N.Y. Private Housing Finance Law § 41: Statement of legislative findings and purposes

§ 41. Statement of legislative findings and purposes. 1. There

continues to exist in the state a seriously inadequate supply of safe

and sanitary dwelling accommodations, non-housekeeping accommodations,

aged care accommodations or accommodations for handicapped persons

within the financial reach of families and persons (including aged and

handicapped persons) of low income. This condition is contrary to the

public interest and threatens the health, safety, welfare, comfort and

security of the people of the state.

2. The ordinary operations of private enterprise cannot provide an

adequate supply of safe and sanitary dwelling accommodations,

non-housekeeping accommodations, aged care accommodations and

accommodations for handicapped persons at rentals which families and

persons of low income can afford. In order to encourage the investment

of private capital and provide such dwelling accommodations,

non-housekeeping accommodations, aged care accommodations and

accommodations for handicapped persons provision should be made for

mortgage loans, at low interest rates, to housing companies which,

subject to state regulation as to rents, profits, dividends and

disposition of their property, supply multiple dwelling accommodations,

non-housekeeping accommodations, aged care accommodations and

accommodations for handicapped persons, and other facilities incidental

or appurtenant thereto, to such families and persons. For that purpose

there should be created a corporate governmental agency of the state, to

be known as the "New York state housing finance agency," which, through

the issuance of its bonds, notes or other obligations to the private

investing public, may attract a broad base of investment by the greatest

number of the general public and obtain the funds necessary to make or

finance the making of such mortgage loans. Thus, private capital will be

encouraged to enter this field of investment and will help meet the

housing needs of families and persons of low income. Provision should

also be made for the New York state housing finance agency to lease such

dwelling accommodations and to receive appropriations from the state, in

aid of providing housing in limited profit housing company projects for

persons and families of low income who would otherwise be eligible for

occupancy in low rent public housing.

* 2-a. Programs to attract capital to provide dwelling accommodations

which families and persons of low and moderate income can afford may not

be economically feasible without adequate subsidy where all of the units

in the multiple dwelling accommodations to be financed are regulated as

to rents, profits, dividends and disposition of the owner's property. In

such cases the New York state housing finance agency should provide

residential units for such families and persons by making loans, or

financing the making of such loans, to the owners of housing

developments which will be required to supply, for a reasonable period

of time, a portion of residential units to such families and persons at

rentals they can afford. Further it is the policy of the state through

the New York state housing finance agency to maximize as fully as

possible consistent with the economic feasibility of each housing

development the affordability, period of occupancy, and number of units

in those portions of each housing development which are designed to be

affordable to persons of low and moderate income.

* NB Repealed July 23, 2027

3. There is also threatened in the state an inadequate supply of

academic buildings and other facilities at the state-operated

institutions and statutory and contract colleges under the jurisdiction

of the state university of New York when needed and when scheduled under

the approved master plan of the state university. In order to encourage

the investment of private capital in such academic buildings and other

facilities and to assure their timely construction, acquisition,

reconstruction, rehabilitation and improvement, the New York state

housing finance agency should also be empowered, through the issuance of

its bonds, notes or other obligations to the private investing public,

to obtain a portion of the funds necessary to finance such academic

buildings and other facilities at the state-operated institutions and

statutory and contract colleges under the jurisdiction of the state

university of New York.

4. Further, it is the policy of the state to promote the redevelopment

and reconstruction of municipal urban renewal areas in a manner that

will serve the civic, cultural and recreational needs of the community

as a whole. The ordinary operations of private enterprise cannot provide

adequate financing for the construction of civic, cultural and

recreational structures and facilities and other non-profit capital

development projects invested with a public interest, which are needed

in connection with urban renewal programs. In order to encourage the

investment of private capital in such projects, and to assure the

expeditious undertaking, financing and completion of the redevelopment

and reconstruction of urban renewal areas in the municipalities of the

state, the New York state housing finance agency should also be

empowered, through the issuance of its bonds, notes or other obligations

to the private investing public, to obtain the funds necessary to make

mortgage loans, at low interest rates, to non-profit community

development corporations for the acquisition and construction of such

projects, structures and facilities.

5. Prompt provision of well-equipped, modern hospitals, schools and

other facilities related to the care, maintenance and treatment of

mentally ill persons, mental defectives and epileptics is also needed in

the state. In order to encourage the investment of private capital in

such hospitals, schools and other mental hygiene facilities and to

assure their timely construction, acquisition, reconstruction,

rehabilitation and improvement, the New York state housing finance

agency should be empowered, through the issuance of its bonds, notes or

other obligations to the private investing public, to obtain a portion

of the funds necessary to finance the same and to meet the needs of

patients and staff at such facilities.

