[Congressional Record (Bound Edition), Volume 150 (2004), Part 1]
[Extensions of Remarks]
[Page 1130]
[From the U.S. Government Publishing Office, www.gpo.gov]




     A BILL TO PROVIDE FOR TAX-EXEMPT FINANCING FOR UNITED NATIONS 
                               FACILITIES

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                      Wednesday, February 4, 2004

  Mr. HOUGHTON. Mr. Speaker, today I am joined by my colleague from New 
Jersey, Donald Payne, in introducing a bill to provide for tax-exempt 
financing for new United Nations facilities. This is a bipartisan 
effort by the two of us, as the current Congressional delegates to the 
United Nations.
  The bill is straightforward and, like a provision in effect before 
1986, would allow the use of tax-exempt bonds for the building of new 
UN facilities, other than the UN Headquarters itself. As a result of 
the 1986 changes, the UN is now treated as if it were a for-profit 
company for purposes of tax-exempt bonds, much less favorably than 
charitable hospitals, universities or State or local governments.
  Most recognize that the United Nations Secretariat and Headquarters 
facilities are now more than 50 years old and greatly in need of 
renovation and reconfiguration to increase the efficiency of UN 
functions, improve security and life safety, and reduce overhead and 
administrative costs.
  Let me give you a few examples of the need for the renovation. Most 
of the building systems have passed their life expectancy: The plumbing 
was installed in 1952 and most of the electrical systems in the 
Secretariat building were installed in 1949. These are clearly 
outdated. The building contains asbestos and it does not have 
sprinklers, both of which create significant safety hazards. And, of 
course, the buildings were not built with today's terrorist threats in 
mind. These needs have been carefully and extensively studied not only 
by the UN but also by the United States General Accounting Office, 
which concluded that the UN's planning for renovation has been 
reasonable.
  In the President's budget released earlier this week, he proposed 
that the United States provide the United Nations with a 30-year, $1.2 
billion loan to finance the renovation, another recognition of the 
importance of moving forward with the renovation.
  The work cannot commence without a series of preliminary steps. These 
include financing and constructing a new building for the UN in New 
York City that the UN General Assembly, UN Secretariat and other UN 
personnel at UN Headquarters would occupy while the needed renovation 
and reconfiguration of Headquarters space proceeds. Due to the extent 
of the needed work and existing asbestos conditions, the current 
Headquarters space must be vacated until the Headquarters renovation 
and reconfiguration are completed.
  New York City and State propose to provide the land for the new 
building without cost and to have a public benefit tax-exempt agency of 
the State arrange to finance, construct and operate the new building. 
The bonds that would be issued under this proposal would be secured by 
rent paid by the UN for its use of the new building until the bonds are 
paid, at which time the UN may become the owner of the land and new 
building. The UN will undertake the Headquarters renovation and 
reconfiguration independently, including payment of the cost for the 
work, without financing or other financial assistance from New York 
City or State.
  Following completion of the new building, which is estimated to cost 
approximately $475 million, the renovation and reconfiguration of the 
UN Headquarters facilities can begin. That work is expected to be 
completed in 2011 under the current schedule. When the work is 
completed, the new building will permit all UN Headquarters space and 
activities that are now scattered in different locations in New York 
City to be consolidated at that single location connected directly to 
the renovated and reconfigured Headquarters space.
  Expeditious work on the needed renovation and reconfiguration is very 
much in the interest of the UN and in our national interest. The work 
when completed will strengthen the effectiveness of the UN 
organization, address security and life safety requirements and improve 
efficiency, thereby significantly reducing ongoing costs. Moreover, the 
work will further cement the presence of the UN in the United States, 
which not only benefits the United States internationally but also 
provides substantial employment and business opportunities with tens of 
millions of dollars for Americans and for New York.
  We ask for your support of this important legislation.

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