N.Y. MCF Law § 5-A — New York Code / Act MCF / Section 5-A
Federally-aided mortgage loans
Status: in_force

§ 5-a. Federally-aided mortgage loans. In addition to the powers of\nthe agency to make mortgage loans pursuant to other provisions of this\nact, the agency has the following powers:\n  1. The agency may make federally-aided mortgage loans to a municipal\nhospital, municipal nursing home, non-profit hospital corporation,\nnon-profit corporation providing a residential health care facility or\nnon-profit medical corporation organized pursuant to article forty-four\nof the public health law upon terms and conditions not inconsistent with\narticle twenty-eight of the public health law or article sixteen or\nthirty-one of the mental hygiene law as the case may be and this\nsection. The proceeds of such loan are to be used substantially to\nfinance the construction, acquisition, reconstruction, refinancing,\nrehabilitation, improvement, management or operation of the project.\n  2. A federally-aided mortgage loan made by the agency shall not exceed\nan amount equal to the lesser of (i) the maximum mortgage loan\nauthorized or approved by the federal government or (ii) one hundred\npercent of the cost of development of the project approved by the\nagency.\n  3. With respect to a non-profit hospital corporation, non-profit\ncorporation providing a residential health care facility or non-profit\nmedical corporation, the agency shall not make a federally-aided\nmortgage loan unless (a) the commissioner has approved the project,\nrecommended the project based on public need and the financial resources\navailable to it, and finds that the non-profit hospital corporation,\nnon-profit corporation providing a residential health care facility, or\nnon-profit medical corporation has complied with the provisions of\narticle twenty-eight of the public health law or article sixteen or\nthirty-one of the mental hygiene law as the case may be, and that the\nnon-profit medical corporation also has complied with the provisions of\narticle forty-four of the public health law, and (b) the agency finds\nthat (i) the estimated revenues of the project will be sufficient to\ncover all probable costs of operations and maintenance, all installments\nof principal and interest on the indebtedness relating to the project,\ntaxes, and such other expenses, including the maintenance of reserves,\nas may be projected or required by the agency or the federal government,\nand (ii) with respect to a nursing home project, the project is to be\navailable for persons of low income as defined by paragraph two of\nsection twenty-eight hundred sixty of the public health law.\n  4. As used in this section or in connection with a federally-aided\nmortgage loan, the term "project" means a specific work or improvement,\nwhether or not to effectuate all or any part of a plan, and includes\nlands, buildings, improvements, fixtures and personal property\nconstructed, acquired, reconstructed, refinanced, rehabilitated,\nimproved, managed, owned or operated by a non-profit corporation\npursuant to this section, to provide hospital, residential health care,\nresidential facilities for developmentally disabled persons or mentally\ndisabled persons or for the care, treatment, training and education of\ndevelopmentally disabled persons or mentally disabled persons or\ncomprehensive health services facilities and such related incidental and\nappurtenant facilities as the agency may approve. The term "project"\nshall also mean a separate work or improvement, including lands,\nbuildings, fixtures and personal property related thereto, managed,\nowned or operated by a non-profit corporation pursuant to this section\nto provide such services, functions, capabilities and facilities as may\nbe convenient or desirable for the operation of a hospital, a\nresidential health care or comprehensive health services facility.\n  5. Notwithstanding any other provisions of law, general, special or\nlocal, or any provision of any charter or ordinance, including local\nfinance law section twenty, a municipality is hereby authorized to\nborrow for or give a mortgage on its municipal hospitals or nursing\nhomes for the purpose of constructing, reconstructing, rehabilitating or\nimproving one or more such hospitals or nursing homes pursuant to this\nact in accordance with the terms of any agreement entered into pursuant\nto this act.\n  6. As used in this section or in connection with federally-aided\nmortgage loan regarding residential facilities for developmentally\ndisabled persons or mentally disabled persons or for the care,\ntreatment, training and education of developmentally disabled persons or\nmentally disabled persons the term "commissioner" shall also mean the\ncommissioner of mental health or the commissioner of the office for\npeople with developmental disabilities.\n  7. (a) In connection with the making of federally-aided mortgage\nloans, the commissioner of health shall charge to such non-profit\nhospital corporation, non-profit corporation providing a residential\nhealth care facility or non-profit medical corporation, for mortgage\nclosings on or after April first, nineteen hundred eighty-nine, a fee of\nnine-tenths of one percent of the mortgage loan, payable on requisition\non or after the mortgage closing to the state department of health by\nthe mortgagor for deposit into the state general fund.\n  (b) In connection with the refinancing or refunding of federally-aided\nmortgage loans or loans made pursuant to articles twenty-eight-A and\ntwenty-eight-B of the public health law, the commissioner of health\nshall charge to such non-profit hospital corporation, non-profit\ncorporation providing a residential health care facility or non-profit\nmedical corporation, for mortgage closings on or after April first,\nnineteen hundred eighty-nine, a fee of five-tenths of one percent of the\nnew mortgage loan, payable on requisition on or after the mortgage\nclosing to the state department of health by the mortgagor for deposit\ninto the state general fund.\n  (c) The fees and charges paid by a non-profit hospital corporation,\nnon-profit corporation providing a residential health care facility or\nnon-profit medical corporation pursuant to this subdivision shall be\ndeemed allowable capital costs in the determination of reimbursement\nrates established pursuant to article twenty-eight of the public health\nlaw. The cost of such fees and charges shall not be subject to\nreimbursement ceiling or other penalties used by the commissioner for\nthe purpose of establishing reimbursement rates pursuant to article\ntwenty-eight of the public health law.\n