N.Y. PBH Law § 2815-A — New York Code / Act PBH / Article 28 / Section 2815-A
Community health care revolving capital fund
Status: in_force

§ 2815-a. Community health care revolving capital fund. 1.\nDefinitions.  As used in this section, the following words and phrases\nshall have the following meanings unless a different meaning is plainly\nrequired by the context:\n  a. "Administrator" shall mean a not for profit Community Development\nFinancial Institution CDFI that is certified by the U.S. Treasury\ncommunity development financial fund, has experience financing projects\nin the New York state healthcare sector and otherwise meets the\nrequirements of this section.\n  b. "Dormitory authority" or "authority" shall mean the dormitory\nauthority of the state of New York created by title four of article\neight of the public authorities law which has succeeded to the powers,\nfunctions and duties of the medical care facilities finance agency\npursuant to chapter eighty-three of the laws of nineteen hundred\nninety-five.\n  c. "Participating borrower" shall mean a community-based health care\nprovider, which for the purposes of this section, shall be defined as\ndiagnostic and treatment center licensed or granted an operating\ncertificate under article twenty-eight of this chapter, a mental health\nclinic licensed or granted an operating certificate under article\nthirty-one of the mental health law; or an alcohol and substance abuse\ntreatment clinic licensed or granted an operating certificate under\narticle thirty-two of the mental hygiene law, each organized under the\nlaws of this state.\n  d. "Revolving capital fund" shall mean community health care revolving\ncapital fund authorized to be established by the dormitory authority and\nadministered pursuant to this section.\n  2. Revolving capital fund. The dormitory authority shall, within\namounts appropriated, establish the community health care revolving\ncapital fund. Monies in the revolving capital fund shall be utilized for\nthe purpose of making loans to qualifying participating borrowers to\nimprove access to affordable capital financing to expand and improve\ncapacity to provide health care in the State. Funds shall be transferred\nby the commissioner to the dormitory authority for deposit in the\nrevolving capital fund in an amount as authorized by appropriation.\nMonies in the fund shall be: (a) held by the authority pursuant to this\nsection as custodian pursuant to an agreement with the commissioner\nuntil transferred to the administrator pursuant to this section, and (b)\ninvested by the authority in accordance with the investment guidelines\nof the authority during said custodial period. All investment income\nshall be credited to, and shall be deposited in, the revolving capital\nfund.\n  3. Administration agreement. The commissioner and the authority shall\nenter into an agreement, subject to the approval of the director of the\nbudget, for the purpose of administering the funds in the revolving\ncapital fund through an administrator. A copy of such agreement, and any\namendments thereto, shall be provided to the chair of the senate finance\ncommittee, the director of the division of budget, and the chair of the\nassembly ways and means committee. The agreement shall specify that the\nadministrator shall administer the community health care revolving\ncapital fund in a manner that will benefit the public health by\nencouraging improvements in the community health care delivery system in\nthe state, in compliance with all applicable laws, rules, regulations\nand other requirements.\n  4. Agreement with the administrator. The dormitory authority shall, in\nconsultation with the commissioner, enter into an agreement with the\nadministrator. Such agreement shall provide for the administration of\nthe revolving capital fund administrator, in accordance with the\nrequirements of this section, the commissioner and dormitory authority\nand all applicable laws, rules, regulations and other requirements. Upon\nthe effective date of the agreement, custody of, and responsibility for,\nthe revolving capital fund shall be transferred from the dormitory\nauthority to the administrator, subject to the requirements of the\nagreement. Such agreement shall include, but not be limited to, the\nfollowing provisions:\n  a. That the administrator shall be responsible for the receipt,\nmanagement and expenditure of monies held in the revolving capital fund;\n  b. That the administrator shall maintain books and records pertaining\nto all monies received and disbursed pursuant to this section and the\nagreement;\n  c. That monies in such revolving capital fund shall be utilized for\nthe purpose of making loans to qualifying participating borrowers, to\nprovide participating borrowers with improved access to affordable\ncapital to expand and improve preventive or primary care capacity;\n  d. That participating borrowers shall be chosen by the administrator\nthrough an application process approved by the authority and the\ncommissioner;\n  e. That eligible uses of funds so loaned to participating borrowers\nshall include but not be limited to: (i) eligible costs as described in\nparagraph (f) of this subdivision, attributable to the proposed\nconstruction, reconstruction, renovation, rehabilitation, refurbishing,\nexpansion, upgrading and equipping of a participating borrower's\ncommunity-based health care facility; (ii) reserves for credit\nenhancement including loan guarantees; (iii) loan loss and debt service\nreserves and subordinated loans; and (iv) facility financing, including\nloans for predevelopment, acquisition and construction, permanent\nfinancing and bridge loans;\n  f. That eligible costs under this section shall include, but not be\nlimited to, all hard construction costs and associated professional and\nother costs, furniture, fixtures and equipment, including health\ninformation technology, acquisition, predevelopment due diligence,\ninitial operating expenses and working capital;\n  g. That the administrator administering the revolving capital fund\nshall report quarterly on the transactions in the revolving capital fund\nin a form and manner specified by the authority in consultation with the\ncommissioner, including but not limited to: receipts or deposits to the\nfund, disbursements, loans or credit enhancement made from the fund,\ninvestment income, and the balance on hand as of the end of the month\nfor each such quarter;\n  h. That the administrator shall be required to invest monies on\ndeposit in the fund in accordance with investment guidelines meeting the\nrequirements of the department and dormitory authority, and all\ninvestment income shall be credited to, and any repayment of loans as\nhereinafter provided shall be deposited in, the revolving capital fund,\nand spent therefrom only for the purposes set forth in this section;\n  i. That only the reasonable expenses of the administrator, as\ndetermined by the commissioner and president of the authority, incurred\nin the establishment and administration of the revolving capital loan\nprogram (including the retention of professionals and consultants, if\nany) may be paid or reimbursed from the revolving capital fund;\n  j. That revolving capital fund monies shall be held in trust and used\nfor the benefit of eligible community-based health care facility capital\nprojects; and\n  k. Any other term or condition as determined by the authority, in\nconsultation with the commissioner.\n  5. Loan documentation. Loans from the revolving capital fund shall be\nmade pursuant to a written loan agreement between the administrator and\nthe participating borrower, specifying the terms thereof including\nrepayment terms. The loan agreement shall be in such form and content as\nshall be acceptable to the commissioner and dormitory authority, and may\ninclude such other any further written documentation and/or agreements\nas shall be required in the judgment of the commissioner and dormitory\nauthority, including but not limited to all required filings under the\nUniform Commercial Code.\n