§ 2425 — Statement of legislative findings and purpose with respect to insurance commitments or contracts by the agency

New York § 2425

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 17: State of New York Mortgage Agency Act
• Part 2: No title
• Art. 8: Miscellaneous Authorities

Text

§ 2425. Statement of legislative findings and purpose with respect to\ninsurance commitments or contracts by the agency. It is hereby found\nthat there exist in many cities, towns and villages of the state\nneighborhoods which are blighted, are becoming blighted or may become\nblighted because of substandard, insanitary, deteriorated or\ndeteriorating conditions, including undermaintained and deteriorating\nhousing accommodations and related retail and other community\nfacilities.\n It is further found that there exists throughout the state a seriously\ninadequate supply of safe, sanitary and affordable housing\naccommodations for persons of low income. As a result, a large portion\nof the state's population, including many persons of low income, must\ncontinue to reside in undermaintained and deteriorating housing\naccommodations. These conditions are contrary to the public interest and\nthreaten the health, safety, welfare, comfort and security of the people\nof the state.\n It is further found that a deficiency of mortgage financing is one of\nthe causes of the above conditions. The unaided efforts of private\nenterprise have not been able to provide nor can they provide sufficient\nfunds to refinance existing mortgage indebtedness and to undertake\nnecessary preservation and rehabilitation of housing accommodations and\nrelated retail and other community facilities within neighborhoods which\nare blighted, are becoming blighted or may become blighted.\n It is further found that the lack of mortgage insurance for loans to\nrefinance existing indebtedness and to undertake necessary preservation\nand rehabilitation of housing accommodations and related retail and\nother community facilities within such neighborhoods is one reason that\nthe available funds are not sufficient to satisfy the mortgage financing\nneeds of such neighborhoods.\n It is further found that the conditions set forth herein accelerate\nthe deterioration of housing accommodations, related retail and other\ncommunity facilities as well as the neighborhoods in which such real\nproperty is located. Uncorrected, such conditions will increase the rate\nof abandonment and destruction of housing accommodations and related\nretail and other community facilities. Abandonment and destruction, in\nturn, erode the local tax base, which deprives cities, towns and\nvillages of revenues needed for essential services such as police,\nsanitation and fire fighting. Failure to fund essential services could\nrequire the state to provide costly financial assistance to ameliorate\nthe emergency conditions thus created.\n It is further found that if mortgage insurance were available for\nloans to refinance existing indebtedness and to undertake necessary\npreservation and rehabilitation of housing accommodations and related\nretail and other community facilities, the conditions of blight within\nsuch neighborhoods could be ameliorated or averted.\n It is therefore declared to be a public purpose of the state, in order\nto promote the preservation of neighborhoods which are blighted, are\nbecoming blighted or may become blighted, to provide safe, sanitary and\naffordable housing accommodations to persons, including those of low\nincome, who reside in such neighborhoods, and to discourage\ndisinvestment and encourage the investment of mortgage capital in the\nreal estate situated in such neighborhoods by authorizing the agency to\ninsure qualified mortgage loans in such neighborhoods subject to the\nterms and provisions hereinafter set forth.\n The necessity in the public interest for the provisions hereinafter\nenacted is hereby declared as a matter of legislative determination.\n * Also, it is hereby found that it has become very expensive and\nprogrammatically restrictive for the agency and for other entities to\npurchase mortgage pool insurance coverage. It is therefore declared to\nbe in the public interest to authorize the agency to use the mortgage\ninsurance fund to provide mortgage pool insurance for mortgages which\nthe agency purchases pursuant to its programs, and to provide mortgage\npool insurance for certain other entities in accordance with the\nprovisions of this title.\n * NB Repealed July 23, 2027\n Also, it is hereby found and declared that it is in the public\ninterest to facilitate the financial activities of the development\ncorporation by providing a source or potential source of payment into\nfunds established by such corporation for the payment of financial\nobligations or financial rights of such corporation under bonds or\nancillary bond facilities.\n