N.Y. FDC Law § 9 — New York Code / Act FDC / Section 9
Provisions relating to mental hygiene facilities improvement program and monies thereof
Status: in_force

§ 9. Provisions relating to mental hygiene facilities improvement\nprogram and monies thereof. 1. Capital construction planning,\nconstruction standards, design and municipal regulations.\n  a. The appropriate commissioner or director of the department shall\ncause to be prepared, with the assistance of the corporation, the\ncommissioner of general services and the division of the budget,\nproposed standards for all mental hygiene facilities or classes of\nmental hygiene facilities to be financed, refinanced, designed,\nconstructed, reconstructed, rehabilitated or improved pursuant to\ncontracts executed by the corporation, the commissioner of general\nservices, the state housing finance agency or the medical care\nfacilities finance agency, other than mental hygiene facilities owned or\nleased by one or more voluntary agencies that are to be financed,\nrefinanced, designed, constructed, reconstructed, rehabilitated or\nimproved pursuant to any such contract. The proposed standards may, in\nthe discretion of the appropriate commissioner or director of the\ndepartment, include, among other things, provisions relating to the\nquality and type of materials to be used in such facilities, provisions\nfor safety, fire protection, health and sanitation, provisions for the\ninstallation of fixtures, furnishings, equipment, machinery and\napparatus in such facilities, and construction features deemed by the\nappropriate commissioner or director of the department to be desirable\nfor the care, maintenance and treatment of the mentally disabled or for\nthe use of staff personnel at mental hygiene facilities and their\nfamilies. The proposed standards shall be forwarded to the governor for\nhis approval, disapproval or modification. The proposed standards shall\nbe deemed adopted, with or without modifications as the case may be,\nupon written approval by the governor. Such standards, in the form\nadopted, shall be filed by the appropriate commissioner or director of\nthe department with the secretary of state in the manner provided by\nsection one hundred two of the executive law.\n  Changes in the construction standards so adopted may from time to time\nbe formulated and proposed, approved, disapproved or modified, adopted\nand filed in the same manner as the original standards.\n  b. The directors of the corporation shall prepare or cause to be\nprepared for the state housing finance agency or the medical care\nfacilities finance agency, within the amounts appropriated therefor or\notherwise available, the building plans, the exterior drawings or models\ndisplaying the architectural concept of each mental hygiene facility\nthereafter to be constructed, reconstructed, rehabilitated or improved,\nand the detailed plans and specifications for all such construction,\nreconstruction, rehabilitation and improvement work to be performed, all\nof which shall be subject to the separate approval of the appropriate\ncommissioner of the department and, in the case of community mental\nhealth and developmental disabilities facilities, of the governing body\nof the city or county or of such officer, department, agency or\ncommunity mental health board as may be designated by such governing\nbody for the purpose of such approval. The directors of the corporation,\nexcept in the case of community mental health and developmental\ndisabilities facilities, may cause the building plans, drawings, models\nand detailed plans and specifications for such work to be prepared under\nthe direction of the commissioner of general services in accordance with\nthe terms of any agreement entered into between the corporation and such\ncommissioner pursuant to subdivision two of this section. In the case of\ncommunity mental health and developmental disabilities facilities, the\ndirectors of the corporation may cause such building plans, drawings,\nmodels and detailed plans and specifications for such work to be\nprepared by its own employees, or on a contract basis, or by agreement\nwith a city or county or with any state department or agency authorized\nto perform such work.\n  The detailed plans and specifications for any such work to be\nperformed pursuant to a contract shall comply with the construction\nstandards in effect at the time the contract is executed.\n  Subject to the terms of any agreement entered into between the\ncorporation and the commissioner of general services pursuant to\nsubdivision two of this section and between the corporation and the\nstate housing finance agency or the medical care facilities finance\nagency pursuant to such section, the directors of the corporation may\nfrom time to time modify, or authorize modifications to, such detailed\nplans and specifications provided (i) that the plans and specifications\nas so modified shall comply with the construction standards, if any,\nadopted pursuant to paragraph a of this subdivision and in effect at the\ntime of the modification, and (ii) that such modifications, if\nsubstantial, are made with the separate approval of the appropriate\ncommissioner of the department and, in the case of community mental\nhealth and developmental disabilities facilities, of such governing body\nof the city or county or of such officer, department, agency or\ncommunity mental health board as may be designated by such governing\nbody for the purpose of such approval, and (iii) that in the event an\namount for contingencies is appropriated or advanced to the corporation\nto pay the added costs during the then current state fiscal year of all\nmodifications made in the course of construction, reconstruction,\nrehabilitation and improvement of mental hygiene facilities, no such\nmodifications shall be made or authorized in such fiscal year without\nthe approval of the director of the budget unless the cost thereof shall\nbe less than five percentum of the total estimated cost of the facility\nas set forth in the budget bill referred to in paragraph a of\nsubdivision two of this section, but in no event shall any such\nmodification be made or authorized in such fiscal year if the cost\nthereof, plus the cost of all modifications theretofore made or\nauthorized during the same state fiscal year, would exceed the amount\nfor contingencies appropriated or advanced for the purpose of such\nmodifications, and (iv) that in the event an amount for contingencies is\nnot appropriated for the purpose of such modifications, no such\nmodification involving an estimated expense of ten thousand dollars or\nmore shall be made or authorized without the prior approval of the\ndirector of the budget.