§ 47-D — Health facilities bonds and notes

New York § 47-D

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 3: New York State Housing Finance Agency

Text

§ 47-d. Health facilities bonds and notes. 1. Definitions. For the\npurposes of section forty-seven and this section:\n a. "Municipality" means a county, city or town constituting a social\nservices district as defined in sections two, sixty-one, seventy-five\nand seventy-five-a of the social services law, or any two or more of the\nforegoing which are acting jointly to provide a health facility or\nhealth facilities.\n b. "Health facility" means a building, a unit within a building, a\nlaboratory, a classroom, a housing unit, a dining hall, an activities\ncenter, a library, or any structure on or improvement to real property\nof any kind or description, including fixtures and equipment which are\nan integral part of any such building, unit, structure or improvement, a\nwalkway, a roadway or a parking lot, and improvements and connections\nfor water, sewer, gas, electrical, telephone, heating, air conditioning\nand other utility services, or a combination of any of the foregoing,\nwhether for patient care and treatment of staff, staff family or service\nuse, located at or related to or constituting a hospital of, and located\nin, a municipality.\n c. "Health facilities bonds" and "health facilities notes" shall mean\nbonds and notes, respectively, issued by the agency pursuant to\nsubdivision two of this section.\n d. "Health facilities improvement program" shall mean a program\nundertaken by the agency and the health and mental hygiene facilities\nimprovement corporation for the purpose of constructing, acquiring,\nreconstructing, rehabilitating or improving health facilities or causing\nsuch facilities to be constructed, acquired, reconstructed,\nrehabilitated or improved pursuant to the health and mental hygiene\nfacilities improvement act and this article.\n 2. Additional powers of the agency. In accordance with any agreement\nentered into pursuant to this article and the health and mental hygiene\nfacilities improvement act: a. The agency shall have powers: (i) to\nlease or purchase one or more existing health facilities from a\nmunicipality and cause such facility or facilities to be reconstructed,\nrehabilitated or improved by the health and mental hygiene facilities\nimprovement corporation, created by the health and mental hygiene\nfacilities improvement act, as its agent or, on any real property leased\nor purchased from a municipality to cause one or more health facilities\nto be constructed by the health and mental hygiene facilities\nimprovement corporation as its agent; (ii) to lease or purchase from any\nperson, firm or corporation real property for the purpose of causing\nhealth facilities to be constructed, reconstructed, rehabilitated or\nimproved by the health and mental hygiene facilities improvement\ncorporation as its agent; (iii) to lease or sublease to a municipality\nhealth facilities which have been constructed, acquired, reconstructed,\nrehabilitated or improved by the agency pursuant to this article and the\nhealth and mental hygiene facilities improvement act; and (iv) to do all\nor any combination of the foregoing.\n b. The agency shall have power and is hereby authorized from time to\ntime to issue negotiable bonds and notes in such principal amount as, in\nthe opinion of the agency, shall be necessary, after taking into account\nother monies which may be available for the purpose, to provide\nsufficient funds for the construction, acquisition, reconstruction,\nrehabilitation or improvement of health facilities pursuant to this\nsubdivision two, the payment of interest on health facilities bonds and\nhealth facilities notes issued for such purposes, the establishment of\nreserves to secure such bonds and notes, and all other expenditures of\nthe agency incident to and necessary or convenient for any such\nconstruction, acquisition, reconstruction, rehabilitation or\nimprovement, provided, however, that the agency shall not issue health\nfacilities bonds and health facilities notes in an aggregate principal\namount exceeding eight hundred million dollars, excluding health\nfacilities bonds and health facilities notes issued to refund\noutstanding health facilities bonds or health facilities notes.\n 3. Application of other provisions of article. Except as stated in\nsection forty-seven, the other provisions of this article shall apply to\nhealth facilities bonds and health facilities notes issued by the agency\npursuant to this section, provided, however, that such bonds and notes,\nsubject to any agreements with the holders of particular bonds or notes\npledging any specified portions thereof, shall be secured by a pledge to\nthe payment thereof of (i) rentals paid to the agency with respect to\nhealth facilities financed with the proceeds of such bonds and notes,\nand (ii) any other assets, monies or accounts pledged or assigned to the\nagency as security for the payment of such rentals, and provided further\nthat no resolution or resolutions authorizing health facilities bonds\nand health facilities notes shall (i) pledge all