2023 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.