\n  c. In the design, construction, acquisition, reconstruction,\nrehabilitation, alteration and improvement of mental hygiene facilities\nto be made available under license or permit from the corporation to\nvoluntary agencies for use in providing community mental health and\ndevelopmental disabilities services, the corporation shall be governed\nby the provisions of this act relating to the design and construction of\nmental hygiene facilities provided, however, that the program for each\nsuch facility shall have been prepared under the supervision of the\nappropriate commissioner of the department pursuant to the mental\nhygiene law at the request of such voluntary agency and with the\napproval of the community mental health board established pursuant to\narticle forty-one of title E of the mental hygiene law.\n  d. In the design, construction, acquisition, reconstruction,\nrehabilitation, alteration and improvement of alcoholism or substance\nabuse facilities to be made available under license or permit from the\ncorporation to voluntary agencies for use in the conduct of an\nalcoholism or substance abuse treatment program, the corporation shall\nbe governed by the provisions of this act relating to the design and\nconstruction of alcoholism or substance abuse facilities provided that\nthe program for such facility shall have been approved by the\nappropriate division of the office of alcoholism and substance abuse at\nthe request of the local agency.\n  e. No county, city, town or village shall have power to modify or\nchange the plans or specifications for mental hygiene facilities to be\nconstructed, reconstructed, rehabilitated or improved pursuant to this\nact, or the construction, plumbing, heating, lighting or other\nmechanical branch of work necessary to complete the work in question,\nnor to require that any person, firm or corporation employed on any such\nwork shall perform any such work in any other or different manner than\nthat provided by such plans and specifications, nor to require that any\nsuch person, firm or corporation obtain any other or additional\nauthority or permit from such county, city, town or village as a\ncondition of doing such work, nor shall any condition whatever be\nimposed by any such county, city, town or village in relation to the\nwork being done pursuant to this act, but such work shall be under the\nsole control of the supervising architect or engineer in accordance with\nthe drawings, plans, specifications and contracts in relation thereto;\nand the doing of any such work for the corporation by any person, firm\nor corporation in accordance with the terms of such drawings, plans,\nspecifications or contracts shall not subject said person, firm or\ncorporation to any liability or penalty, civil or criminal, other than\nas may be stated in such contracts or incidental to the proper\nenforcement thereof.\n  2. Letting of construction contracts. a. The corporation shall design,\nconstruct, acquire, reconstruct, rehabilitate and improve all mental\nhygiene facilities, or cause the same to be designed, constructed,\nacquired, reconstructed, rehabilitated and improved either on its own\nbehalf or as agent for the state housing finance agency or the medical\ncare facilities finance agency, except that in the case of all mental\nhygiene facilities owned or leased by one or more voluntary agencies\nthat are to be designed, constructed, reconstructed, rehabilitated and\nimproved under any lease, sublease, loan or other financing agreement\nentered into with such voluntary agency, the same may be designed,\nconstructed, acquired, reconstructed, rehabilitated and improved by such\nvoluntary agencies, provided that legislation or appropriations\nauthorizing the same (i) have been requested by the appropriate\ncommissioner or director of the department, (ii) have been recommended\nby the governor in a budget bill, which is approved by the legislature\nfor the fiscal year for which the recommendation was made which\nspecifies the mental hygiene facilities to be designed, constructed,\nacquired, reconstructed, rehabilitated or improved, the total estimated\ncost for each such facility, and the date when it is desired that the\ndesign, construction, acquisition, reconstruction, rehabilitation or\nimprovement of each mental hygiene facility referred to therein be\ncompleted. All such work shall be performed in such manner as to assure\ncompletion, so far as practicable, by the dates specified.\n  b. (i) The corporation may design, construct, reconstruct,\nrehabilitate and improve a mental hygiene facility, other than a\ncommunity mental health and developmental disabilities facility, whether\nas principal or as agent for the state housing finance agency or the\nmedical care facilities finance agency, only by agreement with the\ncommissioner of general services, except that in the case a mental\nhygiene facility owned or leased by a voluntary agency that is to be\ndesigned, constructed, reconstructed, rehabilitated and improved under\nany lease, sublease, loan or other financing agreement entered into with\nsuch voluntary agency, or jointly with such voluntary agency and one or\nmore voluntary agencies that operate such facility the same may be\ndesigned, constructed, reconstructed, rehabilitated and improved by such\nvoluntary agencies, and except that:\n  (a) if the commissioner of general services for any reason declines to\nenter into an agreement with the corporation for such purpose; or\n  (b) if the commissioner of general services fails to enter into an\nagreement with the corporation for such purpose within forty-five days\nafter receiving notification from the directors of the corporation of\nthe work to be performed; or\n  (c) if the commissioner of general services fails to advertise such\nwork for bids within one year after entering into an agreement with the\ncorporation for the performance of such work; or\n  (d) if the estimated expense of any such work is less than ten\nthousand dollars, the corporation may construct, reconstruct,\nrehabilitate and improve a mental hygiene facility by its own employees\nor by contract awarded pursuant to paragraph g of this subdivision.