N.Y. Facilities Development Corporation Act 359/68 § 9: Provisions relating to mental hygiene facilities improvement program and monies thereof

§ 9. Provisions relating to mental hygiene facilities improvement

program and monies thereof. 1. Capital construction planning,

construction standards, design and municipal regulations.

a. The appropriate commissioner or director of the department shall

cause to be prepared, with the assistance of the corporation, the

commissioner of general services and the division of the budget,

proposed standards for all mental hygiene facilities or classes of

mental hygiene facilities to be financed, refinanced, designed,

constructed, reconstructed, rehabilitated or improved pursuant to

contracts executed by the corporation, the commissioner of general

services, the state housing finance agency or the medical care

facilities finance agency, other than mental hygiene facilities owned or

leased by one or more voluntary agencies that are to be financed,

refinanced, designed, constructed, reconstructed, rehabilitated or

improved pursuant to any such contract. The proposed standards may, in

the discretion of the appropriate commissioner or director of the

department, include, among other things, provisions relating to the

quality and type of materials to be used in such facilities, provisions

for safety, fire protection, health and sanitation, provisions for the

installation of fixtures, furnishings, equipment, machinery and

apparatus in such facilities, and construction features deemed by the

appropriate commissioner or director of the department to be desirable

for the care, maintenance and treatment of the mentally disabled or for

the use of staff personnel at mental hygiene facilities and their

families. The proposed standards shall be forwarded to the governor for

his approval, disapproval or modification. The proposed standards shall

be deemed adopted, with or without modifications as the case may be,

upon written approval by the governor. Such standards, in the form

adopted, shall be filed by the appropriate commissioner or director of

the department with the secretary of state in the manner provided by

section one hundred two of the executive law.

Changes in the construction standards so adopted may from time to time

be formulated and proposed, approved, disapproved or modified, adopted

and filed in the same manner as the original standards.

b. The directors of the corporation shall prepare or cause to be

prepared for the state housing finance agency or the medical care

facilities finance agency, within the amounts appropriated therefor or

otherwise available, the building plans, the exterior drawings or models

displaying the architectural concept of each mental hygiene facility

thereafter to be constructed, reconstructed, rehabilitated or improved,

and the detailed plans and specifications for all such construction,

reconstruction, rehabilitation and improvement work to be performed, all

of which shall be subject to the separate approval of the appropriate

commissioner of the department and, in the case of community mental

health and developmental disabilities facilities, of the governing body

of the city or county or of such officer, department, agency or

community mental health board as may be designated by such governing

body for the purpose of such approval. The directors of the corporation,

except in the case of community mental health and developmental

disabilities facilities, may cause the building plans, drawings, models

and detailed plans and specifications for such work to be prepared under

the direction of the commissioner of general services in accordance with

the terms of any agreement entered into between the corporation and such

commissioner pursuant to subdivision two of this section. In the case of

community mental health and developmental disabilities facilities, the

directors of the corporation may cause such building plans, drawings,

models and detailed plans and specifications for such work to be

prepared by its own employees, or on a contract basis, or by agreement

with a city or county or with any state department or agency authorized

to perform such work.

The detailed plans and specifications for any such work to be

performed pursuant to a contract shall comply with the construction

standards in effect at the time the contract is executed.

Subject to the terms of any agreement entered into between the

corporation and the commissioner of general services pursuant to

subdivision two of this section and between the corporation and the

state housing finance agency or the medical care facilities finance

agency pursuant to such section, the directors of the corporation may

from time to time modify, or authorize modifications to, such detailed

plans and specifications provided (i) that the plans and specifications

as so modified shall comply with the construction standards, if any,

adopted pursuant to paragraph a of this subdivision and in effect at the

time of the modification, and (ii) that such modifications, if

substantial, are made with the separate approval of the appropriate

commissioner of the department and, in the case of community mental

health and developmental disabilities facilities, of such governing body

of the city or county or of such officer, department, agency or

community mental health board as may be designated by such governing

body for the purpose of such approval, and (iii) that in the event an

amount for contingencies is appropriated or advanced to the corporation

to pay the added costs during the then current state fiscal year of all

modifications made in the course of construction, reconstruction,

rehabilitation and improvement of mental hygiene facilities, no such

modifications shall be made or authorized in such fiscal year without

the approval of the director of the budget unless the cost thereof shall

be less than five percentum of the total estimated cost of the facility

as set forth in the budget bill referred to in paragraph a of

subdivision two of this section, but in no event shall any such

modification be made or authorized in such fiscal year if the cost

thereof, plus the cost of all modifications theretofore made or

authorized during the same state fiscal year, would exceed the amount

for contingencies appropriated or advanced for the purpose of such

modifications, and (iv) that in the event an amount for contingencies is

not appropriated for the purpose of such modifications, no such

modification involving an estimated expense of ten thousand dollars or

more shall be made or authorized without the prior approval of the

director of the budget.

