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 › Hospital Mortgage Loans › Section 87.32 - Project construction

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All
					 payments made by a hospital 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 under the 28-B program will not
					 be approved for payment as a project cost. All payment approvals shall be
					 subject to and conditioned upon audit by the State Department of
					 Health.
(b) From mortgage closing
					 until completion of the development period, the hospital may only enter into
					 construction contracts contemplated by the approved tract and/or only with the
					 prior approval of the department.
(c) Acceptable surveys and title reports, or
					 satisfactory updates of such acceptable to the State Department of Health and
					 the State Housing Finance Agency or the State Medical Care Facilities Finance
					 Agency, free and clear of all exceptions not approved by the State Department
					 of Health, shall be submitted prior to approval of payments after mortgage
					 closing.
(d) Satisfactory evidence
					 of identification of materials and insurance coverage in a form and amount
					 acceptable to the State Department of Health shall be furnished for any project
					 materials stored off the site of the project.
(e) All construction contract changes shall
					 have 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 be approved if the cost and
					 the proposal are reasonable, if funds are available and if the change will not
					 result in an increase in operating cost unless such change is approved by the
					 article 28 process and the State Housing Finance Agency, or the State Medical
					 Care Facilities Finance Agency. All change orders proposed shall contain a
					 statement specifying if the contract completion time is to be changed. The
					 State Department of Health shall 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.
(f) Acceptance of a restricted donation or a
					 donation in kind which may result in an increase in operational costs shall
					 have the prior approval of the State Department of Health.
(g) The equity funds of a hospital not
					 currently required shall be invested. Such investments shall have the prior
					 approval of the State Department of Health.
(h) 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.
(i) Final payment for the
					 completion of any contract shall require satisfactory evidence of payment of
					 all sub-contractors and materialmen, the submission of all releases required by
					 the State Department of Health, and such affidavits, certifications and
					 consents of the hospital, the architect, the contractor and the surety as the
					 State Department of Health may require.