The City of Troy has gotten the green light from the state to issue bonds to replace lead pipes on private property.
New York State Comptroller Tom DiNapoli issued an advisory opinion on Wednesday finding the City of Troy's proposed bond financing for lead pipe replacement does not go against the state constitution.
In a statement, the Democrat said "the Gift and Loan Clause does not prevent municipalities from using public funds to replace privately owned lead water service lines on private and public properties" to remediate concerns over lead contamination.
The advisory pertains only to the City of Troy and its proposed project financing agreement with the State Environmental Facilities Corporation. The city wants to use nearly $13 million in federal funds through the Bipartisan Infrastructure Law, provided by EFC, which requires the city to deliver an obligation (a note or bond), pledging its full faith and credit to repay the principal.
Council President Sue Steele, a Democrat, says she hopes the city moves quickly to continue its replacement efforts.
"This was a question we were being held up by bond Council who did not feel that public monies could be used for private property work, and so this clears the way for us," Steele said. "And you know, after nearly a year of stalled movement on the inventory and the replacement work, residents can now expect to see real progress on this critical effort."
The city has lagged in its efforts to inventory service lines, hovering around 50 percent. Republican Mayor Carmella Mantello has pledged to replace all contaminated service lines in her first four-year term.