\n  (ii) The corporation, with the approval of the director of the budget,\nmay construct, reconstruct, rehabilitate and improve a community mental\nhealth and developmental disabilities facility by its own employees, by\nagreement with a city or county or with any state department or agency\nauthorized to perform such work, or by contract awarded pursuant to\nparagraph g of this subdivision. All contracts awarded by a city or\ncounty on behalf of the corporation shall be awarded pursuant to\nparagraph g of this subdivision, notwithstanding any provision of any\ngeneral, special or local law or any charter.\n  c. In the event that the commissioner of general services enters into\nan agreement with the corporation for the construction, reconstruction,\nrehabilitation or improvement of a mental hygiene facility, the work\nrequired shall be performed in accordance with the terms of such\nagreement and in accordance with the provisions of paragraphs d and e of\nthis subdivision, either by employees of the office of general services\nor by contract or contracts awarded pursuant to the public buildings\nlaw, the public works law and the state finance law.\n  d. No contract for the construction, reconstruction, rehabilitation or\nimprovement of a mental hygiene facility shall be awarded by any letting\nagency unless (i) the appropriate commissioner or director of the\ndepartment shall have separately approved the architectural concept and\nthe detailed plans and specifications for the facility to be\nconstructed, reconstructed, rehabilitated or improved and (ii) the\ndirectors of the corporation, whether as principals or as agents for the\nstate housing finance agency or the medical care facilities finance\nagency, shall have approved the proposed terms of such contract,\nincluding the detailed plans and specifications for the facility.\nProvided, however, the corporation shall only enter into any lease,\nsublease, loan or other financing agreement with a voluntary agency\nunder which a mental hygiene facility owned or leased by such a\nvoluntary agency is to be designed, acquired, constructed,\nreconstructed, rehabilitated or improved when the appropriate\ncommissioner or director shall have approved the plans for such a\nfacility. The form and content of such approval shall be approved by the\ndivision of budget however such agency approval shall allow maximum\naccess to financing for design, acquisition, construction,\nreconstruction, rehabilitation and improvement, and shall be timely to\nreduce the need for utilization of short term commercial loans by\nvoluntary agencies for services eligible for financing under this\nprogram. The medical care facilities financing agency shall advise the\ndirector of the budget on the form of such approval.\n  e. Each contract for the construction, reconstruction, rehabilitation\nor improvement of a mental hygiene facility shall include a provision\nthat the architect who designed the facility, or an architect or\nengineer retained or employed specifically for the purpose of\nsupervision, shall supervise the work to be performed through to\ncompletion and shall see to it that the materials furnished and the work\nperformed are in accordance with the drawings, plans, specifications and\ncontract therefor.\n  f. If the corporation is the letting agency, whether as principal or\nas agent for the state housing finance agency, the directors of the\ncorporation shall prepare separate specifications for, and solicit\nseparate and independent bids on, and award, separate contracts on the\nsubdivisions of work to be performed specified in section one hundred\nthirty-five of the state finance law, but the directors of the\ncorporation may in their discretion assign such contracts for\nsupervision to the successful bidder for the remaining work to be\nperformed at the time the contracts for the particular mental hygiene\nfacility are awarded.\n  g. All contracts which are to be awarded pursuant to this paragraph\nshall be awarded by public letting in accordance with the following\nprovisions, notwithstanding any contrary provision of section one\nhundred thirty-six, one hundred thirty-nine or one hundred forty of the\nstate finance law, except that in the discretion of the directors of the\ncorporation, a contract may be entered into for such purposes without\npublic letting where the estimated expense thereof is no more than\neighty thousand dollars:\n  (i) If contracts are to be publicly let, the directors of the\ncorporation shall advertise the invitation to bid in a newspaper\npublished in the county of Albany and in such other newspapers as will\nbe most likely in their opinion to give adequate notice to contractors\nof the work required and of the invitation to bid. The invitation to bid\nshall contain such information as the directors of the corporation shall\ndeem appropriate and a statement of the time and place where all bids\nreceived pursuant to such notice will be publicly opened and read.\n  (ii) The directors of the corporation shall not award any contract\nafter public bidding except to the lowest bidder who in their opinion is\nqualified to perform the work required and is responsible and reliable.\nThe directors of the corporation may, however, reject any or all bids,\nagain advertise for bids, or waive any informality in a bid if they\nbelieve that the public interest will be promoted thereby. The directors\nof the corporation may reject any bid if in their judgment the business\nand technical organization, plant, resources, financial standing or\nbusiness experience of the bidder, compared with the work to be\nperformed, justify such rejection.