When the New York State Legilature adjourned for a summer recess earlier this month, lawmakers left one of the state's bonding agency in the lurch by not acting on a bill to renew its borrowing authority.
"On June 15, 1991, [State of New York Mortage Agency's] authority to issue bonds sunset," the agency's president and chief executive officer, Carmen A. Culpepper, said yesterday. "This meant our ability to issue taxable and tax-exempt bonds was stopped."
A $275 million deal the agency slated for September was taken off the calendar this week. The agency can do refundings, but only if they use private mortgage insurance, Ms. Culpepper said.
The agency will be unable to insure bonds to finance projects for AIDS facilities that are in excess of $10 million or that are located in unblighted areas, and it will fall short of meeting its obligations to other planned projects. It will have to limit its mortgage insurance program and curtail access to its low down payment conventional rate program.
Commenting on why the agency's extension bills were not passed, Ms. Culpepper said, "We were one of the many bills being seen at the time."
The Assembly and the state Senate had submitted different extension bills, she noted, and the two chambers did not reach an agreement before the lawmakers adjourned early on the Fourth of July.
"They had a lot of bills to talk about, and the budget was their prime concern and we were not a budget item," she said. "Whenever they reconvene, we are hopeful that they will act upon our extension bills."