N.Y. Private Housing Finance Law § 47-c: Special provisions related to certain bonds and notes

§ 47-c. Special provisions related to certain bonds and notes.

Notwithstanding any other provision of law, general or special:

1. Any public corporation or officer responsible for the acquisition

of real property or the planning, supervision or administration of

facilities thereon which may be constructed, acquired, reconstructed,

rehabilitated or improved by the agency pursuant to this article is

hereby authorized for and on behalf and in the name of the people of the

state of New York, to execute and deliver to the agency, for such

consideration, if any, as may be determined by such public corporation

or officer and the agency, but not to exceed the cost of acquisition

thereof and the cost of improvements thereon, a lease for a term not

exceeding fifty years or a quitclaim deed conveying to the agency all

the right, title and interest of the people of the state of New York in

and to any of the lands acquired by such public corporation or officer

for such facilities, and in and to any of the improvements thereon, for

the purpose of constructing, reconstructing, rehabilitating or improving

thereon one or more facilities pursuant to this article for lease or

sublease to any such public corporation or officer, in accordance with

the terms of an agreement entered into among them in accordance with

law. The agency is hereby authorized to accept any such lease or

conveyance, to lease or sublease such lands, improvements and facilities

to such public corporation or officer, and to hold the same subject to

the terms of any such lease, conveyance, sublease or other agreement,

and such public corporation or officer is hereby authorized, with the

approval of the governor, or where so designated by the governor for

such purpose, the director of the budget, to lease or sublease any such

lands or improvements or the facilities constructed, reconstructed,

rehabilitated or improved thereon pursuant to this article or other

provisions of law, and to hold such lands, improvements and facilities

subject to the terms of any such lease, sublease or other agreement.

2. a. In the event that the agency shall fail, within five years from

the date of a lease or conveyance authorized pursuant to subdivision one

of this section, to construct, reconstruct, rehabilitate or improve the

facility or facilities thereon for which the conveyance was made, as

provided for in a lease, sublease or other agreement entered into with

such public corporation or officer, or in the event that such facility

or facilities shall cease to be used for the purposes intended, then and

in either event but subject to the terms of any lease, sublease or other

agreement undertaken by the agency, such lands, and the improvements and

facilities thereon, shall revert to the people of the state of New York

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

subject to such conditions; provided, however, that as a condition

precedent to the exercise of such right of re-entry the state of New

York, or such public corporation or officer, shall pay to the agency an

amount equal to the purchase price of such lands and improvements, the

depreciated cost of any facility or facilities constructed,

reconstructed, rehabilitated or improved thereon, and all other costs of

the agency incident to the acquisition of such lands 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 public corporation or

officer.

b. In the event that the agency shall determine that any portions of

the lands leased or conveyed pursuant to subdivision one hereof are in

excess of the lands needed to construct, reconstruct, rehabilitate or

improve the facility or facilities thereon for which the conveyance was

made, as provided in a lease, sublease or other agreement entered into

with such public corporation or officer, the agency may terminate its

lease with respect to such excess portions of such lands or reconvey

such excess portions to the people of the state of New York; provided,

however, that the state of New York or such public corporation or

officer shall pay to the agency an amount equal to the consideration, if

any, paid by the agency to such public corporation or officer allocable

to such excess lands and such other costs of the agency as are incident

to the acquisition of such excess lands, all as may be approved by such

public corporation or officer and the agency. Any monies so paid to the

agency shall be used and applied, subject to the provisions of any

contract with noteholders and bondholders, for the sole purpose of

paying costs and expenses of the agency incident to the financing of the

facility or facilities to be constructed, reconstructed, rehabilitated

or improved on such other portions of the land as shall have been leased

or conveyed to the agency pursuant to subdivision one hereof.

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

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

sublease of lands authorized to be given under subdivision one of this

section and the same shall not be effective unless so approved by him.

