2023 New York Laws › PBH - Public Health › Article 28 - Hospitals › 2815-A - Community Health Care Revolving Capital Fund.

§   2815-a.   Community   health   care  revolving  capital  fund.  1.
  Definitions.  As used in this section, the following words  and  phrases
  shall  have the following meanings unless a different meaning is plainly
  required by the context:
a. "Administrator" shall mean a not for profit  Community  Development
  Financial  Institution  CDFI  that  is  certified  by  the U.S. Treasury
  community development financial fund, has experience financing  projects
  in  the  New  York  state  healthcare  sector  and  otherwise  meets the
  requirements of this section.
b. "Dormitory authority"  or  "authority"  shall  mean  the  dormitory
  authority  of  the  state  of  New York created by title four of article
  eight of the public authorities law which has succeeded to  the  powers,
  functions  and  duties  of  the  medical  care facilities finance agency
  pursuant to  chapter  eighty-three  of  the  laws  of  nineteen  hundred
  ninety-five.
c.  "Participating  borrower" shall mean a community-based health care
  provider, which for the purposes of this section, shall  be  defined  as
  diagnostic  and  treatment  center  licensed  or  granted  an  operating
  certificate under article twenty-eight of this chapter, a mental  health
  clinic  licensed  or  granted  an  operating  certificate  under article
  thirty-one of the mental health law; or an alcohol and  substance  abuse
  treatment  clinic  licensed  or  granted  an operating certificate under
  article thirty-two of the mental hygiene law, each organized  under  the
  laws of this state.
d. "Revolving capital fund" shall mean community health care revolving
  capital fund authorized to be established by the dormitory authority and
  administered pursuant to this section.
2.  Revolving  capital  fund.  The  dormitory  authority shall, within
  amounts appropriated, establish  the  community  health  care  revolving
  capital fund. Monies in the revolving capital fund shall be utilized for
  the  purpose  of  making  loans to qualifying participating borrowers to
  improve access to affordable capital financing  to  expand  and  improve
  capacity to provide health care in the State. Funds shall be transferred
  by  the  commissioner  to  the  dormitory  authority  for deposit in the
  revolving capital fund in an  amount  as  authorized  by  appropriation.
  Monies  in the fund shall be: (a) held by the authority pursuant to this
  section as custodian pursuant to  an  agreement  with  the  commissioner
  until transferred to the administrator pursuant to this section, and (b)
  invested  by  the authority in accordance with the investment guidelines
  of the authority during said custodial  period.  All  investment  income
  shall  be  credited to, and shall be deposited in, the revolving capital
  fund.
3. Administration agreement. The commissioner and the authority  shall
  enter  into an agreement, subject to the approval of the director of the
  budget, for the purpose of administering  the  funds  in  the  revolving
  capital fund through an administrator. A copy of such agreement, and any
  amendments thereto, shall be provided to the chair of the senate finance
  committee,  the director of the division of budget, and the chair of the
  assembly ways and means committee. The agreement shall specify that  the
  administrator  shall  administer  the  community  health  care revolving
  capital fund in  a  manner  that  will  benefit  the  public  health  by
  encouraging improvements in the community health care delivery system in
  the  state,  in  compliance with all applicable laws, rules, regulations
  and other requirements.
4. Agreement with the administrator. The dormitory authority shall, in
  consultation with the commissioner, enter into  an  agreement  with  the
  administrator.  Such  agreement  shall provide for the administration of
  the  revolving  capital  fund  administrator,  in  accordance  with  the

  requirements  of  this section, the commissioner and dormitory authority
  and all applicable laws, rules, regulations and other requirements. Upon
  the effective date of the agreement, custody of, and responsibility for,
  the  revolving  capital  fund  shall  be  transferred from the dormitory
  authority to the administrator,  subject  to  the  requirements  of  the
  agreement.  Such  agreement  shall  include,  but not be limited to, the
  following provisions:
a. That the  administrator  shall  be  responsible  for  the  receipt,
  management and expenditure of monies held in the revolving capital fund;
b.  That the administrator shall maintain books and records pertaining
  to all monies received and disbursed pursuant to this  section  and  the
  agreement;
c.  That  monies  in such revolving capital fund shall be utilized for
  the purpose of making loans to qualifying  participating  borrowers,  to
  provide  participating  borrowers  with  improved  access  to affordable
  capital to expand and improve preventive or primary care capacity;
d. That participating borrowers shall be chosen by  the  administrator
  through  an  application  process  approved  by  the  authority  and the
  commissioner;
e. That eligible uses of funds so loaned  to  participating  borrowers
  shall  include but not be limited to: (i) eligible costs as described in
  paragraph  (f)  of  this  subdivision,  attributable  to  the   proposed
  construction,  reconstruction, renovation, rehabilitation, refurbishing,
  expansion,  upgrading  and  equipping  of  a  participating   borrower's
  community-based   health   care   facility;  (ii)  reserves  for  credit
  enhancement including loan guarantees; (iii) loan loss and debt  service
  reserves  and subordinated loans; and (iv) facility financing, including
  loans  for  predevelopment,  acquisition  and  construction,   permanent
  financing and bridge loans;
f.  That  eligible  costs under this section shall include, but not be
  limited to, all hard construction costs and associated professional  and
  other   costs,  furniture,  fixtures  and  equipment,  including  health
  information  technology,  acquisition,  predevelopment  due   diligence,
  initial operating expenses and working capital;
g.  That  the  administrator  administering the revolving capital fund
  shall report quarterly on the transactions in the revolving capital fund
  in a form and manner specified by the authority in consultation with the
  commissioner, including but not limited to: receipts or deposits to  the
  fund,  disbursements,  loans  or  credit enhancement made from the fund,
  investment income, and the balance on hand as of the end  of  the  month
  for each such quarter;
h.  That  the  administrator  shall  be  required  to invest monies on
  deposit in the fund in accordance with investment guidelines meeting the
  requirements  of  the  department  and  dormitory  authority,  and   all
  investment  income  shall  be credited to, and any repayment of loans as
  hereinafter provided shall be deposited in, the revolving capital  fund,
  and spent therefrom only for the purposes set forth in this section;
i.  That  only  the  reasonable  expenses  of  the  administrator,  as
  determined by the commissioner and president of the authority,  incurred
  in  the  establishment  and administration of the revolving capital loan
  program (including the retention of professionals  and  consultants,  if
  any) may be paid or reimbursed from the revolving capital fund;
j.  That revolving capital fund monies shall be held in trust and used
  for the benefit of eligible community-based health care facility capital
  projects; and
k. Any other term or condition as  determined  by  the  authority,  in
  consultation with the commissioner.
5.  Loan documentation. Loans from the revolving capital fund shall be
  made pursuant to a written loan agreement between the administrator  and
  the  participating  borrower,  specifying  the  terms  thereof including
  repayment terms. The loan agreement shall be in such form and content as
  shall be acceptable to the commissioner and dormitory authority, and may
  include  such  other any further written documentation and/or agreements
  as shall be required in the judgment of the commissioner  and  dormitory
  authority,  including  but not limited to all required filings under the
  Uniform Commercial Code.