Institutional Federal Compliance Report 2021

124 • Notes to Basic Financial Statements _________________________________________________________________________

State of New York Mortgage Agency The State of New York Mortgage Agency (SONYMA) was established in 1970 and makes mortgages available to first-time and other qualifying home buyers through its Low Interest Rate Program and other specialized home ownership programs. To accomplish this pur- pose, SONYMA issues tax-exempt and taxable mort- gage revenue bonds for direct issuance of forward commitments for new mortgage loans through par- ticipating financial institutions. SONYMA also provides mortgage insurance for qualifying real property loans through its Mortgage Insurance Program. By statute, all costs of providing mortgage insurance are recovered from a State mortgage recording tax surcharge, which is a dedicated tax revenue stream received directly by SONYMA. In April 2009, SONYMA’s statutory authority to purchase education loans was updated and expanded in order to permit the Agency to work with the New York State Higher Education Services Corporation in developing a new program to offer education loans to eligible students attending colleges and universities in New York State. In 2016, legislation was adopted authorizing the creation of the New York State Community Restoration Fund, a program to assist homeowners affected by the national mortgage crisis. The fund is held by SONYMA and managed by a newly-created subsidiary of SONYMA called the SONYMA Community Restoration Fund. The agency is a partner in a joint venture with New Jersey Com- munity Capital, and currently owns approximately 398 defaulted mortgage loans. Financial statements can be obtained by contacting SONYMA at www.nyshcr.org . Environmental Facilities Corporation The New York State Environmental Facilities Corpo- ration (EFC) is a public benefit corporation, formed in 1970 pursuant to the New York State Environmental Facilities Corporation Act. The mission of EFC is to Note 15 Joint Ventures A joint venture is an entity that results from a contractual arrangement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control, in which the participants retain an ongoing financial interest or an ongoing finan- cial responsibility. The only material joint venture in which the State has an interest is the Port Authority of New York and New Jersey (Port Authority). The Port Authority is a municipal corporate instru- mentality of the States of New York and New Jersey created by compact between the two states in 1921 with the consent of the Congress of the United States.

assist communities throughout New York State to undertake critical water quality infrastructure projects by providing access to low cost capital, grants, and expert technical assistance. A primary goal is to ensure that these projects remain affordable while safeguard- ing essential water resources. We support this mission by consistently using an innovative approach to devel- oping and advancing new financing strategies to max- imize the funding that can be made available to our clients, aiding compliance with Federal and State requirements, and promoting green infrastructure practices. EFC is governed by a board of directors, which consists of seven members. The Corporation is empowered by State law to: administer and finance the Clean Water and Drinking Water State Revolving Funds (SRFs), established by the State as set forth in the EFC Act pursuant to the federal Water Quality Act of 1987 and the federal Safe Drinking Water Act Amendments of 1996; finance certain State Contributions to the SRFs and for certain environmental infrastructure projects; finance, through the issuance of special obligation revenue bonds under its Industrial Finance Program, water management, solid waste disposal, sewage treatment and pollution control projects undertaken by or on behalf of private entities; and to provide technical advice and assistance to private entities, state agencies and local government units on sewage treatment and collection, pollution control, recycling, hazardous waste abatement, solid waste disposal, and other related subjects. The complete audited financial statements and related notes as well as additional information regarding EFC can be obtained by visiting EFC at www.efc.ny.gov . Eliminations Eliminations are made primarily to avoid duplicate reporting. As explained in Note 7, the State services a significant portion of the bonds and notes payable of certain Corporations. The Port Authority is authorized and directed to plan, develop, and operate terminals and other facilities of transportation and commerce, and to advance projects in the general fields of transportation, economic devel- opment, and world trade that contribute to promoting and protecting the commerce and economy of the Port District, defined in the compact, which comprises an area of about 1,500 square miles in both states, centering around New York Harbor. The Governor of each state appoints six of the twelve members of the governing Board of Commis- sioners, subject to confirmation by the respective state