NY Priv Hous Fin L § 47-D (2021)
2021 New York Laws PVH - Private Housing Finance Article 3 - New York State Housing Finance Agency 47-D - Health Facilities Bonds and Notes.

§  47-d.  Health  facilities  bonds and notes. 1. Definitions. For the purposes of section forty-seven and this section:   a. "Municipality" means a county, city or town constituting  a  social services  district  as  defined in sections two, sixty-one, seventy-five and seventy-five-a of the social services law, or any two or more of the foregoing which are acting jointly  to  provide  a  health  facility  or health facilities.   b.  "Health  facility"  means  a building, a unit within a building, a laboratory, a classroom, a housing unit, a dining  hall,  an  activities center,  a  library, or any structure on or improvement to real property of any kind or description, including fixtures and equipment  which  are an integral part of any such building, unit, structure or improvement, a walkway,  a  roadway  or a parking lot, and improvements and connections for water, sewer, gas, electrical, telephone, heating, air  conditioning and  other  utility  services, or a combination of any of the foregoing, whether for patient care and treatment of staff, staff family or service use, located at or related to or constituting a hospital of, and located in, a municipality.   c. "Health facilities bonds" and "health facilities notes" shall  mean bonds  and  notes,  respectively,  issued  by  the  agency  pursuant  to subdivision two of this section.   d. "Health  facilities  improvement  program"  shall  mean  a  program undertaken  by  the  agency and the health and mental hygiene facilities improvement corporation for  the  purpose  of  constructing,  acquiring, reconstructing, rehabilitating or improving health facilities or causing such    facilities   to   be   constructed,   acquired,   reconstructed, rehabilitated or improved pursuant to  the  health  and  mental  hygiene facilities improvement act and this article.   2.  Additional  powers of the agency. In accordance with any agreement entered into pursuant to this article and the health and mental  hygiene facilities  improvement  act:  a.  The  agency shall have powers: (i) to lease or  purchase  one  or  more  existing  health  facilities  from  a municipality  and cause such facility or facilities to be reconstructed, rehabilitated or improved by the health and  mental  hygiene  facilities improvement  corporation,  created  by  the  health  and  mental hygiene facilities improvement act, as its agent or, on any real property leased or purchased from a municipality to cause one or more health  facilities to   be   constructed  by  the  health  and  mental  hygiene  facilities improvement corporation as its agent; (ii) to lease or purchase from any person, firm or corporation real property for  the  purpose  of  causing health  facilities  to  be  constructed, reconstructed, rehabilitated or improved  by  the  health  and  mental  hygiene  facilities  improvement corporation  as  its agent; (iii) to lease or sublease to a municipality health facilities which have been constructed, acquired,  reconstructed, rehabilitated or improved by the agency pursuant to this article and the health and mental hygiene facilities improvement act; and (iv) to do all or any combination of the foregoing.   b.  The  agency shall have power and is hereby authorized from time to time to issue negotiable bonds and notes in such principal amount as, in the opinion of the agency, shall be necessary, after taking into account other monies  which  may  be  available  for  the  purpose,  to  provide sufficient  funds  for  the  construction,  acquisition, reconstruction, rehabilitation or improvement of  health  facilities  pursuant  to  this subdivision  two, the payment of interest on health facilities bonds and health facilities notes issued for such purposes, the  establishment  of reserves  to  secure such bonds and notes, and all other expenditures of the agency  incident  to  and  necessary  or  convenient  for  any  such construction,    acquisition,    reconstruction,    rehabilitation    or  improvement, provided, however, that the agency shall not  issue  health facilities  bonds  and health facilities notes in an aggregate principal amount  exceeding  eight  hundred  million  dollars,  excluding   health facilities   bonds   and   health  facilities  notes  issued  to  refund outstanding health facilities bonds or health facilities notes.   3. Application of other provisions of article.  Except  as  stated  in section forty-seven, the other provisions of this article shall apply to health facilities bonds and health facilities notes issued by the agency pursuant  to this section, provided, however, that such bonds and notes, subject to any agreements with the holders of particular bonds or  notes pledging any specified portions thereof, shall be secured by a pledge to the  payment  thereof  of (i) rentals paid to the agency with respect to health facilities financed with the proceeds of such  bonds  and  notes, and (ii) any other assets, monies or accounts pledged or assigned to the agency as security for the payment of such rentals, and provided further that  no  resolution  or resolutions authorizing health facilities bonds and health facilities notes shall (i) pledge all or any