Bond Programs

DASNY offers financing, as a conduit issuer, on behalf of higher education, health care, other not-for-profit institutions and certain public institutions. DASNY also works with the State Division of Budget to issue State Supported Debt to fund various State capital projects. DASNY works with borrowers, underwriters and financial advisors to meet customers’ financing needs, including:

  • Tax-exempt or taxable bonds
  • Fixed or variable rate bonds
  • Private placements or public offerings

To learn more, contact Portia Lee, Managing Director, Public Finance and Portfolio Monitoring at (518) 257-3362.

Higher Education Institutions

Bonds are issued to finance the construction, renovation and equipping of various projects for private, not-for-profit colleges and universities. The bonds are secured by the general obligation of the not-for-profit institution and oftentimes by a pledge of tuition and a mortgage upon real estate. Credit enhancement may be used as well.

Health Care Institutions

DASNY provides financing for construction, renovation and equipping of projects for various private, not-for-profit health care institutions in New York State. The bonds are secured by the general obligation of the not-for-profit institution and oftentimes by a pledge of revenues and a mortgage upon real estate. Credit enhancement may be used as well. 

 

Bonds are issued to finance the construction, renovation and equipping of various health care facilities, including but not limited to hospitals and nursing homes. Proceeds of the bonds are loaned to the health care facility and are typically secured by a pledge of the health care facilities’ revenue and a mortgage or other real property interest.

FHA/SONYMA insured mortgage bonds are issued to finance the construction, renovation and equipping of various health care facilities, including but not limited to hospitals and nursing homes. Proceeds of the bonds are loaned to the health care facility and are typically secured by a pledge of revenue and a mortgage.  Mortgage payments fund debt service payments on the outstanding bonds and are insured by the Federal Housing Administration (FHA) or the State of New York Mortgage Agency (SONYMA).

Other Not-for-Profit Institutions

Bonds are issued to finance the construction, renovation and equipping of various projects for certain other, not-for-profit institutions authorized by statute. The bonds are secured by the general obligation of the not-for-profit institution and are oftentimes also secured by a pledge of revenues and a mortgage upon real estate. Some programs are also structured with an intercept of public funds. Credit enhancement may be used as well.

State Supported Debt

DASNY issues State Supported Debt to finance various State capital projects. The two primary financing vehicles used by DASNY are the Personal Income Tax Revenue Bond Program and the Sales Tax Revenue Bond Program. DASNY has bonds outstanding under a number of other older State Supported Debt programs, which are not currently active issuance vehicles.

 

The Personal Income Tax Revenue Bond Financing Program is a financing vehicle for a broad range of State-supported financing programs, including the State University of New York-Educational Facilities; the City University of New York; the Office of Mental Health; the Office for People with Developmental Disabilities; the Office of Alcoholism and Substance Abuse Services; Upstate Community Colleges; the Court Officers Training Academy; Library Facilities; and the State Education Department.  In addition, various grant programs are financed with the PIT Revenue Bonds.  The Enabling Act provides that 25 percent of the receipts from the New York State personal income tax, which excludes refunds owed to taxpayers, shall be deposited in the Revenue Bond Tax Fund.

The Sales Tax Revenue Bond Financing Program is a new financing vehicle for a broad range of State-supported financing programs, including the State University of New York-Educational Facilities; the City University of New York; the Office of Mental Health; the Office for People with Developmental Disabilities; the Office of Alcoholism and Substance Abuse Services; Upstate Community Colleges; the Court Officers Training Academy; Library Facilities; and the State Education Department.  In addition, various grant programs may also be financed with the Sales Tax Bonds.  The New York State Sales Tax Revenue Bond Program provides for the State to deposit one cent, or approximately 25% of the State’s four percent sales tax into the Sales Tax Revenue Bond Tax Fund. Upon satisfaction of all obligations and liabilities of the Local Government Assistance Corporation, this deposit will increase to two cents or 50% of the State’s four percent sales tax.

Bonds were issued to finance construction and rehabilitation of dormitory projects for the State University of New York’s (“SUNY”) system of senior colleges and universities located throughout the State of New York. Payment on the bonds were subject to appropriation and the bonds are secured by the room rents and student "college fees" received by SUNY and a general obligation of SUNY.  Effective May 15, 2013, bonds to finance facilities for SUNY dormitories are being financed through the State University of New York Dormitory Facilities Revenue Bond Program and bonds issued under the new program are not considered State-supported debt.

Bonds are issued to finance the construction and rehabilitation of educational facilities for the State University of New York’s (“SUNY”) system of senior colleges and universities located throughout the State of New York (the “State”). The Bonds are secured by annual appropriations from the State.  Bonds issued to finance SUNY education facilities may also be issued through the Personal Income Tax Revenue Bond Financing Program or the Sales Tax Revenue Bond Program.

