2023 New York Laws › EDN - Education › Title 1 - General Provisions › Article 9 - School Buildings and Sites › 407-A - Authorization for Dormitory Authority Financing of Capital Facilities for Special Act School Districts.

§ 407-a. Authorization  for  dormitory  authority financing of capital
facilities for  special  act  school  districts.    1.  The  legislature
declares  that  it is in the interest of the state, the school districts
and the children  of  the  state  to  assure  that  special  act  school
districts  educating  children  with handicapping conditions pursuant to
contracts with public school districts or social services districts have
sufficient facilities related to the education  of  such  children.  The
legislature  finds  that  special  act  school  districts providing such
education are in need of improved and additional facilities  related  to
the   education   of  such  children,  and  the  means  to  finance  the
construction  of  such  improvements  and  additional  facilities.   The
legislature, therefore, enacts the following provisions.
2.  This section shall apply to special act school districts listed in
chapter  five  hundred  sixty-six  of  the  laws  of  nineteen   hundred
sixty-seven,  as amended, which contract with public school districts or
social   services   districts   for   the  education  of  children  with
handicapping conditions pursuant to article eighty-one or eighty-nine of
this chapter.
3. Such special act school districts may enter into leases,  subleases
or  other agreements with the dormitory authority pursuant to title four
of article eight of the public authorities law for the financing of  the
design,   construction,   reconstruction,  rehabilitation,  improvement,
renovation or  otherwise  providing  for,  furnishing  or  equipping  of
capital  facilities  which  are  educational  facilities where the total
estimated cost of such facilities  exceeds  ten  thousand  dollars.  The
plans  and specifications of such capital facilities shall be subject to
the approval of the commissioner with respect to educational facilities.
Such capital facilities may be constructed only on land  owned  by  such
special  act  school district or, if the land is leased, where the lease
is for a period at least equal to the  appropriate  period  of  probable
usefulness  for  such facilities as listed in section 11.00 of the local
finance law, or the length of the lease,  sublease  or  other  agreement
with the dormitory authority, whichever is longer.
4.  Each  such  special act school district shall, notwithstanding any
other provision of law, have the power to  convey,  lease,  sublease  or
otherwise   make   available   to   the   dormitory   authority  without
consideration, title or any other rights in real  property  satisfactory
to the dormitory authority.
5. In addition to providing for all other matters deemed necessary and
proper,  such  leases,  subleases and other agreements shall (a) require
such special act school district  to  pay  to  the  dormitory  authority
annual  rentals  which  shall  include  the  amount  required to pay the
principal of and interest on  obligations  of  the  dormitory  authority
issued  in  relation  to  providing  such  facilities and all incidental
expenses of the dormitory authority incurred in  relation  thereto,  (b)
require  the special act school district to include an amount sufficient
to meet its obligations under the lease, sublease or other agreement  in
each proposed budget submitted during the term of the lease, sublease or
other  agreement  and  (c) include a provision that such agreement shall
not be effective unless and until it is  approved  by  the  commissioner
with respect to educational facilities.
6.  Title  or  other  real  property  rights to the capital facilities
financed pursuant to  this  section  shall  remain  with  the  dormitory
authority  until  the  dormitory authority certifies to the commissioner
with respect to educational facilities and the comptroller  the  receipt
by  it  of  the  amount  necessary  to pay the total aggregate amount of
annual rentals to the dormitory authority. At such time, title or  other
real  property  rights  thereto  shall  be  transferred by the dormitory

authority to such special act school district for  use  for  educational
purposes.  In  order  to avail itself of the provisions of this section,
each such special act school district must also  agree  to  continue  to
operate  a  program  for  the education of children pursuant to contract
with public school districts or  social  services  districts,  and  such
lease,  sublease  or  other agreement with the dormitory authority shall
provide that, if the special act school district shall cease to  operate
such  a  program at any time during the term of the agreement, the state
will have the option to take title or  other  real  property  rights  in
land,  buildings,  equipment  and other properties which the special act
school district uses for its program upon,  subject  to  appropriations,
payment  by  the state to the dormitory authority of the amount required
to pay the total aggregate amount of annual  rentals  to  the  dormitory
authority.
7.  On  or  before  November  fifteenth  of  each  year, the dormitory
authority shall submit, and thereafter may resubmit, to the director  of
the  budget,  the  state comptroller, the chairman of the senate finance
committee and the chairman of the assembly ways and  means  committee  a
report  setting  forth  the  amounts,  if  any,  of  all  annual rentals
estimated to become due in the  succeeding  state  fiscal  year  to  the
dormitory  authority  from  the special act school districts pursuant to
any  leases,  subleases  or  other  agreements  between  the   dormitory
authority  and  such special act school districts to provide educational
facilities for such special act school district.  The state  comptroller
shall  pay  over  to  the dormitory authority pursuant to appropriations
therefor solely from moneys available in the school  capital  facilities
financing  reserve fund the amount set forth in such report at the times
and in  the  amounts  set  forth  in  the  certificate  filed  with  the
comptroller  by the dormitory authority pursuant to subparagraph (iv) of
paragraph (b) of subdivision eight of this section.
8. Method of payment;  reserve  fund.  (a)  Each  special  act  school
district  which elects to avail itself of the provisions of this section
shall have established with  the  state  comptroller  a  school  capital
facilities  financing  reserve account which shall be used to pay to the
dormitory  authority  the  annual  rentals  payable  to  the   dormitory
authority  by  special  act  school  districts  which  have entered into
leases, subleases or other agreements with the  dormitory  authority  to
provide  educational  facilities  pursuant  to  the  provisions  of this
section. The dormitory authority shall identify to the state comptroller
and to the commissioner with  respect  to  educational  facilities,  the
special  act  school  districts  with  which it has leases, subleases or
other agreements pursuant to this section and shall annually certify the
amount of annual rentals required to be paid pursuant  to  such  leases,
subleases or other agreements.
(b)  (i)  There  is  hereby  established  in  the custody of the state
comptroller a special fund to be known as the school capital  facilities
financing  reserve fund. Within such fund, there is hereby established a
special account for each special act school district which enters into a
lease, sublease or other agreement with the dormitory authority pursuant
to this section.
(ii) Notwithstanding the provisions of any other law, such fund  shall
consist of part of the tuition payments from public school districts and
social  services  districts as determined by the commissioner, and state
aid to special act school  districts  pursuant  to  subdivision  six  of
section  thirty-six  hundred  two  of  this chapter as determined by the
commissioner. The comptroller shall maintain sufficient amounts  in  the
fund  in  order  to pay when due the annual rentals due to the dormitory
authority from each such special act school  district  pursuant  to  any