\n  (iii) The invitation to bid and the contract awarded shall contain\nsuch other terms and conditions, and such provisions for penalties, as\nthe directors of the corporation may deem desirable.\n  (iv) The directors of the corporation shall require such deposits,\nbonds and security in connection with the submission of bids, the award\nof contracts and the performance of work as they shall determine to be\nin the public interest and for the protection of the state and affected\nstate agencies, including the corporation.\n  h. The directors of the corporation shall determine when minor work of\nconstruction, reconstruction, alteration or repair of any mental hygiene\nfacility may be done by special order. Special orders for such work\nshall be short-form contracts approved by the attorney general and by\nthe comptroller. No work shall be done by special order in an amount in\nexcess of twenty thousand dollars and a bond shall not be required for\nspecial orders. No work shall be done by special order unless the\ndirectors have presented to the comptroller evidence that they have made\na diligent effort to obtain competition sufficient to protect the\ninterests of the state prior to selecting the contractor to perform the\nwork. Notwithstanding the provisions of paragraph g of this subdivision,\nwork done by special order under this paragraph may be advertised\nthrough the regular public notification service of the office of general\nservices or the state register. At least five days shall elapse between\nthe first publication of such public notice and the date so specified\nfor the public opening of bids. The directors may also authorize the\ncorporation to enter into special order contracts using bids advertised\nfor, received and opened by any office of the department, in compliance\nwith this act and all other applicable laws, and transmitted to the\ncorporation. All payments on special orders shall be made on the\ncertificate of the directors of the corporation and audited and approved\nby the state comptroller. All special orders shall contain a clause that\nthe special order shall only be deemed executory to the extent of the\nmoneys available and no liability shall be incurred by the state beyond\nthe moneys available for the purpose.\n  3. Resources of the corporation.  a. Subject to the provisions of this\nact, the directors of the corporation shall receive, accept, invest,\nadminister, expend and disburse for its corporate purposes, other than\nfor the purposes of any health facilities improvement program, (i) all\npayments made on or after January 1, 1964, for the care, maintenance and\ntreatment of patients in every mental hygiene facility, other than a\ncommunity mental health and developmental disabilities facility or a\nmental hygiene facility made available under license or permit from the\ncorporation to a voluntary agency for use in providing community mental\nhealth and developmental disabilities services, or an office of\naddiction services and supports facility made available under license or\npermit from the corporation to a voluntary agency for use in the conduct\nof an alcoholism or substance abuse treatment program, (ii) all payments\nmade to the corporation by a lessee or permittee as rentals, permit fees\nor otherwise under any lease, sublease, permit or agreement undertaken\nwith respect to a community mental health and developmental disabilities\nfacility or current or former mental hygiene facility or from a\nvoluntary agency with respect to a mental hygiene facility made\navailable under lease, license or permit from the corporation to a\nvoluntary agency, and (iii) all payments made to the corporation for the\npurchase of real property held by the corporation for the use of the\ndepartment, other than payments derived from New York state medical care\nfacilities finance agency financing or refinancing of the design,\nconstruction, acquisition, reconstruction, rehabilitation, improvement\nor renovation of state operated mental hygiene facilities, and may\nreceive, accept, invest, administer, expend and disburse for its\ncorporate purposes, other than for the purposes of any health facilities\nimprovement program, appropriations or advances from the capital\nprojects fund and the state purposes account of the general fund of the\nstate, and other revenues and monies made available or to be made\navailable to the corporation from any or all sources, including gifts,\ngrants, loans and payments from the federal government, any state\nagency, any county, city, town or village, any private foundation,\norganization or individual, or any other source, for the construction,\nacquisition, reconstruction, rehabilitation and improvement of mental\nhygiene facilities, and for the maintenance and repair of such\nfacilities.\n  b. All monies of the corporation received or accepted pursuant to\nparagraph a of this subdivision, other than appropriations and advances\nfrom the state and except as otherwise authorized or provided in this\nsection, shall be paid to the commissioner of taxation and finance as\nagent of the corporation, who shall not commingle such monies with any\nother monies. Such monies shall be deposited in two or more separate\nbank accounts. One of such accounts, to which shall be credited (i) all\npayments made on or after January 1, 1964, for the care, maintenance and\ntreatment of patients in every mental hygiene facility, other than a\ncommunity mental health and developmental disabilities facility, (ii)\nall payments made to the corporation as rentals, lease payments, permit\nfees or otherwise under any lease, sublease or agreement undertaken with\nrespect to a community mental health and developmental disabilities\nfacility or a current or former mental hygiene facility, (iii) all\npayments made to the corporation for the purchase of real property held\nby the corporation for the use of the department, other than payments\nderived from New York state medical care facilities finance agency\nfinancing or refinancing of the design, construction, acquisition,\nreconstruction, rehabilitation, improvement or renovation of