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New York · Through 2026-09-11

N.Y. Facilities Development Corporation Act 359/68 § 5: General powers and duties of corporation

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  1. Facilities Development Corporation Act 359/68

§ 5. General powers and duties of corporation. The corporation shall

have the following powers in addition to those specifically conferred

elsewhere in this act.

1. To sue and be sued.

2. To have a seal and alter the same at pleasure.

3. To make and alter by-laws for its organization and internal

management.

4. With the approval of the comptroller, to prescribe a system of

accounts.

5. To make rules and regulations governing the exercise of its

corporate powers and the fulfillment of its corporate purposes, which

rules and regulations shall be filed with the secretary of state in the

manner provided by section one hundred two of the executive law.

6. To accept jurisdiction over and to hold, use and improve, in

accordance with such terms and conditions as the corporation and the

state housing finance agency or the state medical care facilities

finance agency, as the case may be, shall determine, any or all real

property acquired by such agency for a health facilities improvement

program.

7. Subject to the terms and conditions of any lease, sublease, loan or

other financing agreement with the appropriate commissioner of the

department or the state housing finance agency or the state medical care

facilities finance agency, to possess, hold, use and improve, all mental

hygiene facilities and all real and personal property acquired by or on

behalf of the corporation for a mental hygiene facilities improvement

program so long as its corporate existence shall continue.

8. a. With the approval of the appropriate commissioner of the

department and the director of the budget, to purchase real property

necessary or convenient for a mental hygiene facilities improvement

program in the name of the state, except where such purchase is for the

purpose of providing community mental health and developmental

disabilities facilities in which case such purchase shall be in its own

name; provided, however, that all such purchases shall be made pursuant

to legislation or appropriations in accordance with section nine of this

act. Nothing in this section contained shall be construed to prohibit

the acquisition of real property by purchase or appropriation by the

appropriate commissioner of the department pursuant to article

seventy-one of title E of the mental hygiene law for the purpose of

making mental hygiene facilities available under license or permit from

the corporation to a voluntary agency, subject to the terms and

conditions of any lease, sublease, loan or other financing agreement

with the state housing finance agency or the state medical care

facilities finance agency, (i) for use in providing community mental

health and developmental disabilities services, including services in a

residential care center for adults, or (ii) for the conduct of an

alcoholism or substance abuse treatment program as defined in article

nineteen of title D of the mental hygiene law.

b. To execute and deliver deeds for real property held in its own

name.

c. To convey an easement as described in this subdivision, in or over

state-owned lands under the jurisdiction of the facilities development

corporation for the use of the department of mental hygiene subject to

prior notice to the commissioner of general services by filing with him

a copy of the proposed easement which shall be followed by such filing

of a copy of the easement conveyed, to a public corporation or a public

service corporation, in perpetuity or otherwise. For the purposes of

this subdivision an easement may be granted for the connection of a

water main, sewer pipe or other utility line or similar facility

maintained for public use, owned by any public corporation or public

service corporation, which shall be used for or in connection with any

facility occupied, used or serving the program of one of the offices of

the department of mental hygiene as defined in subdivision two-a of

section three of section one of this act. The consideration for the

grant of any such easement may consist of the agreement by the grantee

to maintain the subject utility facility.

d. To convey an easement as described in this subdivision, in or over

private lands under the jurisdiction of the facilities development

corporation for the use of the department of mental hygiene subject to

prior notice to the commissioner of general services by filing with him

a copy of the proposed easement which shall be followed by such filing

of a copy of the easement conveyed, to a public corporation or a public

service corporation, in perpetuity or otherwise. For the purposes of

this subdivision an easement may be granted for the connection of a

water main, sewer pipe or other utility line or similar facility

maintained for public use, owned by any public corporation or public

service corporation, which shall be used for or in connection with any

facility occupied, used or serving the program of one of the offices of

the department of mental hygiene as defined in subdivision two-a of

section three of section one of this act. The consideration for the

grant of any such easement may consist of the agreement by the grantee

to maintain the subject utility facility.

e. Nothing contained in paragraphs c and d of this subdivision shall

limit, restrict or affect the authority of the commissioner of general

services under section three of the public lands law.

9. To purchase, receive, lease or otherwise acquire in accordance with

the requirements of article eleven of the state finance law, personal

property necessary and convenient for its corporate purposes, including

the original furnishings, equipment, machinery and apparatus required

for mental hygiene or health facilities upon the completion of work: (i)

in the case of a mental hygiene facility to transfer, sublease or

otherwise make such personal property available to the department of

mental hygiene or to a city or county, in accordance with the terms and

conditions of any agreement with the appropriate commissioner of the

department, the commissioner of general services, such city or county or

the state housing finance agency; (ii) in the case of a health facility

to transfer or otherwise make such personal property available to a

municipality in accordance with the terms and conditions of any

agreement with such municipality, the state housing finance agency or

the state medical care facilities finance agency.