part of the fees and charges made or received  by  the  agency  pursuant  to  subdivision eleven  of  section forty-four in connection with the making of mortgage loans or commitments therefor, or all or any part of the monies received in payment of such mortgage loans and interest thereon, or  (ii)  pledge all  or  any part of the mortgages of the agency or obligations securing the same, or (iii) provide as to the use and disposition  of  the  gross income  from  mortgages  owned  by  the  agency  or as to the payment of principal of mortgages owned by the agency, or (iv) pledge  all  or  any part  of the rentals paid to the agency under leases, subleases or other agreements for state university facilities and mental hygiene facilities entered into by the agency in  accordance  with  this  article,  or  (v) pledge or assign all or any part of any other assets, monies or accounts pledged or assigned to the agency as security for the payment of rentals for such state university facilities and mental hygiene facilities.   4.  Health  facilities income accounts. a. The agency shall create and establish one or more special accounts (herein  referred  to  as  health facilities  income accounts) and shall pay into such accounts any monies which the agency shall receive in payment of rentals due  under  one  or more  leases  or  subleases  entered into pursuant to subdivision two of this section and any other monies which the agency shall receive from  a municipality  as security for or in payment of such rentals. Such monies and any other monies paid into such health facilities  income  accounts, may, in the discretion of the agency, but subject to agreements with the holders  of health facilities bonds and health facilities notes, be used by the agency (1) for the repayment of advances, if any, from the  state to  the  agency  in  connection  with  health  facilities,  and any real property  required  therefor,  in  accordance  with  the  provisions  of repayment  agreements  related thereto which have been entered into with the director of the budget, (2) to pay all costs, expenses  and  charges of  financing  the  health  facilities  applicable  to  such  account or accounts including fees and expenses of trustees and paying agents,  (3) to  pay the administrative and other expenses of the agency allocable to the  services  performed  by  the  agency  in  the  financing   of   the construction, acquisition, reconstruction, rehabilitation or improvement of  health  facilities and matters relating thereto, (4) for the payment of the principal of and interest on health facilities  bonds  or  health facilities  notes  issued  by  the agency when the same shall become due whether at maturity or by call for redemption and for the payment of any redemption premium required to be paid where such  bonds  or  notes  are redeemed  prior  to  their  stated  maturities,  and  to purchase health facilities bonds or health facilities notes issued by the agency, or (5)  for such other corporate purposes of the agency relating to the carrying out of its functions, powers and duties with respect to the financing of the  construction,  acquisition,   reconstruction,   rehabilitation   or improvement  of  health facilities as the agency in its discretion shall determine and provide.   b. To assure the continued payment of rentals due under  one  or  more leases  or  subleases  entered  into pursuant to subdivision two of this section, the agency shall annually, not later  than  November  first  in each  year,  make and deliver to the appropriate chief fiscal officer of the municipality a certificate setting forth the amount, if any, due and not paid for the preceding fiscal year of the agency under such lease or sublease with  such  municipality.  In  the  event  of  the  failure  or inability  of  the  municipality  to  pay  over the stated amount to the agency on or before December first of the same year,  the  agency  shall forthwith  make and deliver to the comptroller of the state of New York, the  director  of  the  budget  of  the  state  of  New  York  and   the commissioners  of  health and social services of the state of New York a further certificate restating the amount due  and  not  paid,  and  such amount  shall  be  paid  over  to  the  agency,  upon the warrant of the comptroller on vouchers certified as  correct  by  the  commissioner  of health  and  approved by the commissioner of social services, out of the next payment of state aid to such municipality pursuant to section three hundred sixty-eight-a of the social services law or  funds  appropriated for  the  purpose  of  making  payments  on  behalf of such municipality pursuant to section three hundred sixty-seven-b  of  such  law.  To  the extent  any such payments to the agency are made from state aid payments pursuant to section three hundred sixty-eight-a of such law, the  amount of  such payments shall be deducted from the corresponding apportionment of state aid otherwise credited to  such  municipality,  and  the  state shall  not  be obligated to pay, nor shall such municipality be entitled to receive, by virtue of such deduction,  any  additional  or  increased apportionment  or payment of state aid pursuant to section three hundred sixty-eight-a of the  social  services  law.  