state\noperated mental hygiene facilities, (iv) all income from investments and\n(v) all monies received or to be received for the purposes of such\naccount on a recurring basis, shall be denominated the "mental hygiene\nfacilities improvement fund income account". The monies in any account\nshall be paid out on checks signed by the commissioner of taxation and\nfinance on requisition of the chairman of the corporation or of such\nother officer or employee or officers or employees as the corporation\nshall authorize to make such requisition. All deposits of such money\nshall, if required by the commissioner of taxation and finance or the\ndirectors of the corporation, be secured by obligations of the United\nStates or of the state of a market value equal at all times to the\namount of the deposit and all banks and trust companies are authorized\nto give such security for such deposits. Any moneys of the corporation\nnot required for immediate use or disbursement may, at the discretion of\nthe corporation, be invested by the commissioner of taxation and finance\nin accordance with the provisions of section 98-a of the state finance\nlaw. The mental hygiene facilities improvement fund and the income\naccount therein shall remain in existence until terminated by the\ncorporation by written notice to the commissioner of taxation and\nfinance. Any moneys on deposit in the mental hygiene facilities\nimprovement fund or the income account therein upon the termination of\nsaid fund and account shall be transferred by the commissioner of\ntaxation and finance to the mental health services fund. The corporation\nshall not terminate the mental hygiene facilities improvement fund and\nthe income account therein until all mental health services facilities\nbonds issued pursuant to: (i) the New York state medical care facilities\nfinance agency act; (ii) article five-C of the state finance law; and\n(iii) article five-F of the state finance law and payable from the\nincome account as described in paragraph g of this subdivision are no\nlonger outstanding.\n  c. Subject to the terms of any lease, sublease or agreement undertaken\nby the corporation, any such monies of the corporation, not required for\nimmediate use may, at the discretion of the corporation, be invested by\nthe commissioner of taxation and finance in obligations of the United\nStates or the state or obligations the principal and interest of which\nare guaranteed by the United States or the state.\n  d. No lease, sublease or other agreement relating to an alcoholism or\nsubstance abuse facility shall be undertaken by the corporation pursuant\nto this subdivision unless the appropriate division of the office of\nalcoholism and substance abuse shall have approved the terms thereof.\n  e. The directors of the corporation shall at all times maintain on\ndeposit in the mental hygiene facilities improvement fund income account\nthe aggregate amount of money needed by the corporation during the next\nsucceeding twelve calendar months to comply in full with all obligations\nof the corporation under the terms of every lease, sublease or agreement\nundertaken by the corporation which is then in effect, including without\nlimitation by the specification thereof, (i) the amount needed to make\nrental payments thereunder during such year, and (ii) the amount needed\nto establish and maintain reserves thereunder during such year provided,\nhowever, that the provisions of this paragraph shall not apply with\nrespect to agreements entered into pursuant to section nine-a of the New\nYork state medical care facilities finance agency act.\n  f. The directors of the corporation shall from time to time, but in no\nevent later than the fifteenth day of each month pay over to the\ncommissioner of taxation and finance and the state comptroller for\ndeposit in the mental health services fund, all monies of the\ncorporation in excess of the aggregate amount of money required to be\nmaintained on deposit in the mental hygiene facilities improvement fund\nincome account pursuant to paragraphs e and g of this subdivision. Prior\nto making any such payment, the chairman of the corporation shall, on\nbehalf of the directors, make and deliver to the governor and the\ndirector of the budget his certificate stating the aggregate amount to\nbe maintained on deposit in the mental hygiene facilities improvement\nfund income account to comply in full with the provisions of paragraphs\ne and g of this subdivision.\n  g. (1) In addition to the amount required to be maintained by\nparagraph e of this subdivision, there shall be accumulated and set\naside in each month in the mental hygiene facilities improvement fund\nincome account, all receipts associated with loans, leases and other\nagreements with voluntary agencies. The corporation shall provide the\namount of such receipts to be set aside to the commissioner of taxation\nand finance in each month. (2) No later than five days prior to the\nearlier of when payment is to be made on bonds issued for mental health\nservices facilities purposes pursuant to: (i) the New York state medical\ncare facilities finance agency act; (ii) article five-C of the state\nfinance law; and (iii) article five-F of the state finance law, such\nset-aside receipts shall be transferred by the commissioner of taxation\nand finance as agent of the corporation from the mental hygiene\nfacilities improvement fund income account in the amounts set forth in\nschedules provided by the corporation to the commissioner of taxation\nand finance in the following priority: first, to the trustee appointed\nby the New York state medical care facilities finance agency for the\nbonds issued pursuant to the New York state medical care facilities\nfinance agency act for both voluntary agency and state purposes to pay\ndebt service and other cash requirements due on such bonds on the\nrelevant payment date, second, any remaining amount of such set-aside\nreceipts to the trustee appointed by authorized issuers for the bonds\nissued pursuant to article five-C of the state finance law to pay debt\nservice and other cash requirements due on such bonds on the relevant\npayment date and third, any remaining amount of such set-aside to the\ntrustee appointed by authorized issuers for the bonds issued pursuant to\narticle five-F of the state finance law to pay debt service and other\ncash requirements due on such bonds on the relevant payment date.