2023 New York Laws › PBH - Public Health › Article 28 - Hospitals › 2817 - Community Health Centers Capital Program.

§  2817.  Community health centers capital program. 1. Definitions. As
used in this section, unless the context clearly requires otherwise, the
following terms shall have the following meanings:
(a) "Community health center" means a not-for-profit corporation  that
is  licensed  under  this  article as a diagnostic and treatment center,
which license is valid and in full force and effect, and that provides a
comprehensive range of primary health  care  services  in  one  or  more
freestanding sites, or a not-for-profit corporation that has applied for
licensure  under  this  article as a diagnostic and treatment center and
that intends to provide a comprehensive range  of  primary  health  care
services in one or more freestanding sites.
(b) "Program" means the community health centers program authorized by
this section.
(c)  "Program  funds"  means state funds available for the purposes of
this section.
(d) "Matching funds" means any funds other than state  funds  (whether
derived from non-governmental or federal or local governmental sources),
which are available for the purposes of this section.
(e)   "Community   health  center  project"  or  "project"  means  the
construction, reconstruction, renovation, rehabilitation,  refurbishing,
expansion,  upgrading,  or  equipping of a community health center under
this section.
2. Agreements. The commissioner is authorized to make funds  available
for  community  health  center projects. The commissioner shall contract
with one or more not-for-profit administrators, each of which shall be a
not-for-profit corporation having demonstrated interest,  expertise  and
experience  in  the  development  and  financing  of  primary  care  and
preventive  services  in  low  income  communities.  The  not-for-profit
administrator shall award program funds and available matching funds to,
or  for  the  benefit  of, community health centers which apply for such
funds  in  accordance  with  this  section.  The  commissioner  and  the
not-for-profit  administrator  shall  enter  into  an  agreement for the
purpose of administering the program and matching funds. Such  agreement
shall provide, without limitation, for the following:
(a)  the  receipt,  management  and  expenditure  of program funds and
matching funds;
(b) the solicitation of capital proposals to be  submitted  by  or  on
behalf of community health centers;
(c) the solicitation of matching funds;
(d) the process by which the capital proposals are reviewed, evaluated
and funded; and
(e)  the  reasonable  expenses  of  the  not-for-profit  administrator
incurred in  the  establishment  and  administration  of  this  program,
including retention of professionals and consultants.
3.  Matching  funds.  (a)  To  leverage  the  benefit of program funds
available pursuant to this section for community health center projects,
each allocation of program funds awarded to, or for the  benefit  of,  a
community  health  center shall be matched by an equal or greater amount
of matching funds and shall be conditioned on the availability  of  such
matching funds for the community health center project.
(b)  Matching funds shall be deemed available for the purposes of this
section  when  the  funds  are   deposited   with   the   not-for-profit
administrator,  or  are  irrevocably  committed for the community health
center project pursuant to a valid, binding  and  enforceable  contract,
enforceable  by  the not-for-profit administrator for the benefit of the
community health center project.
(c) Matching funds may be obtained by the not-for-profit administrator
or may be otherwise provided for a particular  community  health  center

project.   In  each  such  circumstance,  or  combination  thereof,  the
requirements of paragraph (b) of this subdivision shall apply.
4.  Community  health  center  projects.  (a)  An  application  to the
not-for-profit administrator may be submitted  by  or  on  behalf  of  a
community health center which meets the criteria for receiving funds set
forth in this section.
(b)  The  application  shall  specify  in  detail  acceptable  to  the
not-for-profit administrator the proposed construction,  reconstruction,
renovation,   rehabilitation,  refurbishing,  expansion,  upgrading  and
equipping of a community health center.
(c) The application shall identify available sources of funds for  the
community  health  center  project, including matching funds, if any. It
shall also identify any expenses already incurred in connection with the
community health center project, and whether any reimbursement  therefor
is sought in connection with the application.
(d)  To  receive  an  award of funds for the proposed community health
center project, the applicant, and if the applicant is not  a  community
health  center,  the  community  health  center and the applicant, shall
enter into an agreement with the not-for-profit administrator  governing
the disbursement of funds, construction of the proposed project, and any
requirements of the program under the agreement between the commissioner
and  the  not-for-profit administrator or otherwise required by law. The
agreement may include provisions for the repayment of all or  a  portion
of funds.
5.  Funding  criteria. A community health center project may be funded
under this section  provided  the  community  health  center  meets  the
criteria established in either of the following paragraphs:
(a) The community health center is a federally-qualified health center
as defined in 42 U.S.C. section 1395x (aa); or
(b)  The  community health center (i) has applied to the United States
Department  of  Health  and  Human  Services  for   designation   as   a
federally-qualified   health   center,   (ii)   is   eligible  for  such
designation, and (iii) is located in,  serves  or  intends  to  serve  a
designated  medically-underserved  community  as  defined  in  42 U.S.C.
section 295p, a health professional  shortage  area  as  defined  in  42
U.S.C.  section 254e or a medically-underserved population as defined in
42 U.S.C. section 254b. A community health center that received  funding
pursuant  to  this  paragraph,  and  does  not  secure  designation as a
federally-qualified health center within two years  of  its  receipt  of
funds   shall  repay  such  funds  as  directed  by  the  not-for-profit
administrator.
6. Administration of funds. (a) Program funds shall  be  received  and
held  by  the  not-for-profit  administrator  under this section and the
agreement with the commissioner. Program funds shall be  held  in  trust
and  used  for  the benefit of the community health center projects. All
investment income shall be credited to, and any  repayments  of  program
funds  shall  be  deposited  in,  the  trust accounts established by the
not-for-profit administrator for such purpose, and spent  only  for  the
purposes set forth in this section.
(b)  Notwithstanding  the  foregoing, the not-for-profit administrator
may withdraw from the funds held by it under this  section,  subject  to
the  agreement  with  the  commissioner,  amounts  sufficient  to pay or
reimburse its expenses as provided in paragraph (e) of  subdivision  two
of this section.
(c)  The not-for-profit administrator shall maintain books and records
pertaining to  all  moneys  received  and  disbursed  pursuant  to  this
section.  The  agreement between the commissioner and the not-for-profit
administrator shall provide for  the  distribution  of  funds  upon  the

termination thereof. All remaining program funds, including earnings and
repayments, if any, not subject to binding agreement for the expenditure
thereof, shall be paid at the direction of the commissioner to the state
comptroller  to  the credit of the general fund. Upon termination of the
agreement, matching funds held by the not-for-profit  administrator  not
subject  to  binding  agreement  for  the  expenditure thereof, shall be
applied consistent with the terms of the receipt of such matching funds,
or returned to the donor.