§ 2. Declaration of policy and statement of purposes. The protection
and promotion of the health of the inhabitants of the state are matters
of public concern. In furtherance of this purpose, it is the policy of
the state to encourage the prompt and efficient provision of health and
health-related services at a reasonable cost by the private and public
sectors in modern, well-equipped health facilities accessible to the
communities to be served.

The leglislature has heretofore found that a serious shortage of safe
and sanitary nursing home accommodations exists in many communities
throughout the state; that many hospitals and other health facilities
throughout the state are no longer adequate to meet the needs of modern
medicine; that such inadequate and outmoded facilities deny to the
people of the state the benefits of health care of the highest quality
and that their replacement and modernization is essential to protect and
prolong the lives of the state's population. The legislature has
heretofore found and declared that the accomplishment of these purposes
cannot be readily achieved by the ordinary unaided operation of private
enterprise and to this end has constituted and empowered the New York
state housing finance agency, a multi-purpose corporate governmental
agency of the state, to obtain funds through the issuance of its notes
and bonds to finance the construction, acquisition, reconstruction,
rehabilitation and improvement of a broad array of health facilities in
addition to issuing its notes and bonds to carry out other program
responsibilities which touch on the quality of life for the vast
majority of the state's residents, including the providing of housing
for persons of low income, higher educational facilities for the state
university of New York, mental health facilities, child care facilities
and facilities for the care of senior citizens.

The public purposes heretofore enumerated have not yet been fully
accomplished despite the significant investment of funds through the New
York state housing finance agency in the construction of hospitals,
nursing homes and health-related facilities.

In order to permit an acceleration in the implementation of these
programs in areas where the public need remains urgent, without
jeopardizing the orderly marketing by the New York state housing finance
agency of its notes and bonds for other program purposes, it is hereby
found and declared that a separate corporate governmental agency, to be
known as the "New York state medical care facilities finance agency,"
should be created as a single purpose agency to act in concert with the
New York state housing finance agency and to devote its entire energy
and resources to the provision of additional funds for the construction
of health and health-related facilities by nursing home companies
created pursuant to the provisions of article twenty-eight-A of the
public health law, by hospitals and non-profit medical corporations
constituting eligible borrowers pursuant to the provisions of article
twenty-eight-B of the public health law and by municipalities
constituting social services districts pursuant to the provisions of the
health and mental hygiene facilities improvement act. In this manner,
the broadest possible base of investment by the greatest number of the
general public may be had and the initiative and strength of our private
enterprise economy may most readily be harnessed for the benefit of the
people of the state.

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

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 medical care facilities 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.