2023 New York Laws › FDC - Facilities Development Corporation Act 359/68

Chapter 359 of the laws of 1968
§  1.  Short  title.  This  act  shall  be  known and may be cited and
referred to as the "facilities development corporation act."
§ 2. Statement of legislative findings  and  purposes.  It  is  hereby
found  and  declared  that  the  provision  of  new  and  improved state
facilities relating to  the  care,  maintenance  and  treatment  of  the
mentally  disabled  must  be  accelerated  if  the  state is to meet its
responsibilities in the  face  of  an  increasing  state  population,  a
growing awareness that mental disability can be treated effectively, and
new  research  advances  in  treatment methods. An expanded construction
program is essential to relieve overcrowding in the state hospitals  for
the  mentally  ill,  to  provide  treatment  and care for the increasing
population of people with developmental disabilities in  state  schools,
and  to  permit  the  establishment  of  special  treatment programs for
mentally ill and emotionally disturbed children and for the mentally ill
blind and the mentally  ill  deaf.  Existing  state  facilities  require
substantial  modernization  and  structural  change  to  accommodate new
concepts of treatment for the mentally disabled and  special  units  for
the  treatment  of alcoholism and narcotics addiction. Larger and better
equipped research facilities must be installed in order to  insure  that
state  treatment  units  are in the forefront of applying and developing
advanced therapeutic  methods.  At  the  same  time,  improved  training
facilities   and   quarters   are  needed  to  attract  and  retain  the
best-qualified staff personnel.
To assure that the required facilities are completed and ready for use
as promptly as possible, the legislature hereby finds and declares  that
there  should be created a corporate governmental agency, constituting a
public benefit corporation, to be known as the  "Facilities  Development
Corporation",   which  could  receive  and  administer  monies  for  the
construction and improvement of mental hygiene  facilities  and  provide
such  facilities  in accordance with the foreseeable needs for the care,
maintenance and treatment of  the  mentally  disabled.  The  legislature
further   finds   and   declares   that  while  responsibility  for  the
professional care, maintenance and treatment of the mentally disabled at
all mental facilities  should  continue  in  the  department  of  mental
hygiene,  exclusive possession, jurisdiction, control and supervision of
the  physical  facilities  used  therefor  should  be  vested   in   the
corporation in order to facilitate the exercise of its powers.
It  is  further  found  and  declared  that  the  provision of new and
improved  community  mental  health   and   developmental   disabilities
facilities  must  be accelerated, in order to provide comprehensive care
and treatment of the mentally ill  and  developmentally  disabled.  Such
community mental health and developmental disabilities facilities should
be   located  close  to  the  people  they  serve,  in  order  to  speed
rehabilitation and restoration,  by  involving  families  and  community
resources  to  the  extent practicable. Such an accelerated construction
program will also help relieve overcrowding in state facilities for  the
mentally  ill and developmentally disabled and will afford treatment and
care  for  the  increasing   number   of   people   with   developmental
disabilities.   Such  a  program  will  increase  the  number  of  local
facilities  for  out-patient  care  and  short-term   in-patient   care,
including  after  care, diagnostic and rehabilitative services, training
and research.  While  the  responsibility  for  the  professional  care,
maintenance  and  treatment  of  the  mentally  ill  and developmentally
disabled  at  all  such  community  mental  health   and   developmental
disabilities  facilities  should  continue  in  the  local  governments,
subject to the provisions of article forty-one of title E of the  mental
hygiene  law  and the regulations of the commissioners of the offices of

the department having  jurisdiction  thereof,  the  legislature  further
finds and declares that the Facilities Development Corporation should be
empowered  to  aid cities and counties, at their request, to provide new
and  improved  community  mental  health  and developmental disabilities
facilities in order to insure their  timely  construction,  acquisition,
reconstruction,  rehabilitation  and  improvement in relation to current
and foreseeable needs and the emergence of new patterns of treatment and
care and should be empowered to receive and administer monies  for  such
purpose.
It is further found and declared that hospital and related services of
municipalities are of vital concern to the health, safety and welfare of
the people of the state. Many municipal hospital facilities today are no
longer adequate to meet the needs of modern medical care. Because of the
rapidity of technological change in the medical field, a great number of
such  facilities  require substantial structural and functional changes.
Many municipal hospitals are  overcrowded  in  their  ancillary  service
areas.   Many   still  have  large  open  wards,  while  the  growth  of
hospitalization insurance has brought increased demand for  semi-private
accommodations. Many of such hospitals have permitted their buildings to
deteriorate  prematurely  and  other  suffer  inefficiencies  caused  by
piecemeal and  uncoordinated  additions.  The  educational  programs  of
hospitals  have  become  indispensable.  Many  hospitals  are,  in fact,
educational institutions but their plants and equipment are not equal to
their  educational  commitment.  They   lack   facilities   for   needed
conferences  and  seminars  and  their  libraries  and  medical  records
departments do not meet the needs of individual  studies  and  research.
Many  of  such  hospitals no longer have adequate protection against the
hazards of fire, explosion and infection. Many of  such  hospitals  lack
facilities  for  ambulant  or  wheelchair patients, and are inadequately
designed for the tremendous increase in personnel traffic  and  movement
of supplies and equipment within the hospital.
It  is further found and declared that the construction, modification,
reconstruction and rehabilitation of  municipal  hospitals  and  related
health care facilities, including the provision of equipment, are public
purposes  and are necessary for the protection of the health, safety and
welfare of the people of the state. To assure  that  such  purposes  are
carried  out,  it  is  further  found  and  declared that the facilities
development corporation created by this  act  should  be  empowered,  in
cooperation  with  the  state,  municipalities  and  the  New York state
housing finance agency or the New York  state  medical  care  facilities
finance  agency,  as  the  case  may  be,  to  provide  for  the  timely
construction  and  modernization  of  municipal  hospitals  and  related
facilities  at a reasonable cost and in accordance with the health needs
of the community.
It is hereby found and declared that  the  acquisition,  construction,
reconstruction,  rehabilitation  and  improvement  of facilities for the
department of corrections and community supervision are public  purposes
which are essential to enable comprehensive modernization of the state's
programs  of  corrections. To assure that such purposes are carried out,
it is  further  found  and  declared  that  the  facilities  development
corporation  should  be  empowered in cooperation with the department of
corrections and community supervision to provide  for  the  acquisition,
construction,   reconstruction,   rehabilitation   and   improvement  of
facilities for the department of corrections and community supervision.
In order to accomplish all of these purposes, the  legislature  hereby
declares  that the existing corporate governmental agency constituting a
public benefit corporation, created  by  article  two-B  of  the  mental
hygiene  law,  shall  be  reconstituted  and continued as the facilities

development  corporation  which  corporation  shall   also   have   such
additional powers and duties as are granted to it in this act.
§  3.  Definitions.  As used in this act, unless the context otherwise
requires:
1. "Comptroller" means the comptroller of the state of New York.
2. "Community mental health and developmental  disabilities  facility"
shall  mean  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, or an
interest in real property, including an  interest  in,  and  proprietary
lease  from,  an  organization  formed  for  the  purpose of cooperative
ownership of real  property,  of  any  kind  or  description,  including
fixtures and equipment which are an integral part of such building, unit
or  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  or  staff, staff family or service use, located in a city, or
in a county not wholly included within a  city,  authorized  to  provide
community  mental  health  services in accordance with the provisions of
article 41 of the mental  hygiene  law,  which  is  utilized  or  to  be
utilized for the administration and conduct of programs for persons with
mental  illness  or  developmental  disabilities,  or  both, and for the
provision of services therefor, or utilized or to  be  utilized  in  the
performance  of  services  benefitting or assisting the care, treatment,
rehabilitation or maintenance of persons with mental  disabilities,  and
approved  to provide such services, pursuant to a written agreement with
the appropriate commissioner of an office of the  department  of  mental
hygiene.  Nothing  in  this subdivision shall be deemed to supercede the
provisions of article 41 of the mental hygiene law, where applicable.  A
community  mental  health  and developmental disabilities facility shall
also mean and include  a  residential  facility  to  be  operated  as  a
community residence for persons with mental disabilities and a treatment
facility for use in the conduct of an alcoholism treatment program or of
a  substance  abuse  treatment  program as defined in the mental hygiene
law.
2-a. "Department" means the  department  of  mental  hygiene  and  the
offices  of  mental  health, and alcoholism and substance abuse services
and the office  for  people  with  developmental  disabilities  of  such
department.
2-b.  "Commissioner"  means  the  commissioner  of  mental health, the
commissioner of the office for people with  developmental  disabilities,
the commissioner of alcoholism and substance abuse services.
3.  "Corporation" means the facilities development corporation created
by this act.
3-a. "Dormitory authority" means the dormitory  authority  created  by
the  dormitory  authority act as amended, being title four of the public
authorities law.
3-b.  "Facility  for  the  department  of  corrections  and  community
supervision"  means real property, a building, a unit within a building,
or any structure on or improvement to  real  property  of  any  kind  or
description  essential,  necessary  or  useful  in  the  program  of the
department of corrections and community supervision, including all usual
attendant and related facilities, fixtures, equipment,  and  connections
for  utility  services  or any combinations thereof, designed, acquired,
constructed, reconstructed, rehabilitated  and  improved,  or  otherwise
provided for the department of corrections and community supervision.
4.  "Federal  government"  means the United States of America, and any
officer, department, board, commission, bureau,  division,  corporation,
agency or instrumentality thereof.
5.   "Governing   body"   means   the  board  of  supervisors,  county
legislature, board of aldermen, common council, council, commission,  or
other  elective governing board or body now or hereafter vested by state
statute, charter or other law with jurisdiction to  initiate  and  adopt
local  laws,  whether  or  not such local laws or ordinances require the
approval of the elective chief executive officer or  other  official  or
body  to become effective, and except that with respect to a city having
a population of one million or more the term "governing body" shall mean
the board of estimate.
6. "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 improvement and connections for
water, sewer, gas, electrical, telephone, heating, air conditioning  and
other  utility  services, or a combination 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.
7. "Health facilities improvement program" means a program or programs
undertaken by the corporation pursuant to section eight of this act.
8. "Hospital" means a hospital as defined in article  twenty-eight  of
the public health law.
9.  "Letting  agency"  means,  where  the corporation is undertaking a
mental  hygiene  facilities  improvement  program  or  a  mental  health
facilities improvement program, (i) the commissioner of general services
if  by agreement with the corporation he is to award the contracts for a
particular construction, reconstruction, rehabilitation  or  improvement
project,  or  (ii)  the  corporation if it is to award such contracts as
principal or as agent for the state housing finance agency or the  state
medical care facilities finance agency.
10. "Mental  hygiene  facility" shall mean a building, a unit within a
building, a laboratory, a classroom, a housing unit, a dining  hall,  an
activities  center, a library, real property of any kind or description,
or any structure on or improvement to real property, or an  interest  in
real  property,  of  any  kind  or  description,  owned  by or under the
jurisdiction of the corporation, 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 or staff, staff family
or service use, located at or related to  any  psychiatric  center,  any
developmental  center, or any state psychiatric or research institute or
other facility now or hereafter  established  under  the  department.  A
mental  hygiene  facility shall also mean and include a residential care
center  for  adults,  a  "community  mental  health  and   developmental
disabilities  facility"  and a treatment facility for use in the conduct
of an alcoholism or substance abuse treatment program as defined in  the
mental  hygiene  law  unless  such  residential  care center for adults,
community mental  health  and  developmental  disabilities  facility  or
alcoholism  or  substance  abuse  facility is expressly excepted, or the
context clearly requires otherwise, and shall also mean and include  any
treatment  facility for use in the conduct of an alcoholism or substance

