Section 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 16, 2010
    * 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 16, 2010
    It  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 16, 2010
    * 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 16, 2010
    It 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.