4. The cost of construction, acquisition, reconstruction,

rehabilitation or improvement of facilities undertaken by the agency

pursuant to this article may include the cost of acquisition of any land

and improvements leased or conveyed to the agency in accordance with

subdivision one of this section and the cost of the original

furnishings, equipment, machinery and apparatus determined by the

responsible public corporation or officer to be needed to furnish and

equip such facilities upon the completion of work. The agency shall have

power to acquire or lease and to hold land and improvements required for

the construction, acquisition, reconstruction, rehabilitation or

improvement of facilities undertaken by the agency pursuant to this

article and to provide the original furnishings, equipment, machinery

and apparatus determined by the responsible public corporation or

officer to be needed to furnish and equip such facilities upon the

completion of work and to issue its bonds and notes to provide

sufficient funds to pay the cost thereof.

5. Any public corporation or officer referred to in subdivision one of

this section is hereby authorized and empowered, in connection with any

lease, sublease or other agreement with the agency to which such public

corporation or officer is a party, and subject to such agreements with

third parties as may then exist, to:

(a) pledge or assign to the agency all or any portion of the revenues

and monies received or to be received by such public corporation or

officer, which may be available for the purpose of paying rentals for

the use of the facilities constructed, acquired, reconstructed,

rehabilitated or improved or to be constructed, acquired, reconstructed,

rehabilitated or improved under such agreement, so that the payment of

such rentals may be fully secured and protected; provided, however, that

such pledge or assignment shall not extend to appropriations or advances

from the state except appropriations or advances made specifically for

the purpose of paying all or any part of such rentals;

(b) use and dispose of such revenues and monies, or any portions

thereof, for the purpose of defraying, in whole or in part, (1) the cost

of acquiring any real property for the purpose of constructing,

acquiring, reconstructing, rehabilitating or improving facilities

thereon which may be constructed, acquired, reconstructed, rehabilitated

or improved by the agency pursuant to this article, (2) the cost of

financing the construction, acquisition, reconstruction, rehabilitation

or improvement of such facilities, and (3) the cost of acquiring the

original furnishings, equipment, machinery and apparatus needed to

furnish and equip such facilities upon the completion of work;

(c) set aside rental reserves and to agree to the maintenance,

regulation and disposition thereof;

(d) agree to limitations on the purposes to which the proceeds of sale

of agency notes or bonds may be applied and to the pledging of such

proceeds to secure the payment of agency notes or bonds or of any issue

thereof;

(e) agree to limitations on the making of additional leases, subleases

or agreements with the agency or with others, and the terms upon which

such additional leases, subleases or agreements may be made;

(f) recognize and give effect to such assignment, upon receipt of any

notice of assignment by the agency of any such lease, sublease or other

agreement with the agency, or of any of its rights under such lease,

sublease or other agreement, and to pay the assignee thereof rentals or

other payments then due or which may become due under any such lease,

sublease or other agreement which has been so assigned by the agency;

and

(g) agree to any other matters, of like or different character, which

in any way affect the security or protection of the rental payments

required to be made under the terms of such lease, sublease or other

agreement with the agency.

6. (a) Any state university facility, as defined in section

forty-seven-a of this article, which has been constructed, acquired,

reconstructed, rehabilitated or improved, in whole or in part, out of

monies advanced to the state university of New York, the state

university construction fund, the state office of general services or

the dormitory authority since August first, nineteen hundred sixty-two

pursuant to appropriations or reappropriations as advances from the

capital construction fund, and the lands upon which such a facility is

located, may be leased or conveyed to the agency by the state university

of New York, the state university construction fund or the dormitory

authority in accordance with the provisions of subdivisions one through

five of this section, notwithstanding that the construction,

acquisition, reconstruction, rehabilitation or improvement of such

facility may have been completed by the state university of New York,

the state university construction fund, the dormitory authority or the

state office of general services, or may have been undertaken or may

hereafter be undertaken by the dormitory authority under agreement with

the state university of New York or the state university construction

fund.

