporation or State agency, it would be subject to the prevailing wage requirements of Labor Law ยง 220 and the minority- and women-owned business requirements of Executive Law Article 15-A. Until recently, these types of entities had utilized Industrial Development Agencies (IDA) to obtain low-cost financing, but the law authorizing civic facilities' access to IDA funds expired in January 2008. Since then, cost-effective financing has been largely unavailable to such entities, which have been forced to rely generally on taxable debt or random local development corporations for tax-exempt debt. This bill would provide, through the Dormitory Authority, a reliable, stable and transparent source of tax-exempt financing for not-for-profit corporations. |