\n  4. Agreements. a. Upon certification by the director of the budget of\nthe availability of required appropriation authority, the corporation,\nor any successor agency, is hereby authorized and empowered to enter\ninto leases, subleases, loans and other financing agreements with the\nstate housing finance agency and/or the state medical care facilities\nfinance agency, and to enter into such amendments thereof as the\ndirectors of the corporation, or any successor agency, may deem\nnecessary or desirable, which shall provide for (i) the financing or\nrefinancing of or the design, construction, acquisition, reconstruction,\nrehabilitation or improvement of one or more mental hygiene facilities\nor for the refinancing of any such facilities for which bonds have\npreviously been issued and are outstanding, and the purchase or\nacquisition of the original furnishings, equipment, machinery and\napparatus to be used in such facilities upon the completion of work,\n(ii) the leasing to the state housing finance agency or the state\nmedical care facilities finance agency of all or any portion of one or\nmore existing mental hygiene facilities and one or more mental hygiene\nfacilities to be designed, constructed, acquired, reconstructed,\nrehabilitated or improved, or of real property related to the work to be\ndone, including real property originally acquired by the appropriate\ncommissioner or director of the department in the name of the state\npursuant to article seventy-one of the mental hygiene law, (iii) the\nsubleasing of such facilities and property by the corporation upon\ncompletion of design, construction, acquisition, reconstruction,\nrehabilitation or improvement, such leases, subleases, loans or other\nfinancing agreements to be upon such other terms and conditions as may\nbe agreed upon, including terms and conditions relating to length of\nterm, maintenance and repair of mental hygiene facilities during any\nsuch term, and the annual rentals to be paid for the use of such\nfacilities, property, furnishings, equipment, machinery and apparatus,\nand (iv) the receipt and disposition, including loans or grants to\nvoluntary agencies, of proceeds of mental health service facilities\nbonds or notes issued pursuant to section nine-a of the New York state\nmedical care facilities finance agency act. For purposes of the design,\nconstruction, acquisition, reconstruction, rehabilitation or improvement\nwork required by the terms of any such lease, sublease or agreement, the\ncorporation shall act as agent for the state housing finance agency or\nthe state medical care facilities finance agency. In the event that the\ncorporation enters into an agreement for the financing of any of the\naforementioned facilities with the state housing finance agency or the\nstate medical care facilities finance agency, or in the event that the\ncorporation enters into an agreement for the financing or refinancing of\nany of the aforementioned facilities with one or more voluntary\nagencies, it shall act on its own behalf and not as agent. The\nappropriate commissioner or director of the department on behalf of the\ndepartment shall approve any such lease, sublease, loan or other\nfinancing agreement and shall be a party thereto. All such leases,\nsubleases, loans or other financing agreements shall be approved prior\nto execution by no less than three directors of the corporation.\n  b. To secure the payment of moneys or rentals due or to become due in\nany year under any lease, sublease, loan or other financing agreement\nentered into with the state housing finance agency or the state medical\ncare facilities finance agency, pursuant to paragraph a of this\nsubdivision, the directors of the corporation may pledge or assign any\nor all monies in the mental hygiene facilities improvement fund income\naccount and in any rental reserve account established pursuant to\nparagraph c of this subdivision, and any or all monies which may be\nreceivable by the corporation and credited to either or both such\naccounts in the future, whether equal to or in excess of the amount of\nsuch rentals due or becoming due in any year, and any or all right,\ntitle and interest of the corporation in and to the monies in or to be\ndeposited in such accounts.\n  c. The corporation may create and establish one or more separate\naccounts to be known as "rental reserve accounts" and may pay into such\nreserve accounts (i) any monies apportioned and paid by the state for\nthe purposes of such reserve account pursuant to this paragraph, (ii)\nany monies in the mental hygiene facilities improvement fund income\naccount transferred to such reserve accounts by the directors of the\ncorporation pursuant to any lease, sublease or other agreement\nundertaken by the corporation, and (iii) any other monies which may be\nmade available to the corporation from any source or sources\nspecifically for the purposes of such reserve accounts.\n  The monies credited to any rental reserve account established under\nthis paragraph shall be used, except as hereinafter provided, solely for\nthe payment of rentals as they become due under one or more of the\nleases, subleases and agreements referred to in paragraph a of this\nsubdivision, provided, however, that the monies in such account shall\nnot be withdrawn therefrom at any time in such amount as would reduce\nthe amount thereof to less than the maximum amount of rental becoming\ndue in any succeeding calendar year under such leases, subleases and\nagreements, except for the purpose of paying such rentals becoming due\nfor the payment of which other moneys of the corporation are not\navailable.