New York Laws
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.