The New York City Transitional Finance Authority

The TFA is a public authority of New York State created by the New York Transitional Finance Authority Act in 1997. The TFA was created to issue debt, primarily secured with the City’s personal income tax, to fund a portion of the capital program of the City. The TFA was originally authorized to issue up to $7.5 billion of bonds and notes. On September 13, 2001, the TFA was given statutory authority to borrow $2.5 billion to finance costs related to the September 11th terrorist attack on the City. Currently, TFA is permitted to have $13.5 billion of debt outstanding and any amounts over and above that level are subject to the City’s remaining debt incurring power under the State constitutional debt limit.

Since July 1, 2018, the TFA has issued approximately $4.5 billion in bonds for capital purposes. The dates and principal amounts are as follows:

NYC TFA Issuance

($ in millions)

SeriesNew $/ RefundingIssue DateTax Exempt AmmountTaxable AmountTotal Par Amount
2019 AN8/10/2018$1.050$300$1,350
2019 BN9/25/20181,0255001,525
2019 CN4/12/20191,0006001,600

Additionally, the TFA took steps to manage outstanding floating rate bonds by converting approximately $150 million of floating rate bonds to a fixed rate mode and converting $200 million of index rate bonds to variable rate demand bonds. The TFA plans to issue TFA FTS bonds for capital purposes of approximately $4.5 billion, $4.0 billion, $4.7 billion, $5.3 billion, and $5.5 billion in years 2019 through 2023, respectively.

In April 2006, the State enacted legislation authorizing issuance by the TFA of an additional $9.4 billion of bonds to be used to fund capital costs for the Department of Education. This legislation also provided for the assignment to TFA of State building aid that had previously been paid directly to the City. The TFA currently has approximately $8.1 billion of BARBs outstanding which fund the capital program of the Department of Education. The financing program reflects BARB issuance projections to remain under the statutory cap. The TFA plans to issue BARBs of approximately $500 million, $103 million, $31 million, $78 million, and $25 million in fiscal years 2019 through 2023, respectively, totaling $737 million over the plan period.

Since July 1, 2018, TFA has issued $500 million in BARBs for capital purposes and approximately $2 billion for refunding purposes. The refunding transactions generated just under $350 million of savings within the financial plan.


($ in millions)

SeriesNew $/ RefundingIssue DateTax Exempt AmmountTaxable AmountTotal Par Amount
2019 S-1N7/26/2018$500$0$500
2019 S-2R7/26/2018429115544
2019 S-3R10/25/20181,2181941,412