\n  Subject to the terms of any lease, sublease or agreement referred to\nin paragraph a of this subdivision, monies in a rental reserve account\nnot required for immediate use or disbursement may be invested in\nobligations of the United States or the state or obligations the\nprincipal and interest of which are guaranteed by the United States or\nthe state. In computing the amount of a rental reserve account for the\npurposes of this paragraph, securities in which all or a portion of the\naccount are invested shall be valued at their market value as of a date\nwithin seven days preceding the date of the computation or at their cost\nto the corporation, whichever is less.\n  Any excess in a rental reserve account as of the last day of any state\nfiscal year over the maximum amount of rental becoming due in any\nsucceeding calendar year under such lease agreements shall be withdrawn\nby the corporation from such account and transferred to the mental\nhygiene facilities improvement fund income account to be used for the\ncorporate purposes of the corporation, other than for the purposes of\nany health facilities improvement program.\n  In order further to secure the maintenance in all rental reserve\naccounts established pursuant to this paragraph of an amount equal to\nthe maximum amount of rental becoming due in any succeeding calendar\nyear under the leases, subleases and agreements to which the reserve\naccount relates, there shall be annually apportioned and paid to the\ncorporation for deposit in such rental reserve accounts such sum, if\nany, as shall be certified by the chairman of the corporation to the\ngovernor and director of the budget as necessary to restore such\naccounts to an amount equal to the maximum amount of rental becoming due\nin any succeeding calendar year under such leases, subleases and\nagreements. The chairman of the corporation shall annually, on or before\nDecember first, make and deliver to the governor and director of the\nbudget his certificate stating the amount, if any, required to restore\nsuch rental reserve accounts to the amount aforesaid and the amount so\nstated in said certificate, if any, shall be apportioned and paid to the\ncorporation during the then current state fiscal year.\n  d. No lease, sublease or other agreement shall be undertaken by the\ncorporation pursuant to this section unless the governor, or where so\ndesignated by the governor for such purpose, the director of the budget,\nshall have approved the terms thereof.\n  e. The attorney general shall pass upon the form and sufficiency and\nmanner of execution of any lease, sublease or other agreement entered\ninto pursuant to this section and the same shall not be effective unless\nso approved by him.\n  f. The state shall not be liable for any rentals, loan, or other\npayments payable by the corporation pursuant to the terms of a lease,\nsublease, loan or other financing agreement entered into pursuant to\nthis section, and such lease, sublease, loan or other financing\nagreement shall contain among its terms a statement to such effect.\n  5. Jurisdiction of mental hygiene facilities; maintenance and repair.\nOn and after the effective date of this act, the corporation shall be\nentitled to exclusive possession, jurisdiction, supervision and control\nof all real property, including mental hygiene facilities, theretofore\nacquired and held for department purposes and of all mental hygiene\nfacilities thereafter constructed or acquired, and, to all payments made\nafter January first, nineteen hundred sixty-four, for the care,\nmaintenance and treatment of patients at such mental hygiene facilities.\n  The directors of the corporation shall make available to the\nappropriate commissioner of the department for use in the care,\nmaintenance and treatment of the mentally disabled, all such real\nproperty and facilities including newly constructed, acquired,\nreconstructed, rehabilitated and improved facilities, together with the\noriginal furnishings, equipment, machinery and apparatus therein, as\nsoon as practicable after the completion of work. Responsibility for the\nmaintenance and upkeep of such property, for the maintenance and routine\nrepair of such facilities, and for the replacement of furnishings,\nequipment, apparatus and machinery, shall be in the appropriate\ncommissioner of the department, provided, however, if the terms of any\nlease, sublease, loan or other financing agreement entered into between\nthe corporation and the state housing finance agency or the state\nmedical care facilities finance agency, pursuant to subdivision four of\nthis section so require, such responsibility shall be in the directors\nof the corporation until the termination of such lease, sublease, loan\nor other financing agreement.\n  The care, maintenance and treatment of the mentally disabled at all\nmental hygiene facilities shall remain at all times the responsibility\nof the appropriate commissioner of the department in accordance with the\nprovisions of the mental hygiene law.\n  Notwithstanding the foregoing provisions of this subdivision, title to\nall real property on which mental hygiene facilities, other than those\nowned or leased by voluntary agencies, are located shall continue to be\nvested in the people of the state until conveyed in accordance with law.\n  The provisions of this subdivision shall not apply to community mental\nhealth and developmental disabilities facilities.\n  6. Notwithstanding any provision of any general, special or local law\nor of any charter:\n  a. The governing body, as such term is defined in article forty-one of\ntitle E of the mental hygiene law (except that with respect to the city\nof New York such term shall mean the board of estimate), of a city or\ncounty may, upon such terms and conditions as shall be approved by such\ngoverning body and for such consideration, if any, as may be determined\nby such governing body, but not to exceed the cost of acquisition\nthereof and the cost of improvements thereon, exclusive of any costs\nreimbursed or to be reimbursed in accordance with the provisions of\narticle forty-one of title E of the mental hygiene law otherwise,\nexecute and deliver to the corporation a lease for a term not exceeding\nforty years or a deed (i) conveying to the corporation real property and\none or more community mental health and developmental disabilities\nfacilities of the city or county located thereon, a portion of the