N.Y. Public Authorities Law § 2425: Statement of legislative findings and purpose with respect to insurance commitments or contracts by the agency

§ 2425. Statement of legislative findings and purpose with respect to

insurance commitments or contracts by the agency. It is hereby found

that there exist in many cities, towns and villages of the state

neighborhoods which are blighted, are becoming blighted or may become

blighted because of substandard, insanitary, deteriorated or

deteriorating conditions, including undermaintained and deteriorating

housing accommodations and related retail and other community

facilities.

It is further found that there exists throughout the state a seriously

inadequate supply of safe, sanitary and affordable housing

accommodations for persons of low income. As a result, a large portion

of the state's population, including many persons of low income, must

continue to reside in undermaintained and deteriorating housing

accommodations. These conditions are contrary to the public interest and

threaten the health, safety, welfare, comfort and security of the people

of the state.

It is further found that a deficiency of mortgage financing is one of

the causes of the above conditions. The unaided efforts of private

enterprise have not been able to provide nor can they provide sufficient

funds to refinance existing mortgage indebtedness and to undertake

necessary preservation and rehabilitation of housing accommodations and

related retail and other community facilities within neighborhoods which

are blighted, are becoming blighted or may become blighted.

It is further found that the lack of mortgage insurance for loans to

refinance existing indebtedness and to undertake necessary preservation

and rehabilitation of housing accommodations and related retail and

other community facilities within such neighborhoods is one reason that

the available funds are not sufficient to satisfy the mortgage financing

needs of such neighborhoods.

It is further found that the conditions set forth herein accelerate

the deterioration of housing accommodations, related retail and other

community facilities as well as the neighborhoods in which such real

property is located. Uncorrected, such conditions will increase the rate

of abandonment and destruction of housing accommodations and related

retail and other community facilities. Abandonment and destruction, in

turn, erode the local tax base, which deprives cities, towns and

villages of revenues needed for essential services such as police,

sanitation and fire fighting. Failure to fund essential services could

require the state to provide costly financial assistance to ameliorate

the emergency conditions thus created.

It is further found that if mortgage insurance were available for

loans to refinance existing indebtedness and to undertake necessary

preservation and rehabilitation of housing accommodations and related

retail and other community facilities, the conditions of blight within

such neighborhoods could be ameliorated or averted.

It is therefore declared to be a public purpose of the state, in order

to promote the preservation of neighborhoods which are blighted, are

becoming blighted or may become blighted, to provide safe, sanitary and

affordable housing accommodations to persons, including those of low

income, who reside in such neighborhoods, and to discourage

disinvestment and encourage the investment of mortgage capital in the

real estate situated in such neighborhoods by authorizing the agency to

insure qualified mortgage loans in such neighborhoods subject to the

terms and provisions hereinafter set forth.

The necessity in the public interest for the provisions hereinafter

enacted is hereby declared as a matter of legislative determination.

* Also, it is hereby found that it has become very expensive and

programmatically restrictive for the agency and for other entities to

purchase mortgage pool insurance coverage. It is therefore declared to

be in the public interest to authorize the agency to use the mortgage

insurance fund to provide mortgage pool insurance for mortgages which

the agency purchases pursuant to its programs, and to provide mortgage

pool insurance for certain other entities in accordance with the

provisions of this title.

* NB Repealed July 23, 2027

Also, it is hereby found and declared that it is in the public

interest to facilitate the financial activities of the development

corporation by providing a source or potential source of payment into

funds established by such corporation for the payment of financial

obligations or financial rights of such corporation under bonds or

ancillary bond facilities.