lease,  sublease  or  other  agreement  entered  into  pursuant  to  the
provisions of this section.  The dormitory authority  shall  certify  to
the  state  comptroller  the dates and amount of such annual payments as
scheduled in its leases, subleases or other agreements with such special
act  school  districts.  The  commissioner  with  respect to educational
facilities shall certify the amount of payments due the fund from public
school districts and social services districts,  respectively  and  such
public  school  districts  and social services districts shall make such
payments to the fund at  such  times  as  shall  be  prescribed  by  the
commissioner  with  respect  to  educational  facilities, subject to the
approval of the director of the budget, and after consultation with  the
dormitory authority.
(iii) Revenues in any special account in the school capital facilities
financing  reserve  fund may be commingled with any other moneys in such
fund. All deposits of such revenues with banks and trust companies shall
be secured by obligations of the United States or of the  state  of  New
York  or  its  political  subdivisions.    Such obligations shall have a
market value at least equal at all times to,  but  not  less  than,  one
hundred five percent of the amount of such deposits. All banks and trust
companies  are  authorized to give security for such deposits.  Any such
revenues in such fund may, in the  discretion  of  the  comptroller,  be
invested in obligations of the United States or the state or obligations
the  principal  of  and  interest  on which are guaranteed by the United
States or by the state. Any interest earned shall be  credited  to  such
fund.
(iv)  Upon receipt by the comptroller of a certificate or certificates
from the dormitory authority that it requires a payment or payments from
the appropriate special account established for  a  special  act  school
district  in  order  for such special act school district to comply with
any lease, sublease or other agreement pursuant to this section, each of
which certificates shall specify the required payment  or  payments  and
the date when the payment or payments is required, the comptroller shall
pay  from such special account on or before the specified date or within
thirty days after receipt of such certificate or certificates, whichever
is later, to the paying agent designated by the dormitory  authority  in
any such certificate, the amount or amounts so certified.
(v) All payments of money from the school capital facilities financing
reserve  fund  shall  be  made  on  the  audit  and warrant of the state
comptroller.
9. Notwithstanding the provisions of any contract pursuant to  article
eighty-one  or  eighty-nine  of  this  chapter between a social services
district or a public school district and a special act school  district,
if  the  special  act  school  district enters into a lease, sublease or
other agreement with the dormitory authority pursuant to  this  section,
payments due from the public school district or social services district
shall be made in accordance with the provisions of this section.
10.  All state and local officials are authorized and required to take
whatever actions are necessary to  carry  out  the  provisions  of  this
section  and the provisions of any leases, subleases or other agreements
entered into pursuant to this section,  including  making  the  required
payments to the dormitory authority.
11. Any contract undertaken or financed by the dormitory authority for
any  construction, reconstruction, rehabilitation or improvement for any
special act school district shall comply with the provisions of sections
one hundred one and one hundred three of the general municipal law.
12. Notwithstanding any other provision of law to  the  contrary,  the
dormitory  authority  may execute leases, subleases, or other agreements
with  special  act  school  districts  for  financing  of  the   design,

construction,  rehabilitation,  improvement,  renovation, acquisition or
provision, furnishing or  equipping  of  capital  facilities;  provided,
however, that during the two year period commencing July first, nineteen
hundred  ninety-five,  the  amount  of  bonds  inclusive  of  principal,
interest and issuance costs to be  issued  for  each  individual  lease,
sublease,  or  other  agreement shall not exceed fifteen million dollars
annually; and provided further that the total amount of such  bonds  for
all  such  leases,  subleases,  or  agreements  with  special act school
districts during such period shall not exceed  twenty  million  dollars.
On or before September first of each year, the commissioner shall submit
to  the  chairs  of  the  assembly  ways and means committee, the senate
finance committee and the director of the budget,  a  capital  plan  for
those  projects  expected  to be bonded for special act school districts
pursuant to this section, within such twenty million  dollar  allowance.
After  application  of the principles of the capital assets preservation
program,  such  plan  shall  accord  priority  to  health   and   safety
considerations  and  shall  specify  the name, location, estimated total
cost of the  project  at  the  time  the  project  is  to  be  bid,  the
anticipated bid date and the anticipated completion date and may contain
any further recommendations the commissioner may deem appropriate.