(b) Subject to such agreements with third parties as may then exist,

the state university of New York and the state university construction

fund are hereby authorized and empowered to enter into leases, subleases

and other agreements with the agency with respect to any state

university facility described in paragraph (a), and the lands upon which

such a facility is or may be located, in accordance with the provisions

of section three hundred seventy-eight of the education law and the

provisions of subdivisions one through five of this section; and the

agency is hereby authorized and empowered to accept any lease or

conveyance of any such state university facility, and the lands upon

which such a facility is or may be located, to acquire, construct,

reconstruct, rehabilitate or improve any such facility and to issue

bonds and notes to provide sufficient funds therefor in accordance with

the provisions of section forty-seven-a of this article and the

provisions of subdivisions one through five of this section.

(c) Any mental hygiene facility, as defined in section forty-seven-b

of this article, which has been constructed, acquired, reconstructed,

rehabilitated or improved, in whole or in part, out of monies advanced

or deemed to have been advanced to the health and mental hygiene

facilities improvement corporation, the state department of mental

hygiene or the office of general services, since April first, nineteen

hundred sixty-three pursuant to appropriations or reappropriations as

advances from the capital construction fund, and the lands upon which

such a facility is located, may be leased or conveyed to the agency by

the health and mental hygiene facilities improvement corporation or the

commissioner of mental hygiene in accordance with the provisions of

subdivisions one through five of this section, notwithstanding that the

construction, acquisition, reconstruction, rehabilitation or improvement

of such facility may have been completed by the health and mental

hygiene facilities improvement corporation, the state department of

mental hygiene or the office of general services.

(d) Subject to such agreements with third parties as may then exist,

the health and mental hygiene facilities improvement corporation is

hereby authorized and empowered to enter into leases, subleases and

other agreements with the agency with respect to any mental hygiene

facility described in paragraph (c), and the lands upon which such a

facility is or may be located, in accordance with the provisions of

subdivision four of section nine of the health and mental hygiene

facilities improvement act and the provisions of subdivisions one

through five of this section; and the agency is hereby authorized and

empowered to accept any lease or conveyance of any such mental hygiene

facility, and the lands upon which such a facility is or may be located,

to acquire, construct, reconstruct, rehabilitate or improve any such

facility, and to issue bonds and notes to provide sufficient funds

therefor in accordance with the provisions of section forty-seven-b of

this article and the provisions of subdivisions one through five of this

section.

7. a. The agency shall have the power to acquire by lease or deed from

the health and mental hygiene facilities improvement corporation any

real property acquired by the corporation pursuant to the provisions of

subdivision six of section nine of the facilities development

corporation act (i) for the purpose of constructing, reconstructing,

rehabilitating or improving thereon one or more community mental health

and developmental disabilities facilities or (ii) for the purpose of

financing the acquisition, construction, reconstruction, rehabilitation

or improvement thereon of one or more community mental health and

developmental disabilities facilities, pursuant to the provisions of

this article and the facilities development corporation act. The agency

is hereby authorized to lease or sublease such real property and

facilities thereon to the corporation for the purpose of making the same

available to a city or a county not wholly within a city, for use and

occupancy in accordance with the provisions of a lease, sublease or

other agreement between the corporation and such city or county.

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

the date of a lease or conveyance of such real property from such city

or county to the corporation, to construct, reconstruct, rehabilitate or

improve the community mental health and developmental disabilities

facility or facility thereon for which such lease or conveyance was

made, as provided for in a lease, sublease or other agreement entered

into by such city or county and the corporation, then, subject to the

terms of any lease, sublease or other agreement undertaken by the

agency, such real property and any facilities thereon shall revert to

the corporation 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 the corporation shall pay to the agency an amount

equal to the sum of the purchase price of such real property, the

depreciated cost of any community mental health and developmental

disabilities facility or facilities constructed, reconstructed,

rehabilitated or improved thereon and all other costs of the agency

incident to the acquisition of such lands and the financing of

construction, reconstruction, rehabilitation or improvement relating to

such community mental health and developmental disabilities facility or

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

agreement entered into with the corporation.

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

agency pursuant to this subdivision unless the title thereto shall be

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 or

sublease of real property authorized to be acquired by the agency

pursuant to this subdivision and the same shall not be effective unless

such deed, lease or sublease shall be so approved by him.