Current Activities & Operations and Accomplishments

© NYC & Company/Julienne Schaer

The New York City Transitional Finance Authority (the “TFA”) issues Future Tax Secured Bonds, secured by City of New York (the “City”) Personal Income Tax revenues and City Sales Tax revenues (“Statutory Revenues”), to fund general capital purposes of the City. The TFA issues Building Aid Revenue Bonds (“BARBs”), secured by state building aid payable to the City, to fund a portion of the City’s educational facilities capital plan. In addition, the TFA issued bonds to pay for costs related to or arising from the attack on the World Trade Center (“Recovery Bonds”). Such bonds are secured by Statutory Revenues. The TFA does not expect to issue additional Recovery Bonds. From time to time the TFA also issues bonds for refinancing purposes.

The New York City Transitional Finance Authority Act (the “Act”), which created the TFA, has been amended from time to time to increase the borrowing capacity of TFA. Most recently, the Act was amended in April of 2024 and allows TFA to have outstanding $21.5 billion of Future Tax Secured Bonds as of July 1, 2024, with such amount increasing to $27.5 billion as of July 1, 2025, and also permits the Authority to issue additional Future Tax Secured Bonds provided that the amount of such additional bonds, together with the amount of indebtedness contracted by the City, does not exceed the debt limit of the City. As of June 30, 2024, TFA had outstanding $49.95 billion in Future Tax Secured Bonds.

In compliance with the TFA’s indenture, the TFA’s ongoing activities include collecting state building aid and Personal Income Tax revenues, issuing Future Tax Secured Bonds and BARBs, applying revenues to pay principal and interest on such bonds, remitting to the City any revenues in excess of those needed by the TFA, complying with federal tax law in order to maintain the tax exemption of its tax-exempt bonds and the federal subsidy on its Build America Bonds and Qualified School Construction Bonds, and maintaining bank facilities and other contractual arrangements necessary to facilitate the ongoing marketing and placement of its floating rate debt. In addition, the TFA complies with annual continuing disclosure requirements, issues annual audited financial statements, and complies with state and local reporting requirements.

During the Fiscal Year ending June 30, 2024, the TFA issued $6.13 billion of new money Future Tax Secured Bonds as follows: $1.08 billion on July 27, 2023, $1.00 billion on August 31, 2023, $1.00 billion on October 26, 2023, $1.25 billion on February 15, 2024, and $1.80 billion on May 23, 2024. Additionally, TFA issued $1.44 billion of refunding Future Tax Secured Bonds on January 3, 2024. TFA also reoffered $75 million of Future Tax Secured Bonds on May 23, 2024, converting previously issued floating-rate bonds from an index rate to a daily adjustable rate. The TFA did not issue any BARBs during the Fiscal Year ending June 30, 2024.