New Jersey § 55:14k-46

§ 55:14k-46.

The Legislature finds, determines and declares: a. Changing economic conditions and the current state of financial markets have curtailed

the amount of capital available, upon terms tolerable and practicable to developers,

for the development of land and construction of housing. b. The factors that have led to these conditions--such as changes in federal government

supervision of institutional lenders, increased reserve requirements imposed on financial

institutions, and other structural changes in financial markets--will continue to

affect the home-building industry for the foreseeable future. c. The depressed state of this industry exerts a significant adverse impact on the

national economy, particularly severe in this densely populated and highly industrialized

State, by curtailing employment opportunities and depressing accustomed standards

of living. d. The distresses of the economy have fallen with exceptional severity upon the housing

supply for home-seekers at all economic levels, and most particularly for those of

mid-level and modest incomes. e. Significant alleviation of the current economic situation requires cooperation

between public and private institutions, which can be effectively fostered by a State

program directed towards meeting short-term capital requirements. f. The most logical State agency to administer such assistance is the New Jersey Housing

and Mortgage Finance Agency (HMFA), with its many years of successful experience in

actively but prudently financing a variety of housing initiatives. g. It is, accordingly, the intention of this act to establish, under the administration

of the HMFA, a program that will stimulate the housing industry in this State by making

available, in adequate volume and on reasonable terms, construction loan guarantees

that will enable builders to initiate development of housing of all types and for

persons of all income levels in this State.