abuse treatment program that is also operated as  an  associated  health
care facility. The definition contained in this subdivision shall not be
construed to exclude therefrom a facility owned or leased by one or more
voluntary  agencies  that  is  to  be  financed,  refinanced,  designed,
constructed, acquired, reconstructed, rehabilitated  or  improved  under
any lease, sublease, loan or other financing agreement entered into with
such voluntary agencies, and shall not be construed to exclude therefrom
a  facility  to  be  made  available from the corporation to a voluntary
agency at the request  of  the  commissioners  of  the  offices  of  the
department having jurisdiction thereof. The definition contained in this
subdivision  shall not be construed to exclude therefrom a facility with
respect to which a voluntary agency has an ownership  interest  in,  and
proprietary  lease  from,  an organization formed for the purpose of the
cooperative ownership of real estate.
11. "Mental hygiene facilities improvement program" means a program or
programs undertaken by the corporation pursuant to section nine of  this
act.
12.  "Mentally  disabled" means a person having a mental disability as
defined in section 1.03 of the mental hygiene law.
13. "Municipality" means a county, city, town or village, except that,
where the corporation is undertaking  a  health  facilities  improvement
program,  such  term  shall  mean  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.
13-a. "Municipal building" shall mean a building, including grading or
improvement  of the site, furnishings, equipment and utility services in
conjunction with such  a  building,  to  be  principally  used  for  the
administrative offices of a municipality or for the storage or repair of
maintenance  equipment. Nothing herein shall be construed to prevent the
corporation  from  entering  into  an  agreement  for  the  design   and
construction  of  a  local  correctional  facility in combination with a
municipal building.
14. "Division of alcoholism and alcohol abuse facility or division  of
substance  abuse  services  facility"  means  a  rehabilitation  center,
treatment program or other facility  or  part  thereof  established  and
operated  under  the  professional  jurisdiction  and supervision of the
office of alcoholism and substance abuse services, created  pursuant  to
article 19 of the mental hygiene law.
15.  "Real  property"  means  lands and improvements and any fixtures,
equipment and articles of  personal  property  affixed  to  or  used  in
connection  therewith, lands under water, waterfront property, the water
of any lake, pond or stream and any and all  easements,  franchises  and
hereditaments,  corporeal or incorporeal, and every estate, interest and
right therein, legal and  equitable  in  lands  or  waters,  and  right,
interest,  privilege,  easement  and  franchise  relating  to  the same,
including terms for years and liens by  way  of  judgment,  mortgage  or
otherwise.
16. "State" means the state of New York.
17.  "State  agency" means any officer, department, board, commission,
bureau, division, public benefit corporation, agency or  instrumentality
of the state.
18-a.  "State housing finance agency" means the New York state housing
finance agency created by article three of the private  housing  finance
law.
18-b.  "State  medical  care  facilities finance agency" means the New
York state medical care facilities finance agency  created  by  the  New
York state medical care facilities finance agency act.
19. "Voluntary agency" means a corporation organized under or existing
pursuant to the not-for-profit corporation law providing or, pursuant to
a  written  agreement  with  the  appropriate  commissioner, approved to
provide  housing  that  includes  residences  for  persons  with  mental
disabilities,   or  services  benefitting  or  assisting  in  the  care,
treatment,  rehabilitation  or  maintenance  of  persons   with   mental
disabilities, community mental health or residential services, community
developmental  disabilities  services,  or  alcohol, substance-abuse, or
chemical-dependency residential or non-residential  treatment  services,
or  for  any  combination  of  the  foregoing. Notwithstanding any other
provision of law to the contrary, voluntary agency  shall  also  include
any entity receiving financing, approvals or assistance of any form from
the  state  housing  finance agency or the state division of housing and
community renewal for one or more integrated housing projects  including
projects  serving  persons  with  mental  disabilities,  which  shall be
approved by the appropriate commissioner. Such  commissioner  is  hereby
authorized  to  enter  into  any agreements necessary or useful for such
projects, subject to the approval of the director of the budget.
20. "Associated health care facility" shall mean a  facility  licensed
under  and  operated  pursuant to article 28 of the public health law or
any health care facility licensed under and operated in accordance  with
any  other provisions of the public health law or the mental hygiene law
that provides health care services  and/or  treatment  to  all  persons,
regardless  of  whether  such persons are persons receiving treatment or
services for alcohol, substance abuse, or chemical dependency.
§ 4. Facilities Development corporation. There is hereby  created  the
facilities development corporation. The corporation shall be a corporate
governmental  agency constituting a public benefit corporation. From and
after the effective date of the health care financing consolidation act,
as provided in subdivision 1 of section 1699-f of the public authorities
law, the corporation shall  continue  its  corporate  existence  in  and
through  the  dormitory  authority,  and  the  dormitory authority shall
succeed to all of the powers, duties and functions of the corporation.
§ 5. General powers and duties of corporation. The  corporation  shall
have  the  following  powers in addition to those specifically conferred
elsewhere in this act.
1. To sue and be sued.
2. To have a seal and alter the same at pleasure.
3. To make  and  alter  by-laws  for  its  organization  and  internal
management.
4.  With  the  approval  of  the comptroller, to prescribe a system of
accounts.
5. To make  rules  and  regulations  governing  the  exercise  of  its
corporate  powers  and  the fulfillment of its corporate purposes, which
rules and regulations shall be filed with the secretary of state in  the
manner provided by section one hundred two of the executive law.
6.  To  accept  jurisdiction  over  and  to  hold, use and improve, in
accordance with such terms and conditions as  the  corporation  and  the
state  housing  finance  agency  or  the  state  medical care facilities
finance agency, as the case may be, shall determine,  any  or  all  real
property  acquired  by  such  agency for a health facilities improvement
program.
7. Subject to the terms and conditions of any lease, sublease, loan or
other financing agreement  with  the  appropriate  commissioner  of  the
department or the state housing finance agency or the state medical care

facilities finance agency, to possess, hold, use and improve, all mental
hygiene  facilities and all real and personal property acquired by or on
behalf of the corporation for a mental  hygiene  facilities  improvement
program so long as its corporate existence shall continue.
8.  a.  With  the  approval  of  the  appropriate  commissioner of the
department and the director of the budget,  to  purchase  real  property
necessary  or  convenient  for  a  mental hygiene facilities improvement
program in the name of the state, except where such purchase is for  the
purpose   of   providing   community  mental  health  and  developmental
disabilities facilities in which case such purchase shall be in its  own
name;  provided, however, that all such purchases shall be made pursuant
to legislation or appropriations in accordance with section nine of this
act. Nothing in this section contained shall be  construed  to  prohibit
the  acquisition  of  real  property by purchase or appropriation by the
appropriate  commissioner  of  the  department   pursuant   to   article
seventy-one  of  title  E  of  the mental hygiene law for the purpose of
making mental hygiene facilities available under license or permit  from
the  corporation  to  a  voluntary  agency,  subject  to  the  terms and
conditions of any lease, sublease, loan  or  other  financing  agreement
with  the  state  housing  finance  agency  or  the  state  medical care
facilities finance agency, (i) for use  in  providing  community  mental
health  and developmental disabilities services, including services in a
residential care center for adults,  or  (ii)  for  the  conduct  of  an
alcoholism  or  substance  abuse treatment program as defined in article
nineteen of title D of the mental hygiene law.
b. To execute and deliver deeds for real  property  held  in  its  own
name.
c.  To convey an easement as described in this subdivision, in or over
state-owned lands under the jurisdiction of the  facilities  development
corporation  for  the use of the department of mental hygiene subject to
prior notice to the commissioner of general services by filing with  him
a  copy  of the proposed easement which shall be followed by such filing
of a copy of the easement conveyed, to a public corporation or a  public
service  corporation,  in  perpetuity  or otherwise. For the purposes of
this subdivision an easement may be granted  for  the  connection  of  a
water  main,  sewer  pipe  or  other  utility  line  or similar facility
maintained for public use, owned by any  public  corporation  or  public
service  corporation,  which shall be used for or in connection with any
facility occupied, used or serving the program of one of the offices  of
the  department  of  mental  hygiene  as defined in subdivision two-a of
section three of section one of this  act.  The  consideration  for  the
grant  of  any such easement may consist of the agreement by the grantee
to maintain the subject utility facility.
d. To convey an easement as described in this subdivision, in or  over
private  lands  under  the  jurisdiction  of  the facilities development
corporation for the use of the department of mental hygiene  subject  to
prior  notice to the commissioner of general services by filing with him
a copy of the proposed easement which shall be followed by  such  filing
of  a copy of the easement conveyed, to a public corporation or a public
service corporation, in perpetuity or otherwise.  For  the  purposes  of
this  subdivision  an  easement  may  be granted for the connection of a
water main, sewer  pipe  or  other  utility  line  or  similar  facility
maintained  for  public  use,  owned by any public corporation or public
service corporation, which shall be used for or in connection  with  any
facility  occupied, used or serving the program of one of the offices of
the department of mental hygiene as  defined  in  subdivision  two-a  of
section  three  of  section  one  of this act. The consideration for the

grant of any such easement may consist of the agreement by  the  grantee
to maintain the subject utility facility.
e.  Nothing  contained in paragraphs c and d of this subdivision shall
limit, restrict or affect the authority of the commissioner  of  general
services under section three of the public lands law.
9. To purchase, receive, lease or otherwise acquire in accordance with
the  requirements  of  article eleven of the state finance law, personal
property necessary and convenient for its corporate purposes,  including
the  original  furnishings,  equipment, machinery and apparatus required
for mental hygiene or health facilities upon the completion of work: (i)
in the case of a  mental  hygiene  facility  to  transfer,  sublease  or
otherwise  make  such  personal  property available to the department of
mental hygiene or to a city or county, in accordance with the terms  and
conditions  of  any  agreement  with the appropriate commissioner of the
department, the commissioner of general services, such city or county or
the state housing finance agency; (ii) in the case of a health  facility
to  transfer  or  otherwise  make  such personal property available to a
municipality  in  accordance  with  the  terms  and  conditions  of  any
agreement  with  such  municipality, the state housing finance agency or
the state medical care facilities finance agency.
10. To  design,  construct,  acquire,  reconstruct,  rehabilitate  and
improve  health facilities, facilities for the department of corrections
and community supervision and mental hygiene facilities, or  cause  such
facilities   to   be  designed,  constructed,  acquired,  reconstructed,
rehabilitated and improved, in accordance with the  provisions  of  this
act.
11.   In  connection  with  such  design,  construction,  acquisition,
reconstruction, rehabilitation and improvement, to install or  cause  to
be  installed  water,  sewer,  gas,  electrical, telephone, heating, air
conditioning  and  other   utility   services,   including   appropriate
connections.
12.  Subject  to the terms and conditions of any lease, sublease, loan
or other financing agreement  between  the  corporation  and  the  state
housing  finance  agency  or  the  state medical care facilities finance
agency, as the case may be, or between such agency and  a  municipality,
as  the  case  may be, and in the case of mental hygiene facilities with
the appropriate commissioner of the department, to maintain, repair  and
keep up the real property held by it pursuant to this act.
13.  (a)  Subject  to the terms and conditions of any lease, sublease,
loan or other financing agreement with the state housing finance  agency
or  the  state  medical  care  facilities  finance  agency,  and  to the
determination of the appropriate commissioner of the department, and  in
the  case  of  community  mental  health  and developmental disabilities
facilities, of the city or county, that such real property held for  the
purposes   of   a  mental  hygiene  facilities  improvement  program  is
unnecessary for the present or foreseeable  future  needs  of  a  mental
hygiene  facility,  with  the approval of the director of the budget, to
convey for fair value, except as otherwise provided in paragraph (b)  of
this  subdivision,  any  right,  title  or interest of the people of the
state of New York in and to such real property to any appropriate  state
agency,  or  public  corporation, city or county for other public use or
for sale, lease or  other  disposition  in  accordance  with  law,  real
property  held  by  the  corporation, provided, however, nothing in this
subdivision shall be deemed to supersede the provisions of section 41.34
of the mental hygiene law and provided further that any such  conveyance
shall  be  subject  to, and consistent with the terms and objectives of,
any plan developed by the state interagency council  on  mental  hygiene
property  utilization.  The  corporation shall provide written notice at

least thirty days in advance of the effective date of any conveyance  to
the  governor,  the majority leader of the senate and the speaker of the
assembly. No conveyance as  authorized  in  this  subdivision  that  may
adversely affect the tax exempt nature of any such lease, sublease, loan
or  other  financing  agreement with the state housing finance agency or
the New York state medical care  facilities  finance  agency  may  occur
until  the  attorney general or other designated bond counsel determines
in writing that the conveyance is consistent with all  applicable  state
and  federal  laws,  rules  and  regulations,  and  with  deeds, leases,
subleases, loan agreements, financing agreements, and  bond  resolutions
relating  to or affected by the conveyance, and that the conveyance does
not impair the tax exempt status of outstanding  obligations  issued  by
the  state  housing  finance  agency  or the New York state medical care
facilities  finance  agency  to  finance  or   refinance   the   design,
construction, acquisition, reconstruction, rehabilitation or improvement
of  mental  health  service  facilities as defined in the New York state
medical care facilities finance agency act.
(b) Notwithstanding any other provision of law to  the  contrary,  for
the  purposes  of  transferring and conveying the westernmost portion of
that certain  property  commonly  known  as  the  Kingsboro  Psychiatric
Center,  located  at  681  Clarkson  Avenue  in  Brooklyn, New York to a
housing development fund corporation formed pursuant to  article  XI  of
the  private  housing finance law, for the purposes described below, the
term "fair value" shall be deemed to be an amount determined  to  be  in
the  public  interest  and  agreed  upon between the commissioner of the
office of mental health and the commissioner of the division of  housing
and  community  renewal, provided, however, that such agreed upon amount
may be less than the appraised fair value, in order  to  facilitate  the
development  of  the  public  benefit  Vital  Brooklyn  project  and  in
reflection of the Vital Brooklyn initiative and the intended use of  the
property, to increase access to open spaces, increase access and quality
of  health  care  services  and  preventative  care,  create  affordable
housing, and to provide at least one hundred  supportive  housing  units
for  office of mental health recipients. The description of the lands to
be transferred and conveyed as set forth above is not intended to  be  a
legal description but, intended only to identify the property subject to
this paragraph.
13-a. Subject to the terms and conditions of any lease, sublease, loan
or  other  financing  agreement with the state housing finance agency or
the  state  medical  care  facilities  finance   agency   and   to   the
determination of the appropriate commissioner of the department, to make
a  mental  hygiene  facility available under lease, sublease, license or
permit from the corporation to a voluntary agency,  or,  notwithstanding
the  provisions  of the public lands law or any other general or special
law to the contrary, to convey the right,  title  and  interest  of  the
people  of  the  state  of New York in and to such facility and the land
appurtenant thereto  to  such  voluntary  agency  upon  such  terms  and
conditions  as  shall  be provided in an agreement among the appropriate
commissioner of the  department,  the  corporation  and  such  voluntary
agency  with the approval of the director of the budget, the comptroller
and the commissioner of any office of the department having programmatic
or fiscal jurisdiction or licensing or certifying  authority  over  that
voluntary agency with respect to the intended use.
13-b.  Subject  to  the  terms  and  conditions  of  any  deed, lease,
sublease, loan or other  financing  agreement  with  the  state  housing
finance  agency  or  the  New York state medical care facilities finance
agency, and upon the determination of the  appropriate  commissioner  of
the  department  of mental hygiene, to sublease as sublessor, in its own