or any part of the fees\nand charges made or received by the agency pursuant to subdivision\neleven of section forty-four in connection with the making of mortgage\nloans or commitments therefor, or all or any part of the monies received\nin payment of such mortgage loans and interest thereon, or (ii) pledge\nall or any part of the mortgages of the agency or obligations securing\nthe same, or (iii) provide as to the use and disposition of the gross\nincome from mortgages owned by the agency or as to the payment of\nprincipal of mortgages owned by the agency, or (iv) pledge all or any\npart of the rentals paid to the agency under leases, subleases or other\nagreements for state university facilities and mental hygiene facilities\nentered into by the agency in accordance with this article, or (v)\npledge or assign all or any part of any other assets, monies or accounts\npledged or assigned to the agency as security for the payment of rentals\nfor such state university facilities and mental hygiene facilities.\n 4. Health facilities income accounts. a. The agency shall create and\nestablish one or more special accounts (herein referred to as health\nfacilities income accounts) and shall pay into such accounts any monies\nwhich the agency shall receive in payment of rentals due under one or\nmore leases or subleases entered into pursuant to subdivision two of\nthis section and any other monies which the agency shall receive from a\nmunicipality as security for or in payment of such rentals. Such monies\nand any other monies paid into such health facilities income accounts,\nmay, in the discretion of the agency, but subject to agreements with the\nholders of health facilities bonds and health facilities notes, be used\nby the agency (1) for the repayment of advances, if any, from the state\nto the agency in connection with health facilities, and any real\nproperty required therefor, in accordance with the provisions of\nrepayment agreements related thereto which have been entered into with\nthe director of the budget, (2) to pay all costs, expenses and charges\nof financing the health facilities applicable to such account or\naccounts including fees and expenses of trustees and paying agents, (3)\nto pay the administrative and other expenses of the agency allocable to\nthe services performed by the agency in the financing of the\nconstruction, acquisition, reconstruction, rehabilitation or improvement\nof health facilities and matters relating thereto, (4) for the payment\nof the principal of and interest on health facilities bonds or health\nfacilities notes issued by the agency when the same shall become due\nwhether at maturity or by call for redemption and for the payment of any\nredemption premium required to be paid where such bonds or notes are\nredeemed prior to their stated maturities, and to purchase health\nfacilities bonds or health facilities notes issued by the agency, or (5)\nfor such other corporate purposes of the agency relating to the carrying\nout of its functions, powers and duties with respect to the financing of\nthe construction, acquisition, reconstruction, rehabilitation or\nimprovement of health facilities as the agency in its discretion shall\ndetermine and provide.\n b. To assure the continued payment of rentals due under one or more\nleases or subleases entered into pursuant to subdivision two of this\nsection, the agency shall annually, not later than November first in\neach year, make and deliver to the appropriate chief fiscal officer of\nthe municipality a certificate setting forth the amount, if any, due and\nnot paid for the preceding fiscal year of the agency under such lease or\nsublease with such municipality. In the event of the failure or\ninability of the municipality to pay over the stated amount to the\nagency on or before December first of the same year, the agency shall\nforthwith make and deliver to the comptroller of the state of New York,\nthe director of the budget of the state of New York and the\ncommissioners of health and social services of the state of New York a\nfurther certificate restating the amount due and not paid, and such\namount shall be paid over to the agency, upon the warrant of the\ncomptroller on vouchers certified as correct by the commissioner of\nhealth and approved by the commissioner of social services, out of the\nnext payment of state aid to such municipality pursuant to section three\nhundred sixty-eight-a of the social services law or funds appropriated\nfor the purpose of making payments on behalf of such municipality\npursuant to section three hundred sixty-seven-b of such law. To the\nextent any such payments to the agency are made from state aid payments\npursuant to section three hundred sixty-eight-a of such law, the amount\nof such payments shall be deducted from the corresponding apportionment\nof state aid otherwise credited to such municipality, and the state\nshall not be obligated to pay, nor shall such municipality be entitled\nto receive, by virtue of such deduction, any additional or increased\napportionment or payment of state aid pursuant to section three hundred\nsixty-eight-a of the social services law. To the extent any