N.Y. PBH Law § 2880 — New York Code / Act PBH / Article 28-B / Section 2880
Hospital facilities development fund
Status: in_force

§ 2880. Hospital facilities development fund. 1. Establishment of\nfund.  a. There is hereby created and established in the department of\nhealth a revolving fund to be known as the "hospital facilities\ndevelopment fund".\n  b. There shall be paid into such hospital facilities development fund\n(a) any monies appropriated and made available by the state for the\npurposes of such fund, (b) notwithstanding the provisions of the state\nfinance law or any other provision of law, any monies which the\ndepartment of health shall receive in repayment of advances made from\nthe fund, and (c) any other monies which may be made available to the\ndepartment of health for the purposes of such fund from any other source\nor sources.\n  c. Any monies held in such hospital facilities development fund not\nrequired for immediate disbursement may be invested, at the discretion\nof the commissioner, in obligations of the state or the United States\ngovernment or obligations the principal and interest of which are\nguaranteed by the state or the United States government. Any income or\ninterest earned by, or increment to, such hospital facilities\ndevelopment fund shall be added to the monies held in such fund for the\npurpose herein provided.\n  2. Advances; conditions; prepayment. a. The commissioner is hereby\nauthorized to use the monies held in the hospital facilities development\nfund to make non-interest bearing advances to eligible borrowers\nproviding or arranging for health services in connection with a prepaid\ncomprehensive health care plan. Such monies shall be paid out of such\nfund, after audit by and upon the warrant of the comptroller, on\nvouchers approved by the commissioner.\n  b. No such advances may be made unless the commissioner reasonably\nanticipates that a New York state housing finance agency mortgage or a\nNew York state medical care facilities finance agency mortgage, as the\ncase may be, will be obtained for the hospital project and makes a\nfinding to such effect. Such finding shall be conclusive evidence of the\nfacts therein contained except upon proof of fraud or willful\nmisfeasance.\n  c. The proceeds of such advances shall be used only to defray the\ndevelopment costs of such project. The "development costs" means the\ncosts approved by the commissioner as appropriate expenditures which may\nbe incurred prior to the initial advance of the proceeds of a New York\nstate housing finance agency mortgage or a New York state medical care\nfacilities finance agency mortgage, as the case may be including but not\nlimited to: (a) payments for options to purchase properties for the\nproposed hospital project or for deposits on account of contracts to\npurchase such properties; (b) legal and organizational expenses,\nincluding payment of attorneys' fees, project manager, administrative\nand clerical staff salaries, office rent and other incidental expenses;\n(c) payment of fees and expenses for preliminary surveys, reports and\nfeasibility studies, advances for planning, engineering and\narchitectural work; and (d) such other expenses incurred by such\neligible borrower as the commissioner may deem appropriate to effectuate\nthe purposes of this article.\n  d. If such eligible borrower obtains a mortgage loan from the New York\nstate housing finance agency or the New York state medical care\nfacilities finance agency, each such advance shall be repaid in full by\nsuch eligible borrower to the department of health concurrently with\nreceipt by the eligible borrower of the first proceeds of such loan.\n  e. If the commissioner in his discretion shall, at any time, determine\nthat a New York state housing finance agency mortgage loan or a New York\nstate medical care facilities finance agency mortgage loan may not be\nobtained, or that any advance made pursuant to this section is in\njeopardy of not being repaid or that the proposed project for which such\nadvance was made is in jeopardy of not being constructed, then and in\nany such event all advances made to such eligible borrower from the\nhospital facilities development fund shall be deemed due and payable by\nthe eligible borrower upon the demand of the commissioner.\n  3. Examination by comptroller. The comptroller, or his legally\nauthorized representative, is hereby authorized and empowered to examine\nthe books and accounts of the department of health relating to the\nhospital facilities development fund, and from time to time, until the\nadvances have been repaid to the hospital facilities development fund,\nto examine the books and accounts of each eligible borrower receiving\nsuch advances, including its receipts, disbursements, contracts, leases,\nloans, and any other monies relating to its financial operation.\n