LEG A L DIVISIONS
2011 Bond Program
In 2011, the City issued nearly $2.5 billion
of general obligation bonds, and the New
York City Transitional Finance Authority (TFA)
issued $4 billion of Future Tax Secured Bonds
and $650 million of Building Aid Revenue
Bonds (BARBs). The bonds were issued for
both capital and refunding purposes, in ?xed
rate and adjustable rate form, and with taxexempt and taxable status.
The BARBs—as well as $100 million of
TFA Future Tax Secured Quali?ed School
Construction Bonds (QSCBs)—were issued
exclusively for education-related purposes.
QSCBs are taxable bonds for which
the federal government pays a subsidy
directly to the issuer. These bonds were
authorized under the American Recovery
and Reinvestment Act of 2009 (ARRA), and
although the applicable provisions of ARRA
expired in 2010, QSCBs can be issued to
the extent that prior allocations of bonding
authority have not been utilized.
PHOTO: HUDSON YARDS
The Division participated in the issuance of
$2 billion in New York City Municipal Water
Finance Authority bonds and $679 million
in New York State Environmental Facilities
Corporation bonds in connection with the
City’s water and sewer system.
MUNICIPAL FINANCE
CHIEF Alber t Moncure, Jr.
D E P U T Y O l i v i a O’ N e i l l
The Municipal Finance Division serves as counsel to the City
on all bond transactions. New York City is one of the largest
issuers of municipal bonds in the country. The proceeds of its
debt issuances finance capital projects that impact virtually
every aspect of City life. The City issues debt through its general
obligation bonds, and through authorities and local development
corporations. Additionally, State agencies issue debt on behalf
of the City. Each year, the Division oversees billions of dollars
in financial transactions. The Division also performs corporate
governance work for the City’s debt issuing authorities and local
development corporations.
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In addition, due to the expiration of numerous
liquidity and credit facilities backing City
and TFA adjustable rate bonds (a nationwide
phenomenon), the Division oversaw the closing
of approximately $2 billion in transactions to
convert the bonds to ?xed or other rates—or
to substitute or extend the facilities.
Bonds to Finance Manhattan
West Side Development
The Division, together with the Economic
Development Division, represented the Hudson
Yards Infrastructure Corporation (HYIC) in
connection with the October 2011 issuance
and sale of the HYIC’s $1 billion Senior
Revenue Bonds, Fiscal 2012 Series A. These
bonds were issued to ?nance additional costs
of the extension of the Number 7 subway line
from its current terminus at Times Square to
a new terminal station at West 34th Street
and 11th Avenue. The subway extension
is intended to help facilitate a mixed-use
development in the Hudson Yards Financing
District on the far west side of Midtown
Manhattan. Debt service on the bonds is
anticipated to be paid from revenues received
in connection with development in the Hudson
Yards Financing District, with the City paying
the interest component of the bonds until
development generates suf?cient revenues.
The HYIC previously issued $2 billion of Senior
Revenue Bonds, Fiscal 2007 Series A, in
December 2006 to ?nance the ?rst phase of
the subway extension.
Funding Agreement for the Next Phase
of a Biotechnology Incubator
In conjunction with the Economic Development
Division, the Division participated in creating
a funding agreement by which New York
City Economic Development Corporation
granted funds to be used for a substantial
expansion of the State University of New
York Downstate’s Advanced Biotechnology
Incubator, Phase III. The Incubator provides
affordable space for start-up and earlystage companies in the biotechnology
research, development, and manufacturing
?elds. At full occupancy, the Incubator will
accommodate up to 30 companies and
employ approximately 200 people.
$4 BILLION
IN TFA FUTURE TAX SECURED BONDS
$2.5 BILLION
IN GENERAL OBLIGATION BONDS
$2 BILLION
IN NEW YORK CITY MUNICIPAL WATER
FINANCE AUTHORITY BONDS
$1 BILLION
IN HYIC SENIOR REVENUE BONDS
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