name, mental hygiene facilities leased to the  corporation  by  the  New
York  state  medical  care  facilities  finance  agency, and to lease as
lessor real property held  by  the  corporation,  upon  such  terms  and
conditions  as  may  be  provided  in an agreement among the appropriate
commissioner of the department, the corporation, and such  sublessee  or
lessee,  with  the  approval  of  the director of the budget, and, where
pertinent, the commissioner of  any  office  of  the  department  having
programmatic or fiscal jurisdiction or licensing or certifying authority
over  a  voluntary  agency  or any other sublessee or lessee entity with
respect to the intended use. Such a sublease or lease shall be effective
only after  the  attorney  general  or  other  designated  bond  counsel
determines,  in  writing,  that  it  is  consistent  with all applicable
federal and state laws, rules and regulations, and  all  deeds,  leases,
subleases,  loan  agreements,  financing agreements and bond resolutions
relating to or affected by the premises being sublet or  let,  and  that
such  a  sublease  or  lease  does  not  impair the tax-exempt status of
outstanding obligations issued by the housing finance agency or the  New
York state medical care facilities finance agency.
13-c.  To  lease, as lessee, and to sublease, as sublessor, in its own
name, mental hygiene facilities owned or leased by one or more voluntary
agencies that are to be  financed,  refinanced,  designed,  constructed,
acquired,  reconstructed,  rehabilitated  and  improved under any lease,
sublease, loan or other  financing  agreement  entered  into  with  such
voluntary  agencies  or  the  medical  care facilities finance agency in
accordance with regulations that shall be promulgated by either  one  of
the  appropriate  commissioners  or  directors  of  the  department  and
approved by the director of the budget, which regulations shall  require
that  any  mental hygiene facility owned or leased by a voluntary agency
the design, construction, reconstruction, acquisition, rehabilitation or
improvement of which is to be financed or refinanced in whole or in part
with proceeds of mental health services facilities improvement bonds  or
notes  issued  by  the  medical  care facilities finance agency, and any
other mental hygiene facilities that may be constructed or acquired with
funds realized by or returned to such voluntary  agency  or  jointly  to
such voluntary agency and one more voluntary agencies which will operate
such  facility as a result of such financing or refinancing, be approved
for financing or refinancing pursuant to this act by the director of the
budget and be operated, while such bonds or notes are outstanding, in  a
manner and for purposes pursuant to the mental hygiene law.
13-d.  1.  Subject to the terms and conditions of any lease, sublease,
loan or other financing  agreement  with  the  medical  care  facilities
finance  agency  in accordance with subdivision 13-c of this section, to
make loans to  voluntary  agencies  for  the  purpose  of  financing  or
refinancing   the  design,  construction,  acquisition,  reconstruction,
rehabilitation and improvement of mental  hygiene  facilities  owned  or
leased  by  such voluntary agencies provided, however, that with respect
to such facilities which are leased by a voluntary agency, the  term  of
repayment of such loan shall not exceed the term of such lease including
any  option to renew such lease. Notwithstanding any other provisions of
law, such loans may be made jointly to one or  more  voluntary  agencies
which own and one or more voluntary agencies which will operate any such
mental hygiene facility.
2. Subject to the terms and conditions of any lease, sublease, loan or
other  financing  agreement  with  the  medical  care facilities finance
agency, to make grants to voluntary  agencies  or  provide  proceeds  of
mental  health  services  facilities bonds or notes to the department to
make grants to voluntary agencies or  to  reimburse  disbursements  made
therefor,  in each case, for the purpose of financing or refinancing the

design, construction, acquisition,  reconstruction,  rehabilitation  and
improvement  of  mental  hygiene  facilities  owned  or  leased  by such
voluntary agencies.
13-e.  To  receive  from the comptroller state aid payments pledged or
agreed to be paid by any voluntary agency in accordance with any  lease,
sublease,  loan  or  other  financing  agreement  entered into with such
voluntary agency. Such pledges may be made from  sources  of  state  aid
including  but  not  limited  to  payments  made  pursuant  to: articles
nineteen, twenty-five and forty-one of the mental hygiene law.
13-f. The executive director of the facilities development corporation
is authorized and empowered to enter into and implement agreements under
which  the  facilities  development  corporation   may   designate   the
commissioner  of  the  office  of mental health, the commissioner of the
office for people with developmental disabilities, the  commissioner  of
alcoholism   and   substance  abuse  services,  with  respect  to  their
respective  facilities,  as  agents  for  the   facilities   development
corporation   with  respect  to  the  financing  of  voluntary  provider
not-for-profit community development, and under which such commissioners
and directors may act as its agent, with respect to any and  all  duties
for  such  corporation  as  set  forth  and  contained  in this act. The
commissioners, the directors, and the  executive  director  shall  enter
into  such  agreements,  subject  to the approval of the director of the
budget, which delineate the respective duties of each  party  when  such
commissioners and directors are designated agents of such corporation.
14.  To  make  and  execute  contracts  and  all  other instruments or
agreements necessary or convenient for the  exercise  of  its  corporate
powers or the fulfillment of its corporate purposes.
15.   To   engage   the   services   of   construction,   engineering,
architectural,  legal   and   financial   consultants,   surveyors   and
appraisers,  on  a  contract  basis  or  as  employees, for professional
services and technical assistance and advice.
16. To procure insurance against  any  loss  in  connection  with  any
facility in such amounts and from such insurers as it deems desirable.
17. With the consent of the commissioner of health, or the appropriate
commissioner  of  the department, as the case may be, to use the agents,
employees and facilities of the respective agencies.
18. Subject to the approval of  the  commissioner  of  health  or  the
appropriate commissioner of the department, as the case may be, to apply
for, accept, administer and disburse federal aid.
19.  To  accept  any  gifts or grants or loans of funds or property or
financial or other aid in any form from the federal  government  or  any
agency   or   instrumentality  thereof  or  from  the  state,  including
appropriations, or from any other source, and to comply with  the  terms
and conditions thereof.
20.  To do any and all things necessary or convenient to carry out its
corporate purposes and exercise the powers given and granted it in  this
act.
§ 6. Purposes of the corporation. The purposes of the corporation are:
1.  To  facilitate  the  timely  provision, acquisition, construction,
reconstruction, rehabilitation or improvement of health  facilities  for
the  prevention,  diagnosis or treatment of human disease, pain, injury,
deformity or physical condition, at  a  reasonable  cost,  in  order  to
reduce  the  time  lag  between  the  determination of the need for such
facilities and their actual availability for use.
2. To assist the department of  health,  which  is  the  state  agency
having  the  central,  comprehensive  responsibility for development and
administration of the  state's  policy  with  respect  to  hospital  and

related  services,  in  the discharge of its duties and responsibilities
under article twenty-eight of the public health law.
3.  To  provide mental hygiene facilities, other than community health
and developmental disabilities facilities, for the care, maintenance and
treatment of the mentally disabled, for research  and  training  related
thereto,  and  for the members of the staff of state institutions in the
department  and  their  families,  to  reduce  the  time   lag   between
determination  of need for such facilities and actual occupancy thereof,
to   expedite    the    construction,    acquisition,    reconstruction,
rehabilitation  or  improvement  of  such facilities, to assure that the
same are completed and ready for the purposes intended in the  light  of
foreseeable needs, to assure exclusive possession, jurisdiction, control
and   supervision  over  all  mental  hygiene  facilities  in  order  to
effectuate the aforesaid purposes and to make such facilities  available
to  the  appropriate commissioner of the department for use in the care,
maintenance and treatment of the mentally disabled.
4. To provide community mental health and  developmental  disabilities
facilities   for   the  mentally  disabled,  for  out-patient  care  and
short-term in-patient care, including  after  care  and  diagnostic  and
rehabilitative  services  and  training  and  research,  for  and at the
request of cities and counties not wholly within a city,  authorized  to
provide   community  mental  health  services  in  accordance  with  the
provisions of article forty-one of title E of the mental hygiene law, to
reduce the time between determination of the need  for  such  facilities
and actual occupancy thereof, to expedite the construction, acquisition,
reconstruction,  rehabilitation  or  improvement  of such facilities, to
assure that the same are completed and ready for the  purposes  intended
in  the  light  of current and foreseeable needs, all as approved by the
appropriate commissioner of the department.
5. To provide mental hygiene facilities to  be  made  available  under
license  or  permit  from  the  corporation to voluntary agencies at the
request of the appropriate commissioner of the department in  accordance
with  the  provisions  of this act for use in providing community mental
health  and  developmental  disabilities  services  and  services  in  a
residential care center for adults.
6.  To  provide  office  of  alcoholism  and  substance abuse services
facilities to be  made  available  under  license  or  permit  from  the
corporation  to  voluntary  agencies  at  the  request  of the office in
accordance with the provisions of this act for use in the conduct of  an
alcoholism or substance abuse treatment program.
7.  To  provide  facilities  for  the  department  of  corrections and
community supervision.
§ 7. Relationship with the state  departments  of  health  and  mental
hygiene. 1. The corporation shall upon request assist and cooperate with
and  make its personnel and services fully available to the commissioner
of health and the department of health  in  matters  relating  to  their
responsibilities for the approval of construction of hospital and health
facilities  pursuant  to  article twenty-eight of the public health law.
The corporation shall also consult with  the  department  of  health  in
matters    relating   to   construction   standards,   including   space
requirements, site plans, architectural concept,  original  furnishings,
equipment,  machinery  and  apparatus  needed  to furnish and equip such
facilities.
2. The corporation shall assist and cooperate with and shall make  its
personnel  and  services  fully  available  to  the  department  and its
commissioners in matters relating to  their  responsibilities  for  land
acquisition  and capital planning relating to mental hygiene facilities.
During the course of construction,  reconstruction,  rehabilitation  and