Bonds are issued to finance the maintenance and construction of educational facilities for the City University of New York’s ("CUNY") system of senior and community colleges located throughout the five boroughs of the City of New York. The bonds are secured by annual appropriations from the State of New York and the City of New York.  Bonds to finance facilities for CUNY may also be issued through the Personal Income Tax Revenue Bond Financing Program or the Sales Tax Revenue Bond Program.

Bonds are issued to finance the State of New York’s 50% share of the construction and rehabilitation of the State University of New York community colleges located outside of New York City. The bonds are secured by annual educational aid appropriations from the State to certain municipalities where the applicable community colleges are located.  Bonds issued to finance Upstate Community College facilities may also be issued through the Personal Income Tax Revenue Bond Financing Program or the Sales Tax Revenue Bond Program.

Bonds are issued to finance the construction, rehabilitation and equipping of facilities for the Department of Mental Hygiene which includes the Office of Mental Health, the Office for People with Developmental Disabilities and the Office of Alcoholism and Substance Abuse Services.  Bonds are also issued to fund loans to not-for-profit corporations providing similar services or “voluntary agencies.” The bonds are secured by annual appropriations from the State of New York. The annual appropriations that secure the bonds are expected to be mainly derived from mental hygiene patient care income that includes Medicare, private insurance, third-party beneficiary payments, State appropriation of Federal Medicaid funds and payments from voluntary agency facilities.  Bonds to finance mental health facilities may also be issued through the Personal Income Tax Revenue Bond Financing Program or the Sales Tax Revenue Bond Program.

Bonds are issued to finance the construction, renovation and equipping of various facilities for the Department of Education of the State of New York (“SED”). The Bonds are secured by annual appropriations from the State of New York.  Bonds to finance facilities for SED may also be issued through the Personal Income Tax Revenue Bond Financing Program or the Sales Tax Revenue Bond Program.

Bonds are issued to finance the construction, renovation and equipping of various facilities for the Department of Health. The Bonds are secured by appropriations from the State of New York from certain patient care revenues and miscellaneous receipts that are collected by the Department of Health and deposited into the Health Income Fund held by the State Comptroller.  Bonds to finance facilities for DOH may also be issued through the Personal Income Tax Revenue Bond Program.

The Consolidated Service Contract Refunding Program provides for the issuance of bonds and notes by any issuer of state-supported debt to refund or otherwise repay previously issued state-supported debt of any other issuer provided that the state-supported debt being refunded is not secured by a dedication of specific revenues.  The bonds are secured by a State Service Contract.

Other Public Institutions

DASNY issues bonds on behalf of a number of other public entities, each of which have their own program parameters.

 

Bonds are issued to finance the construction, renovation and equipping of various facilities for Boards of Cooperative Educational Service (BOCES) located throughout the State of New York.  The bonds are secured by annual appropriations of any state aid due to BOCES.

Bonds are issued to finance the construction, renovation and equipping of various court system related projects throughout the State of New York. Bonds currently outstanding are secured by annual appropriations of semi-annual payments from the municipality or county in which the court facilities are located.

Bonds are issued to finance the construction, renovation and equipping of various municipal health facilities, including primary care clinics and diagnostic and treatment centers in medically underserved areas of the City of New York. To date, all loans under this program have been to the City of New York. The bonds are secured by annual appropriations by the City of New York.

The Pledged Assessment Revenue Bond Program funds Workers’ Compensation claims settlements and other purposes.  The bonds are secured by special financing assessments imposed on insurers and ultimately passed on to public/private employers participating in the workers’ compensation insurance system.  No additional bonds are expected to be issued under the resolution pursuant to which the Series 2010 Pledged Assessment Bonds were issued.

The Employer Assessment Revenue Bond Program provides financing to address various workers' compensation purposes. The bonds issued under this program are secured by monies received in connection with a new unified assessment which consolidated a number of separate assessments.

Bonds are issued to provide public school districts across the State of New York with an efficient financing alternative in light of the methodology used to reimburse school districts for the cost of capital projects through building aid received from the State of New York. The bonds are secured by semi-annual payments and backed by the full faith and credit general obligation bonds of the participating school districts and a statutory intercept, through the State Comptroller, of any State aid due to participating school districts.

Learn more about school district financing here.

Bonds are issued to finance the construction, renovation and equipping of various special act school districts located throughout the State of New York.   The bonds are secured by Part I tuition of the participating Special Act School Districts and building aid received from the State of New York.

Bonds are issued to finance construction and rehabilitation of dormitory projects for the State University of New York’s (“SUNY”) system of senior colleges and universities located throughout the State of New York.  Recently enacted legislation authorized SUNY to assign to DASNY all of SUNY’s rights, title and interest in third-party revenues (“Dormitory Facilities Revenue”) derived from payments made by students and others for use and occupancy of certain dormitory facilities located on 26 of the 29 campuses operated by SUNY.  Bonds issued under this program are secured by such Dormitory Facilities Revenues subject to a prior lien for the benefit of bonds outstanding under the State University of New York Dormitory Facilities (Lease Revenue Bond) Program.