Legislation passed in 1987 enabled DASNY to finance and construct court facilities for New York's county and local governments.

[2] In 1982, $300 million of DASNY funds had been lent to Lombard-Wall, Inc., a government securities firm that declared bankruptcy in August of that year.

At the time of the bankruptcy filing, or shortly before, DASNY determined that $55 million of this amount lacked collateral, and was therefore at risk.

[8] Issuance of DASNY bonds for economic development projects began in 1998, with the Community Enhancement Facilities Assistance Program (CEFAP).

Critics, who accuse the agency of being a source of pork-barrel spending, have called for greater transparency in this exercise of Dormitory Authority borrowing power.