NY Pub Auth L § 1680-G (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 4 - Dormitory Authority 1680-G - Child Care Facilities Development Program; Authority Financing of Eligible Child Care Facilities Development Projects.

§   1680-g.  Child  care  facilities  development  program;  authority financing of eligible child care facilities development projects. 1. The dormitory authority is hereby authorized to finance eligible child  care facilities development projects which are intended to serve the needs of low-income working families or an area with demonstrated child care need or  to  provide  care  for  children through the age of twelve years and enrolled in school following the completion of the  school  day  or  the school  year.    Such  projects  shall be used as licensed or registered forms of child care for a period of at least ten years with  an  average of  twenty-five  percent of its available child care slots set aside for families eligible for low-income child care subsidies or  for  referrals of  low-income  or public assistance families from local social services districts. Such project shall have a useful life of at least ten years.   2. (a) Notwithstanding the provisions of any general or special law to the contrary,  and  subject  to  the  making  of  annual  appropriations therefor  by the legislature, in order to assist the dormitory authority in providing  for  the  financing  of  eligible  child  care  facilities development  projects,  the  director of the budget is authorized in any state fiscal year commencing April first, nineteen  hundred  ninety-nine or  any  state  fiscal year thereafter to enter into one or more service contracts, none of which shall exceed thirty years in duration, with the dormitory authority, upon such terms as the director of the  budget  and the dormitory authority agree.  (b)  Any  service  contract  entered into pursuant to paragraph (a) of this subdivision or any payments made or to be made  thereunder  may  be assigned  and  pledged  by  the  dormitory authority as security for its bonds, notes, or other obligations.  (c) Any such service contracts shall provide that  the  obligation  of the director of the budget or of the state to fund or to pay the amounts therein provided for shall not constitute a debt of the state within the meaning  of  any  constitutional or statutory provision in the event the dormitory authority assigns or pledges the service contract payments  as security  for its bonds, notes, or other obligations and shall be deemed executory only to the extent monies are available and that no  liability shall  be  incurred  by  the  state  beyond the monies available for the purpose, and that such obligation is subject to annual appropriations by the legislature.  (d) Any service contract or contracts entered into  pursuant  to  this subdivision  shall  provide for state commitments to provide annually to the dormitory authority a sum or sums, upon such terms and conditions as shall be deemed appropriate by the director of the budget, to  fund  the principal,  interest,  or other related payments required for any bonds, notes, or other obligations of the dormitory authority  issued  pursuant to this section.   3.  The dormitory authority in conjunction with the office of children and family services shall develop a request for applications  soliciting potential  applicants seeking assistance for the development of licensed child care center projects. The office of children and  family  services shall  receive,  initially  review, and assess applications to determine which projects should be referred to the authority and to rank by groups the referred projects according to the capacity of such projects to meet identified needs for child care. In  assessing  such  applications,  the office of children and family services shall consider:  (a) the needs for child care services in the area;  (b)  the potential viability for a child care center to succeed in the area;  (c) the  qualifications  of  the  proposed  provider  to  operate  the proposed child care center;  (d) the potential for meeting applicable regulatory requirements;  (e)  the  appropriateness  of  the  site for licensing as a child care center; and  (f) such other matters as the office of children and  family  services determines necessary to properly and completely evaluate an application.   Upon  the  timely  completion  of  the  office  of children and family services' initial review and selection of applications meeting criteria, the office  shall  submit  such  selected  applications  and  the  group rankings  of  such  applications  to the dormitory authority which shall select grant recipients.   4. (a) The dormitory authority shall,  from  any  appropriations  made available   for   this   purpose,  establish  a  child  care  facilities development program that shall offer child care  facilities  development grants pursuant to paragraphs (d), (e) and (f) of this subdivision.  (b)   Financing   for   child  care  facilities  development  projects authorized pursuant  to  this  section  shall  only  be  made  upon  the determination  by  the  authority,  in  consultation  with the office of children and family services, that such a center or  school-age  program will  increase  supply  and  access  to  child  care.  Such  centers  or school-age programs shall demonstrate the potential to obtain  from  the office   of   children   and   family  services  and  other  appropriate governmental agencies, all  necessary  approvals,  licenses,  and  other supports to operate the center.  (c)  Such  financing  shall  consist  of grants for the establishment, expansion, and development of licensed child care centers.  (d) Grants shall  be  used  for  general  project  development  costs, including but not limited to: (i) the acquisition, design, construction, improvement,  or  renovation  of  the  site,  and  (ii)  the purchase of necessary equipment.  (e) For the purposes of this  subdivision,  grants  shall  not  exceed ninety  percent  of  the  total  project  costs.  Child  care facilities development grants shall not be limited to funds  appropriated  therefor and  may  consist  of  monies  from  any source, public or private, made available for such grants.  (f) Child care facilities development grants awarded pursuant to  this section  shall  be  available  for  not-for-profit child care facilities development projects owned or to be owned by not-for-profit corporations for use as child day care centers that will be duly approved,  licensed, inspected,  supervised,  and  regulated  as  may  be  determined  to  be necessary and appropriate by the authority.   5. (a) To obtain funds for the purposes of this section, the authority shall have power from time to time to issue negotiable bonds  or  notes. Unless  the context shall clearly indicate otherwise, whenever the words "bond" or "bonds" are used in this section, such words shall  include  a note or notes of the authority.  (b)  The  dormitory authority shall not issue any bonds or notes in an amount in excess of thirty million dollars  for  the  purposes  of  this section;  excluding  bonds  or  notes  issued  to  fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to  refund  or  otherwise  repay  such  bonds  or  notes previously  issued.  Except  for purposes of complying with the internal revenue code, any interest on bond proceeds shall only be  used  to  pay debt service on such bonds.  (c)   In   computing  for  the  purposes  of  paragraph  (b)  of  this subdivision, the aggregate amount of indebtedness evidenced by bonds and notes of the dormitory authority issued pursuant to  this  title,  there shall  be  excluded  the amount of such indebtedness represented by such bonds or notes issued to refund  or  otherwise  repay  bonds  or  notes,  provided that the amount so excluded under this paragraph may exceed the principal  amount  of  such bonds or notes that were issued to refund or otherwise repay only if the present value of the aggregate debt  service on  the refunding or repayment bonds or notes shall not have at the time of their issuance exceeded the  present  value  of  the  aggregate  debt service  of the bonds or notes they were issued to refund or repay, such present value in each case  being  calculated  by  using  the  effective interest  rate of the refunding or repayment bonds or notes, which shall be that rate arrived  at  by  doubling  the  semi-annual  interest  rate (compounded  semi-annually)  necessary  to  discount  the  debt  service payments on the refunding or repayment bonds or notes from  the  payment date thereof to the date of issue of the refunding or repayment bonds or notes  and to the price bid therefor, or to the proceeds received by the dormitory authority from  the  sale  thereof,  in  each  case  including estimated accrued interest.  (d)  The  state  of  New  York  hereby  covenants with the purchasers, holders and owners from time to time  of  the  bonds  of  the  authority issued  pursuant  to  this  section  that  it  will  not, subject to the provisions of subparagraph (c)  of  subdivision  two  of  this  section, repeal,  revoke, rescind, modify or amend the provisions of this section which relate to the making of annual service contract  payments  to  the authority  with  respect to such bonds as to limit, impair or impede the rights and remedies granted to bondholders under this title or otherwise diminish the security pledged to such purchasers, holders and owners  or significantly impair the prospect of payment of any such bond.