c. In the design, construction, acquisition, reconstruction,

rehabilitation, alteration and improvement of mental hygiene facilities

to be made available under license or permit from the corporation to

voluntary agencies for use in providing community mental health and

developmental disabilities services, the corporation shall be governed

by the provisions of this act relating to the design and construction of

mental hygiene facilities provided, however, that the program for each

such facility shall have been prepared under the supervision of the

appropriate commissioner of the department pursuant to the mental

hygiene law at the request of such voluntary agency and with the

approval of the community mental health board established pursuant to

article forty-one of title E of the mental hygiene law.

d. In the design, construction, acquisition, reconstruction,

rehabilitation, alteration and improvement of alcoholism or substance

abuse facilities to be made available under license or permit from the

corporation to voluntary agencies for use in the conduct of an

alcoholism or substance abuse treatment program, the corporation shall

be governed by the provisions of this act relating to the design and

construction of alcoholism or substance abuse facilities provided that

the program for such facility shall have been approved by the

appropriate division of the office of alcoholism and substance abuse at

the request of the local agency.

e. No county, city, town or village shall have power to modify or

change the plans or specifications for mental hygiene facilities to be

constructed, reconstructed, rehabilitated or improved pursuant to this

act, or the construction, plumbing, heating, lighting or other

mechanical branch of work necessary to complete the work in question,

nor to require that any person, firm or corporation employed on any such

work shall perform any such work in any other or different manner than

that provided by such plans and specifications, nor to require that any

such person, firm or corporation obtain any other or additional

authority or permit from such county, city, town or village as a

condition of doing such work, nor shall any condition whatever be

imposed by any such county, city, town or village in relation to the

work being done pursuant to this act, but such work shall be under the

sole control of the supervising architect or engineer in accordance with

the drawings, plans, specifications and contracts in relation thereto;

and the doing of any such work for the corporation by any person, firm

or corporation in accordance with the terms of such drawings, plans,

specifications or contracts shall not subject said person, firm or

corporation to any liability or penalty, civil or criminal, other than

as may be stated in such contracts or incidental to the proper

enforcement thereof.

2. Letting of construction contracts. a. The corporation shall design,

construct, acquire, reconstruct, rehabilitate and improve all mental

hygiene facilities, or cause the same to be designed, constructed,

acquired, reconstructed, rehabilitated and improved either on its own

behalf or as agent for the state housing finance agency or the medical

care facilities finance agency, except that in the case of all mental

hygiene facilities owned or leased by one or more voluntary agencies

that are to be designed, constructed, reconstructed, rehabilitated and

improved under any lease, sublease, loan or other financing agreement

entered into with such voluntary agency, the same may be designed,

constructed, acquired, reconstructed, rehabilitated and improved by such

voluntary agencies, provided that legislation or appropriations

authorizing the same (i) have been requested by the appropriate

commissioner or director of the department, (ii) have been recommended

by the governor in a budget bill, which is approved by the legislature

for the fiscal year for which the recommendation was made which

specifies the mental hygiene facilities to be designed, constructed,

acquired, reconstructed, rehabilitated or improved, the total estimated

cost for each such facility, and the date when it is desired that the

design, construction, acquisition, reconstruction, rehabilitation or

improvement of each mental hygiene facility referred to therein be

completed. All such work shall be performed in such manner as to assure

completion, so far as practicable, by the dates specified.

b. (i) The corporation may design, construct, reconstruct,

rehabilitate and improve a mental hygiene facility, other than a

community mental health and developmental disabilities facility, whether

as principal or as agent for the state housing finance agency or the

medical care facilities finance agency, only by agreement with the

commissioner of general services, except that in the case a mental

hygiene facility owned or leased by a voluntary agency that is to be

designed, constructed, reconstructed, rehabilitated and improved under

any lease, sublease, loan or other financing agreement entered into with

such voluntary agency, or jointly with such voluntary agency and one or

more voluntary agencies that operate such facility the same may be

designed, constructed, reconstructed, rehabilitated and improved by such

voluntary agencies, and except that:

(a) if the commissioner of general services for any reason declines to

enter into an agreement with the corporation for such purpose; or

(b) if the commissioner of general services fails to enter into an

agreement with the corporation for such purpose within forty-five days

after receiving notification from the directors of the corporation of

the work to be performed; or

(c) if the commissioner of general services fails to advertise such

work for bids within one year after entering into an agreement with the

corporation for the performance of such work; or

(d) if the estimated expense of any such work is less than ten

thousand dollars, the corporation may construct, reconstruct,

rehabilitate and improve a mental hygiene facility by its own employees

or by contract awarded pursuant to paragraph g of this subdivision.

