NY Pub Health L § 2880 (2021)
2021 New York Laws PBH - Public Health Article 28-B - Hospital Mortgage Loan Construction 2880 - Hospital Facilities Development Fund.

§  2880.  Hospital  facilities  development  fund. 1. Establishment of   fund.  a. There is hereby created and established in the  department  of   health  a  revolving  fund  to  be  known  as  the  "hospital facilities   development fund".b. There shall be paid into such hospital facilities development  fund   (a)  any  monies  appropriated  and  made available by the state for the   purposes of such fund, (b) notwithstanding the provisions of  the  state   finance  law  or  any  other  provision  of  law,  any  monies which the   department of health shall receive in repayment of  advances  made  from   the  fund,  and  (c) any other monies which may be made available to the   department of health for the purposes of such fund from any other source   or sources.c. Any monies held in such hospital facilities  development  fund  not   required  for  immediate disbursement may be invested, at the discretion   of the commissioner, in obligations of the state or  the  United  States   government  or  obligations  the  principal  and  interest  of which are   guaranteed by the state or the United States government. Any  income  or   interest   earned   by,   or  increment  to,  such  hospital  facilities   development fund shall be added to the monies held in such fund for  the   purpose herein provided.2.  Advances;  conditions;  prepayment.  a. The commissioner is hereby   authorized to use the monies held in the hospital facilities development   fund  to  make  non-interest  bearing  advances  to  eligible  borrowers   providing  or arranging for health services in connection with a prepaid   comprehensive health care plan. Such monies shall be paid  out  of  such   fund,  after  audit  by  and  upon  the  warrant  of the comptroller, on   vouchers approved by the commissioner.b. No such advances may be made  unless  the  commissioner  reasonably   anticipates  that  a New York state housing finance agency mortgage or a   New York state medical care facilities finance agency mortgage,  as  the   case  may  be,  will  be  obtained  for the hospital project and makes a   finding to such effect. Such finding shall be conclusive evidence of the   facts  therein  contained  except  upon  proof  of  fraud   or   willful   misfeasance.c.  The  proceeds  of  such  advances shall be used only to defray the   development costs of such project. The  "development  costs"  means  the   costs approved by the commissioner as appropriate expenditures which may   be  incurred  prior to the initial advance of the proceeds of a New York   state housing finance agency mortgage or a New York state  medical  care   facilities finance agency mortgage, as the case may be including but not   limited  to:  (a)  payments  for  options to purchase properties for the   proposed hospital project or for deposits on  account  of  contracts  to   purchase   such  properties;  (b)  legal  and  organizational  expenses,   including payment of attorneys' fees,  project  manager,  administrative   and  clerical staff salaries, office rent and other incidental expenses;   (c) payment of fees and expenses for preliminary  surveys,  reports  and   feasibility    studies,   advances   for   planning,   engineering   and   architectural work;  and  (d)  such  other  expenses  incurred  by  such   eligible borrower as the commissioner may deem appropriate to effectuate   the purposes of this article.d. If such eligible borrower obtains a mortgage loan from the New York   state  housing  finance  agency  or  the  New  York  state  medical care   facilities finance agency, each such advance shall be repaid in full  by   such  eligible  borrower  to  the department of health concurrently with   receipt by the eligible borrower of the first proceeds of such loan.e. If the commissioner in his discretion shall, at any time, determine   that a New York state housing finance agency mortgage loan or a New York   state medical care facilities finance agency mortgage loan  may  not  be    obtained,  or  that  any  advance  made  pursuant  to this section is in   jeopardy of not being repaid or that the proposed project for which such   advance was made is in jeopardy of not being constructed,  then  and  in   any  such  event  all  advances  made to such eligible borrower from the   hospital facilities development fund shall be deemed due and payable  by   the eligible borrower upon the demand of the commissioner.3.  Examination  by  comptroller.  The  comptroller,  or  his  legally   authorized representative, is hereby authorized and empowered to examine   the books and accounts of the  department  of  health  relating  to  the   hospital  facilities  development fund, and from time to time, until the   advances have been repaid to the hospital facilities  development  fund,   to  examine  the  books and accounts of each eligible borrower receiving   such advances, including its receipts, disbursements, contracts, leases,   loans, and any other monies relating to its financial operation.