NY Pub Auth L § 2401 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 17 - State of New York Mortgage Agency Act Part 1 2401 - Legislative Findings.

§  2401.  Legislative findings. * It is hereby found and declared that   there continues to exist throughout the  state  a  seriously  inadequate   supply   of   safe   and  sanitary  dwelling  accommodations,  including   accommodations for persons and families of low income, and  a  seriously   inadequate  supply  of  credit available for new residential improvement   loans at carrying charges within the  financial  means  of  persons  and   families  of  low  or moderate income. This condition is contrary to the   public interest and threatens the health, safety, welfare,  comfort  and   security  of  the people of the state. It is found and declared that one   major cause of this condition has been recurrent, cyclical shortages  of   funds  in  private banking channels available for residential mortgages.   Such shortages have contributed to drastic  reductions  in  construction   starts  of  new  residential units. In addition, they have made the sale   and purchase of existing residential units a  virtual  impossibility  in   many  parts  of the state. The ordinary operations of private enterprise   have not in the past corrected these conditions.* NB Effective until July 23, 2023* It is hereby found  and  declared  that  there  continues  to  exist   throughout  the state a seriously inadequate supply of safe and sanitary   dwelling  accommodations,  including  accommodations  for  persons   and   families  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. It is found  and  declared  that  one  major   cause  of this condition has been recurrent, cyclical shortages of funds   in private banking channels available for  residential  mortgages.  Such   shortages  have contributed to drastic reductions in construction starts   of new residential units. In addition,  they  have  made  the  sale  and   purchase  of  existing residential units a virtual impossibility in many   parts of the state. The ordinary operations of private  enterprise  have   not in the past corrected these conditions.* NB Effective July 23, 2023It  is  further  found  and  declared  that  the  drastic reduction in   residential construction starts  associated  with  such  shortages  have   caused  a  condition  of substantial unemployment and underemployment in   the construction industry which results in hardships to many individuals   and  families,  wastes  vital  human  resources,  increases  the  public   assistance burdens of the state and municipalities, impairs the security   of  family  life,  impedes  the  economic  and  physical  development of   municipalities and adversely affects the welfare and prosperity  of  all   the  people  of  the  state.  A  stable  supply  of  adequate  funds for   residential mortgages is required to  spur  new  housing  starts  in  an   orderly  and  sustained  manner  and  thereby  to  reduce the hazards of   unemployment and  underemployment  in  the  construction  industry.  The   unaided  operations  of  private enterprise have not met and cannot meet   the need for a stable supply of adequate funds for residential  mortgage   financing.It is further found and declared that these conditions associated with   such recurrent shortages of residential mortgage funds contribute to the   persistence  of slums and blight and to the deterioration of the quality   of the environment and living conditions of a large  number  of  persons   residing  in  the state of New York, have adversely affected the economy   of the state as a whole and are contrary to the declared policy  of  the   state  to  promote  a  vigorous and growing economy, to prevent economic   stagnation, to increase revenues to the state and to its  municipalities   and to achieve stable local economies.* Based  upon  the  experience  of  the past, most recently during the   periods of illiquidity which occurred in nineteen hundred sixty-six  and   again in nineteen hundred sixty-nine, shortages of funds for residential    mortgages  in  the  private banking system can be expected to recur from   time  to  time  in  varying  degrees  of  severity  with   the   adverse   consequences described above. To avoid or minimize such consequences, to   bring  greater  stability  to  the residential construction industry and   related industries, and thus to assure a steady flow  of  production  of   new  housing  units,  there  should  be created a corporate governmental   agency to be known as the "state of New  York  mortgage  agency"  which,   through  issuance  of  bonds  and  notes to the private investing public   during periods when there is an inadequate supply  of  credit  available   for  new loans for residential housing and housing improvement purposes,   may (i) purchase existing mortgages from  banks  and  direct  an  amount   equal  to the proceeds from the liquidated mortgage investments into new   mortgages on  residential  family  dwelling  units,  (ii)  purchase  new   mortgages  on  residential  family  dwelling  units,  (iii) purchase new   housing loans for  the  rehabilitation  or  improvement  of  residential   family dwelling units, and (iv) purchase lease-to-own mortgage loans.