N.Y. Medical Care Facilities Finance Agency 392/73 § 5-a: Federally-aided mortgage loans

§ 5-a. Federally-aided mortgage loans. In addition to the powers of

the agency to make mortgage loans pursuant to other provisions of this

act, the agency has the following powers:

1. The agency may make federally-aided mortgage loans to a municipal

hospital, municipal nursing home, non-profit hospital corporation,

non-profit corporation providing a residential health care facility or

non-profit medical corporation organized pursuant to article forty-four

of the public health law upon terms and conditions not inconsistent with

article twenty-eight of the public health law or article sixteen or

thirty-one of the mental hygiene law as the case may be and this

section. The proceeds of such loan are to be used substantially to

finance the construction, acquisition, reconstruction, refinancing,

rehabilitation, improvement, management or operation of the project.

2. A federally-aided mortgage loan made by the agency shall not exceed

an amount equal to the lesser of (i) the maximum mortgage loan

authorized or approved by the federal government or (ii) one hundred

percent of the cost of development of the project approved by the

agency.

3. With respect to a non-profit hospital corporation, non-profit

corporation providing a residential health care facility or non-profit

medical corporation, the agency shall not make a federally-aided

mortgage loan unless (a) the commissioner has approved the project,

recommended the project based on public need and the financial resources

available to it, and finds that the non-profit hospital corporation,

non-profit corporation providing a residential health care facility, or

non-profit medical corporation has complied with the provisions of

article twenty-eight of the public health law or article sixteen or

thirty-one of the mental hygiene law as the case may be, and that the

non-profit medical corporation also has complied with the provisions of

article forty-four of the public health law, and (b) the agency finds

that (i) the estimated revenues of the project will be sufficient to

cover all probable costs of operations and maintenance, all installments

of principal and interest on the indebtedness relating to the project,

taxes, and such other expenses, including the maintenance of reserves,

as may be projected or required by the agency or the federal government,

and (ii) with respect to a nursing home project, the project is to be

available for persons of low income as defined by paragraph two of

section twenty-eight hundred sixty of the public health law.

4. As used in this section or in connection with a federally-aided

mortgage loan, the term "project" means a specific work or improvement,

whether or not to effectuate all or any part of a plan, and includes

lands, buildings, improvements, fixtures and personal property

constructed, acquired, reconstructed, refinanced, rehabilitated,

improved, managed, owned or operated by a non-profit corporation

pursuant to this section, to provide hospital, residential health care,

residential facilities for developmentally disabled persons or mentally

disabled persons or for the care, treatment, training and education of

developmentally disabled persons or mentally disabled persons or

comprehensive health services facilities and such related incidental and

appurtenant facilities as the agency may approve. The term "project"

shall also mean a separate work or improvement, including lands,

buildings, fixtures and personal property related thereto, managed,

owned or operated by a non-profit corporation pursuant to this section

to provide such services, functions, capabilities and facilities as may

be convenient or desirable for the operation of a hospital, a

residential health care or comprehensive health services facility.

5. Notwithstanding any other provisions of law, general, special or

local, or any provision of any charter or ordinance, including local

finance law section twenty, a municipality is hereby authorized to

borrow for or give a mortgage on its municipal hospitals or nursing

homes for the purpose of constructing, reconstructing, rehabilitating or

improving one or more such hospitals or nursing homes pursuant to this

act in accordance with the terms of any agreement entered into pursuant

to this act.

6. As used in this section or in connection with federally-aided

mortgage loan regarding residential facilities for developmentally

disabled persons or mentally disabled persons or for the care,

treatment, training and education of developmentally disabled persons or

mentally disabled persons the term "commissioner" shall also mean the

commissioner of mental health or the commissioner of the office for

people with developmental disabilities.

7. (a) In connection with the making of federally-aided mortgage

loans, the commissioner of health shall charge to such non-profit

hospital corporation, non-profit corporation providing a residential

health care facility or non-profit medical corporation, for mortgage

closings on or after April first, nineteen hundred eighty-nine, a fee of

nine-tenths of one percent of the mortgage loan, payable on requisition

on or after the mortgage closing to the state department of health by

the mortgagor for deposit into the state general fund.

(b) In connection with the refinancing or refunding of federally-aided

mortgage loans or loans made pursuant to articles twenty-eight-A and

twenty-eight-B of the public health law, the commissioner of health

shall charge to such non-profit hospital corporation, non-profit

corporation providing a residential health care facility or non-profit

medical corporation, for mortgage closings on or after April first,

nineteen hundred eighty-nine, a fee of five-tenths of one percent of the

new mortgage loan, payable on requisition on or after the mortgage

closing to the state department of health by the mortgagor for deposit

into the state general fund.

(c) The fees and charges paid by a non-profit hospital corporation,

non-profit corporation providing a residential health care facility or

non-profit medical corporation pursuant to this subdivision shall be

deemed allowable capital costs in the determination of reimbursement

rates established pursuant to article twenty-eight of the public health

law. The cost of such fees and charges shall not be subject to

reimbursement ceiling or other penalties used by the commissioner for

the purpose of establishing reimbursement rates pursuant to article

twenty-eight of the public health law.