costs\nof which facilities are eligible for state reimbursement in accordance\nwith the provisions of article forty-one of title E or article\ntwenty-five of title D of the mental hygiene law or (ii) conveying to\nthe corporation real property of the city or county or an interest\ntherein, for the purpose of causing to be constructed, reconstructed,\nrehabilitated or improved thereon one or more community mental health\nand developmental disabilities facilities pursuant to this act, such\ncommunity mental health and developmental disabilities facilities to be\nmade available to such county or city for use and occupancy under lease,\nsublease or other agreement upon such terms and conditions as may be\nagreed upon, including terms and conditions relating to length of terms,\nmaintenance and repair of community mental health and developmental\ndisabilities facilities during such term and the annual rentals to be\npaid therefor for the use thereof. The corporation is hereby authorized\nto accept any such lease or conveyance, to hold such real property, to\nenter into a lease, sublease or other agreement with such city or county\nfor the purpose of making such community mental health and developmental\ndisabilities facility so acquired or to be constructed, reconstructed,\nrehabilitated or improved thereon available for use and occupancy by\nsuch city or county, and to lease or convey real property so acquired to\nthe New York state housing finance agency or the medical care facilities\nfinance agency, provided, however, that any such further lease or\nconveyance shall be solely for the purpose of causing community mental\nhealth and developmental disabilities facilities to be acquired,\nconstructed, reconstructed, rehabilitated or improved thereon, such\ncommunity mental health and developmental disabilities facilities to be\nmade available to such city or county for use and occupancy under a\nlease, sublease or other agreement between the corporation and such city\nor county, upon such terms and conditions as may be agreed upon. No such\nlease or conveyance from the corporation to the New York state housing\nfinance agency or the state medical care facilities finance agency shall\nbe for a consideration in excess of the cost of acquisition of such real\nproperty and the costs of improvements thereon. The appropriate\ncommissioner of the department, on behalf of his or her office, and the\ndirector of the budget shall approve all leases, subleases or\nagreements, whether between the corporation and such city or county or\nbetween the corporation and the housing finance agency or the state\nmedical care facilities finance agency, and the appropriate commissioner\nof the department shall be a party thereto. The appropriate division of\nthe office of addiction services and supports shall also approve all\nsuch leases, subleases or agreements relating to the construction,\nreconstruction, rehabilitation or improvement of community mental health\nand developmental disabilities facilities, constituting alcoholism or\nsubstance abuse facilities for use in an alcoholism or substance abuse\ntreatment program as defined in the mental hygiene law.\n  b. In the event that the corporation shall fail, within five years\nafter the date of such lease or conveyance, to construct, reconstruct,\nrehabilitate or improve the community mental health and developmental\ndisabilities facility or facilities thereon for which such lease or\nconveyance was made, or to cause the same to be done, as provided for in\na lease, sublease or other agreement entered into with such city or\ncounty, then, subject to the terms of any lease, sublease or other\nagreement undertaken by the New York state housing finance agency or the\nstate medical care facilities finance agency, with respect thereto, such\nreal property and any facilities thereon shall revert to such city or\ncounty with right of re-entry thereupon, and such lease or deed shall be\nmade subject to such condition of reverter and re-entry; provided,\nhowever, that as a condition precedent to the exercise of such right of\nre-entry, such city or county shall pay an amount equal to the sum of\nthe purchase price of such real property, the depreciated cost of any\nfacility or facilities constructed, reconstructed, rehabilitated or\nimproved thereon, and all other costs of the corporation or the New York\nstate housing finance agency or the state medical care facilities\nfinance agency incident to the costs of the acquisition of such real\nproperty and the financing of construction, reconstruction,\nrehabilitation or improvement relating to such facility or facilities,\nall as provided in the aforesaid lease, sublease or other agreement\nentered into with such city or county.\n  c. No real property or interest therein shall be acquired by the\ncorporation pursuant to this subdivision unless title thereto shall have\nbeen approved by the attorney general.\n  d. The attorney general shall pass upon the form and sufficiency and\nmanner of execution of any deed of conveyance and of any lease of real\nproperty authorized to be given under this subdivision by any city or\ncounty to the corporation, and any lease, sublease or agreement between\nthe corporation and a city or county, and the same shall not be\neffective unless such deed, lease, sublease or agreement shall be so\napproved by him.\n  e. The cost of construction, acquisition, reconstruction,\nrehabilitation or improvement of community mental health and\ndevelopmental disabilities facilities undertaken by the corporation\npursuant to this act may include the cost of acquisition of any real\nproperty leased or conveyed to the corporation pursuant to paragraph a\nof this subdivision and the cost of the original furnishing, equipment,\nmachinery and apparatus as determined by the corporation.\n  f. The provisions of this act shall not be deemed to prevent a city or\ncounty from financing the cost of constructing, acquiring,\nreconstructing, rehabilitating or improving a community mental health\nand developmental disabilities facility by the issuance of bonds or\ncapital notes of such city or county pursuant to the local finance law.\n