* NB Effective until July 23, 2023* Based  upon  the  experience  of  the past, most recently during the   periods of illiquidity which occurred in nineteen hundred sixty-six  and   again in nineteen hundred sixty-nine, shortages of funds for residential   mortgages  in  the  private banking system can be expected to recur from   time  to  time  in  varying  degrees  of  severity  with   the   adverse   consequences described above. To avoid or minimize such consequences, to   bring  greater  stability  to  the residential construction industry and   related industries, and thus to assure a steady flow  of  production  of   new  housing  units,  there  should  be created a corporate governmental   agency to be known as the "state of New  York  mortgage  agency"  which,   through issuance of bonds and notes to the private investing public, may   purchase  existing  mortgages from banks within the state during periods   when  there  is  an  inadequate  supply  of  credit  available  for  new   residential  mortgage  loans  and direct an amount equal to the proceeds   from  the  liquidated  mortgage  investments  into  new   mortgages   on   residential real property for family units.* NB Effective July 23, 2023It is further found and declared that in addition to issuance of bonds   and  notes  for such purposes, the accessibility of credit available for   new loans for residential housing and housing improvement purposes  will   also  be increased by making available to the people of the state to the   fullest extent  possible  the  benefit  of  federal  programs  providing   credits against income tax for a portion of interest paid on residential   mortgage and housing loans.The  secondary  mortgage market provided by the corporate governmental   agency created by this title is hereby found and  determined  to  be  an   appropriate  and  effective means of making residential mortgages a more   attractive investment for the private banking system,  of  reducing  the   volatility  of  mortgage flows over the business cycle, and of providing   greater stability for the economies of the state and its municipalities.It is further found and determined that it has long  been  the  public   policy  of  the  state to encourage every student who has the desire and   capacity to pursue a post-secondary education. To this  end,  the  state   has  developed one of the foremost systems of public higher education in   the nation, as well as a substantial program of grants and loans to help   finance the education of students  attending  both  public  and  private   post-secondary educational institutions.Nevertheless, the rising costs to students of post-secondary education   are  placing  the  goal  of  such  study beyond the financial reach of a   growing proportion of our  potential  student  population,  particularly   those   young   men   and   women  coming  from  families  of  low-  and    middle-income. To effectively meet this fiscal crisis in  post-secondary   education,  which is contrary to the general welfare of our citizens, it   is hereby found and determined that the student  loan  programs  in  the   state  should  be  restructured  to  make  available  to  every  student   financial  assistance  in  the  attainment  of  his  college  or  career   education  and  that  the  state  of  New York mortgage agency should be   authorized to issue its bonds  and  notes  for  the  purpose  of  making   available funds with which to make available such student loans.It is further found and determined that there is a need to establish a   program  to  assist  homeowners  in  the state of New York who have been   affected by the national mortgage crisis who are  either  delinquent  on   their  mortgage  payments or are in danger of going into default because   of economic hardship,  as  such  term  is  defined  under  the  agency's   guidelines,  in  consultation  with  the advisory council established in   subdivision three of section twenty-four hundred five-f  of  this  part,   who may lose their homes to foreclosure, or who may have abandoned their   homes  due  to economic hardship and who may benefit from assistance. In   addition, the existence of vacant, abandoned, distressed, dilapidated or   reasonably beyond repair properties may contribute to the persistence of   conditions that increase blight and add  to  the  deterioration  of  the   quality  of  the  environment and living conditions of a large number of   persons residing in the state. To address these conditions, it is hereby   found and determined that the state of New York mortgage agency shall be   authorized to create and manage a fund  to  acquire  residences  and  to   purchase  mortgages and mortgage notes, or to provide monies to eligible   institutions  to  acquire  residences  and  to  purchase  mortgages  and   mortgage  notes and to carry out such other functions in connection with   such acquisitions as are necessary to accomplish the  purposes  of  this   paragraph.  In  connection  therewith,  the  state  of New York mortgage   agency shall be authorized to create a subsidiary corporation  to  carry   out the program authorized under this paragraph.It  is  further  found  and  determined  that  there  is a shortage of   adequate funds  to  assist  in  the  new  construction  of  modular  and   manufactured housing.