1. The Laws of New York
  2. Unconsolidated Laws
  3. Medical Care Facilities Finance Agency 392/73


Section 5-A Federally-aided mortgage loans

Medical Care Facilities Finance Agency 392/73 (MCF)

In addition to the powers of the agency to make mortgage loans pursuant to other provisions of this act, the agency has the following powers:

  1. The agency may make federally-aided mortgage loans to a municipal hospital, municipal nursing home, non-profit hospital corporation, non-profit corporation providing a residential health care facility or non-profit medical corporation organized pursuant to article forty-four of the public health law upon terms and conditions not inconsistent with article twenty-eight of the public health law or article sixteen or thirty-one of the mental hygiene law as the case may be and this section. The proceeds of such loan are to be used substantially to finance the construction, acquisition, reconstruction, refinancing, rehabilitation, improvement, management or operation of the project.

  2. A federally-aided mortgage loan made by the agency shall not exceed an amount equal to the lesser of (i) the maximum mortgage loan authorized or approved by the federal government or (ii) one hundred percent of the cost of development of the project approved by the agency.

  3. With respect to a non-profit hospital corporation, non-profit corporation providing a residential health care facility or non-profit medical corporation, the agency shall not make a federally-aided mortgage loan unless (a) the commissioner has approved the project, recommended the project based on public need and the financial resources available to it, and finds that the non-profit hospital corporation, non-profit corporation providing a residential health care facility, or non-profit medical corporation has complied with the provisions of article twenty-eight of the public health law or article sixteen or thirty-one of the mental hygiene law as the case may be, and that the non-profit medical corporation also has complied with the provisions of article forty-four of the public health law, and (b) the agency finds that (i) the estimated revenues of the project will be sufficient to cover all probable costs of operations and maintenance, all installments of principal and interest on the indebtedness relating to the project, taxes, and such other expenses, including the maintenance of reserves, as may be projected or required by the agency or the federal government, and (ii) with respect to a nursing home project, the project is to be available for persons of low income as defined by paragraph two of section twenty-eight hundred sixty of the public health law.

  4. As used in this section or in connection with a federally-aided mortgage loan, the term "project" means a specific work or improvement, whether or not to effectuate all or any part of a plan, and includes lands, buildings, improvements, fixtures and personal property constructed, acquired, reconstructed, refinanced, rehabilitated, improved, managed, owned or operated by a non-profit corporation pursuant to this section, to provide hospital, residential health care, residential facilities for the mentally retarded and developmentally disabled or the mentally disabled or for the care, treatment, training and education of the mentally retarded and developmentally disabled or the mentally disabled or comprehensive health services facilities and such related incidental and appurtenant facilities as the agency may approve. The term "project" shall also mean a separate work or improvement, including lands, buildings, fixtures and personal property related thereto, managed, owned or operated by a non-profit corporation pursuant to this section to provide such services, functions, capabilities and facilities as may be convenient or desirable for the operation of a hospital, a residential health care or comprehensive health services facility.

  5. Notwithstanding any other provisions of law, general, special or local, or any provision of any charter or ordinance, including local finance law section twenty, a municipality is hereby authorized to borrow for or give a mortgage on its municipal hospitals or nursing homes for the purpose of constructing, reconstructing, rehabilitating or improving one or more such hospitals or nursing homes pursuant to this act in accordance with the terms of any agreement entered into pursuant to this act.

  6. As used in this section or in connection with federally-aided mortgage loan regarding residential facilities for the mentally retarded and developmentally disabled or the mentally disabled or for the care, treatment, training and education of the mentally retarded and developmentally disabled or the mentally disabled the term "commissioner" shall also mean the commissioner of mental health or the commissioner of mental retardation and developmental disabilities.

  7. (a) In connection with the making of federally-aided mortgage loans, the commissioner of health shall charge to such non-profit hospital corporation, non-profit corporation providing a residential health care facility or non-profit medical corporation, for mortgage closings on or after April first, nineteen hundred eighty-nine, a fee of nine-tenths of one percent of the mortgage loan, payable on requisition on or after the mortgage closing to the state department of health by the mortgagor for deposit into the state general fund.

  (b) In connection with the refinancing or refunding of federally-aided mortgage loans or loans made pursuant to articles twenty-eight-A and twenty-eight-B of the public health law, the commissioner of health shall charge to such non-profit hospital corporation, non-profit corporation providing a residential health care facility or non-profit medical corporation, for mortgage closings on or after April first, nineteen hundred eighty-nine, a fee of five-tenths of one percent of the new mortgage loan, payable on requisition on or after the mortgage closing to the state department of health by the mortgagor for deposit into the state general fund.

  (c) The fees and charges paid by a non-profit hospital corporation, non-profit corporation providing a residential health care facility or non-profit medical corporation pursuant to this subdivision shall be deemed allowable capital costs in the determination of reimbursement rates established pursuant to article twenty-eight of the public health law. The cost of such fees and charges shall not be subject to reimbursement ceiling or other penalties used by the commissioner for the purpose of establishing reimbursement rates pursuant to article twenty-eight of the public health law.