6. A serious shortage of safe and sanitary nursing home accommodations

providing therein nursing care, lodging and board by or under the

supervision of a duly licensed physician to sick, invalid, infirm,

disabled or convalescent persons of low income or providing

health-related service as defined in article twenty-eight of the public

health law to persons of low income or any combination of the foregoing,

and in addition thereto, providing nursing care and health-related

service, or either of them, to persons of low income who are not

occupants of the project, whose need for such facilities and services

cannot readily be provided by the ordinary unaided operation of private

enterprise, exists in many communities throughout the state that it is

the policy of the state to promote the provision of such nursing home

accommodations, including such other facilities as may be incidental and

appurtenant thereto; that there is need for non-profit corporations and

limited-profit corporations to construct, acquire, reconstruct,

rehabilitate and improve such low cost nursing home accommodations. In

order to encourage the investment of private capital in such nursing

homes, the New York state housing finance agency should also be

empowered, through the issuance of its bonds, notes or other obligations

to the private investing public, to obtain funds necessary to finance

nursing homes.

7. There is a serious shortage throughout the state of facilities

suitable for use for the care of children especially those of pre-school

age and primary school age whose parents are unable to provide such care

for all or a substantial portion of the day or post-school day. A

similar shortage of residential child care facilities also exists.

Existing day care and residential child care facilities are overcrowded

with long waiting lists. Many such facilities are so located that they

are not accessible to families in need of such services. The absence of

adequate day care and residential child care facilities is contrary to

the interest of the people of the state, is detrimental to the health

and welfare of the child and his parents and often prevents the gainful

employment of persons, who are otherwise qualified, because of the need

to provide such care in their home. In order to encourage the investment

of private capital in such facilities and to assure their timely

construction, acquisition, reconstruction, rehabilitation and

improvement, the New York state housing finance agency should be

empowered, through the issuance of its bonds, notes or other obligations

to the private investing public, to obtain a portion of the funds

necessary to finance such facilities and to meet the needs of the

community.

8. Prompt provision of new and improved community mental health and

developmental disabilities facilities is required for the care and

treatment of the increasing number of persons afflicted with mental

illness, mental deficiencies, epilepsy and behavior or emotional

disorders; that such facilities should be located close to the people

they serve in order to speed rehabilitation and restoration and to

provide for out-patient and in-patient care, including after care,

diagnostic and rehabilitative services and residential accommodations

for operation as hostels; that it is the policy of the state to promote

the provision of such community mental health and developmental

disabilities facilities; that there is a need for non-profit

corporations to construct low cost community mental health and

developmental disabilities facilities. In order to encourage the

investment of private capital in such community mental health and

developmental disabilities facilities, and to assure the expeditious

completion of such community mental health and developmental

disabilities facilities, the New York state housing finance agency

should be empowered, through the issuance of its bonds, notes or other

obligations to the private investing public, to obtain funds necessary

to make mortgage loans, at low interest rates, to non-profit

corporations for the construction, acquisition, reconstruction,

rehabilitation or improvement of such mental health and developmental

disabilities facilities.

9. Many hospitals and other health facilities throughout the state are

becoming obsolete and are no longer adequate to meet the needs of modern

medicine. As a result of rapid technological changes, such facilities

require substantial structural or functional changes. Others are

unsuited for continued use by virtue of their location and the physical

characteristics of their existing plants and should be replaced. Such

inadequate and outmoded facilities deny to the people of the state the

benefits of health care of the highest quality efficiently and promptly

provided and at a reasonable cost. Their replacement and modernization

is essential to protect and prolong the lives of the state's population

and cannot be readily accomplished by the ordinary unaided operation of

private enterprise. It is the policy of the state to encourage the

provision of modern, well-equipped health facilities, including such

other facilities as may be incidental and appurtenant thereto. In

furtherance of this end and in order to obtain the investment of private

capital in such hospitals and other health facilities, the New York

state housing finance agency should also be empowered through the

issuance of its bonds, notes or other obligations to the private

investing public, to obtain the funds necessary to finance such hospital

and health facilities.

10. Prompt provision of new and improved community senior citizens

facilities is required for the increasing number of persons who are in

need of programs and services for the aging. Such facilities should be

located close to the people they serve and should supplement the

programs and services provided for such persons by the office for the

aging pursuant to title one of article two of the elder law; that it is

the policy of the state to promote the provision of such facilities;

that there is need for non-profit corporations to construct low cost

community senior citizens facilities. In order to encourage the

investment of private capital in such community senior citizens

facilities, and to assure the expeditious completion of such facilities,

the New York state housing finance agency should be empowered, through

the issuance of its bonds, notes or other obligations to the private

investing public, to obtain funds necessary to make mortgage loans, at

low interest rates, to non-profit corporations for the construction,

acquisition, reconstruction, rehabilitation or improvement of such

facilities.

11. It is frequently appropriate to combine and coordinate the

development, rehabilitation and provision of housing with the

development, rehabilitation and provision of health and health related

facilities such as intermediate care, skilled nursing, aged treatment,

and hospice facilities for which there is also a need. In order to

encourage the investment of private capital in non-profit housing and

health facilities, and to assure the expeditious completion of such

facilities, the New York state housing finance agency should be

empowered, through the issuance of its bonds, notes or other obligations

to the private investing public, to obtain funds necessary to finance

loans, for the construction, acquisition, reconstruction, rehabilitation

or improvement of such facilities.