(ii) The corporation, with the approval of the director of the budget,

may construct, reconstruct, rehabilitate and improve a community mental

health and developmental disabilities facility by its own employees, by

agreement with a city or county or with any state department or agency

authorized to perform such work, or by contract awarded pursuant to

paragraph g of this subdivision. All contracts awarded by a city or

county on behalf of the corporation shall be awarded pursuant to

paragraph g of this subdivision, notwithstanding any provision of any

general, special or local law or any charter.

c. In the event that the commissioner of general services enters into

an agreement with the corporation for the construction, reconstruction,

rehabilitation or improvement of a mental hygiene facility, the work

required shall be performed in accordance with the terms of such

agreement and in accordance with the provisions of paragraphs d and e of

this subdivision, either by employees of the office of general services

or by contract or contracts awarded pursuant to the public buildings

law, the public works law and the state finance law.

d. No contract for the construction, reconstruction, rehabilitation or

improvement of a mental hygiene facility shall be awarded by any letting

agency unless (i) the appropriate commissioner or director of the

department shall have separately approved the architectural concept and

the detailed plans and specifications for the facility to be

constructed, reconstructed, rehabilitated or improved and (ii) the

directors of the corporation, whether as principals or as agents for the

state housing finance agency or the medical care facilities finance

agency, shall have approved the proposed terms of such contract,

including the detailed plans and specifications for the facility.

Provided, however, the corporation shall only enter into any lease,

sublease, loan or other financing agreement with a voluntary agency

under which a mental hygiene facility owned or leased by such a

voluntary agency is to be designed, acquired, constructed,

reconstructed, rehabilitated or improved when the appropriate

commissioner or director shall have approved the plans for such a

facility. The form and content of such approval shall be approved by the

division of budget however such agency approval shall allow maximum

access to financing for design, acquisition, construction,

reconstruction, rehabilitation and improvement, and shall be timely to

reduce the need for utilization of short term commercial loans by

voluntary agencies for services eligible for financing under this

program. The medical care facilities financing agency shall advise the

director of the budget on the form of such approval.

e. Each contract for the construction, reconstruction, rehabilitation

or improvement of a mental hygiene facility shall include a provision

that the architect who designed the facility, or an architect or

engineer retained or employed specifically for the purpose of

supervision, shall supervise the work to be performed through to

completion and shall see to it that the materials furnished and the work

performed are in accordance with the drawings, plans, specifications and

contract therefor.

f. If the corporation is the letting agency, whether as principal or

as agent for the state housing finance agency, the directors of the

corporation shall prepare separate specifications for, and solicit

separate and independent bids on, and award, separate contracts on the

subdivisions of work to be performed specified in section one hundred

thirty-five of the state finance law, but the directors of the

corporation may in their discretion assign such contracts for

supervision to the successful bidder for the remaining work to be

performed at the time the contracts for the particular mental hygiene

facility are awarded.

g. All contracts which are to be awarded pursuant to this paragraph

shall be awarded by public letting in accordance with the following

provisions, notwithstanding any contrary provision of section one

hundred thirty-six, one hundred thirty-nine or one hundred forty of the

state finance law, except that in the discretion of the directors of the

corporation, a contract may be entered into for such purposes without

public letting where the estimated expense thereof is no more than

eighty thousand dollars:

(i) If contracts are to be publicly let, the directors of the

corporation shall advertise the invitation to bid in a newspaper

published in the county of Albany and in such other newspapers as will

be most likely in their opinion to give adequate notice to contractors

of the work required and of the invitation to bid. The invitation to bid

shall contain such information as the directors of the corporation shall

deem appropriate and a statement of the time and place where all bids

received pursuant to such notice will be publicly opened and read.

(ii) The directors of the corporation shall not award any contract

after public bidding except to the lowest bidder who in their opinion is

qualified to perform the work required and is responsible and reliable.

The directors of the corporation may, however, reject any or all bids,

again advertise for bids, or waive any informality in a bid if they

believe that the public interest will be promoted thereby. The directors

of the corporation may reject any bid if in their judgment the business

and technical organization, plant, resources, financial standing or

business experience of the bidder, compared with the work to be

performed, justify such rejection.

