N.Y. Private Housing Finance Law § 47-b: Mental hygiene improvement bonds and notes

§ 47-b. Mental hygiene improvement bonds and notes. 1. Definitions.

For the purposes of section forty-seven and of this section:

a. "Community mental health and developmental disabilities facility"

shall mean a building, a unit within a building, a laboratory, a

classroom, a housing unit, a dining hall, an activities center, a

library, or any structure on or improvement to real property of any kind

or description, including fixtures and equipment which are an integral

part of such building, unit or structure or improvement, a walkway, a

roadway or a parking lot and improvements and connections for water,

sewer, gas, electrical, telephone, heating, air conditioning and other

utility services, or a combination of any of the foregoing, whether for

patient care and treatment or staff, staff family or service use,

located in a city, or in a county not wholly included within a city,

authorized to provide community mental health services in accordance

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

hygiene law, which is utilized or to be utilized for the administration

and conduct of programs for people living with either mental illness or

developmental disabilities, or both, and for the provision of services

therefor. A community mental health and developmental disabilities

facility shall also mean and include a residential facility to be

operated as a community residence for the mentally disabled, and a

treatment facility for use in the conduct of an alcoholism treatment

program or of a substance abuse treatment program as defined in the

mental hygiene law.

b. "Mental hygiene facility" shall mean a building, a unit within a

building, a laboratory, a classroom, a housing unit, a dining hall, an

activities center, a library, or any structure on or improvement to real

property of any kind or description, including fixtures and equipment

which are an integral part of any such building, unit, structure or

improvement, a walkway, a roadway or a parking lot, and improvements and

connections for water, sewer, gas, electrical, telephone, heating, air

conditioning and other utility services, or a combination of any of the

foregoing, whether for patient care and treatment or staff, staff family

or service use, located at or related to any state hospital, any state

school, or any state psychiatric or research institute now or hereafter

established under the professional jurisdiction, supervision and control

of the state department of mental hygiene. A mental hygiene facility

shall mean and include a "community mental health and developmental

disabilities facility", unless such facility is expressly excepted or

the context clearly requires otherwise, and shall also mean and include

a treatment facility for use in the conduct of an alcoholism or

substance abuse treatment program as defined in the mental hygiene law,

unless such facility is expressly excepted or the context clearly

requires otherwise. The definition contained in this subdivision shall

not be construed to exclude therefrom a facility to be made available

under license or permit from the health and mental hygiene facilities

improvement corporation to a voluntary agency at the request of the

commissioners of the offices of the department of mental hygiene having

jurisdiction thereof for use in providing community mental health and

developmental disabilities services, or for use in the conduct of an

alcoholism or substance abuse treatment program.

c. "Mental hygiene improvement bonds" and "mental hygiene improvement

notes" shall mean bonds and notes, respectively, issued by the agency

pursuant to subdivision two of this section.

d. "Mental hygiene facilities improvement program" shall mean a

program undertaken by the agency and the health and mental hygiene

facilities improvement corporation for the purpose of constructing,

acquiring, reconstructing, rehabilitating or improving mental hygiene

facilities or causing such facilities to be constructed, acquired,

reconstructed, rehabilitated or improved pursuant to the health and

mental hygiene facilities improvement act and this article.

2. Additional powers of the agency.

a. The agency shall have power to lease one or more existing mental

hygiene facilities from the trustees of the health and mental hygiene

facilities improvement corporation and to construct, acquire,

reconstruct, rehabilitate and improve new mental hygiene facilities at

such facilities, or on any real property leased from the said

corporation, and to cause such new facilities to be constructed,

acquired, reconstructed, rehabilitated or improved by the trustees of

the said corporation as its agent, all in accordance with a lease,

sublease or other agreement entered into between the agency and the

trustees of the said corporation pursuant to subdivision four of section

nine of the health and mental hygiene facilities improvement act.