improvement  of mental hygiene facilities, the corporation shall consult
with personnel of the department  as  the  work  progresses  in  matters
relating  to space requirements, site plans, architectural concepts, and
substantial  changes  in  the  plans and specifications therefor, and in
matters relating to the original furnishings, equipment,  machinery  and
apparatus needed to furnish and equip mental hygiene facilities upon the
completion  of  work. The department and its commissioners on their part
shall assist and cooperate with the corporation in such matters.
3. The corporation shall also assist and cooperate with and shall make
its personnel and services fully available to the office  of  alcoholism
and substance abuse services in matters relating to the responsibilities
of  such  office for site selection, acquisition of and capital planning
relating to alcoholism or substance abuse facilities. During the  course
of  construction, reconstruction, rehabilitation and improvement of such
facilities the corporation shall consult with personnel of  such  office
as  the  work progresses in matters relating to space requirements, site
plans, architectural concepts and substantial changes in the  plans  and
specifications   therefor  and  in  matters  relating  to  the  original
furnishings, equipment, machinery, and apparatus needed to  furnish  and
equip  such  facilities  upon  the completion of the work. The office of
alcoholism and substance abuse services shall assist and cooperate  with
the corporation in such matters.
§  7-a.  Relationship  with  the  state  department of corrections and
community  supervision.  The  corporation,  upon  the  issuance  by  the
director of the budget of a certificate of approval segregating funds to
pay  for their corporate services, shall design, construct, reconstruct,
rehabilitate, improve,  and  equip  facilities  for  the  department  of
corrections   and  community  supervision  or  cause  facilities  to  be
designed,  constructed,  reconstructed,  rehabilitated,  improved,   and
equipped. The corporation shall also assist and cooperate with and shall
make  its  personnel and services fully available to the commissioner of
corrections and community supervision and the department of  corrections
and  community supervision in matters relating to their responsibilities
for site selection, acquisition of  and  capital  planning  relating  to
facilities  for the department of corrections and community supervision.
During  the  course  of   construction,   acquisition,   reconstruction,
rehabilitation and improvement of such facilities, the corporation shall
consult  with  the commissioner of corrections and community supervision
and the  personnel  of  the  department  of  corrections  and  community
supervision  as  the  work  progresses  in  matters  relating  to  space
requirements, site plans, architectural concept and substantial  changes
in  the plans and specifications therefor and in matters relating to the
original furnishings, equipment,  machinery,  and  apparatus  needed  to
furnish  and  equip such facilities upon the completion of the work. The
commissioner of corrections and community supervision and the department
of corrections and community supervision shall assist and cooperate with
the corporation in such matters.
§ 8. Provisions relating to health facilities improvement program.  1.
Municipal  health  facilities agency. The mayor or other chief executive
of a municipality  shall  designate  a  department,  board,  commission,
bureau,  division  or  other  agency or official to act on behalf of the
municipality as  a  municipal  health  facilities  agency  in  order  to
accomplish the purposes of this section and section forty-seven-d of the
private housing finance law.
2.  Construction.  a.  The  corporation  shall,  as agent of the state
housing finance agency, construct a health facility or health facilities
or cause such facility or facilities to be constructed, provided that:
(i) The state  housing  finance  agency  or  the  state  medical  care
facilities  finance  agency,  as  the case may be, and the municipality,
with the approval of the governing body, have entered into an  agreement
which  shall  set  forth  the health facility or health facilities to be
constructed,  the  total  estimated  cost  of  each  such  facility, the
estimated date of completion thereof and the estimated annual rentals to
be paid by the municipality therefor. The agreement shall  contain  such
other terms and conditions as may be agreed upon and shall be subject to
the  approval  of  the  commissioner of health. Nothing herein contained
shall preclude the corporation from being a party to any such agreement.
(ii) The commissioner of health shall have certified  that  there  has
been  compliance  with  all  requirements of article twenty-eight of the
public health law.
b. When two or more municipalities act jointly  to  provide  a  health
facility,  the  agreement referred to in subparagraph (i) of paragraph a
of this subdivision shall require the approval of the governing body  of
each  municipality  and shall specify the rights, duties and obligations
of each municipality.
c. The corporation  shall  prepare  separate  specifications  for  and
solicit separate and independent bids on and award separate contracts on
the  subdivisions  of  work  to  be  performed  specified in section one
hundred thirty-five of the state finance law, but the corporation in its
discretion may assign such contracts for supervision to  the  successful
bidder  for the remaining work to be performed at the time the contracts
for the particular health facility are awarded. Each  contract  for  the
construction  of  a  health  facility  may  include a provision that the
architect who  designed  the  facility,  or  an  architect  or  engineer
retained  or employed specifically for the purpose of supervision, shall
supervise the work to be performed through to completion and  shall  see
to  it  that  the  materials  furnished  and  the  work performed are in
accordance  with  the  drawings,  plans,  specifications  and  contracts
therefor.
d.  All contracts which are to be awarded pursuant to this subdivision
shall be awarded by public letting  in  accordance  with  the  following
provisions,  notwithstanding  the  provisions  of  section  one  hundred
thirty-six, one hundred thirty-nine or one hundred forty  of  the  state
finance  law,  except  that  the corporation in its discretion may enter
into a contract for such  purposes  without  public  letting  where  the
estimated expense thereof is less than ten thousand dollars.
(i)  If  the  contracts  are to be publicly let, the corporation shall
advertise the  invitation  to  bid  in  a  newspaper  published  in  the
municipality  in  which  the  health facility project is situated and in
such other newspapers as will be most likely  in  its  opinion  to  give
adequate  notice  to  contractors  of  the  work  required  and  of  the
invitation to bid. The invitation to bid shall contain such  information
as  the  corporation  shall deem appropriate and a statement of the time
and place where all bids  received  pursuant  to  such  notice  will  be
publicly opened and read.
(ii) The corporation shall not award any contract after public bidding
except  to  the lowest bidder who in its opinion is qualified to perform
the work required and is responsible and reliable. The corporation  may,
however,  reject any or all bids, again advertise for bids, or waive any
informality in a bid if it believes that the  public  interest  will  be
promoted  thereby. The corporation may reject any bid if in its judgment
the business and technical  organization,  plant,  resources,  financial
standing or business experience of the bidder, compared with the work to
be performed, justify such rejection.
(iii)  The  invitation  to  bid and the contract awarded shall contain
such other terms and conditions and such provisions for penalties as the
corporation may deem desirable.
(iv)  The  corporation shall require such deposits, bonds and security
in connection with the submission of bids, the award  of  contracts  and
the  performance  of  work  as  it  shall  determine to be in the public
interest and for the protection of the state housing finance  agency  or
the  state  medical  care facilities finance agency, as the case may be,
and the municipality.
(v) The directors of the corporation shall determine when  minor  work
of  construction,  reconstruction,  alteration  or  repair of any health
facility may be done by special order.  Special  orders  for  such  work
shall be short-form contracts. No work shall be done by special order in
an  amount  in excess of twenty thousand dollars and a bond shall not be
required for special orders. No work shall  be  done  by  special  order
unless  a diligent effort has been made to obtain competition sufficient
to protect the public interest prior  to  selecting  the  contractor  to
perform  the work. Notwithstanding any other provision of this paragraph
work done by special order under this  subparagraph  may  be  advertised
through the regular public notification service of the office of general
services  or the state register. At least five days shall elapse between
the first publication of such public notice and the  date  so  specified
for  the public opening of bids. All payments on special orders shall be
made on the certificate of the directors of the corporation. All special
orders shall contain a clause that  the  special  order  shall  only  be
deemed  executory to the extent of the moneys available and no liability
shall be incurred by the corporation or  the  state  beyond  the  moneys
available for the purpose.
§  8-A.  Provisions  relating  to  agreements  with certain non-profit
corporations.  1.  The  corporation  is  authorized  to  enter  into  an
agreement,   at   the  request  of  the  commissioner  of  health,  with
corporations which are eligible borrowers as defined in article 28-B  of
the  public health law providing for such services and such compensation
as shall be approved by  the  commissioner  of  health  incident  to  an
application  for  a  mortgage loan pursuant to the provisions of article
28-B of the public health law. As a condition prerequisite to  any  such
agreement,  the  commissioner  of  health shall have certified as to the
public need for the proposed facility.
2. The corporation is authorized to enter into an agreement, with  the
approval  of  the  commissioner of health, with a non-profit corporation
organized under the laws of this state providing for the services of the
corporation to be made available to such non-profit corporation incident
to the design and construction of  a  facility  or  facilities  included
within  the  meaning  of  the  word  "hospital",  as  defined in article
twenty-eight of the public health law, to be  financed  by  means  other
than  pursuant to article 28-B of such law. Such agreement shall provide
that all such services and expenses of the corporation with  respect  to
such  facility  or  facilities  shall be at the sole cost and expense of
such non-profit corporation. As a prerequisite to any such agreement the
commissioner of health shall have certified as to the  public  need  for
the proposed facility or facilities.
§  8-b. Provisions relating to agreements with certain municipalities.
1.  The corporation is authorized to enter  into  an  agreement  with  a
municipality  providing  for  the  design by the corporation of a health
facility or health facilities for such municipality at the sole cost and
expense of the municipality. Such agreement may  also  provide  for  the
construction,  reconstruction,  rehabilitation  and  improvement of such
health facility or health facilities by the corporation at the sole cost

and expense of the municipality or  of  any  agency  or  instrumentality
thereof.  A  municipality  is  hereby  authorized  to  enter  into  such
agreements with the corporation and to provide for the  payment  to  the
corporation  of  all expenses incurred at such times and in such amounts
as shall be set forth in the agreement, notwithstanding  the  provisions
of  any  general,  special or local law or of any charter. The agreement
shall contain such other terms and conditions as may be agreed  upon  by
the  corporation  and the municipality. The corporation shall enter into
an agreement with a  municipality  prior  to  the  commencement  of  any
corporation  services.  No agreement entered into between the facilities
development corporation and a  municipality  pursuant  to  this  section
shall  be effective until the director of the budget has determined that
the total estimated charge to be collected by the corporation  from  the
municipality  is  fair  and  reasonable in relationship to the estimated
total project cost and also that sufficient provisions exist  to  insure
the  collection of such charge by the corporation from the municipality.
The corporation shall by regulation prescribe a procedure or  procedures
for  the  application  by  a  municipality  to  the  corporation for its
assistance and the corporation's procedure or procedures for the design,
construction, reconstruction, rehabilitation and improvement of a health
facility or health facilities. Any such regulation shall be submitted to
the director of the budget for his approval prior to its effectiveness.
2. In the design,  construction,  reconstruction,  rehabilitation  and
improvement  of  a health facility pursuant to an agreement entered into
as provided in subdivision one of this section, the corporation shall be
governed by  the  applicable  provisions  relating  to  the  design  and
construction  of health facilities as set forth in subparagraphs c and d
of paragraph (ii) of subdivision two of section eight of this act.
§ 9. Provisions relating  to  mental  hygiene  facilities  improvement
program   and   monies   thereof.   1.  Capital  construction  planning,
construction standards, design and municipal regulations.
a. The appropriate commissioner or director of  the  department  shall
cause  to  be  prepared,  with  the  assistance  of the corporation, the
commissioner of  general  services  and  the  division  of  the  budget,
proposed  standards  for  all  mental  hygiene  facilities or classes of
mental  hygiene  facilities  to  be  financed,   refinanced,   designed,
constructed,   reconstructed,  rehabilitated  or  improved  pursuant  to
contracts executed by  the  corporation,  the  commissioner  of  general
services,   the  state  housing  finance  agency  or  the  medical  care
facilities finance agency, other than mental hygiene facilities owned or
leased by one or more  voluntary  agencies  that  are  to  be  financed,
refinanced,   designed,  constructed,  reconstructed,  rehabilitated  or
improved pursuant to any such contract. The proposed standards  may,  in
the  discretion  of  the  appropriate  commissioner  or  director of the
department, include, among other  things,  provisions  relating  to  the
quality  and type of materials to be used in such facilities, provisions
for safety, fire protection, health and sanitation, provisions  for  the
installation   of   fixtures,   furnishings,  equipment,  machinery  and
apparatus in such facilities, and construction features  deemed  by  the
appropriate  commissioner  or director of the department to be desirable
for the care, maintenance and treatment of the mentally disabled or  for
the  use  of  staff  personnel  at  mental  hygiene facilities and their
families. The proposed standards shall be forwarded to the governor  for
his  approval, disapproval or modification. The proposed standards shall
be deemed adopted, with or without modifications as  the  case  may  be,
upon  written  approval  by  the  governor.  Such standards, in the form
adopted, shall be filed by the appropriate commissioner or  director  of

the  department  with  the  secretary of state in the manner provided by
section one hundred two of the executive law.
Changes in the construction standards so adopted may from time to time
be  formulated  and proposed, approved, disapproved or modified, adopted
and filed in the same manner as the original standards.
b. The directors of the corporation  shall  prepare  or  cause  to  be
prepared  for  the  state  housing  finance  agency  or the medical care
facilities finance agency, within the amounts appropriated  therefor  or
otherwise available, the building plans, the exterior drawings or models
displaying  the  architectural  concept  of each mental hygiene facility
thereafter to be constructed, reconstructed, rehabilitated or  improved,
and  the  detailed  plans  and specifications for all such construction,
reconstruction, rehabilitation and improvement work to be performed, all
of which shall be subject to the separate approval  of  the  appropriate
commissioner  of  the  department  and,  in the case of community mental
health and developmental disabilities facilities, of the governing  body
of  the  city  or  county  or  of  such  officer,  department, agency or
community mental health board as may be  designated  by  such  governing
body for the purpose of such approval. The directors of the corporation,
except  in  the  case  of  community  mental  health  and  developmental
disabilities facilities, may cause the building plans, drawings,  models
and detailed plans and specifications for such work to be prepared under
the direction of the commissioner of general services in accordance with
the terms of any agreement entered into between the corporation and such
commissioner pursuant to subdivision two of this section. In the case of
community  mental  health and developmental disabilities facilities, the
directors of the corporation may cause such  building  plans,  drawings,
models  and  detailed  plans  and  specifications  for  such  work to be
prepared by its own employees, or on a contract basis, or  by  agreement
with  a city or county or with any state department or agency authorized
to perform such work.
The detailed  plans  and  specifications  for  any  such  work  to  be
performed  pursuant  to  a  contract  shall comply with the construction
standards in effect at the time the contract is executed.
Subject to the  terms  of  any  agreement  entered  into  between  the
corporation  and  the  commissioner  of  general  services  pursuant  to
subdivision two of this section and  between  the  corporation  and  the
state  housing  finance  agency  or  the medical care facilities finance
agency pursuant to such section, the directors of  the  corporation  may
from  time  to time modify, or authorize modifications to, such detailed
plans and specifications provided (i) that the plans and  specifications
as  so  modified  shall  comply with the construction standards, if any,
adopted pursuant to paragraph a of this subdivision and in effect at the
time  of  the  modification,  and  (ii)  that  such  modifications,   if
substantial,  are  made  with  the  separate approval of the appropriate
commissioner of the department and, in  the  case  of  community  mental
health and developmental disabilities facilities, of such governing body
of  the  city  or  county  or  of  such  officer,  department, agency or
community mental health board as may be  designated  by  such  governing
body  for  the  purpose of such approval, and (iii) that in the event an
amount for contingencies is appropriated or advanced to the  corporation
to  pay the added costs during the then current state fiscal year of all
modifications  made  in  the  course  of  construction,  reconstruction,
rehabilitation  and  improvement  of  mental hygiene facilities, no such
modifications shall be made or authorized in such  fiscal  year  without
the approval of the director of the budget unless the cost thereof shall
be  less than five percentum of the total estimated cost of the facility
as set  forth  in  the  budget  bill  referred  to  in  paragraph  a  of