(iii) The invitation to bid and the contract awarded shall contain

such other terms and conditions, and such provisions for penalties, as

the directors of the corporation may deem desirable.

(iv) The directors of the corporation shall require such deposits,

bonds and security in connection with the submission of bids, the award

of contracts and the performance of work as they shall determine to be

in the public interest and for the protection of the state and affected

state agencies, including the corporation.

h. The directors of the corporation shall determine when minor work of

construction, reconstruction, alteration or repair of any mental hygiene

facility may be done by special order. Special orders for such work

shall be short-form contracts approved by the attorney general and by

the comptroller. No work shall be done by special order in an amount in

excess of twenty thousand dollars and a bond shall not be required for

special orders. No work shall be done by special order unless the

directors have presented to the comptroller evidence that they have made

a diligent effort to obtain competition sufficient to protect the

interests of the state prior to selecting the contractor to perform the

work. Notwithstanding the provisions of paragraph g of this subdivision,

work done by special order under this paragraph may be advertised

through the regular public notification service of the office of general

services or the state register. At least five days shall elapse between

the first publication of such public notice and the date so specified

for the public opening of bids. The directors may also authorize the

corporation to enter into special order contracts using bids advertised

for, received and opened by any office of the department, in compliance

with this act and all other applicable laws, and transmitted to the

corporation. All payments on special orders shall be made on the

certificate of the directors of the corporation and audited and approved

by the state comptroller. All special orders shall contain a clause that

the special order shall only be deemed executory to the extent of the

moneys available and no liability shall be incurred by the state beyond

the moneys available for the purpose.

3. Resources of the corporation. a. Subject to the provisions of this

act, the directors of the corporation shall receive, accept, invest,

administer, expend and disburse for its corporate purposes, other than

for the purposes of any health facilities improvement program, (i) all

payments made on or after January 1, 1964, for the care, maintenance and

treatment of patients in every mental hygiene facility, other than a

community mental health and developmental disabilities facility or a

mental hygiene facility made available under license or permit from the

corporation to a voluntary agency for use in providing community mental

health and developmental disabilities services, or an office of

addiction services and supports facility made available under license or

permit from the corporation to a voluntary agency for use in the conduct

of an alcoholism or substance abuse treatment program, (ii) all payments

made to the corporation by a lessee or permittee as rentals, permit fees

or otherwise under any lease, sublease, permit or agreement undertaken

with respect to a community mental health and developmental disabilities

facility or current or former mental hygiene facility or from a

voluntary agency with respect to a mental hygiene facility made

available under lease, license or permit from the corporation to a

voluntary agency, and (iii) all payments made to the corporation for the

purchase of real property held by the corporation for the use of the

department, other than payments derived from New York state medical care

facilities finance agency financing or refinancing of the design,

construction, acquisition, reconstruction, rehabilitation, improvement

or renovation of state operated mental hygiene facilities, and may

receive, accept, invest, administer, expend and disburse for its

corporate purposes, other than for the purposes of any health facilities

improvement program, appropriations or advances from the capital

projects fund and the state purposes account of the general fund of the

state, and other revenues and monies made available or to be made

available to the corporation from any or all sources, including gifts,

grants, loans and payments from the federal government, any state

agency, any county, city, town or village, any private foundation,

organization or individual, or any other source, for the construction,

acquisition, reconstruction, rehabilitation and improvement of mental

hygiene facilities, and for the maintenance and repair of such

facilities.

b. All monies of the corporation received or accepted pursuant to

paragraph a of this subdivision, other than appropriations and advances

from the state and except as otherwise authorized or provided in this

section, shall be paid to the commissioner of taxation and finance as

agent of the corporation, who shall not commingle such monies with any

other monies. Such monies shall be deposited in two or more separate

bank accounts. One of such accounts, to which shall be credited (i) all

payments made on or after January 1, 1964, for the care, maintenance and

treatment of patients in every mental hygiene facility, other than a

community mental health and developmental disabilities facility, (ii)