b. The agency shall have power and is hereby authorized from time to

time to issue negotiable bonds and notes in conformity with applicable

provisions of the uniform commercial code in such principal amount as,

in the opinion of the agency, shall be necessary, after taking into

account other monies which may be available for the purpose, to provide

sufficient funds for the construction, acquisition, reconstruction,

rehabilitation or improvement of mental hygiene facilities pursuant to

the preceding paragraph of this subdivision, the payment of interest on

mental hygiene improvement bonds and mental hygiene improvement notes

issued for such purposes, the establishment of reserves to secure such

bonds and notes, and all other expenditures of the agency incident to

and necessary or convenient for any such construction, acquisition,

reconstruction, rehabilitation or improvement; provided, however, that

the agency shall not issue mental hygiene improvement bonds and mental

hygiene improvement notes in an aggregate principal amount exceeding

seven hundred five million dollars, excluding mental hygiene improvement

bonds and mental hygiene improvement notes issued to refund outstanding

mental hygiene improvement bonds or mental hygiene improvement notes.

3. Application of other provisions of article. Except as stated in

section forty-seven, the other provisions of this article shall apply to

mental hygiene improvement bonds and mental hygiene improvement notes

issued by the agency pursuant to this section, provided, however, that

such bonds and notes, subject to any agreements with the holders of

particular bonds or notes pledging any specified portions thereof, shall

be secured by a pledge to the payment thereof of (i) rentals paid to the

agency with respect to mental hygiene facilities financed with the

proceeds of such bonds and notes, and (ii) any other assets, monies or

accounts pledged or assigned to the agency as security for the payment

of such rentals, and provided further that no resolution or resolutions

authorizing mental hygiene improvement bonds and mental hygiene

improvement notes shall (i) pledge all or any part of the fees and

charges made or received by the agency pursuant to subdivision eleven of

section forty-four in connection with the making of mortgage loans or

commitments therefor, or all or any part of the monies received in

payment of such mortgage loans and interest thereon, or (ii) pledge all

or any part of the mortgages of the agency or obligations securing the

same, or (iii) provide as to the use and disposition of the gross income

from mortgages owned by the agency or as to the payment of principal of

mortgages owned by the agency, or (iv) pledge all or any part of the

rentals paid to the agency under leases, subleases or other agreements

for state university facilities or health facilities entered into by the

agency in accordance with this article, or (v) pledge or assign all or

any part of any other assets, monies or accounts pledged or assigned to

the agency as security for the payment of rentals for such state

university facilities or health facilities.

4. Mental hygiene facilities fund. The agency shall create and

establish a special fund (herein referred to as mental hygiene

facilities fund) and shall pay into such fund any monies which the

agency shall receive in payment of rentals due under one or more leases,

subleases or other agreements entered into pursuant to subdivision four

of section nine of the health and mental hygiene facilities improvement

act and any other monies which the agency shall receive from the health

and mental hygiene facilities improvement corporation as security for or

in payment of such rentals. Such monies and any other monies paid into

the mental hygiene facilities fund may, in the discretion of the agency,

but subject to agreements with the holders of mental hygiene improvement

bonds and mental hygiene improvement notes, be used by the agency (a)

for the repayment of advances, if any, from the state to the agency in

connection with mental hygiene facilities, and any real property

required therefor, in accordance with the provisions of repayment

agreements related thereto which have been entered into with the

director of the budget, (b) to pay all costs, expenses and charges of

financing mental hygiene facilities including fees and expenses of

trustees and paying agents, (c) to pay the administrative and other

expenses of the agency allocable to the services performed by the agency

in the financing of the construction, acquisition, reconstruction,

rehabilitation or improvement of mental hygiene facilities and matters

relating thereto, (d) for the payment of the principal of and interest

on mental hygiene improvement bonds or mental hygiene improvement notes

issued by the agency when the same shall become due whether at maturity

or by call for redemption and for the payment of any redemption premium

required to be paid where such bonds or notes are redeemed prior to

their stated maturities, and to purchase mental hygiene improvement

bonds or mental hygiene improvement notes issued by the agency, or (e)

for such other corporate purposes of the agency relating to the carrying

out of its functions, powers and duties with respect to the financing of

the construction, acquisition, reconstruction, rehabilitation or

improvement of mental hygiene facilities as the agency in its discretion

shall determine and provide.