9 NYCRR 1643-1.1

Accounting entries and procedures pertaining to the financing of State-aided low rent public housing projects are described in this Part. Information with respect to making out the requisition papers—the housing loan voucher and the certificate of purposes—which are a part of every financing transaction will be found in Part 1646, Development Period Accounting. State-aided projects are developed under the terms of a loan contract wherein the State agrees to lend, and the local agency agrees to borrow, the project development cost. The State raises the funds it has agreed to lend to the local agency by issuing State housing bonds. The bond issue is termed permanent financing. However, prior to issuing bonds, the State may raise the funds it has agreed to lend to the local agency by issuing short-term notes or, in lieu thereof, it may authorize the local agency to issue its own short-term notes. In the latter case, the local agency borrows directly from private investors in anticipation of the loan to be made by the State. The issue of short term notes, whether by the State or by the local agency, prior to the issue of bonds, is termed temporary financing.