all payments made to the corporation as rentals, lease payments, permit

fees or otherwise under any lease, sublease or agreement undertaken with

respect to a community mental health and developmental disabilities

facility or a current or former mental hygiene facility, (iii) all

payments made to the corporation for the purchase of real property held

by the corporation for the use of the department, other than payments

derived from New York state medical care facilities finance agency

financing or refinancing of the design, construction, acquisition,

reconstruction, rehabilitation, improvement or renovation of state

operated mental hygiene facilities, (iv) all income from investments and

(v) all monies received or to be received for the purposes of such

account on a recurring basis, shall be denominated the "mental hygiene

facilities improvement fund income account". The monies in any account

shall be paid out on checks signed by the commissioner of taxation and

finance on requisition of the chairman of the corporation or of such

other officer or employee or officers or employees as the corporation

shall authorize to make such requisition. All deposits of such money

shall, if required by the commissioner of taxation and finance or the

directors of the corporation, be secured by obligations of the United

States or of the state of a market value equal at all times to the

amount of the deposit and all banks and trust companies are authorized

to give such security for such deposits. Any moneys of the corporation

not required for immediate use or disbursement may, at the discretion of

the corporation, be invested by the commissioner of taxation and finance

in accordance with the provisions of section 98-a of the state finance

law. The mental hygiene facilities improvement fund and the income

account therein shall remain in existence until terminated by the

corporation by written notice to the commissioner of taxation and

finance. Any moneys on deposit in the mental hygiene facilities

improvement fund or the income account therein upon the termination of

said fund and account shall be transferred by the commissioner of

taxation and finance to the mental health services fund. The corporation

shall not terminate the mental hygiene facilities improvement fund and

the income account therein until all mental health services facilities

bonds issued pursuant to: (i) the New York state medical care facilities

finance agency act; (ii) article five-C of the state finance law; and

(iii) article five-F of the state finance law and payable from the

income account as described in paragraph g of this subdivision are no

longer outstanding.

c. Subject to the terms of any lease, sublease or agreement undertaken

by the corporation, any such monies of the corporation, not required for

immediate use may, at the discretion of the corporation, be invested by

the commissioner of taxation and finance in obligations of the United

States or the state or obligations the principal and interest of which

are guaranteed by the United States or the state.

d. No lease, sublease or other agreement relating to an alcoholism or

substance abuse facility shall be undertaken by the corporation pursuant

to this subdivision unless the appropriate division of the office of

alcoholism and substance abuse shall have approved the terms thereof.

e. The directors of the corporation shall at all times maintain on

deposit in the mental hygiene facilities improvement fund income account

the aggregate amount of money needed by the corporation during the next

succeeding twelve calendar months to comply in full with all obligations

of the corporation under the terms of every lease, sublease or agreement

undertaken by the corporation which is then in effect, including without

limitation by the specification thereof, (i) the amount needed to make

rental payments thereunder during such year, and (ii) the amount needed

to establish and maintain reserves thereunder during such year provided,

however, that the provisions of this paragraph shall not apply with

respect to agreements entered into pursuant to section nine-a of the New

York state medical care facilities finance agency act.

f. The directors of the corporation shall from time to time, but in no

event later than the fifteenth day of each month pay over to the

commissioner of taxation and finance and the state comptroller for

deposit in the mental health services fund, all monies of the

corporation in excess of the aggregate amount of money required to be

maintained on deposit in the mental hygiene facilities improvement fund

income account pursuant to paragraphs e and g of this subdivision. Prior

to making any such payment, the chairman of the corporation shall, on

behalf of the directors, make and deliver to the governor and the

director of the budget his certificate stating the aggregate amount to

be maintained on deposit in the mental hygiene facilities improvement

fund income account to comply in full with the provisions of paragraphs

e and g of this subdivision.

g. (1) In addition to the amount required to be maintained by

paragraph e of this subdivision, there shall be accumulated and set

aside in each month in the mental hygiene facilities improvement fund

income account, all receipts associated with loans, leases and other

agreements with voluntary agencies. The corporation shall provide the

amount of such receipts to be set aside to the commissioner of taxation

and finance in each month. (2) No later than five days prior to the

earlier of when payment is to be made on bonds issued for mental health

services facilities purposes pursuant to: (i) the New York state medical

care facilities finance agency act; (ii) article five-C of the state

finance law; and (iii) article five-F of the state finance law, such

set-aside receipts shall be transferred by the commissioner of taxation

and finance as agent of the corporation from the mental hygiene

facilities improvement fund income account in the amounts set forth in

schedules provided by the corporation to the commissioner of taxation

and finance in the following priority: first, to the trustee appointed

by the New York state medical care facilities finance agency for the

bonds issued pursuant to the New York state medical care facilities

finance agency act for both voluntary agency and state purposes to pay

debt service and other cash requirements due on such bonds on the

relevant payment date, second, any remaining amount of such set-aside

receipts to the trustee appointed by authorized issuers for the bonds

issued pursuant to article five-C of the state finance law to pay debt

service and other cash requirements due on such bonds on the relevant

payment date and third, any remaining amount of such set-aside to the

trustee appointed by authorized issuers for the bonds issued pursuant to

article five-F of the state finance law to pay debt service and other

cash requirements due on such bonds on the relevant payment date.