To  the  extent  any  such payments  to the agency are made from funds appropriated for the purpose of making payments on behalf of such municipality  pursuant  to  section three hundred sixty-seven-b of such law, the amount of such payments may be  deducted  from  any  other  payments  of  state  assistance  to such municipality under the social services law and the state  shall  not  be obligated  to pay, nor shall the municipality be entitled to receive, by virtue of such deduction, any additional or increased  apportionment  or payment  of  such  state  assistance,  provided,  however,  that nothing contained in this sentence shall be construed to limit, impair,  impede, or  otherwise  adversely  affect in any manner the rights or remedies of the purchasers and holders and owners of any bonds or notes of the state or  any  agency  or  instrumentality,  public  benefit  corporation   or political  subdivision  thereof  under which such purchasers and holders and owners have any right of payment of such bonds or notes by  recourse to such state assistance monies.   5.  Special  provisions.  Notwithstanding  any other provision of law, general, special or local, or any provision of any charter or ordinance:   a. A municipality is hereby authorized to execute and deliver  to  the agency  for such consideration as may be determined by the municipality, the agency and the health  and  mental  hygiene  facilities  improvement corporation,  but  not  to exceed the cost of acquisition thereof to the municipality and the cost of improvements thereon, a lease  for  a  term not  exceeding  fifty years or a quit claim deed conveying to the agency all right, title and interest  of  such  municipality  in  and  to  real property,    for    the   purpose   of   constructing,   reconstructing,  rehabilitating, or improving one or more health facilities  pursuant  to this  article  and  the health and mental hygiene facilities improvement act for subsequent lease or sublease to such municipality, in accordance with  the  terms  of any agreement entered into pursuant to this article and the health and mental hygiene facilities improvement act.   b. A municipality is hereby authorized to lease or sublease  from  the agency  the  health facilities constructed, reconstructed, rehabilitated or improved pursuant to this article and the health and  mental  hygiene facilities  improvement  act,  in  accordance  with  the  terms  of  any agreement entered into pursuant to this article and such  act.  At  such time  as  all rentals due or to become due to the agency pursuant to the terms of any such lease or sublease have been  paid  or  such  lease  or sublease   is   terminated  pursuant  to  the  provisions  thereof,  the jurisdiction of the agency over the real  property  leased  or  conveyed pursuant   to  paragraph  a  of  this  subdivision,  together  with  the improvements thereon shall cease and all interest real and  personal  in such  real  property and improvements vested in the agency shall vest in the municipality with right of re-entry thereon,  provided,  however  if such  real  property  were  leased  or  conveyed  to  the  agency  by  a municipality which constituted a city  social  services  district  which district   was   dissolved   pursuant   to  the  provisions  of  chapter twenty-eight of the laws of nineteen hundred seventy-two,  all  interest real  and  personal in such real property and improvements vested in the agency shall vest in the municipality  which  formerly  constituted  the city social services district with right of re-entry thereon.   c.  No  real  property  or  interest  therein shall be acquired by the agency pursuant to this subdivision unless title thereto shall have been approved by the attorney general.   d. The attorney general shall pass upon the form and  sufficiency  and manner  of  execution  of  any  deed  of  conveyance and of any lease or sublease to which the agency and a municipality  are  parties,  and  the same shall not be effective unless approved by him.   e.  In the event that the agency shall fail within five years from the date of a lease or conveyance authorized pursuant to paragraph a of this subdivision five to construct, reconstruct, rehabilitate or improve  the health facilities thereon for which the lease or conveyance was made, as provided  for in any agreement entered into pursuant to this article and the health and mental hygiene facilities  improvement  act,  or  in  the event  that  such  health  facilities  shall  cease  to  be used for the purposes intended, then and in either event but subject to the terms  of any  lease,  sublease  or  other  agreement  between  the agency and the municipality, such real property  and  any  health  facilities  thereon, shall  revert  to  the municipality with right of re-entry thereupon and such lease or deed shall be made subject to such  conditions;  provided, however,  that as a condition precedent to the exercise of such right of re-entry the municipality shall pay to the agency an amount equal to the purchase price of such real property, the depreciated cost of any health facilities constructed, reconstructed, rehabilitated  or  improved,  and all  other  costs of the agency incident to the acquisition of such real property   and   the   financing   of   construction,    reconstruction, rehabilitation  or  improvement  relating  to  such  facilities,  all as provided in the aforesaid lease, sublease  or  other  agreement  entered into with such municipality.   