§ 2 — Statement of legislative findings and purposes

§ 2. Statement of legislative findings and purposes. The legislature\nhereby finds that in certain urban areas of our state the growth of\nsmall business is impeded by the unavailability of reasonable credit for\nbuildings, equipment, credit for inventory and working capital. This\nunavailability of reasonable credit restricts business growth and job\nopportunities and causes business failures resulting in unemployment and\nunderemployment with resulting persistent poverty in such urban areas.\nThe amelioration of these conditions is a responsibility of both the\npublic and private sector of our economy. Rehabilitation of the economic\nlife of blighted areas is necessary in order to prevent business\nfailures, to maintain the income of existing small business enterprises,\nto provide a business climate conducive to the growth of new small\nbusiness enterprises, and to broaden the tax base of such urban areas,\nall to afford more meaningful and rewarding business and job\nopportunities for the residents of such areas, thereby reducing the\nhazards of unemployment and raising the job opportunities of the\nunderemployed.\n The legislature further finds that in certain urban areas of our state\nthe construction, reconstruction, rehabilitation and improvement of\nhousing accommodations is impeded by the shortage of mortgage funds at\nreasonable interest rates and the lack of available credit for the\nrehabilitation of older buildings which lack proper heating or sanitary\nfacilities or which do not comply in full with modern building and\nmaintenance code standards. The unaided efforts of private enterprise\nhave not provided and cannot provide an adequate supply of safe and\nsanitary housing within the financial reach of many families in urban\nareas. The upgrading and improvement of such areas through programs of\nnew construction, rehabilitation and home improvement can provide\nadditional tax revenues to the community and assist in attracting and\nretaining business and industry.\n In order to assist in the rehabilitation of these areas and give\nconstructive attention to the welfare of the needy residents of these\nareas, the legislature finds and declares that the marshalling of public\nand private capital to make sufficient credit available at the lowest\nfeasible interest rates to encourage the expansion of small business, to\nprovide the incentives for the establishment of sound new small business\nenterprises and to promote the construction and rehabilitation of\nhousing accommodations in such areas, will create new job opportunities,\neffectively reduce unemployment and strengthen the economic base of the\ncommunity as a whole, thereby reducing the burdens of poverty and need.\n This result can best be accomplished by a loan guarantee program to\nguarantee loans to small businesses and owners of housing\naccommodations, including one and two family homes and multiple\ndwellings, unable to obtain reasonable credit through conventional\nfinancial sources. The legislature further finds that the adoption of\nsuch a loan guarantee program to mitigate the economic and social evils\nof unemployment, underemployment and inadequate housing is for a public\npurpose, and to achieve these ends there should be created a non-profit\ncorporation to be known as the urban development guarantee fund of New\nYork, having such powers and duties as set forth herein.\n