subdivision  two  of  this  section,  but  in  no  event  shall any such
modification be made or authorized in  such  fiscal  year  if  the  cost
thereof,  plus  the  cost  of  all  modifications  theretofore  made  or
authorized  during  the  same state fiscal year, would exceed the amount
for contingencies appropriated or  advanced  for  the  purpose  of  such
modifications, and (iv) that in the event an amount for contingencies is
not  appropriated  for  the  purpose  of  such  modifications,  no  such
modification involving an estimated expense of ten thousand  dollars  or
more  shall  be  made  or  authorized  without the prior approval of the
director of the budget.
c.  In  the   design,   construction,   acquisition,   reconstruction,
rehabilitation,  alteration and improvement of mental hygiene facilities
to be made available under license or permit  from  the  corporation  to
voluntary  agencies  for  use  in  providing community mental health and
developmental disabilities services, the corporation shall  be  governed
by the provisions of this act relating to the design and construction of
mental  hygiene  facilities provided, however, that the program for each
such facility shall have been prepared  under  the  supervision  of  the
appropriate  commissioner  of  the  department  pursuant  to  the mental
hygiene law at the  request  of  such  voluntary  agency  and  with  the
approval  of  the  community mental health board established pursuant to
article forty-one of title E of the mental hygiene law.
d.  In  the   design,   construction,   acquisition,   reconstruction,
rehabilitation,  alteration  and  improvement of alcoholism or substance
abuse facilities to be made available under license or permit  from  the
corporation  to  voluntary  agencies  for  use  in  the  conduct  of  an
alcoholism or substance abuse treatment program, the  corporation  shall
be  governed  by  the  provisions of this act relating to the design and
construction of alcoholism or substance abuse facilities  provided  that
the   program  for  such  facility  shall  have  been  approved  by  the
appropriate division of the office of alcoholism and substance abuse  at
the request of the local agency.
e.  No  county,  city,  town  or village shall have power to modify or
change the plans or specifications for mental hygiene facilities  to  be
constructed,  reconstructed,  rehabilitated or improved pursuant to this
act,  or  the  construction,  plumbing,  heating,  lighting   or   other
mechanical  branch  of  work necessary to complete the work in question,
nor to require that any person, firm or corporation employed on any such
work shall perform any such work in any other or different  manner  than
that  provided by such plans and specifications, nor to require that any
such  person,  firm  or  corporation  obtain  any  other  or  additional
authority  or  permit  from  such  county,  city,  town  or village as a
condition of doing such  work,  nor  shall  any  condition  whatever  be
imposed  by  any  such  county, city, town or village in relation to the
work being done pursuant to this act, but such work shall be  under  the
sole control of the supervising architect or engineer in accordance with
the  drawings,  plans, specifications and contracts in relation thereto;
and the doing of any such work for the corporation by any  person,  firm
or  corporation  in  accordance  with the terms of such drawings, plans,
specifications or contracts shall  not  subject  said  person,  firm  or
corporation  to  any liability or penalty, civil or criminal, other than
as may  be  stated  in  such  contracts  or  incidental  to  the  proper
enforcement thereof.
2. Letting of construction contracts. a. The corporation shall design,
construct,  acquire,  reconstruct,  rehabilitate  and improve all mental
hygiene facilities, or cause  the  same  to  be  designed,  constructed,
acquired,  reconstructed,  rehabilitated  and improved either on its own
behalf or as agent for the state housing finance agency or  the  medical

care  facilities  finance  agency, except that in the case of all mental
hygiene facilities owned or leased by one  or  more  voluntary  agencies
that  are  to be designed, constructed, reconstructed, rehabilitated and
improved  under  any  lease, sublease, loan or other financing agreement
entered into with such voluntary  agency,  the  same  may  be  designed,
constructed, acquired, reconstructed, rehabilitated and improved by such
voluntary   agencies,   provided   that  legislation  or  appropriations
authorizing  the  same  (i)  have  been  requested  by  the  appropriate
commissioner  or  director of the department, (ii) have been recommended
by the governor in a budget bill, which is approved by  the  legislature
for  the  fiscal  year  for  which  the  recommendation  was  made which
specifies the mental hygiene facilities  to  be  designed,  constructed,
acquired,  reconstructed, rehabilitated or improved, the total estimated
cost for each such facility, and the date when it is  desired  that  the
design,  construction,  acquisition,  reconstruction,  rehabilitation or
improvement of each mental  hygiene  facility  referred  to  therein  be
completed.  All such work shall be performed in such manner as to assure
completion, so far as practicable, by the dates specified.
b.  (i)  The   corporation   may   design,   construct,   reconstruct,
rehabilitate  and  improve  a  mental  hygiene  facility,  other  than a
community mental health and developmental disabilities facility, whether
as principal or as agent for the state housing  finance  agency  or  the
medical  care  facilities  finance  agency,  only  by agreement with the
commissioner of general services, except  that  in  the  case  a  mental
hygiene  facility  owned  or  leased by a voluntary agency that is to be
designed, constructed, reconstructed, rehabilitated and  improved  under
any lease, sublease, loan or other financing agreement entered into with
such  voluntary agency, or jointly with such voluntary agency and one or
more voluntary agencies that operate  such  facility  the  same  may  be
designed, constructed, reconstructed, rehabilitated and improved by such
voluntary agencies, and except that:
(a) if the commissioner of general services for any reason declines to
enter into an agreement with the corporation for such purpose; or
(b)  if  the  commissioner  of general services fails to enter into an
agreement with the corporation for such purpose within  forty-five  days
after  receiving  notification  from the directors of the corporation of
the work to be performed; or
(c) if the commissioner of general services fails  to  advertise  such
work  for bids within one year after entering into an agreement with the
corporation for the performance of such work; or
(d) if the estimated expense  of  any  such  work  is  less  than  ten
thousand   dollars,   the   corporation   may   construct,  reconstruct,
rehabilitate and improve a mental hygiene facility by its own  employees
or by contract awarded pursuant to paragraph g of this subdivision.
(ii) The corporation, with the approval of the director of the budget,
may  construct, reconstruct, rehabilitate and improve a community mental
health and developmental disabilities facility by its own employees,  by
agreement  with  a city or county or with any state department or agency
authorized to perform such work, or  by  contract  awarded  pursuant  to
paragraph  g  of  this  subdivision.  All contracts awarded by a city or
county on behalf  of  the  corporation  shall  be  awarded  pursuant  to
paragraph  g  of  this subdivision, notwithstanding any provision of any
general, special or local law or any charter.
c. In the event that the commissioner of general services enters  into
an  agreement with the corporation for the construction, reconstruction,
rehabilitation or improvement of a mental  hygiene  facility,  the  work
required  shall  be  performed  in  accordance  with  the  terms of such
agreement and in accordance with the provisions of paragraphs d and e of

this subdivision, either by employees of the office of general  services
or  by  contract  or  contracts awarded pursuant to the public buildings
law, the public works law and the state finance law.
d. No contract for the construction, reconstruction, rehabilitation or
improvement of a mental hygiene facility shall be awarded by any letting
agency  unless  (i)  the  appropriate  commissioner  or  director of the
department shall have separately approved the architectural concept  and
the   detailed   plans   and  specifications  for  the  facility  to  be
constructed, reconstructed,  rehabilitated  or  improved  and  (ii)  the
directors of the corporation, whether as principals or as agents for the
state  housing  finance  agency  or  the medical care facilities finance
agency, shall  have  approved  the  proposed  terms  of  such  contract,
including  the  detailed  plans  and  specifications  for  the facility.
Provided, however, the corporation shall  only  enter  into  any  lease,
sublease,  loan  or  other  financing  agreement with a voluntary agency
under which a  mental  hygiene  facility  owned  or  leased  by  such  a
voluntary   agency   is   to   be   designed,   acquired,   constructed,
reconstructed,  rehabilitated   or   improved   when   the   appropriate
commissioner  or  director  shall  have  approved  the  plans for such a
facility. The form and content of such approval shall be approved by the
division of budget however such  agency  approval  shall  allow  maximum
access    to    financing   for   design,   acquisition,   construction,
reconstruction, rehabilitation and improvement, and shall be  timely  to
reduce  the  need  for  utilization  of  short  term commercial loans by
voluntary agencies  for  services  eligible  for  financing  under  this
program.  The  medical care facilities financing agency shall advise the
director of the budget on the form of such approval.
e. Each contract for the construction, reconstruction,  rehabilitation
or  improvement  of  a mental hygiene facility shall include a provision
that the architect  who  designed  the  facility,  or  an  architect  or
engineer   retained   or   employed  specifically  for  the  purpose  of
supervision, shall  supervise  the  work  to  be  performed  through  to
completion and shall see to it that the materials furnished and the work
performed are in accordance with the drawings, plans, specifications and
contract therefor.
f.  If  the corporation is the letting agency, whether as principal or
as agent for the state housing finance  agency,  the  directors  of  the
corporation  shall  prepare  separate  specifications  for,  and solicit
separate and independent bids on, and award, separate contracts  on  the
subdivisions  of  work  to be performed specified in section one hundred
thirty-five  of  the  state  finance  law,  but  the  directors  of  the
corporation   may   in   their  discretion  assign  such  contracts  for
supervision to the successful  bidder  for  the  remaining  work  to  be
performed  at  the  time the contracts for the particular mental hygiene
facility are awarded.
g. All contracts which are to be awarded pursuant  to  this  paragraph
shall  be  awarded  by  public  letting in accordance with the following
provisions,  notwithstanding  any  contrary  provision  of  section  one
hundred  thirty-six, one hundred thirty-nine or one hundred forty of the
state finance law, except that in the discretion of the directors of the
corporation, a contract may be entered into for  such  purposes  without
public  letting  where  the  estimated  expense  thereof is no more than
eighty thousand dollars:
(i) If contracts  are  to  be  publicly  let,  the  directors  of  the
corporation  shall  advertise  the  invitation  to  bid  in  a newspaper
published in the county of Albany and in such other newspapers  as  will
be  most  likely in their opinion to give adequate notice to contractors
of the work required and of the invitation to bid. The invitation to bid

shall contain such information as the directors of the corporation shall
deem appropriate and a statement of the time and place  where  all  bids
received pursuant to such notice will be publicly opened and read.
(ii)  The  directors  of  the corporation shall not award any contract
after public bidding except to the lowest bidder who in their opinion is
qualified to perform the work required and is responsible and  reliable.
The  directors  of the corporation may, however, reject any or all bids,
again advertise for bids, or waive any informality  in  a  bid  if  they
believe that the public interest will be promoted thereby. The directors
of  the corporation may reject any bid if in their judgment the business
and technical organization,  plant,  resources,  financial  standing  or
business  experience  of  the  bidder,  compared  with  the  work  to be
performed, justify such rejection.
(iii) The invitation to bid and the  contract  awarded  shall  contain
such  other  terms and conditions, and such provisions for penalties, as
the directors of the corporation may deem desirable.
(iv) The directors of the corporation  shall  require  such  deposits,
bonds  and security in connection with the submission of bids, the award
of contracts and the performance of work as they shall determine  to  be
in  the public interest and for the protection of the state and affected
state agencies, including the corporation.
h. The directors of the corporation shall determine when minor work of
construction, reconstruction, alteration or repair of any mental hygiene
facility may be done by special order.  Special  orders  for  such  work
shall  be  short-form  contracts approved by the attorney general and by
the comptroller. No work shall be done by special order in an amount  in
excess  of  twenty thousand dollars and a bond shall not be required for
special orders. No work shall  be  done  by  special  order  unless  the
directors have presented to the comptroller evidence that they have made
a  diligent  effort  to  obtain  competition  sufficient  to protect the
interests of the state prior to selecting the contractor to perform  the
work. Notwithstanding the provisions of paragraph g of this subdivision,
work  done  by  special  order  under  this  paragraph may be advertised
through the regular public notification service of the office of general
services or the state register. At least five days shall elapse  between
the  first  publication  of such public notice and the date so specified
for the public opening of bids. The directors  may  also  authorize  the
corporation  to enter into special order contracts using bids advertised
for, received and opened by any office of the department, in  compliance
with  this  act  and  all  other applicable laws, and transmitted to the
corporation. All payments  on  special  orders  shall  be  made  on  the
certificate of the directors of the corporation and audited and approved
by the state comptroller. All special orders shall contain a clause that
the  special  order  shall only be deemed executory to the extent of the
moneys available and no liability shall be incurred by the state  beyond
the moneys available for the purpose.
3. Resources of the corporation.  a. Subject to the provisions of this
act,  the  directors  of  the corporation shall receive, accept, invest,
administer, expend and disburse for its corporate purposes,  other  than
for  the  purposes of any health facilities improvement program, (i) all
payments made on or after January 1, 1964, for the care, maintenance and
treatment of patients in every mental hygiene  facility,  other  than  a
community  mental  health  and  developmental disabilities facility or a
mental hygiene facility made available under license or permit from  the
corporation  to a voluntary agency for use in providing community mental
health  and  developmental  disabilities  services,  or  an  office   of
addiction services and supports facility made available under license or
permit from the corporation to a voluntary agency for use in the conduct

of an alcoholism or substance abuse treatment program, (ii) all payments
made to the corporation by a lessee or permittee as rentals, permit fees
or  otherwise  under any lease, sublease, permit or agreement undertaken
with respect to a community mental health and developmental disabilities
facility  or  current  or  former  mental  hygiene  facility  or  from a
voluntary  agency  with  respect  to  a  mental  hygiene  facility  made
available  under  lease,  license  or  permit  from the corporation to a
voluntary agency, and (iii) all payments made to the corporation for the
purchase of real property held by the corporation for  the  use  of  the
department, other than payments derived from New York state medical care
facilities  finance  agency  financing  or  refinancing  of  the design,
construction, acquisition, reconstruction,  rehabilitation,  improvement
or  renovation  of  state  operated  mental  hygiene facilities, and may
receive,  accept,  invest,  administer,  expend  and  disburse  for  its
corporate purposes, other than for the purposes of any health facilities
improvement   program,  appropriations  or  advances  from  the  capital
projects fund and the state purposes account of the general fund of  the
state,  and  other  revenues  and  monies  made  available or to be made
available to the corporation from any or all sources,  including  gifts,
grants,  loans  and  payments  from  the  federal  government, any state
agency, any county, city,  town  or  village,  any  private  foundation,
organization  or  individual, or any other source, for the construction,
acquisition, reconstruction, rehabilitation and  improvement  of  mental
hygiene   facilities,  and  for  the  maintenance  and  repair  of  such
facilities.
b. All monies of the corporation  received  or  accepted  pursuant  to
paragraph  a of this subdivision, other than appropriations and advances
from the state and except as otherwise authorized or  provided  in  this
section,  shall  be  paid to the commissioner of taxation and finance as
agent of the corporation, who shall not commingle such monies  with  any
other  monies.  Such  monies  shall be deposited in two or more separate
bank accounts. One of such accounts, to which shall be credited (i)  all
payments made on or after January 1, 1964, for the care, maintenance and
treatment  of  patients  in  every mental hygiene facility, other than a
community mental health and developmental  disabilities  facility,  (ii)
all  payments made to the corporation as rentals, lease payments, permit
fees or otherwise under any lease, sublease or agreement undertaken with
respect to a community  mental  health  and  developmental  disabilities
facility  or  a  current  or  former  mental hygiene facility, (iii) all
payments made to the corporation for the purchase of real property  held
by  the  corporation  for the use of the department, other than payments
derived from New York  state  medical  care  facilities  finance  agency
financing  or  refinancing  of  the  design,  construction, acquisition,
reconstruction,  rehabilitation,  improvement  or  renovation  of  state
operated mental hygiene facilities, (iv) all income from investments and
(v)  all  monies  received  or  to  be received for the purposes of such
account on a recurring basis, shall be denominated the  "mental  hygiene
facilities  improvement  fund income account". The monies in any account
shall be paid out on checks signed by the commissioner of  taxation  and
finance  on  requisition  of  the chairman of the corporation or of such
other officer or employee or officers or employees  as  the  corporation
shall  authorize  to  make  such requisition. All deposits of such money
shall, if required by the commissioner of taxation and  finance  or  the
directors  of  the  corporation, be secured by obligations of the United
States or of the state of a market value  equal  at  all  times  to  the
amount  of  the deposit and all banks and trust companies are authorized
to give such security for such deposits. Any moneys of  the  corporation
not required for immediate use or disbursement may, at the discretion of

