2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 17 - State of New York Mortgage Agency Act › Part 2 › 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, 2025
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.