10. To design, construct, acquire, reconstruct, rehabilitate and

improve health facilities, facilities for the department of corrections

and community supervision and mental hygiene facilities, or cause such

facilities to be designed, constructed, acquired, reconstructed,

rehabilitated and improved, in accordance with the provisions of this

act.

11. In connection with such design, construction, acquisition,

reconstruction, rehabilitation and improvement, to install or cause to

be installed water, sewer, gas, electrical, telephone, heating, air

conditioning and other utility services, including appropriate

connections.

12. Subject to the terms and conditions of any lease, sublease, loan

or other financing agreement between the corporation and the state

housing finance agency or the state medical care facilities finance

agency, as the case may be, or between such agency and a municipality,

as the case may be, and in the case of mental hygiene facilities with

the appropriate commissioner of the department, to maintain, repair and

keep up the real property held by it pursuant to this act.

13. (a) Subject to the terms and conditions of any lease, sublease,

loan or other financing agreement with the state housing finance agency

or the state medical care facilities finance agency, and to the

determination of the appropriate commissioner of the department, and in

the case of community mental health and developmental disabilities

facilities, of the city or county, that such real property held for the

purposes of a mental hygiene facilities improvement program is

unnecessary for the present or foreseeable future needs of a mental

hygiene facility, with the approval of the director of the budget, to

convey for fair value, except as otherwise provided in paragraph (b) of

this subdivision, any right, title or interest of the people of the

state of New York in and to such real property to any appropriate state

agency, or public corporation, city or county for other public use or

for sale, lease or other disposition in accordance with law, real

property held by the corporation, provided, however, nothing in this

subdivision shall be deemed to supersede the provisions of section 41.34

of the mental hygiene law and provided further that any such conveyance

shall be subject to, and consistent with the terms and objectives of,

any plan developed by the state interagency council on mental hygiene

property utilization. The corporation shall provide written notice at

least thirty days in advance of the effective date of any conveyance to

the governor, the majority leader of the senate and the speaker of the

assembly. No conveyance as authorized in this subdivision that may

adversely affect the tax exempt nature of any such lease, sublease, loan

or other financing agreement with the state housing finance agency or

the New York state medical care facilities finance agency may occur

until the attorney general or other designated bond counsel determines

in writing that the conveyance is consistent with all applicable state

and federal laws, rules and regulations, and with deeds, leases,

subleases, loan agreements, financing agreements, and bond resolutions

relating to or affected by the conveyance, and that the conveyance does

not impair the tax exempt status of outstanding obligations issued by

the state housing finance agency or the New York state medical care

facilities finance agency to finance or refinance the design,

construction, acquisition, reconstruction, rehabilitation or improvement

of mental health service facilities as defined in the New York state

medical care facilities finance agency act.

(b) Notwithstanding any other provision of law to the contrary, for

the purposes of transferring and conveying the westernmost portion of

that certain property commonly known as the Kingsboro Psychiatric

Center, located at 681 Clarkson Avenue in Brooklyn, New York to a

housing development fund corporation formed pursuant to article XI of

the private housing finance law, for the purposes described below, the

term "fair value" shall be deemed to be an amount determined to be in

the public interest and agreed upon between the commissioner of the

office of mental health and the commissioner of the division of housing

and community renewal, provided, however, that such agreed upon amount

may be less than the appraised fair value, in order to facilitate the

development of the public benefit Vital Brooklyn project and in

reflection of the Vital Brooklyn initiative and the intended use of the

property, to increase access to open spaces, increase access and quality

of health care services and preventative care, create affordable

housing, and to provide at least one hundred supportive housing units

for office of mental health recipients. The description of the lands to

be transferred and conveyed as set forth above is not intended to be a

legal description but, intended only to identify the property subject to

this paragraph.

13-a. Subject to the terms and conditions of any lease, sublease, loan

or other financing agreement with the state housing finance agency or

the state medical care facilities finance agency and to the

determination of the appropriate commissioner of the department, to make

a mental hygiene facility available under lease, sublease, license or

permit from the corporation to a voluntary agency, or, notwithstanding

the provisions of the public lands law or any other general or special

law to the contrary, to convey the right, title and interest of the

people of the state of New York in and to such facility and the land

appurtenant thereto to such voluntary agency upon such terms and

conditions as shall be provided in an agreement among the appropriate

commissioner of the department, the corporation and such voluntary

agency with the approval of the director of the budget, the comptroller

and the commissioner of any office of the department having programmatic

or fiscal jurisdiction or licensing or certifying authority over that

voluntary agency with respect to the intended use.

13-b. Subject to the terms and conditions of any deed, lease,

sublease, loan or other financing agreement with the state housing

finance agency or the New York state medical care facilities finance

agency, and upon the determination of the appropriate commissioner of

the department of mental hygiene, to sublease as sublessor, in its own

name, mental hygiene facilities leased to the corporation by the New

York state medical care facilities finance agency, and to lease as

lessor real property held by the corporation, upon such terms and

conditions as may be provided in an agreement among the appropriate

commissioner of the department, the corporation, and such sublessee or

lessee, with the approval of the director of the budget, and, where

pertinent, the commissioner of any office of the department having

programmatic or fiscal jurisdiction or licensing or certifying authority

over a voluntary agency or any other sublessee or lessee entity with

respect to the intended use. Such a sublease or lease shall be effective

only after the attorney general or other designated bond counsel

determines, in writing, that it is consistent with all applicable

federal and state laws, rules and regulations, and all deeds, leases,

subleases, loan agreements, financing agreements and bond resolutions

relating to or affected by the premises being sublet or let, and that

such a sublease or lease does not impair the tax-exempt status of

outstanding obligations issued by the housing finance agency or the New

York state medical care facilities finance agency.

