N.Y. Private Housing Finance Law Section 41
Statement of legislative findings and purposes


1.

There continues to exist in the state a seriously inadequate supply of safe and sanitary dwelling accommodations, non-housekeeping accommodations, aged care accommodations or accommodations for handicapped persons within the financial reach of families and persons (including aged and handicapped persons) 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.

2.

The ordinary operations of private enterprise cannot provide an adequate supply of safe and sanitary dwelling accommodations, non-housekeeping accommodations, aged care accommodations and accommodations for handicapped persons at rentals which families and persons of low income can afford. In order to encourage the investment of private capital and provide such dwelling accommodations, non-housekeeping accommodations, aged care accommodations and accommodations for handicapped persons provision should be made for mortgage loans, at low interest rates, to housing companies which, subject to state regulation as to rents, profits, dividends and disposition of their property, supply multiple dwelling accommodations, non-housekeeping accommodations, aged care accommodations and accommodations for handicapped persons, and other facilities incidental or appurtenant thereto, to such families and persons. For that purpose there should be created a corporate governmental agency of the state, to be known as the “New York state housing finance agency,” which, through the issuance of its bonds, notes or other obligations to the private investing public, may attract a broad base of investment by the greatest number of the general public and obtain the funds necessary to make or finance the making of such mortgage loans. Thus, private capital will be encouraged to enter this field of investment and will help meet the housing needs of families and persons of low income. Provision should also be made for the New York state housing finance agency to lease such dwelling accommodations and to receive appropriations from the state, in aid of providing housing in limited profit housing company projects for persons and families of low income who would otherwise be eligible for occupancy in low rent public housing. * 2-a. Programs to attract capital to provide dwelling accommodations which families and persons of low and moderate income can afford may not be economically feasible without adequate subsidy where all of the units in the multiple dwelling accommodations to be financed are regulated as to rents, profits, dividends and disposition of the owner’s property. In such cases the New York state housing finance agency should provide residential units for such families and persons by making loans, or financing the making of such loans, to the owners of housing developments which will be required to supply, for a reasonable period of time, a portion of residential units to such families and persons at rentals they can afford. Further it is the policy of the state through the New York state housing finance agency to maximize as fully as possible consistent with the economic feasibility of each housing development the affordability, period of occupancy, and number of units in those portions of each housing development which are designed to be affordable to persons of low and moderate income. * NB Repealed July 23, 2025 3. There is also threatened in the state an inadequate supply of academic buildings and other facilities at the state-operated institutions and statutory and contract colleges under the jurisdiction of the state university of New York when needed and when scheduled under the approved master plan of the state university. In order to encourage the investment of private capital in such academic buildings and other facilities and to assure their timely construction, acquisition, reconstruction, rehabilitation and improvement, the New York state housing finance agency should also be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain a portion of the funds necessary to finance such academic buildings and other facilities at the state-operated institutions and statutory and contract colleges under the jurisdiction of the state university of New York.

4.

Further, it is the policy of the state to promote the redevelopment and reconstruction of municipal urban renewal areas in a manner that will serve the civic, cultural and recreational needs of the community as a whole. The ordinary operations of private enterprise cannot provide adequate financing for the construction of civic, cultural and recreational structures and facilities and other non-profit capital development projects invested with a public interest, which are needed in connection with urban renewal programs. In order to encourage the investment of private capital in such projects, and to assure the expeditious undertaking, financing and completion of the redevelopment and reconstruction of urban renewal areas in the municipalities of the state, the New York state housing finance agency should also be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain the funds necessary to make mortgage loans, at low interest rates, to non-profit community development corporations for the acquisition and construction of such projects, structures and facilities.

5.

Prompt provision of well-equipped, modern hospitals, schools and other facilities related to the care, maintenance and treatment of mentally ill persons, mental defectives and epileptics is also needed in the state. In order to encourage the investment of private capital in such hospitals, schools and other mental hygiene facilities and to assure their timely construction, acquisition, reconstruction, rehabilitation and improvement, the New York state housing finance agency should be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain a portion of the funds necessary to finance the same and to meet the needs of patients and staff at such facilities.

6.

A serious shortage of safe and sanitary nursing home accommodations providing therein nursing care, lodging and board by or under the supervision of a duly licensed physician to sick, invalid, infirm, disabled or convalescent persons of low income or providing health-related service as defined in article twenty-eight of the public health law to persons of low income or any combination of the foregoing, and in addition thereto, providing nursing care and health-related service, or either of them, to persons of low income who are not occupants of the project, whose need for such facilities and services cannot readily be provided by the ordinary unaided operation of private enterprise, exists in many communities throughout the state that it is the policy of the state to promote the provision of such nursing home accommodations, including such other facilities as may be incidental and appurtenant thereto; that there is need for non-profit corporations and limited-profit corporations to construct, acquire, reconstruct, rehabilitate and improve such low cost nursing home accommodations. In order to encourage the investment of private capital in such nursing homes, the New York state housing finance agency should also be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain funds necessary to finance nursing homes.

7.

There is a serious shortage throughout the state of facilities suitable for use for the care of children especially those of pre-school age and primary school age whose parents are unable to provide such care for all or a substantial portion of the day or post-school day. A similar shortage of residential child care facilities also exists. Existing day care and residential child care facilities are overcrowded with long waiting lists. Many such facilities are so located that they are not accessible to families in need of such services. The absence of adequate day care and residential child care facilities is contrary to the interest of the people of the state, is detrimental to the health and welfare of the child and his parents and often prevents the gainful employment of persons, who are otherwise qualified, because of the need to provide such care in their home. In order to encourage the investment of private capital in such facilities and to assure their timely construction, acquisition, reconstruction, rehabilitation and improvement, the New York state housing finance agency should be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain a portion of the funds necessary to finance such facilities and to meet the needs of the community.