4. Agreements. a. Upon certification by the director of the budget of

the availability of required appropriation authority, the corporation,

or any successor agency, is hereby authorized and empowered to enter

into leases, subleases, loans and other financing agreements with the

state housing finance agency and/or the state medical care facilities

finance agency, and to enter into such amendments thereof as the

directors of the corporation, or any successor agency, may deem

necessary or desirable, which shall provide for (i) the financing or

refinancing of or the design, construction, acquisition, reconstruction,

rehabilitation or improvement of one or more mental hygiene facilities

or for the refinancing of any such facilities for which bonds have

previously been issued and are outstanding, and the purchase or

acquisition of the original furnishings, equipment, machinery and

apparatus to be used in such facilities upon the completion of work,

(ii) the leasing to the state housing finance agency or the state

medical care facilities finance agency of all or any portion of one or

more existing mental hygiene facilities and one or more mental hygiene

facilities to be designed, constructed, acquired, reconstructed,

rehabilitated or improved, or of real property related to the work to be

done, including real property originally acquired by the appropriate

commissioner or director of the department in the name of the state

pursuant to article seventy-one of the mental hygiene law, (iii) the

subleasing of such facilities and property by the corporation upon

completion of design, construction, acquisition, reconstruction,

rehabilitation or improvement, such leases, subleases, loans or other

financing agreements to be upon such other terms and conditions as may

be agreed upon, including terms and conditions relating to length of

term, maintenance and repair of mental hygiene facilities during any

such term, and the annual rentals to be paid for the use of such

facilities, property, furnishings, equipment, machinery and apparatus,

and (iv) the receipt and disposition, including loans or grants to

voluntary agencies, of proceeds of mental health service facilities

bonds or notes issued pursuant to section nine-a of the New York state

medical care facilities finance agency act. For purposes of the design,

construction, acquisition, reconstruction, rehabilitation or improvement

work required by the terms of any such lease, sublease or agreement, the

corporation shall act as agent for the state housing finance agency or

the state medical care facilities finance agency. In the event that the

corporation enters into an agreement for the financing of any of the

aforementioned facilities with the state housing finance agency or the

state medical care facilities finance agency, or in the event that the

corporation enters into an agreement for the financing or refinancing of

any of the aforementioned facilities with one or more voluntary

agencies, it shall act on its own behalf and not as agent. The

appropriate commissioner or director of the department on behalf of the

department shall approve any such lease, sublease, loan or other

financing agreement and shall be a party thereto. All such leases,

subleases, loans or other financing agreements shall be approved prior

to execution by no less than three directors of the corporation.

b. To secure the payment of moneys or rentals due or to become due in

any year under any lease, sublease, loan or other financing agreement

entered into with the state housing finance agency or the state medical

care facilities finance agency, pursuant to paragraph a of this

subdivision, the directors of the corporation may pledge or assign any

or all monies in the mental hygiene facilities improvement fund income

account and in any rental reserve account established pursuant to

paragraph c of this subdivision, and any or all monies which may be

receivable by the corporation and credited to either or both such

accounts in the future, whether equal to or in excess of the amount of

such rentals due or becoming due in any year, and any or all right,

title and interest of the corporation in and to the monies in or to be

deposited in such accounts.

c. The corporation may create and establish one or more separate

accounts to be known as "rental reserve accounts" and may pay into such

reserve accounts (i) any monies apportioned and paid by the state for

the purposes of such reserve account pursuant to this paragraph, (ii)

any monies in the mental hygiene facilities improvement fund income

account transferred to such reserve accounts by the directors of the

corporation pursuant to any lease, sublease or other agreement

undertaken by the corporation, and (iii) any other monies which may be

made available to the corporation from any source or sources

specifically for the purposes of such reserve accounts.

The monies credited to any rental reserve account established under

this paragraph shall be used, except as hereinafter provided, solely for

the payment of rentals as they become due under one or more of the

leases, subleases and agreements referred to in paragraph a of this

subdivision, provided, however, that the monies in such account shall

not be withdrawn therefrom at any time in such amount as would reduce

the amount thereof to less than the maximum amount of rental becoming

due in any succeeding calendar year under such leases, subleases and

agreements, except for the purpose of paying such rentals becoming due

for the payment of which other moneys of the corporation are not

available.