13-c. To lease, as lessee, and to sublease, as sublessor, in its own

name, mental hygiene facilities owned or leased by one or more voluntary

agencies that are to be financed, refinanced, designed, constructed,

acquired, reconstructed, rehabilitated and improved under any lease,

sublease, loan or other financing agreement entered into with such

voluntary agencies or the medical care facilities finance agency in

accordance with regulations that shall be promulgated by either one of

the appropriate commissioners or directors of the department and

approved by the director of the budget, which regulations shall require

that any mental hygiene facility owned or leased by a voluntary agency

the design, construction, reconstruction, acquisition, rehabilitation or

improvement of which is to be financed or refinanced in whole or in part

with proceeds of mental health services facilities improvement bonds or

notes issued by the medical care facilities finance agency, and any

other mental hygiene facilities that may be constructed or acquired with

funds realized by or returned to such voluntary agency or jointly to

such voluntary agency and one more voluntary agencies which will operate

such facility as a result of such financing or refinancing, be approved

for financing or refinancing pursuant to this act by the director of the

budget and be operated, while such bonds or notes are outstanding, in a

manner and for purposes pursuant to the mental hygiene law.

13-d. 1. Subject to the terms and conditions of any lease, sublease,

loan or other financing agreement with the medical care facilities

finance agency in accordance with subdivision 13-c of this section, to

make loans to voluntary agencies for the purpose of financing or

refinancing the design, construction, acquisition, reconstruction,

rehabilitation and improvement of mental hygiene facilities owned or

leased by such voluntary agencies provided, however, that with respect

to such facilities which are leased by a voluntary agency, the term of

repayment of such loan shall not exceed the term of such lease including

any option to renew such lease. Notwithstanding any other provisions of

law, such loans may be made jointly to one or more voluntary agencies

which own and one or more voluntary agencies which will operate any such

mental hygiene facility.

2. Subject to the terms and conditions of any lease, sublease, loan or

other financing agreement with the medical care facilities finance

agency, to make grants to voluntary agencies or provide proceeds of

mental health services facilities bonds or notes to the department to

make grants to voluntary agencies or to reimburse disbursements made

therefor, in each case, for the purpose of financing or refinancing the

design, construction, acquisition, reconstruction, rehabilitation and

improvement of mental hygiene facilities owned or leased by such

voluntary agencies.

13-e. To receive from the comptroller state aid payments pledged or

agreed to be paid by any voluntary agency in accordance with any lease,

sublease, loan or other financing agreement entered into with such

voluntary agency. Such pledges may be made from sources of state aid

including but not limited to payments made pursuant to: articles

nineteen, twenty-five and forty-one of the mental hygiene law.

13-f. The executive director of the facilities development corporation

is authorized and empowered to enter into and implement agreements under

which the facilities development corporation may designate the

commissioner of the office of mental health, the commissioner of the

office for people with developmental disabilities, the commissioner of

alcoholism and substance abuse services, with respect to their

respective facilities, as agents for the facilities development

corporation with respect to the financing of voluntary provider

not-for-profit community development, and under which such commissioners

and directors may act as its agent, with respect to any and all duties

for such corporation as set forth and contained in this act. The

commissioners, the directors, and the executive director shall enter

into such agreements, subject to the approval of the director of the

budget, which delineate the respective duties of each party when such

commissioners and directors are designated agents of such corporation.

14. To make and execute contracts and all other instruments or

agreements necessary or convenient for the exercise of its corporate

powers or the fulfillment of its corporate purposes.

15. To engage the services of construction, engineering,

architectural, legal and financial consultants, surveyors and

appraisers, on a contract basis or as employees, for professional

services and technical assistance and advice.

16. To procure insurance against any loss in connection with any

facility in such amounts and from such insurers as it deems desirable.

17. With the consent of the commissioner of health, or the appropriate

commissioner of the department, as the case may be, to use the agents,

employees and facilities of the respective agencies.

18. Subject to the approval of the commissioner of health or the

appropriate commissioner of the department, as the case may be, to apply

for, accept, administer and disburse federal aid.

19. To accept any gifts or grants or loans of funds or property or

financial or other aid in any form from the federal government or any

agency or instrumentality thereof or from the state, including

appropriations, or from any other source, and to comply with the terms

and conditions thereof.

20. To do any and all things necessary or convenient to carry out its

corporate purposes and exercise the powers given and granted it in this

act.

Collected 2026-09-14T19:32:44Z. Source file · JSON

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