the corporation, be invested by the commissioner of taxation and finance
in  accordance  with the provisions of section 98-a of the state finance
law. The mental hygiene  facilities  improvement  fund  and  the  income
account  therein  shall  remain  in  existence  until  terminated by the
corporation by written  notice  to  the  commissioner  of  taxation  and
finance.  Any  moneys  on  deposit  in  the  mental  hygiene  facilities
improvement fund or the income account therein upon the  termination  of
said  fund  and  account  shall  be  transferred  by the commissioner of
taxation and finance to the mental health services fund. The corporation
shall not terminate the mental hygiene facilities improvement  fund  and
the  income  account therein until all mental health services facilities
bonds issued pursuant to: (i) the New York state medical care facilities
finance agency act; (ii) article five-C of the state  finance  law;  and
(iii)  article  five-F  of  the  state  finance law and payable from the
income account as described in paragraph g of this  subdivision  are  no
longer outstanding.
c. Subject to the terms of any lease, sublease or agreement undertaken
by the corporation, any such monies of the corporation, not required for
immediate  use may, at the discretion of the corporation, be invested by
the commissioner of taxation and finance in obligations  of  the  United
States  or  the state or obligations the principal and interest of which
are guaranteed by the United States or the state.
d. No lease, sublease or other agreement relating to an alcoholism  or
substance abuse facility shall be undertaken by the corporation pursuant
to  this  subdivision  unless  the appropriate division of the office of
alcoholism and substance abuse shall have approved the terms thereof.
e. The directors of the corporation shall at  all  times  maintain  on
deposit in the mental hygiene facilities improvement fund income account
the  aggregate amount of money needed by the corporation during the next
succeeding twelve calendar months to comply in full with all obligations
of the corporation under the terms of every lease, sublease or agreement
undertaken by the corporation which is then in effect, including without
limitation by the specification thereof, (i) the amount needed  to  make
rental  payments thereunder during such year, and (ii) the amount needed
to establish and maintain reserves thereunder during such year provided,
however, that the provisions of this  paragraph  shall  not  apply  with
respect to agreements entered into pursuant to section nine-a of the New
York state medical care facilities finance agency act.
f. The directors of the corporation shall from time to time, but in no
event  later  than  the  fifteenth  day  of  each  month pay over to the
commissioner of taxation and  finance  and  the  state  comptroller  for
deposit   in  the  mental  health  services  fund,  all  monies  of  the
corporation in excess of the aggregate amount of money  required  to  be
maintained  on deposit in the mental hygiene facilities improvement fund
income account pursuant to paragraphs e and g of this subdivision. Prior
to making any such payment, the chairman of the  corporation  shall,  on
behalf  of  the  directors,  make  and  deliver  to the governor and the
director of the budget his certificate stating the aggregate  amount  to
be  maintained  on  deposit in the mental hygiene facilities improvement
fund income account to comply in full with the provisions of  paragraphs
e and g of this subdivision.
g.  (1)  In  addition  to  the  amount  required  to  be maintained by
paragraph e of this subdivision, there  shall  be  accumulated  and  set
aside  in  each  month in the mental hygiene facilities improvement fund
income account, all receipts associated with  loans,  leases  and  other
agreements  with  voluntary  agencies. The corporation shall provide the
amount of such receipts to be set aside to the commissioner of  taxation
and  finance  in  each  month.  (2) No later than five days prior to the

earlier of when payment is to be made on bonds issued for mental  health
services facilities purposes pursuant to: (i) the New York state medical
care  facilities  finance  agency  act; (ii) article five-C of the state
finance  law;  and  (iii)  article five-F of the state finance law, such
set-aside receipts shall be transferred by the commissioner of  taxation
and  finance  as  agent  of  the  corporation  from  the  mental hygiene
facilities improvement fund income account in the amounts set  forth  in
schedules  provided  by  the corporation to the commissioner of taxation
and finance in the following priority: first, to the  trustee  appointed
by  the  New  York  state medical care facilities finance agency for the
bonds issued pursuant to the New  York  state  medical  care  facilities
finance  agency  act for both voluntary agency and state purposes to pay
debt service and other cash  requirements  due  on  such  bonds  on  the
relevant  payment  date,  second, any remaining amount of such set-aside
receipts to the trustee appointed by authorized issuers  for  the  bonds
issued  pursuant  to article five-C of the state finance law to pay debt
service and other cash requirements due on such bonds  on  the  relevant
payment  date  and  third, any remaining amount of such set-aside to the
trustee appointed by authorized issuers for the bonds issued pursuant to
article five-F of the state finance law to pay debt  service  and  other
cash requirements due on such bonds on the relevant payment date.
4.  Agreements. a. Upon certification by the director of the budget of
the availability of required appropriation authority,  the  corporation,
or  any  successor  agency,  is hereby authorized and empowered to enter
into leases, subleases, loans and other financing  agreements  with  the
state  housing  finance  agency and/or the state medical care facilities
finance agency, and  to  enter  into  such  amendments  thereof  as  the
directors  of  the  corporation,  or  any  successor  agency,  may  deem
necessary or desirable, which shall provide for  (i)  the  financing  or
refinancing of or the design, construction, acquisition, reconstruction,
rehabilitation  or  improvement of one or more mental hygiene facilities
or for the refinancing of any  such  facilities  for  which  bonds  have
previously  been  issued  and  are  outstanding,  and  the  purchase  or
acquisition  of  the  original  furnishings,  equipment,  machinery  and
apparatus  to  be  used  in such facilities upon the completion of work,
(ii) the leasing to the  state  housing  finance  agency  or  the  state
medical  care  facilities finance agency of all or any portion of one or
more existing mental hygiene facilities and one or more  mental  hygiene
facilities   to   be  designed,  constructed,  acquired,  reconstructed,
rehabilitated or improved, or of real property related to the work to be
done, including real property originally  acquired  by  the  appropriate
commissioner  or  director  of  the  department in the name of the state
pursuant to article seventy-one of the mental  hygiene  law,  (iii)  the
subleasing  of  such  facilities  and  property  by the corporation upon
completion  of  design,   construction,   acquisition,   reconstruction,
rehabilitation  or  improvement,  such leases, subleases, loans or other
financing agreements to be upon such other terms and conditions  as  may
be  agreed  upon,  including  terms and conditions relating to length of
term, maintenance and repair of mental  hygiene  facilities  during  any
such  term,  and  the  annual  rentals  to  be  paid for the use of such
facilities, property, furnishings, equipment, machinery  and  apparatus,
and  (iv)  the  receipt  and  disposition,  including loans or grants to
voluntary agencies, of proceeds  of  mental  health  service  facilities
bonds  or  notes issued pursuant to section nine-a of the New York state
medical care facilities finance agency act. For purposes of the  design,
construction, acquisition, reconstruction, rehabilitation or improvement
work required by the terms of any such lease, sublease or agreement, the
corporation  shall  act as agent for the state housing finance agency or

the state medical care facilities finance agency. In the event that  the
corporation  enters  into  an  agreement for the financing of any of the
aforementioned facilities with the state housing finance agency  or  the
state  medical  care facilities finance agency, or in the event that the
corporation enters into an agreement for the financing or refinancing of
any  of  the  aforementioned  facilities  with  one  or  more  voluntary
agencies,  it  shall  act  on  its  own  behalf  and  not  as agent. The
appropriate commissioner or director of the department on behalf of  the
department  shall  approve  any  such  lease,  sublease,  loan  or other
financing agreement and shall be  a  party  thereto.  All  such  leases,
subleases,  loans  or other financing agreements shall be approved prior
to execution by no less than three directors of the corporation.
b. To secure the payment of moneys or rentals due or to become due  in
any  year  under  any lease, sublease, loan or other financing agreement
entered into with the state housing finance agency or the state  medical
care  facilities  finance  agency,  pursuant  to  paragraph  a  of  this
subdivision, the directors of the corporation may pledge or  assign  any
or  all  monies in the mental hygiene facilities improvement fund income
account and in  any  rental  reserve  account  established  pursuant  to
paragraph  c  of  this  subdivision,  and any or all monies which may be
receivable by the corporation  and  credited  to  either  or  both  such
accounts  in  the future, whether equal to or in excess of the amount of
such rentals due or becoming due in any year,  and  any  or  all  right,
title  and  interest of the corporation in and to the monies in or to be
deposited in such accounts.
c. The corporation may create  and  establish  one  or  more  separate
accounts  to be known as "rental reserve accounts" and may pay into such
reserve accounts (i) any monies apportioned and paid by  the  state  for
the  purposes  of  such reserve account pursuant to this paragraph, (ii)
any monies in the mental  hygiene  facilities  improvement  fund  income
account  transferred  to  such  reserve accounts by the directors of the
corporation  pursuant  to  any  lease,  sublease  or   other   agreement
undertaken  by  the corporation, and (iii) any other monies which may be
made  available  to  the  corporation  from  any   source   or   sources
specifically for the purposes of such reserve accounts.
The  monies  credited  to any rental reserve account established under
this paragraph shall be used, except as hereinafter provided, solely for
the payment of rentals as they become due  under  one  or  more  of  the
leases,  subleases  and  agreements  referred  to in paragraph a of this
subdivision, provided, however, that the monies in  such  account  shall
not  be  withdrawn  therefrom at any time in such amount as would reduce
the amount thereof to less than the maximum amount  of  rental  becoming
due  in  any  succeeding  calendar year under such leases, subleases and
agreements, except for the purpose of paying such rentals  becoming  due
for  the  payment  of  which  other  moneys  of  the corporation are not
available.
Subject to the terms of any lease, sublease or agreement  referred  to
in  paragraph  a of this subdivision, monies in a rental reserve account
not required for immediate  use  or  disbursement  may  be  invested  in
obligations  of  the  United  States  or  the  state  or obligations the
principal and interest of which are guaranteed by the United  States  or
the  state.  In computing the amount of a rental reserve account for the
purposes of this paragraph, securities in which all or a portion of  the
account  are invested shall be valued at their market value as of a date
within seven days preceding the date of the computation or at their cost
to the corporation, whichever is less.
Any excess in a rental reserve account as of the last day of any state
fiscal year over the maximum  amount  of  rental  becoming  due  in  any

succeeding  calendar year under such lease agreements shall be withdrawn
by the corporation from such  account  and  transferred  to  the  mental
hygiene  facilities  improvement  fund income account to be used for the
corporate  purposes  of  the corporation, other than for the purposes of
any health facilities improvement program.
In order further to secure  the  maintenance  in  all  rental  reserve
accounts  established  pursuant  to this paragraph of an amount equal to
the maximum amount of rental becoming due  in  any  succeeding  calendar
year  under  the  leases,  subleases and agreements to which the reserve
account relates, there shall be annually apportioned  and  paid  to  the
corporation  for  deposit  in  such rental reserve accounts such sum, if
any, as shall be certified by the chairman of  the  corporation  to  the
governor  and  director  of  the  budget  as  necessary  to restore such
accounts to an amount equal to the maximum amount of rental becoming due
in any  succeeding  calendar  year  under  such  leases,  subleases  and
agreements. The chairman of the corporation shall annually, on or before
December  first,  make  and  deliver to the governor and director of the
budget his certificate stating the amount, if any, required  to  restore
such  rental  reserve accounts to the amount aforesaid and the amount so
stated in said certificate, if any, shall be apportioned and paid to the
corporation during the then current state fiscal year.
d. No lease, sublease or other agreement shall be  undertaken  by  the
corporation  pursuant  to  this section unless the governor, or where so
designated by the governor for such purpose, the director of the budget,
shall have approved the terms thereof.
e. The attorney general shall pass upon the form and  sufficiency  and
manner  of  execution  of any lease, sublease or other agreement entered
into pursuant to this section and the same shall not be effective unless
so approved by him.
f. The state shall not be liable  for  any  rentals,  loan,  or  other
payments  payable  by  the corporation pursuant to the terms of a lease,
sublease, loan or other financing agreement  entered  into  pursuant  to
this  section,  and  such  lease,  sublease,  loan  or  other  financing
agreement shall contain among its terms a statement to such effect.
5. Jurisdiction of mental hygiene facilities; maintenance and  repair.
On  and  after  the effective date of this act, the corporation shall be
entitled to exclusive possession, jurisdiction, supervision and  control
of  all  real property, including mental hygiene facilities, theretofore
acquired and held for department purposes  and  of  all  mental  hygiene
facilities thereafter constructed or acquired, and, to all payments made
after   January  first,  nineteen  hundred  sixty-four,  for  the  care,
maintenance and treatment of patients at such mental hygiene facilities.
The  directors  of  the  corporation  shall  make  available  to   the
appropriate  commissioner  of  the  department  for  use  in  the  care,
maintenance and treatment  of  the  mentally  disabled,  all  such  real
property   and   facilities   including   newly  constructed,  acquired,
reconstructed, rehabilitated and improved facilities, together with  the
original  furnishings,  equipment,  machinery  and apparatus therein, as
soon as practicable after the completion of work. Responsibility for the
maintenance and upkeep of such property, for the maintenance and routine
repair of such facilities,  and  for  the  replacement  of  furnishings,
equipment,   apparatus  and  machinery,  shall  be  in  the  appropriate
commissioner of the department, provided, however, if the terms  of  any
lease,  sublease, loan or other financing agreement entered into between
the corporation and the  state  housing  finance  agency  or  the  state
medical  care facilities finance agency, pursuant to subdivision four of
this section so require, such responsibility shall be in  the  directors