Subject to the terms of any lease, sublease or agreement referred to

in paragraph a of this subdivision, monies in a rental reserve account

not required for immediate use or disbursement may be invested in

obligations of the United States or the state or obligations the

principal and interest of which are guaranteed by the United States or

the state. In computing the amount of a rental reserve account for the

purposes of this paragraph, securities in which all or a portion of the

account are invested shall be valued at their market value as of a date

within seven days preceding the date of the computation or at their cost

to the corporation, whichever is less.

Any excess in a rental reserve account as of the last day of any state

fiscal year over the maximum amount of rental becoming due in any

succeeding calendar year under such lease agreements shall be withdrawn

by the corporation from such account and transferred to the mental

hygiene facilities improvement fund income account to be used for the

corporate purposes of the corporation, other than for the purposes of

any health facilities improvement program.

In order further to secure the maintenance in all rental reserve

accounts established pursuant to this paragraph of an amount equal to

the maximum amount of rental becoming due in any succeeding calendar

year under the leases, subleases and agreements to which the reserve

account relates, there shall be annually apportioned and paid to the

corporation for deposit in such rental reserve accounts such sum, if

any, as shall be certified by the chairman of the corporation to the

governor and director of the budget as necessary to restore such

accounts to an amount equal to the maximum amount of rental becoming due

in any succeeding calendar year under such leases, subleases and

agreements. The chairman of the corporation shall annually, on or before

December first, make and deliver to the governor and director of the

budget his certificate stating the amount, if any, required to restore

such rental reserve accounts to the amount aforesaid and the amount so

stated in said certificate, if any, shall be apportioned and paid to the

corporation during the then current state fiscal year.

d. No lease, sublease or other agreement shall be undertaken by the

corporation pursuant to this section unless the governor, or where so

designated by the governor for such purpose, the director of the budget,

shall have approved the terms thereof.

e. The attorney general shall pass upon the form and sufficiency and

manner of execution of any lease, sublease or other agreement entered

into pursuant to this section and the same shall not be effective unless

so approved by him.

f. The state shall not be liable for any rentals, loan, or other

payments payable by the corporation pursuant to the terms of a lease,

sublease, loan or other financing agreement entered into pursuant to

this section, and such lease, sublease, loan or other financing

agreement shall contain among its terms a statement to such effect.

5. Jurisdiction of mental hygiene facilities; maintenance and repair.

On and after the effective date of this act, the corporation shall be

entitled to exclusive possession, jurisdiction, supervision and control

of all real property, including mental hygiene facilities, theretofore

acquired and held for department purposes and of all mental hygiene

facilities thereafter constructed or acquired, and, to all payments made

after January first, nineteen hundred sixty-four, for the care,

maintenance and treatment of patients at such mental hygiene facilities.

The directors of the corporation shall make available to the

appropriate commissioner of the department for use in the care,

maintenance and treatment of the mentally disabled, all such real

property and facilities including newly constructed, acquired,

reconstructed, rehabilitated and improved facilities, together with the

original furnishings, equipment, machinery and apparatus therein, as

soon as practicable after the completion of work. Responsibility for the

maintenance and upkeep of such property, for the maintenance and routine

repair of such facilities, and for the replacement of furnishings,

equipment, apparatus and machinery, shall be in the appropriate

commissioner of the department, provided, however, if the terms of any

lease, sublease, loan or other financing agreement entered into between

the corporation and the state housing finance agency or the state

medical care facilities finance agency, pursuant to subdivision four of

this section so require, such responsibility shall be in the directors

of the corporation until the termination of such lease, sublease, loan

or other financing agreement.

The care, maintenance and treatment of the mentally disabled at all

mental hygiene facilities shall remain at all times the responsibility

of the appropriate commissioner of the department in accordance with the

provisions of the mental hygiene law.

Notwithstanding the foregoing provisions of this subdivision, title to

all real property on which mental hygiene facilities, other than those

owned or leased by voluntary agencies, are located shall continue to be

vested in the people of the state until conveyed in accordance with law.

The provisions of this subdivision shall not apply to community mental

health and developmental disabilities facilities.

6. Notwithstanding any provision of any general, special or local law

or of any charter:

