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This entry was published on 2022-07-29
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SECTION 47-C
Special provisions related to certain bonds and notes
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 47-c. Special provisions related to certain bonds and notes.
Notwithstanding any other provision of law, general or special:

1. Any public corporation or officer responsible for the acquisition
of real property or the planning, supervision or administration of
facilities thereon which may be constructed, acquired, reconstructed,
rehabilitated or improved by the agency pursuant to this article is
hereby authorized for and on behalf and in the name of the people of the
state of New York, to execute and deliver to the agency, for such
consideration, if any, as may be determined by such public corporation
or officer and the agency, but not to exceed the cost of acquisition
thereof and the cost of improvements thereon, a lease for a term not
exceeding fifty years or a quitclaim deed conveying to the agency all
the right, title and interest of the people of the state of New York in
and to any of the lands acquired by such public corporation or officer
for such facilities, and in and to any of the improvements thereon, for
the purpose of constructing, reconstructing, rehabilitating or improving
thereon one or more facilities pursuant to this article for lease or
sublease to any such public corporation or officer, in accordance with
the terms of an agreement entered into among them in accordance with
law. The agency is hereby authorized to accept any such lease or
conveyance, to lease or sublease such lands, improvements and facilities
to such public corporation or officer, and to hold the same subject to
the terms of any such lease, conveyance, sublease or other agreement,
and such public corporation or officer is hereby authorized, with the
approval of the governor, or where so designated by the governor for
such purpose, the director of the budget, to lease or sublease any such
lands or improvements or the facilities constructed, reconstructed,
rehabilitated or improved thereon pursuant to this article or other
provisions of law, and to hold such lands, improvements and facilities
subject to the terms of any such lease, sublease or other agreement.

2. a. In the event that the agency shall fail, within five years from
the date of a lease or conveyance authorized pursuant to subdivision one
of this section, to construct, reconstruct, rehabilitate or improve the
facility or facilities thereon for which the conveyance was made, as
provided for in a lease, sublease or other agreement entered into with
such public corporation or officer, or in the event that such facility
or facilities shall cease to be used for the purposes intended, then and
in either event but subject to the terms of any lease, sublease or other
agreement undertaken by the agency, such lands, and the improvements and
facilities thereon, shall revert to the people of the state of New York
with right of re-entry thereupon, and such lease or deed shall be made
subject to such conditions; provided, however, that as a condition
precedent to the exercise of such right of re-entry the state of New
York, or such public corporation or officer, shall pay to the agency an
amount equal to the purchase price of such lands and improvements, the
depreciated cost of any facility or facilities constructed,
reconstructed, rehabilitated or improved thereon, and all other costs of
the agency incident to the acquisition of such lands and the financing
of construction, reconstruction, rehabilitation or improvement relating
to such facility or facilities, all as provided in the aforesaid lease,
sublease or other agreement entered into with such public corporation or
officer.

b. In the event that the agency shall determine that any portions of
the lands leased or conveyed pursuant to subdivision one hereof are in
excess of the lands needed to construct, reconstruct, rehabilitate or
improve the facility or facilities thereon for which the conveyance was
made, as provided in a lease, sublease or other agreement entered into
with such public corporation or officer, the agency may terminate its
lease with respect to such excess portions of such lands or reconvey
such excess portions to the people of the state of New York; provided,
however, that the state of New York or such public corporation or
officer shall pay to the agency an amount equal to the consideration, if
any, paid by the agency to such public corporation or officer allocable
to such excess lands and such other costs of the agency as are incident
to the acquisition of such excess lands, all as may be approved by such
public corporation or officer and the agency. Any monies so paid to the
agency shall be used and applied, subject to the provisions of any
contract with noteholders and bondholders, for the sole purpose of
paying costs and expenses of the agency incident to the financing of the
facility or facilities to be constructed, reconstructed, rehabilitated
or improved on such other portions of the land as shall have been leased
or conveyed to the agency pursuant to subdivision one hereof.

3. The attorney general shall pass upon the form and sufficiency and
manner of execution of any deed of conveyance and of any lease or
sublease of lands authorized to be given under subdivision one of this
section and the same shall not be effective unless so approved by him.