such\npayments to the agency are made from funds appropriated for the purpose\nof making payments on behalf of such municipality pursuant to section\nthree hundred sixty-seven-b of such law, the amount of such payments may\nbe deducted from any other payments of state assistance to such\nmunicipality under the social services law and the state shall not be\nobligated to pay, nor shall the municipality be entitled to receive, by\nvirtue of such deduction, any additional or increased apportionment or\npayment of such state assistance, provided, however, that nothing\ncontained in this sentence shall be construed to limit, impair, impede,\nor otherwise adversely affect in any manner the rights or remedies of\nthe purchasers and holders and owners of any bonds or notes of the state\nor any agency or instrumentality, public benefit corporation or\npolitical subdivision thereof under which such purchasers and holders\nand owners have any right of payment of such bonds or notes by recourse\nto such state assistance monies.\n 5. Special provisions. Notwithstanding any other provision of law,\ngeneral, special or local, or any provision of any charter or ordinance:\n a. A municipality is hereby authorized to execute and deliver to the\nagency for such consideration as may be determined by the municipality,\nthe agency and the health and mental hygiene facilities improvement\ncorporation, but not to exceed the cost of acquisition thereof to the\nmunicipality and the cost of improvements thereon, a lease for a term\nnot exceeding fifty years or a quit claim deed conveying to the agency\nall right, title and interest of such municipality in and to real\nproperty, for the purpose of constructing, reconstructing,\nrehabilitating, or improving one or more health facilities pursuant to\nthis article and the health and mental hygiene facilities improvement\nact for subsequent lease or sublease to such municipality, in accordance\nwith the terms of any agreement entered into pursuant to this article\nand the health and mental hygiene facilities improvement act.\n b. A municipality is hereby authorized to lease or sublease from the\nagency the health facilities constructed, reconstructed, rehabilitated\nor improved pursuant to this article and the health and mental hygiene\nfacilities improvement act, in accordance with the terms of any\nagreement entered into pursuant to this article and such act. At such\ntime as all rentals due or to become due to the agency pursuant to the\nterms of any such lease or sublease have been paid or such lease or\nsublease is terminated pursuant to the provisions thereof, the\njurisdiction of the agency over the real property leased or conveyed\npursuant to paragraph a of this subdivision, together with the\nimprovements thereon shall cease and all interest real and personal in\nsuch real property and improvements vested in the agency shall vest in\nthe municipality with right of re-entry thereon, provided, however if\nsuch real property were leased or conveyed to the agency by a\nmunicipality which constituted a city social services district which\ndistrict was dissolved pursuant to the provisions of chapter\ntwenty-eight of the laws of nineteen hundred seventy-two, all interest\nreal and personal in such real property and improvements vested in the\nagency shall vest in the municipality which formerly constituted the\ncity social services district with right of re-entry thereon.\n c. No real property or interest therein shall be acquired by the\nagency pursuant to this subdivision unless title thereto shall have been\napproved by the attorney general.\n d. The attorney general shall pass upon the form and sufficiency and\nmanner of execution of any deed of conveyance and of any lease or\nsublease to which the agency and a municipality are parties, and the\nsame shall not be effective unless approved by him.\n e. In the event that the agency shall fail within five years from the\ndate of a lease or conveyance authorized pursuant to paragraph a of this\nsubdivision five to construct, reconstruct, rehabilitate or improve the\nhealth facilities thereon for which the lease or conveyance was made, as\nprovided for in any agreement entered into pursuant to this article and\nthe health and mental hygiene facilities improvement act, or in the\nevent that such health facilities shall cease to be used for the\npurposes intended, then and in either event but subject to the terms of\nany lease, sublease or other agreement between the agency and the\nmunicipality, such real property and any health facilities thereon,\nshall revert to the municipality with right of re-entry thereupon and\nsuch lease or deed shall be made subject to such conditions; provided,\nhowever, that as a condition precedent to the exercise of such right of\nre-entry the municipality shall pay to the agency an amount equal to the\npurchase price of such real property, the depreciated cost of any health\nfacilities constructed, reconstructed, rehabilitated or improved, and\nall other costs of the agency incident to the acquisition of such real\nproperty and the financing of construction, reconstruction,\nrehabilitation or improvement relating to such facilities, all as\nprovided in the aforesaid lease, sublease or other agreement entered\ninto with such municipality.