a. The governing body, as such term is defined in article forty-one of

title E of the mental hygiene law (except that with respect to the city

of New York such term shall mean the board of estimate), of a city or

county may, upon such terms and conditions as shall be approved by such

governing body and for such consideration, if any, as may be determined

by such governing body, but not to exceed the cost of acquisition

thereof and the cost of improvements thereon, exclusive of any costs

reimbursed or to be reimbursed in accordance with the provisions of

article forty-one of title E of the mental hygiene law otherwise,

execute and deliver to the corporation a lease for a term not exceeding

forty years or a deed (i) conveying to the corporation real property and

one or more community mental health and developmental disabilities

facilities of the city or county located thereon, a portion of the costs

of which facilities are eligible for state reimbursement in accordance

with the provisions of article forty-one of title E or article

twenty-five of title D of the mental hygiene law or (ii) conveying to

the corporation real property of the city or county or an interest

therein, for the purpose of causing to be constructed, reconstructed,

rehabilitated or improved thereon one or more community mental health

and developmental disabilities facilities pursuant to this act, such

community mental health and developmental disabilities facilities to be

made available to such county or city for use and occupancy under lease,

sublease or other agreement upon such terms and conditions as may be

agreed upon, including terms and conditions relating to length of terms,

maintenance and repair of community mental health and developmental

disabilities facilities during such term and the annual rentals to be

paid therefor for the use thereof. The corporation is hereby authorized

to accept any such lease or conveyance, to hold such real property, to

enter into a lease, sublease or other agreement with such city or county

for the purpose of making such community mental health and developmental

disabilities facility so acquired or to be constructed, reconstructed,

rehabilitated or improved thereon available for use and occupancy by

such city or county, and to lease or convey real property so acquired to

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

finance agency, provided, however, that any such further lease or

conveyance shall be solely for the purpose of causing community mental

health and developmental disabilities facilities to be acquired,

constructed, reconstructed, rehabilitated or improved thereon, such

community mental health and developmental disabilities facilities to be

made available to such city or county for use and occupancy under a

lease, sublease or other agreement between the corporation and such city

or county, upon such terms and conditions as may be agreed upon. No such

lease or conveyance from the corporation to the New York state housing

finance agency or the state medical care facilities finance agency shall

be for a consideration in excess of the cost of acquisition of such real

property and the costs of improvements thereon. The appropriate

commissioner of the department, on behalf of his or her office, and the

director of the budget shall approve all leases, subleases or

agreements, whether between the corporation and such city or county or

between the corporation and the housing finance agency or the state

medical care facilities finance agency, and the appropriate commissioner

of the department shall be a party thereto. The appropriate division of

the office of addiction services and supports shall also approve all

such leases, subleases or agreements relating to the construction,

reconstruction, rehabilitation or improvement of community mental health

and developmental disabilities facilities, constituting alcoholism or

substance abuse facilities for use in an alcoholism or substance abuse

treatment program as defined in the mental hygiene law.

b. In the event that the corporation shall fail, within five years

after the date of such lease or conveyance, to construct, reconstruct,

rehabilitate or improve the community mental health and developmental

disabilities facility or facilities thereon for which such lease or

conveyance was made, or to cause the same to be done, as provided for in

a lease, sublease or other agreement entered into with such city or

county, then, subject to the terms of any lease, sublease or other

agreement undertaken by the New York state housing finance agency or the

state medical care facilities finance agency, with respect thereto, such

real property and any facilities thereon shall revert to such city or

county with right of re-entry thereupon, and such lease or deed shall be

made subject to such condition of reverter and re-entry; provided,

however, that as a condition precedent to the exercise of such right of

re-entry, such city or county shall pay an amount equal to the sum of

the purchase price of such real property, the depreciated cost of any

facility or facilities constructed, reconstructed, rehabilitated or

improved thereon, and all other costs of the corporation or the New York

state housing finance agency or the state medical care facilities

finance agency incident to the costs of the acquisition of such real

property and the financing of construction, reconstruction,

rehabilitation or improvement relating to such facility or facilities,

all as provided in the aforesaid lease, sublease or other agreement

entered into with such city or county.

c. No real property or interest therein shall be acquired by the

corporation pursuant to this subdivision unless title thereto shall have

been approved by the attorney general.

d. The attorney general shall pass upon the form and sufficiency and

manner of execution of any deed of conveyance and of any lease of real

property authorized to be given under this subdivision by any city or

county to the corporation, and any lease, sublease or agreement between

the corporation and a city or county, and the same shall not be

effective unless such deed, lease, sublease or agreement shall be so

approved by him.

e. The cost of construction, acquisition, reconstruction,

rehabilitation or improvement of community mental health and

developmental disabilities facilities undertaken by the corporation

pursuant to this act may include the cost of acquisition of any real

property leased or conveyed to the corporation pursuant to paragraph a

of this subdivision and the cost of the original furnishing, equipment,

machinery and apparatus as determined by the corporation.

f. The provisions of this act shall not be deemed to prevent a city or

county from financing the cost of constructing, acquiring,

reconstructing, rehabilitating or improving a community mental health

and developmental disabilities facility by the issuance of bonds or

capital notes of such city or county pursuant to the local finance law.