New York Codes, Rules and Regulations › Title 10 - DEPARTMENT OF HEALTH › Chapter II - Administrative Rules and Regulations › Subchapter L - Hospitals and Related Facilities › Part 87 - Nursing Home Company And Hospital Mortgage Loans › Nursing Home Companies › Section 87.4 - Project construction

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All
					 payments made by a nursing home company after mortgage closing for construction
					 and development costs require the written approval of the State Department of
					 Health. Payments may only be made for expenditures authorized in the
					 development cost and capital requirement budget approved by the State
					 Department of Health. Payments may be permitted monthly from either mortgage
					 loans or capital contribution funds in accordance with procedures approved by
					 the State Department of Health. Any capital or development costs determined by
					 the State Department of Health to be ineligible will not be approved for
					 payment. All payment approvals shall be subject to and conditioned upon audit
					 by the State Department of Health.
(b) Acceptable surveys and title reports, or
					 satisfactory updates of such acceptable to the State Department of Health, free
					 and clear of all exceptions not approved by the State Department of Health,
					 shall be required prior to approval of payments after mortgage
					 closing.
(c) Any project materials
					 to be stored off the site of the project shall require satisfactory evidence of
					 identification of the materials and insurance coverage in a form and amount
					 acceptable to the State Department of Health.
(d) All contract changes require prior
					 written State Department of Health approval except changes that must be started
					 immediately to correct emergency field conditions. Requests for change orders
					 from contingency funds may only be approved if required to meet emergency and
					 life safety requirements, unforeseen field conditions or errors and omissions
					 in contract documents. Requested changes of scope or of quality or type of
					 functions, materials or equipment may only be approved if the cost is
					 reasonable, if funds are available and if the change will not result in an
					 increase in operating cost. All change orders proposed must contain a statement
					 specifying if the contract time is to be changed. The State Department of
					 Health will limit all change order approvals from contingency funds to those
					 necessary for completion of the project in order to protect the adequacy of the
					 contingency budget.
(e) Acceptance
					 of a restricted donation or a donation in kind which may result in an increase
					 in operational costs requires the prior approval of the State Department of
					 Health.
(f) The equity funds of a
					 company not currently required shall be invested. Such investments shall have
					 the prior approval of the State Department of Health.
(g) Equipment may only be purchased by
					 projects after approval of an equipment list by the State Department of Health.
					 Such list shall be in accordance with the requirements set forth in the State
					 Department of Health Manual for the Preparation of Equipment Lists. Unit and
					 total cost approval for all items shall be approved by the State Department of
					 Health.
(h) Final payment for the
					 completion of any contract shall require satisfactory evidence of payment of
					 all subcontractors, the submission of all releases required by the State
					 Department of Health, and such affidavits or certifications of the company, the
					 architect, and the contractor as the State Department of Health may
					 require.