§ 527-h. Reserve fund requirement.
1.The division shall require that\na reserve fund shall be established for each facility rehabilitation\ngrant or new facility operation agreement awarded to a not-for-profit\ncorporation pursuant to this title. In no event shall such reserve fund\nbe in an amount which is less than five percent of the project costs.\nSuch reserve fund shall be provided by the division from funds available\nto it.\n 2. Such moneys shall be deposited to the custody of the comptroller,\nwho shall maintain a separate account for each such grant awarded or\nagreement funded pursuant to this article. Upon application, the\ncomptroller shall make moneys in the reserve fund available to the\nnot-for-profit corporation only for purposes of making extraordinary\nrepairs, other
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§ 527-h. Reserve fund requirement. 1. The division shall require that\na reserve fund shall be established for each facility rehabilitation\ngrant or new facility operation agreement awarded to a not-for-profit\ncorporation pursuant to this title. In no event shall such reserve fund\nbe in an amount which is less than five percent of the project costs.\nSuch reserve fund shall be provided by the division from funds available\nto it.\n 2. Such moneys shall be deposited to the custody of the comptroller,\nwho shall maintain a separate account for each such grant awarded or\nagreement funded pursuant to this article. Upon application, the\ncomptroller shall make moneys in the reserve fund available to the\nnot-for-profit corporation only for purposes of making extraordinary\nrepairs, other than ordinary and regular maintenance and repair, to\neither new facility project property or the areas, buildings, structures\nor facilities for which a facility rehabilitation grant was awarded, and\nonly after the commissioner of the office of general services approves\nof, the need for such repair and certifies to the comptroller such need\nand the amount approved for withdrawal from the reserve fund. Any\ninterest earned on the moneys in a reserve fund shall be applied to pay\ndebt service on such bonds except for any amount which must be rebated\nto the United States in order to provide for continued federal tax\nexempt status for the bonds and notes. Unless expended earlier, moneys\nshall be maintained in a reserve fund created for a not-for-profit\ncorporation to which a facility rehabilitation grant was awarded for a\nperiod of fifteen years from the date of commencement of renovation,\nrehabilitation, repair, remodeling or improvement, and for a period of\nthirty years from the date of commencement of construction on a new\nfacility project. At the end of such fifteen or thirty years, as the\ncase may be, any moneys then still to the credit of a reserve fund shall\nbe transferred to the state's general fund.\n