Bond financing plea issued.

State and city officials lobbied the State Legislature last week to restore the Industrial Development Agency's ability to offer tax-free bond financing to private non-profit groups for projects such as hospitals, schools and elderly living facilities.

Janel Patterson, a spokeswoman for the New York City Economic Development Corporation, said that civic projects around the state, including 14 in the city, which would have previously been eligible to for the financing, have been held up since the IDA's ability to issue the bonds elapsed in January.

Non-profit groups rely on the bonds to build projects and infrastructure because they are among the most inexpensive loans. Holders of the bonds don't have to pay federal, state or city taxes on the interest they earn, effectively discounting the rate that the non-profit servicing the debt has to pay.

"This is triple tax exempt bond financing and it's very important financially to these groups," Patterson said. "Without it, projects don't happen."

In a press release issued by the EDC, government officials from around the state, including New York City Deputy Mayor Robert Lieber and EDC president Seth Pinsky, urged the Legislature to restore the bonds and raise what had previously been a $20 million cap per bond offering to $40 million. Officials also want to do away with a two-year sunset to the program.

"In a given year, about half the projects New York City IDA sponsors are for not-for-profit organizations," said New York City Deputy Mayor Robert C. Lieber.

"In addition to providing much needed social services, these organizations add $43 billion in annual expenditures into our City's economy and employ more than 500,000 individuals to carry out their missions. Between 2000 and 2004, not-for-profits assisted by NYCIDA created and retained 87,000 jobs."

Assemblyman Joseph D. Morelle currently has a bill in the Legislature to renew the IDA's bonding capability. Patterson said that any non-profit group receiving the funds is solely responsible for paying them back and that municipalities aren't liable for the debt.