f.  In  the event that the agency shall determine that any portions of the real property leased or conveyed pursuant to  paragraph  a  of  this subdivision five are in excess of the real property needed to construct, reconstruct,  rehabilitate or improve the facility or facilities thereon for which the conveyance was made, as provided in any agreement  entered  into  pursuant  to  this  article  and  the  health  and  mental hygiene facilities improvement act, the agency  may  terminate  its  lease  with respect  to  such excess portions of such real property or reconvey such excess  portions  to  the  municipality,  provided,  however,  that  the municipality  shall  pay  to  the  agency  an  amount   equal   to   the consideration, if any, paid by the agency to such municipality allocable to  such  excess real property and such other costs of the agency as are incident to the acquisition of such excess real property, all as may  be approved  by such municipality and the agency. Any monies so paid to the agency shall be used and applied,  subject  to  the  provisions  of  any contract  with  noteholders  and  bondholders,  for  the sole purpose of paying costs and expenses of the agency incident to the financing of the health facilities to be  constructed,  reconstructed,  rehabilitated  or improved  on such other portions of the real property as shall have been leased or conveyed to  the  agency  pursuant  to  paragraph  a  of  this subdivision five.   g.    The   cost   of   construction,   acquisition,   reconstruction, rehabilitation or improvement of health  facilities  undertaken  by  the agency  pursuant  to  this  article  and  the  health and mental hygiene facilities improvement act may include the cost of  acquisition  of  any real  property  leased  or  conveyed  to  the  agency in accordance with paragraph a of this subdivision  five  and  the  cost  of  the  original furnishings,  equipment,  machinery  and apparatus needed to furnish and equip such facilities upon the completion of the work. The agency  shall have  power  to  acquire or lease and to hold real property required for the  construction,  acquisition,   reconstruction,   rehabilitation   or improvement  of  the health facilities undertaken by the agency pursuant to this article and the health and mental hygiene facilities improvement act and to provide the original furnishings,  equipment,  machinery  and apparatus   needed  to  furnish  and  equip  such  facilities  upon  the completion of  work  and  to  issue  its  bonds  and  notes  to  provide sufficient funds to pay the cost thereof.   h.  A  municipality  is hereby authorized and empowered, in connection with any lease, sublease or other agreement with  the  agency  to  which such  municipality is a party, and subject to such agreements with third parties as may then exist, to:  (1) pledge or assign to the agency all or any portion of the  revenues and  monies received or to be received by the municipality, which may be available for the purpose of paying rentals for the use  of  the  health facilities   constructed,   acquired,  reconstructed,  rehabilitated  or improved under such agreement, so that the payment of such  rentals  may be fully secured and protected;  (2)  use  and  dispose  of  such  revenues and monies, or any portions thereof, for the purpose of defraying, in whole or in part (a) the  cost of  acquiring  any  real  property  for  the  purpose  of  constructing, acquiring,  reconstructing,  rehabilitating  or   improving   facilities thereon which may be constructed, acquired, reconstructed, rehabilitated or  improved  by  the agency pursuant to this article and the health and mental hygiene facilities improvement act, (b) the cost of financing the construction, acquisition, reconstruction, rehabilitation or improvement of  such  facilities,  and  (c)  the  cost  of  acquiring  the  original furnishings,  equipment,  machinery  and apparatus needed to furnish and equip such facilities upon the completion of the work;  (3) set aside  rental  reserves  and  to  agree  to  the  maintenance, regulation and disposition thereof;  (4) agree to limitations on the purposes to which the proceeds of sale of  agency  notes  or  bonds  may be applied and to the pledging of such  proceeds to secure the payment of agency notes or bonds or of any issued thereof;  (5) agree to limitations on the making of additional leases, subleases or  agreements  with the agency or with others, and the terms upon which such additional leases, subleases or agreements may be made;  (6) upon receipt of any notice of assignment by the agency of any such lease, sublease or other agreement with the agency, or  of  any  of  its rights under such lease, sublease or other agreement, recognize and give effect  to  such  assignment  and to pay the assignee thereof rentals or other payments then due or which may become due under  any  such  lease, sublease  or  other  agreement which has been so assigned by the agency; and  (7) agree to any other matters, of like or different character,  which in  any  way  affect  the  security or protection of the rental payments required to be made under the terms of such  lease,  sublease  or  other agreement with the agency.