N.Y. Public Health Law § 2817: Community health centers capital program

§ 2817. Community health centers capital program. 1. Definitions. As

used in this section, unless the context clearly requires otherwise, the

following terms shall have the following meanings:

(a) "Community health center" means a not-for-profit corporation that

is licensed under this article as a diagnostic and treatment center,

which license is valid and in full force and effect, and that provides a

comprehensive range of primary health care services in one or more

freestanding sites, or a not-for-profit corporation that has applied for

licensure under this article as a diagnostic and treatment center and

that intends to provide a comprehensive range of primary health care

services in one or more freestanding sites.

(b) "Program" means the community health centers program authorized by

this section.

(c) "Program funds" means state funds available for the purposes of

this section.

(d) "Matching funds" means any funds other than state funds (whether

derived from non-governmental or federal or local governmental sources),

which are available for the purposes of this section.

(e) "Community health center project" or "project" means the

construction, reconstruction, renovation, rehabilitation, refurbishing,

expansion, upgrading, or equipping of a community health center under

this section.

2. Agreements. The commissioner is authorized to make funds available

for community health center projects. The commissioner shall contract

with one or more not-for-profit administrators, each of which shall be a

not-for-profit corporation having demonstrated interest, expertise and

experience in the development and financing of primary care and

preventive services in low income communities. The not-for-profit

administrator shall award program funds and available matching funds to,

or for the benefit of, community health centers which apply for such

funds in accordance with this section. The commissioner and the

not-for-profit administrator shall enter into an agreement for the

purpose of administering the program and matching funds. Such agreement

shall provide, without limitation, for the following:

(a) the receipt, management and expenditure of program funds and

matching funds;

(b) the solicitation of capital proposals to be submitted by or on

behalf of community health centers;

(c) the solicitation of matching funds;

(d) the process by which the capital proposals are reviewed, evaluated

and funded; and

(e) the reasonable expenses of the not-for-profit administrator

incurred in the establishment and administration of this program,

including retention of professionals and consultants.

3. Matching funds. (a) To leverage the benefit of program funds

available pursuant to this section for community health center projects,

each allocation of program funds awarded to, or for the benefit of, a

community health center shall be matched by an equal or greater amount

of matching funds and shall be conditioned on the availability of such

matching funds for the community health center project.

(b) Matching funds shall be deemed available for the purposes of this

section when the funds are deposited with the not-for-profit

administrator, or are irrevocably committed for the community health

center project pursuant to a valid, binding and enforceable contract,

enforceable by the not-for-profit administrator for the benefit of the

community health center project.

(c) Matching funds may be obtained by the not-for-profit administrator

or may be otherwise provided for a particular community health center

project. In each such circumstance, or combination thereof, the

requirements of paragraph (b) of this subdivision shall apply.

4. Community health center projects. (a) An application to the

not-for-profit administrator may be submitted by or on behalf of a

community health center which meets the criteria for receiving funds set

forth in this section.

(b) The application shall specify in detail acceptable to the

not-for-profit administrator the proposed construction, reconstruction,

renovation, rehabilitation, refurbishing, expansion, upgrading and

equipping of a community health center.

(c) The application shall identify available sources of funds for the

community health center project, including matching funds, if any. It

shall also identify any expenses already incurred in connection with the

community health center project, and whether any reimbursement therefor

is sought in connection with the application.

(d) To receive an award of funds for the proposed community health

center project, the applicant, and if the applicant is not a community

health center, the community health center and the applicant, shall

enter into an agreement with the not-for-profit administrator governing

the disbursement of funds, construction of the proposed project, and any

requirements of the program under the agreement between the commissioner

and the not-for-profit administrator or otherwise required by law. The

agreement may include provisions for the repayment of all or a portion

of funds.

5. Funding criteria. A community health center project may be funded

under this section provided the community health center meets the

criteria established in either of the following paragraphs:

(a) The community health center is a federally-qualified health center

as defined in 42 U.S.C. section 1395x (aa); or

(b) The community health center (i) has applied to the United States

Department of Health and Human Services for designation as a

federally-qualified health center, (ii) is eligible for such

designation, and (iii) is located in, serves or intends to serve a

designated medically-underserved community as defined in 42 U.S.C.

section 295p, a health professional shortage area as defined in 42

U.S.C. section 254e or a medically-underserved population as defined in

42 U.S.C. section 254b. A community health center that received funding

pursuant to this paragraph, and does not secure designation as a

federally-qualified health center within two years of its receipt of

funds shall repay such funds as directed by the not-for-profit

administrator.

6. Administration of funds. (a) Program funds shall be received and

held by the not-for-profit administrator under this section and the

agreement with the commissioner. Program funds shall be held in trust

and used for the benefit of the community health center projects. All

investment income shall be credited to, and any repayments of program

funds shall be deposited in, the trust accounts established by the

not-for-profit administrator for such purpose, and spent only for the

purposes set forth in this section.

(b) Notwithstanding the foregoing, the not-for-profit administrator

may withdraw from the funds held by it under this section, subject to

the agreement with the commissioner, amounts sufficient to pay or

reimburse its expenses as provided in paragraph (e) of subdivision two

of this section.

(c) The not-for-profit administrator shall maintain books and records

pertaining to all moneys received and disbursed pursuant to this

section. The agreement between the commissioner and the not-for-profit

administrator shall provide for the distribution of funds upon the

termination thereof. All remaining program funds, including earnings and

repayments, if any, not subject to binding agreement for the expenditure

thereof, shall be paid at the direction of the commissioner to the state

comptroller to the credit of the general fund. Upon termination of the

agreement, matching funds held by the not-for-profit administrator not

subject to binding agreement for the expenditure thereof, shall be

applied consistent with the terms of the receipt of such matching funds,

or returned to the donor.