\n f. In the event that the agency shall determine that any portions of\nthe real property leased or conveyed pursuant to paragraph a of this\nsubdivision five are in excess of the real property needed to construct,\nreconstruct, rehabilitate or improve the facility or facilities thereon\nfor which the conveyance was made, as provided in any agreement entered\ninto pursuant to this article and the health and mental hygiene\nfacilities improvement act, the agency may terminate its lease with\nrespect to such excess portions of such real property or reconvey such\nexcess portions to the municipality, provided, however, that the\nmunicipality shall pay to the agency an amount equal to the\nconsideration, if any, paid by the agency to such municipality allocable\nto such excess real property and such other costs of the agency as are\nincident to the acquisition of such excess real property, all as may be\napproved by such municipality and the agency. Any monies so paid to the\nagency shall be used and applied, subject to the provisions of any\ncontract with noteholders and bondholders, for the sole purpose of\npaying costs and expenses of the agency incident to the financing of the\nhealth facilities to be constructed, reconstructed, rehabilitated or\nimproved on such other portions of the real property as shall have been\nleased or conveyed to the agency pursuant to paragraph a of this\nsubdivision five.\n g. The cost of construction, acquisition, reconstruction,\nrehabilitation or improvement of health facilities undertaken by the\nagency pursuant to this article and the health and mental hygiene\nfacilities improvement act may include the cost of acquisition of any\nreal property leased or conveyed to the agency in accordance with\nparagraph a of this subdivision five and the cost of the original\nfurnishings, equipment, machinery and apparatus needed to furnish and\nequip such facilities upon the completion of the work. The agency shall\nhave power to acquire or lease and to hold real property required for\nthe construction, acquisition, reconstruction, rehabilitation or\nimprovement of the health facilities undertaken by the agency pursuant\nto this article and the health and mental hygiene facilities improvement\nact and to provide the original furnishings, equipment, machinery and\napparatus needed to furnish and equip such facilities upon the\ncompletion of work and to issue its bonds and notes to provide\nsufficient funds to pay the cost thereof.\n h. A municipality is hereby authorized and empowered, in connection\nwith any lease, sublease or other agreement with the agency to which\nsuch municipality is a party, and subject to such agreements with third\nparties as may then exist, to:\n (1) pledge or assign to the agency all or any portion of the revenues\nand monies received or to be received by the municipality, which may be\navailable for the purpose of paying rentals for the use of the health\nfacilities constructed, acquired, reconstructed, rehabilitated or\nimproved under such agreement, so that the payment of such rentals may\nbe fully secured and protected;\n (2) use and dispose of such revenues and monies, or any portions\nthereof, for the purpose of defraying, in whole or in part (a) the cost\nof acquiring any real property for the purpose of constructing,\nacquiring, reconstructing, rehabilitating or improving facilities\nthereon which may be constructed, acquired, reconstructed, rehabilitated\nor improved by the agency pursuant to this article and the health and\nmental hygiene facilities improvement act, (b) the cost of financing the\nconstruction, acquisition, reconstruction, rehabilitation or improvement\nof such facilities, and (c) the cost of acquiring the original\nfurnishings, equipment, machinery and apparatus needed to furnish and\nequip such facilities upon the completion of the work;\n (3) set aside rental reserves and to agree to the maintenance,\nregulation and disposition thereof;\n (4) agree to limitations on the purposes to which the proceeds of sale\nof agency notes or bonds may be applied and to the pledging of such\nproceeds to secure the payment of agency notes or bonds or of any issued\nthereof;\n (5) agree to limitations on the making of additional leases, subleases\nor agreements with the agency or with others, and the terms upon which\nsuch additional leases, subleases or agreements may be made;\n (6) upon receipt of any notice of assignment by the agency of any such\nlease, sublease or other agreement with the agency, or of any of its\nrights under such lease, sublease or other agreement, recognize and give\neffect to such assignment and to pay the assignee thereof rentals or\nother payments then due or which may become due under any such lease,\nsublease or other agreement which has been so assigned by the agency;\nand\n (7) agree to any other matters, of like or different character, which\nin any way affect the security or protection of the rental payments\nrequired to be made under the terms of such lease, sublease or other\nagreement with the agency.\n