of  the  corporation until the termination of such lease, sublease, loan
or other financing agreement.
The  care,  maintenance  and treatment of the mentally disabled at all
mental hygiene facilities shall remain at all times  the  responsibility
of the appropriate commissioner of the department in accordance with the
provisions of the mental hygiene law.
Notwithstanding the foregoing provisions of this subdivision, title to
all  real  property on which mental hygiene facilities, other than those
owned or leased by voluntary agencies, are located shall continue to  be
vested in the people of the state until conveyed in accordance with law.
The provisions of this subdivision shall not apply to community mental
health and developmental disabilities facilities.
6.  Notwithstanding any provision of any general, special or local law
or of any charter:
a. The governing body, as such term is defined in article forty-one of
title E of the mental hygiene law (except that with respect to the  city
of  New  York  such term shall mean the board of estimate), of a city or
county may, upon such terms and conditions as shall be approved by  such
governing  body and for such consideration, if any, as may be determined
by such governing body, but  not  to  exceed  the  cost  of  acquisition
thereof  and  the  cost  of improvements thereon, exclusive of any costs
reimbursed or to be reimbursed in  accordance  with  the  provisions  of
article  forty-one  of  title  E  of  the  mental hygiene law otherwise,
execute and deliver to the corporation a lease for a term not  exceeding
forty years or a deed (i) conveying to the corporation real property and
one  or  more  community  mental  health  and developmental disabilities
facilities of the city or county located thereon, a portion of the costs
of which facilities are eligible for state reimbursement  in  accordance
with  the  provisions  of  article  forty-one  of  title  E  or  article
twenty-five of title D of the mental hygiene law or  (ii)  conveying  to
the  corporation  real  property  of  the  city or county or an interest
therein, for the purpose of causing to  be  constructed,  reconstructed,
rehabilitated  or  improved  thereon one or more community mental health
and developmental disabilities facilities pursuant  to  this  act,  such
community  mental health and developmental disabilities facilities to be
made available to such county or city for use and occupancy under lease,
sublease or other agreement upon such terms and  conditions  as  may  be
agreed upon, including terms and conditions relating to length of terms,
maintenance  and  repair  of  community  mental health and developmental
disabilities facilities during such term and the annual  rentals  to  be
paid  therefor for the use thereof. The corporation is hereby authorized
to accept any such lease or conveyance, to hold such real  property,  to
enter into a lease, sublease or other agreement with such city or county
for the purpose of making such community mental health and developmental
disabilities  facility  so acquired or to be constructed, reconstructed,
rehabilitated or improved thereon available for  use  and  occupancy  by
such city or county, and to lease or convey real property so acquired to
the New York state housing finance agency or the medical care facilities
finance  agency,  provided,  however,  that  any  such  further lease or
conveyance shall be solely for the purpose of causing  community  mental
health   and  developmental  disabilities  facilities  to  be  acquired,
constructed, reconstructed,  rehabilitated  or  improved  thereon,  such
community  mental health and developmental disabilities facilities to be
made available to such city or county for  use  and  occupancy  under  a
lease, sublease or other agreement between the corporation and such city
or county, upon such terms and conditions as may be agreed upon. No such
lease  or  conveyance from the corporation to the New York state housing
finance agency or the state medical care facilities finance agency shall

be for a consideration in excess of the cost of acquisition of such real
property  and  the  costs  of  improvements  thereon.  The   appropriate
commissioner  of the department, on behalf of his or her office, and the
director   of   the  budget  shall  approve  all  leases,  subleases  or
agreements, whether between the corporation and such city or  county  or
between  the  corporation  and  the  housing finance agency or the state
medical care facilities finance agency, and the appropriate commissioner
of the department shall be a party thereto. The appropriate division  of
the  office  of  addiction  services and supports shall also approve all
such leases, subleases  or  agreements  relating  to  the  construction,
reconstruction, rehabilitation or improvement of community mental health
and  developmental  disabilities  facilities, constituting alcoholism or
substance abuse facilities for use in an alcoholism or  substance  abuse
treatment program as defined in the mental hygiene law.
b.  In  the  event  that the corporation shall fail, within five years
after the date of such lease or conveyance, to  construct,  reconstruct,
rehabilitate  or  improve  the community mental health and developmental
disabilities facility or facilities thereon  for  which  such  lease  or
conveyance was made, or to cause the same to be done, as provided for in
a  lease,  sublease  or  other  agreement entered into with such city or
county, then, subject to the terms  of  any  lease,  sublease  or  other
agreement undertaken by the New York state housing finance agency or the
state medical care facilities finance agency, with respect thereto, such
real  property  and  any facilities thereon shall revert to such city or
county with right of re-entry thereupon, and such lease or deed shall be
made subject to such  condition  of  reverter  and  re-entry;  provided,
however,  that as a condition precedent to the exercise of such right of
re-entry, such city or county shall pay an amount equal to  the  sum  of
the  purchase  price  of such real property, the depreciated cost of any
facility or  facilities  constructed,  reconstructed,  rehabilitated  or
improved thereon, and all other costs of the corporation or the New York
state  housing  finance  agency  or  the  state  medical care facilities
finance agency incident to the costs of the  acquisition  of  such  real
property    and   the   financing   of   construction,   reconstruction,
rehabilitation or improvement relating to such facility  or  facilities,
all  as  provided  in  the  aforesaid lease, sublease or other agreement
entered into with such city or county.
c. No real property or interest  therein  shall  be  acquired  by  the
corporation 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  of  real
property  authorized  to  be given under this subdivision by any city or
county to the corporation, and any lease, sublease or agreement  between
the  corporation  and  a  city  or  county,  and  the  same shall not be
effective unless such deed, lease, sublease or  agreement  shall  be  so
approved by him.
e.    The   cost   of   construction,   acquisition,   reconstruction,
rehabilitation  or  improvement   of   community   mental   health   and
developmental  disabilities  facilities  undertaken  by  the corporation
pursuant to this act may include the cost of  acquisition  of  any  real
property  leased  or conveyed to the corporation pursuant to paragraph a
of this subdivision and the cost of the original furnishing,  equipment,
machinery and apparatus as determined by the corporation.
f. The provisions of this act shall not be deemed to prevent a city or
county   from   financing   the   cost   of   constructing,   acquiring,
reconstructing, rehabilitating or improving a  community  mental  health

and  developmental  disabilities  facility  by  the issuance of bonds or
capital notes of such city or county pursuant to the local finance law.
§  9-a.  Equal  employment  opportunity  program. 1. All contracts for
design, construction, services and materials executed by the corporation
pursuant to the provisions of this act, other than contracts the cost of
which is borne solely by  a  municipality  or  municipalities,  and  all
documents  soliciting  bids  or proposals therefor shall contain or make
reference to the following provisions:
(a)  The  contractor  will  not  discriminate  against  employees   or
applicants  for  employment  because  of  race,  creed,  color, national
origin, sex, age, disability, or marital status, and will  undertake  or
continue existing programs of affirmative action to ensure that minority
group   persons   and  women  are  afforded  equal  opportunity  without
discrimination. Such programs shall include,  but  not  be  limited  to,
recruitment, employment, job assignment, promotion, upgrading, demotion,
transfer,   layoff,   termination,  rates  of  pay  or  other  forms  of
compensation, and  selections  for  training  or  retraining,  including
apprenticeship and on-the-job training.
(b)  At  the  request of the corporation, the contractor shall request
each employment agency, labor union,  or  authorized  representative  of
workers  with which it has a collective bargaining or other agreement or
understanding and which is involved in the performance of  the  contract
with the corporation to furnish a written statement that such employment
agency,  labor union or representative shall not discriminate because of
race, creed, color, national origin, sex,  age,  disability  or  marital
status  and  that  such  union  or  representative will cooperate in the
implementation of the contractor's obligations hereunder.
(c) The contractor will state, in all solicitations or  advertisements
for  employees  placed  by  or  on  behalf  of  the  contractor  in  the
performance of the contract with the  corporation,  that  all  qualified
applicants   will  be  afforded  equal  employment  opportunity  without
discrimination because of race, creed, color, national origin, sex, age,
disability or marital status.
(d) The contractor  will  include  the  provisions  of  paragraph  (a)
through  (c)  of this subdivision in every subcontract or purchase order
in such a  manner  that  such  provisions  will  be  binding  upon  each
subcontractor  or  vendor as to its work in connection with the contract
with the corporation.
2. The corporation shall establish procedures and guidelines to ensure
that contractors and subcontractors undertake  programs  of  affirmative
action  and  equal  employment  opportunity as required by this section.
Such procedures may require after notice  in  a  bid  solicitation,  the
submission  of  an  affirmative action program prior to the award of any
contract, or at any time thereafter, and may require the  submission  of
compliance  reports  relating to the operation and implementation of any
affirmative action program adopted hereunder. The corporation  may  take
appropriate  action including contractual sanctions for noncompliance to
effectuate the provisions of this section and shall be  responsible  for
monitoring compliance with this act.
§  9-b.  Minority  and women-owned business enterprise program. 1. (a)
Minority  and  women-owned  business  enterprises  shall  be  given  the
opportunity  for  meaningful  participation in all contracts executed by
the corporation pursuant to  the  provisions  of  this  act  other  than
contracts  the  cost  of  which  is  borne  solely  by a municipality or
municipalities. The corporation shall establish measures and  procedures
to  secure  meaningful  participation  and  identify those contracts and
items of work for which minority and  women-owned  business  enterprises
may  best  bid  to  actively  and affirmatively promote and assist their

participation in the projects, so as to facilitate the award of  a  fair
share  of contracts to such enterprises; provided, however, that nothing
in this act shall be construed to limit the ability of  the  corporation
to  assure  that qualified minority and women-owned business enterprises
may participate in the program. For purposes hereof,  minority  business
enterprise  shall  mean  any  business  enterprise  which  is  at  least
fifty-one per centum owned by, or  in  the  case  of  a  publicly  owned
business,  at  least fifty-one per centum of the stock of which is owned
by citizens or permanent resident noncitizens who are  Black,  Hispanic,
Asian  or  American Indian, Pacific Islander or Alaskan natives and such
ownership interest is real, substantial  and  continuing  and  have  the
authority  to independently control the day to day business decisions of
the entity for at least one year; and  women-owned  business  enterprise
shall  mean  any  business  enterprise  which  is at least fifty-one per
centum owned by, or in the case of a publicly owned business,  at  least
fifty-one  per  centum  of  the  stock  of which is owned by citizens or
permanent  resident  noncitizens  who  are  women,  and  such  ownership
interest  is  real, substantial and continuing and have the authority to
independently control the day to day business decisions  of  the  entity
for at least one year.
The  provisions  of this paragraph shall not be construed to limit the
ability of any minority or women-owned business enterprise to bid on any
contract.
(b) In the implementation  of  this  section,  the  corporation  shall
consider  compliance  by  any  contractor  with  the requirements of any
federal,  state,  or  local  law  concerning  minority  and  women-owned
business  enterprises,  which  may  effectuate  the requirements of this
section. If the corporation determines that by virtue of the  imposition
of  the  requirements  of  any  such  law,  in respect to contracts, the
provisions  thereof  duplicate  or  conflict  with  this  section,   the
corporation may waive the applicability of this section to the extent of
such duplication or conflict.
(c)  Nothing  in  this section shall be deemed to require that overall
state  and  federal  requirements  for  participation  of  minority  and
women-owned  business  enterprises in programs authorized under this act
be applied without regard to local circumstances to all projects  or  in
all communities.
2.  In  order  to  implement  the  requirements and objectives of this
section, the corporation  shall  establish  procedures  to  monitor  the
contractors'  compliance  with  provisions hereof, provide assistance in
obtaining  competing  qualified  minority   and   women-owned   business
enterprises  to perform contracts proposed to be awarded, and take other
appropriate measures to improve the access of minority  and  women-owned
business enterprises to these contracts.
§  10.  Monies  of  the  corporation  relating  to  health  facilities
improvement program. Subject to the terms of any agreement  between  the
corporation  and  the  state housing finance agency or the state medical
care facilities finance agency, as  the  case  may  be,  and  except  as
otherwise authorized or provided by section nine of this act, all monies
received  by  the  corporation  shall  be  paid  to  the commissioner of
taxation and finance as agent of the corporation who shall not commingle
such monies with any other monies. Such monies shall be deposited  in  a
separate  bank  account or accounts. The monies in such account shall be
paid out on checks signed by the commissioner of taxation and finance on
requisition of the chairman of the corporation or such other officer  or
employee  or officers or employees as the corporation shall authorize to
make such requisitions. All deposits of such monies shall,  if  required
by  the  commissioner of taxation and finance, the state housing finance

