14 CRR-NY 521.13NY-CRR
14 CRR-NY 521.13
14 CRR-NY 521.13
521.13 Program and fiscal requirements for a Facilities Development Corporation mortgage loan.
(a) A voluntary agency may apply to the commissioner for a Facilities Development Corporation loan. The commissioner may deny such an application if the conditions set forth in this section are not met.
(b) A completed application must be submitted to the commissioner in the format and on forms prescribed by the commissioner. Such forms may include a schedule of proposed costs to be met by the Facilities Development Corporation mortgage loan. The application must include a statement that the applicant and the Office of Mental Health intend that the State aid grant must be repaid when and if the applicant receives a Facilities Development Corporation mortgage loan pursuant to this Part; provided that such repayment shall be intended only for that portion of the State aid grant represented by underlying costs for which the Facilities Development Corporation mortgage loan is made.
(c) A certificate of need application must have been submitted pursuant to the Office of Mental Health regulations and conditionally approved prior to transfer of Facilities Development Corporation mortgage loan proceeds to a voluntary agency.
(d) The voluntary agency must prepare and submit a certificate of incorporation in a form satisfactory to the commissioner for the corporation which will receive the Facilities Development Corporation mortgage loan. The voluntary agency must demonstrate to the satisfaction of the commissioner that the corporation has obtained a certificate from the United States Internal Revenue Service that it is an exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code and a statement of exemption from the New York State Department of Taxation and Finance.
(e) The property rights provisions of section 521.6 of this Title are incorporated into this section and shall govern the securing of Facilities Development Corporation mortgage loans. Notwithstanding the foregoing, the Office of Mental Health may impose further limitations or requirements in demonstrating possession of these rights, as it deems reasonable due to the nature of this form of financing.
(f) The voluntary agency must execute any mortgage, security or other financing agreement with respect to real and personal property as may be required by the commissioner.
(g) The voluntary agency must execute an agreement with the Office of Mental Health in the format to be prescribed by the commissioner, whereby the Office of Mental Health may recover on a periodic basis a portion of the Facilities Development Corporation mortgage loan, which may include interest, fees, costs and charges, until the loan is satisfied.
(h) A voluntary agency must establish accounting and fiscal records in a manner approved by the commissioner to reflect the receipt and expenditure of Facilities Development Corporation mortgage loan funds. A voluntary agency whose application under this section has been accepted must maintain such records in such a manner, and must make fiscal reports to the commissioner in such a manner and at such intervals as he may require.
(i) The use of Facility Development Corporation mortgage loan funds for the financing or refinancing of any construction, reconstruction, design, acquisition, rehabilitation or improvement of a community facility must be approved by the Director of the Division of the Budget.
(j) A voluntary agency may use a Facilities Development Corporation mortgage loan to meet only the following costs:
(1) the design construction, acquisition, reconstruction, rehabilitation or improvement of a facility;
(2) the acquisition of any interest in or option to purchase an interest in land, and any improvements thereon, required as the site of the facility or for use in connection with the facility, and preparation of such site and land;
(3) feasibility studies, designs, surveys, plans, and specifications;
(4) program development costs;
(5) engineering and architectural services;
(6) indemnity and surety bonds and insurance premiums;
(7) equipment including machinery, fixtures, furnishings and other personal property required for the operation of the facility;
(8) costs and expenses in connection with the issuance of the bonds and notes by the Medical Care Facilities Finance Agency to finance the facility, including: interest from the date of such issuance to the date such interest is paid by the Medical Care Facilities Finance Agency from the payments made by the voluntary agency; related administrative and direct costs and fees of the Medical Care Facilities Finance Agency, trustees, depositories and paying agents; and fees and expenses of financial advisers and consultants in connection with such issuance;
(9) the cost of financing and refinancing any of the costs enumerated in this Part, including interest;
(10) the development period fee imposed by the commissioner. The development period shall be the charge payable to the Office of Mental Health by the voluntary agency for services rendered in connection with a Facilities Development Corporation mortgage loan from the inception of the project to, but not including, the initial occupancy date; and
(11) such other costs as the commissioner may determine to be reasonable and necessary.
14 CRR-NY 521.13
Current through August 15, 2021
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