8.

Prompt provision of new and improved community mental health and developmental disabilities facilities is required for the care and treatment of the increasing number of persons afflicted with mental illness, mental deficiencies, epilepsy and behavior or emotional disorders; that such facilities should be located close to the people they serve in order to speed rehabilitation and restoration and to provide for out-patient and in-patient care, including after care, diagnostic and rehabilitative services and residential accommodations for operation as hostels; that it is the policy of the state to promote the provision of such community mental health and developmental disabilities facilities; that there is a need for non-profit corporations to construct low cost community mental health and developmental disabilities facilities. In order to encourage the investment of private capital in such community mental health and developmental disabilities facilities, and to assure the expeditious completion of such community mental health and developmental disabilities facilities, the New York state housing finance agency should be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain funds necessary to make mortgage loans, at low interest rates, to non-profit corporations for the construction, acquisition, reconstruction, rehabilitation or improvement of such mental health and developmental disabilities facilities.

9.

Many hospitals and other health facilities throughout the state are becoming obsolete and are no longer adequate to meet the needs of modern medicine. As a result of rapid technological changes, such facilities require substantial structural or functional changes. Others are unsuited for continued use by virtue of their location and the physical characteristics of their existing plants and should be replaced. Such inadequate and outmoded facilities deny to the people of the state the benefits of health care of the highest quality efficiently and promptly provided and at a reasonable cost. Their replacement and modernization is essential to protect and prolong the lives of the state’s population and cannot be readily accomplished by the ordinary unaided operation of private enterprise. It is the policy of the state to encourage the provision of modern, well-equipped health facilities, including such other facilities as may be incidental and appurtenant thereto. In furtherance of this end and in order to obtain the investment of private capital in such hospitals and other health facilities, the New York state housing finance agency should also be empowered through the issuance of its bonds, notes or other obligations to the private investing public, to obtain the funds necessary to finance such hospital and health facilities.

10.

Prompt provision of new and improved community senior citizens facilities is required for the increasing number of persons who are in need of programs and services for the aging. Such facilities should be located close to the people they serve and should supplement the programs and services provided for such persons by the office for the aging pursuant to title one of article two of the elder law; that it is the policy of the state to promote the provision of such facilities; that there is need for non-profit corporations to construct low cost community senior citizens facilities. In order to encourage the investment of private capital in such community senior citizens facilities, and to assure the expeditious completion of such facilities, the New York state housing finance agency should be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain funds necessary to make mortgage loans, at low interest rates, to non-profit corporations for the construction, acquisition, reconstruction, rehabilitation or improvement of such facilities.

11.

It is frequently appropriate to combine and coordinate the development, rehabilitation and provision of housing with the development, rehabilitation and provision of health and health related facilities such as intermediate care, skilled nursing, aged treatment, and hospice facilities for which there is also a need. In order to encourage the investment of private capital in non-profit housing and health facilities, and to assure the expeditious completion of such facilities, the New York state housing finance agency should be empowered, through the issuance of its bonds, notes or other obligations to the private investing public, to obtain funds necessary to finance loans, for the construction, acquisition, reconstruction, rehabilitation or improvement of such facilities.

Source: Section 41 — Statement of legislative findings and purposes, https://www.­nysenate.­gov/legislation/laws/PVH/41 (updated Jul. 21, 2023; accessed Jul. 13, 2024).

40
Short title
41
Statement of legislative findings and purposes
42
Definitions
43
New York state housing finance agency
44
Powers of the agency
44‑A
Low rent dwelling accommodations
44‑B
Mortgage modifications, evidence of pre-existing indebtedness
44‑C
Federally-aided mortgage loans
45
Transfer of officers and employees
45‑A
Housing trust fund corporation
45‑B
Affordable housing corporation
45‑C
Homeless housing and assistance corporation
46
Notes and bonds of the agency
47
Reserve funds and appropriations
47‑A
State university construction bonds and notes
47‑B
Mental hygiene improvement bonds and notes
47‑C
Special provisions related to certain bonds and notes
47‑D
Health facilities bonds and notes
47‑E
Housing program bonds and notes
48
Agreement with the state
49
State’s right to require redemption of bonds
50
Remedies of noteholders and bondholders
51
Monies of the agency
51‑A
Federal rental assistance program administrative fees
52
Notes and bonds as legal investment
53
Exemption from taxation of property and income
54
Exemption from taxation of notes and bonds
55
Assistance by state officers, departments, boards and commissions
56
Reports
56‑A
Indemnification of members, officers and employees
57
Insured mortgage reserve fund
58
Special revenue housing coverage reserve funds
59
Bond reserve insurance fund
59‑A
Housing trust fund account
59‑B
Affordable housing development account
59‑C
Insured housing initiatives fund
59‑D
Turnkey/enhanced housing account
59‑E
Infrastructure development fund
59‑G
Permanent housing for homeless families fund
59‑H
Manufactured home cooperative fund
59‑I
Homeless housing and assistance account
60
Housing project repair fund
61
Inconsistent provisions in other laws superseded
61‑A
Actions
62
Article not affected if in part unconstitutional

Accessed:
Jul. 13, 2024

Last modified:
Jul. 21, 2023

§ 41’s source at nysenate​.gov

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