agency or the state medical care facilities finance agency,  be  secured
by  obligations  of  the United States or of the state of a market value
equal at all times to the amount of the deposit and all banks and  trust
companies  are  authorized  to  give  such  security  for such deposits.
Subject to the terms of any agreement between the  corporation  and  the
state  housing  finance  agency  or  the  state  medical care facilities
finance agency, as the case may be, the corporation shall have power  to
invest any such monies not required for immediate use or disbursement 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, or invested in accordance with the  provisions
of section 98-a of the state finance law.
§  11. General fiscal requirements relating to the corporation. 1. The
chairman of the corporation shall annually, at such time as the governor
may request, prepare and submit to the governor and the director of  the
budget,  on  behalf  of  the  directors  of the corporation, an itemized
budget request and any additional  information  required  setting  forth
financial  needs  by  programs for the administration of the corporation
during the next succeeding state fiscal year including information as to
the payment or provision for payment of obligations of  the  corporation
expected  to be required during such year under the terms of all leases,
subleases and agreements expected to be undertaken by  the  corporation.
The  governor  shall  annually  submit  his  recommended  budget for the
administration of the corporation to the  legislature.  The  legislature
shall act on such request and make appropriations for all administrative
expenses of the corporation.
2.  The  comptroller,  or  his  legally  authorized representative, is
hereby authorized and empowered from time to time to examine  the  books
and   accounts   of   the   corporation,   including  its  receipts  and
disbursements and any other matters relating to its financial  standing.
Such  an examination shall be conducted by the comptroller at least once
every five years; the comptroller is authorized, however, to accept from
the corporation, in lieu of such examination, an external examination of
its books and accounts made at the request of the corporation.
§ 12. Actions by and against the corporation.  1.  The  state  supreme
court  shall  have exclusive jurisdiction of any action, suit or special
proceeding brought by or against or involving the corporation. The venue
of  any  action,  suit  or  special  proceeding  brought   against   the
corporation shall be laid in the county of Albany.
2.  In  every action against the corporation for damages, for injuries
to real or personal property, or for the  destruction  thereof,  or  for
personal  injuries  or  death, the complaint shall contain an allegation
that at least thirty days have elapsed since the demand, claim or claims
upon which such action is  founded  were  presented  to  a  director  or
officer  of  the  corporation  and that the corporation has neglected or
refused to make an adjustment or payment thereof for thirty  days  after
such presentment.
3.  Except  in  an  action  for  wrongful death, an action against the
corporation for damages for injuries to real or  personal  property,  or
for  the  destruction thereof, or for personal injuries, alleged to have
been sustained, shall not be commenced more than  one  year  and  ninety
days after the cause of action therefor shall have accrued, nor unless a
notice  of  claim  shall  have been served on the corporation within the
time limit established by and in compliance  with  all  requirements  of
section  fifty-e  of  the  general  municipal law. An action against the
corporation for wrongful death shall be commenced in accordance with the
notice of claim and  time  limitation  provisions  of  title  eleven  of
article nine of the public authorities law.
4.  All  of  the  provisions of sections seventeen and nineteen of the
public officers law shall apply to the directors, officers and employees
of the corporation.
§  13.  Tax  exemption  of monies and property of the corporation. The
monies and property of the  corporation  and  its  operations  shall  be
exempt from taxation.
§  14.  Cooperation  and  assistance from other state agencies. 1. The
departments of health, mental hygiene  and  law,  the  division  of  the
budget,  the  office  of  general  services,  the  state housing finance
agency, the state medical care  facilities  finance  agency,  the  state
agency  designated  to  implement  an  act  of  congress  known  as  the
comprehensive health planning and public health services  amendments  of
nineteen  hundred  sixty-six  (Public  Law  89-749)  and all other state
agencies  shall  cooperate  with  and  assist  the  corporation  in  the
fulfillment  of  its  corporate  purposes  and  in  the  exercise of its
corporate powers under this act and may  render  such  services  to  the
corporation  within  their  respective functions as the directors of the
corporation may reasonably request.
2. Subject to the approval of the office of alcoholism  and  substance
abuse  services  and  to  the  terms  of  any  lease,  sublease or other
agreement with  the  state  housing  finance  agency,  the  corporation,
whether  as  principal or as agent for the state housing finance agency,
is hereby authorized and empowered to provide facilities for the conduct
of alcoholism or substance abuse treatment programs  by  the  office  of
alcoholism  and  substance abuse services and as may be required by such
office in the  performance  of  its  duties,  powers  and  functions  as
specified  in  article  nineteen  of  the  mental hygiene law, including
construction, acquisition,  reconstruction,  rehabilitation,  alteration
and improvement of buildings, structures and appurtenances, the purchase
and  installation  of  furnishings  and  equipment,  the  acquisition of
property by purchase, lease or transfer, engineering, architectural  and
consulting   services.   In   the   design,  construction,  acquisition,
reconstruction,  rehabilitation,  alteration  and  improvement  of  such
facilities the corporation shall be guided by the provisions of this act
relating  to  the  design and construction of mental hygiene facilities,
provided, however, that subject to the terms of any lease,  sublease  or
other  agreement  with  the state housing finance agency such facilities
and the approvals to be given for the design  and  construction  thereof
shall be under the professional jurisdiction of the office of alcoholism
and  substance  abuse  services  and  the  corporation  shall  make such
facilities available to such office.
3. Notwithstanding the provisions of subdivision five of section  nine
of  this  act, the directors of the corporation, subject to the terms of
any lease, sublease or other agreement with the  state  housing  finance
agency,  shall  make available to the office of alcoholism and substance
abuse services for use as an alcoholism or substance abuse facility  any
real  property  or facility under the jurisdiction of the corporation as
the office of alcoholism and substance abuse services shall request  and
the  commissioner  shall  certify  is no longer necessary for use in the
care, maintenance and treatment of  the  mentally  disabled.  Such  real
property  or facility shall continue under the professional jurisdiction
of the office of alcoholism and  substance  abuse  services  until  such
office  shall  certify  that such real property or facility is no longer
necessary  for  use  as  an  alcoholism  or  substance  abuse  facility,
whereupon  all  of the provisions of subdivision five of section nine of
this act shall govern. Responsibility for the maintenance and upkeep  of
such  real  property or facility, for the maintenance and routine repair
of  such  real  property  or  facility  and  for  the   replacement   of

furnishings,  equipment,  apparatus  and machinery shall, subject to the
terms of any lease, sublease or other agreement with the  state  housing
finance  agency,  be  in  the  office  of alcoholism and substance abuse
services  so  long  as  such  real  property  or  facility  is under the
professional jurisdiction of such office. A copy of any certificate made
pursuant to this subdivision shall be filed with  the  director  of  the
budget.
§  14-a.  Special  provisions relating to municipal facilities. 1. The
corporation is authorized to enter into an agreement with a municipality
for  the  design,  construction,  reconstruction,   rehabilitation   and
improvement  for  such municipality of a municipal building or buildings
at the sole cost and expense of such municipality. The corporation shall
enter into an agreement with a municipality prior to the commencement of
any  corporation  services.  No  agreement  entered  into  between   the
facilities  development  corporation and a municipality pursuant to this
section shall  be  effective  until  the  director  of  the  budget  has
determined  that  the  total  estimated  charge  to  be collected by the
corporation from the municipality is fair and reasonable in relationship
to the estimated total project cost and also that sufficient  provisions
exist  to  insure  the collection of such charge by the corporation from
the municipality. A municipality, by resolution of its  governing  body,
is hereby authorized to enter into an agreement with the corporation and
to  provide  for the payment to the corporation of all expenses incurred
at such time and in such amounts as shall be set forth in the agreement,
notwithstanding the provisions of any general, special or local  law  or
of  any  charter.  The  agreement  shall  contain  such  other terms and
conditions  as  may  be  agreed  upon  by  the   corporation   and   the
municipality.
2.  In  the  design,  construction, reconstruction, rehabilitation and
improvement  of  a  municipal  building  or  buildings  pursuant  to  an
agreement  entered  into as provided in subdivision one of this section,
the corporation shall be governed by the applicable provisions  relating
to  the  design  and  construction  of health facilities as set forth in
paragraph d of subdivision two of section eight of this act.
3. The corporation shall, by  regulation,  prescribe  a  procedure  or
procedures  for the application by a municipality to the corporation for
its assistance, and the corporation's procedure or  procedures  for  the
design,  construction, reconstruction, rehabilitation and improvement of
a  municipal  building  or  buildings.  Any  such  regulation  shall  be
submitted  to  the  director of the budget for his approval prior to its
effectiveness.
§ 14-b. Special provisions relating to local correctional  facilities.
1.    The  corporation  is  authorized to enter into an agreement with a
municipality providing for  the  design,  construction,  reconstruction,
rehabilitation   and  improvement  for  such  municipality  of  a  local
correctional facility, as such term is defined in section forty  of  the
correction  law,  including  any  place  used  by a municipality for the
detention of persons charged with or convicted of a crime, at  the  sole
cost  and expense of such municipality. A municipality, by resolution of
its governing body, is hereby authorized to enter into such an agreement
with the corporation and to provide for the payment to  the  corporation
of  all  expenses incurred at such times and in such amounts as shall be
set forth in  the  agreement,  notwithstanding  the  provisions  of  any
general,  special  or  local  law or of any charter. The agreement shall
contain such other terms and conditions as may be  agreed  upon  by  the
corporation  and  the  municipality. The corporation shall enter into an
agreement  with  a  municipality  prior  to  the  commencement  of   any
corporation  services.  No agreement entered into between the facilities

development corporation and a  municipality  pursuant  to  this  section
shall  be effective until the director of the budget has determined that
the total estimated charge to be collected by the corporation  from  the
municipality  is  fair  and  reasonable in relationship to the estimated
total project cost and also that sufficient provisions exist  to  insure
the  collection of such charge by the corporation from the municipality.
The corporation shall by regulation prescribe a procedure or  procedures
for  the  application  by  a  municipality  to  the  corporation for its
assistance and the corporation's procedure or procedures for the design,
construction, reconstruction, rehabilitation and improvement of a  local
correctional  facility.  Any  such  regulation shall be submitted to the
director of the budget for his approval prior to its effectiveness.
2. In the design,  construction,  reconstruction,  rehabilitation  and
improvement  of  a  local correctional facility pursuant to an agreement
entered into as  provided  in  subdivision  one  of  this  section,  the
corporation  shall  be governed by the applicable provisions relating to
the design and  construction  of  health  facilities  as  set  forth  in
paragraphs c and d of subdivision two of section eight of this act.
§  15.  Annual  report  of directors. The directors of the corporation
shall submit to the governor, the state  agency  designated  by  him  to
implement  the  federal  comprehensive health planning and public health
services amendments of nineteen hundred sixty-six (Public  Law  89-749),
the public health council, the mental hygiene council, the commissioners
of  health  and  the  offices  of  the department of mental hygiene, the
legislature, the chairman  of  the  senate  finance  committee  and  the
chairman of the assembly ways and means committee, annually on or before
October  first,  a  full report of its activities and operations through
the thirty-first day of the preceding March,  including  details  as  to
projects   in   planning,  projects  in  the  process  of  construction,
acquisition,  reconstruction,  rehabilitation   or   improvements,   and
projects   completed,   the  performance  record  of  the  directors  in
completing construction in accordance with the desired completion  dates
and  within  the estimated cost recommended by the governor and approved
by  the  legislature,  the  architects,  engineers  and  other   private
consultants  engaged  by  the directors of the corporation on a contract
basis and a statement of the total amount paid and yet to  be  paid,  or
estimated  yet  to be paid, under each such contract, the letting agency
and successful bidder or bidders  for  each  project,  the  monies  made
available  for the purposes of the corporation, details as to any lease,
sublease or agreement executed by the directors of the corporation  with
the  state  housing  finance agency or the state medical care facilities
finance agency, as the case may be, and the annual rentals  required  to
be  paid  on  account thereof, and such other information related to the
activities and operation of the corporation  as  the  directors  of  the
corporation may consider pertinent.
§  15-a.  Payment on corporation public work projects. Notwithstanding
the provisions of any other law  to  the  contrary,  all  contracts  for
public  work  awarded by the facilities development corporation pursuant
to this  chapter  shall  be  in  accordance  with  section  one  hundred
thirty-nine-f of the state finance law.
§  16. Separability. If any section, subdivision, paragraph, sentence,
clause or  provision  of  this  act  shall  be  unconstitutional  or  be
ineffective  in  whole  or  in  part,  to  the  extent  that  it  is not
unconstitutional or ineffective, it shall be valid or effective  and  no
other  section,  subdivision,  paragraph,  sentence, clause or provision
shall on account thereof be deemed invalid or ineffective.
§ 17. Inconsistent provisions of other laws superseded. Insofar as the
provisions of this article are inconsistent with the provisions  of  any

other  law,  general  or  special,  the  provisions of this act shall be
controlling.