4. The cost of construction, acquisition, reconstruction,
rehabilitation or improvement of facilities undertaken by the agency
pursuant to this article may include the cost of acquisition of any land
and improvements leased or conveyed to the agency in accordance with
subdivision one of this section and the cost of the original
furnishings, equipment, machinery and apparatus determined by the
responsible public corporation or officer to be needed to furnish and
equip such facilities upon the completion of work. The agency shall have
power to acquire or lease and to hold land and improvements required for
the construction, acquisition, reconstruction, rehabilitation or
improvement of facilities undertaken by the agency pursuant to this
article and to provide the original furnishings, equipment, machinery
and apparatus determined by the responsible public corporation or
officer to be needed to furnish and equip such facilities upon the
completion of work and to issue its bonds and notes to provide
sufficient funds to pay the cost thereof.

5. Any public corporation or officer referred to in subdivision one of
this section is hereby authorized and empowered, in connection with any
lease, sublease or other agreement with the agency to which such public
corporation or officer is a party, and subject to such agreements with
third parties as may then exist, to:

(a) pledge or assign to the agency all or any portion of the revenues
and monies received or to be received by such public corporation or
officer, which may be available for the purpose of paying rentals for
the use of the facilities constructed, acquired, reconstructed,
rehabilitated or improved or to be constructed, acquired, reconstructed,
rehabilitated or improved under such agreement, so that the payment of
such rentals may be fully secured and protected; provided, however, that
such pledge or assignment shall not extend to appropriations or advances
from the state except appropriations or advances made specifically for
the purpose of paying all or any part of such rentals;

(b) use and dispose of such revenues and monies, or any portions
thereof, for the purpose of defraying, in whole or in part, (1) the cost
of acquiring any real property for the purpose of constructing,
acquiring, reconstructing, rehabilitating or improving facilities
thereon which may be constructed, acquired, reconstructed, rehabilitated
or improved by the agency pursuant to this article, (2) the cost of
financing the construction, acquisition, reconstruction, rehabilitation
or improvement of such facilities, and (3) the cost of acquiring the
original furnishings, equipment, machinery and apparatus needed to
furnish and equip such facilities upon the completion of work;

(c) set aside rental reserves and to agree to the maintenance,
regulation and disposition thereof;

(d) agree to limitations on the purposes to which the proceeds of sale
of agency notes or bonds may be applied and to the pledging of such
proceeds to secure the payment of agency notes or bonds or of any issue
thereof;

(e) agree to limitations on the making of additional leases, subleases
or agreements with the agency or with others, and the terms upon which
such additional leases, subleases or agreements may be made;

(f) recognize and give effect to such assignment, upon receipt of any
notice of assignment by the agency of any such lease, sublease or other
agreement with the agency, or of any of its rights under such lease,
sublease or other agreement, and to pay the assignee thereof rentals or
other payments then due or which may become due under any such lease,
sublease or other agreement which has been so assigned by the agency;
and

(g) agree to any other matters, of like or different character, which
in any way affect the security or protection of the rental payments
required to be made under the terms of such lease, sublease or other
agreement with the agency.

6. (a) Any state university facility, as defined in section
forty-seven-a of this article, which has been constructed, acquired,
reconstructed, rehabilitated or improved, in whole or in part, out of
monies advanced to the state university of New York, the state
university construction fund, the state office of general services or
the dormitory authority since August first, nineteen hundred sixty-two
pursuant to appropriations or reappropriations as advances from the
capital construction fund, and the lands upon which such a facility is
located, may be leased or conveyed to the agency by the state university
of New York, the state university construction fund or the dormitory
authority in accordance with the provisions of subdivisions one through
five of this section, notwithstanding that the construction,
acquisition, reconstruction, rehabilitation or improvement of such
facility may have been completed by the state university of New York,
the state university construction fund, the dormitory authority or the
state office of general services, or may have been undertaken or may
hereafter be undertaken by the dormitory authority under agreement with
the state university of New York or the state university construction
fund.

(b) Subject to such agreements with third parties as may then exist,
the state university of New York and the state university construction
fund are hereby authorized and empowered to enter into leases, subleases
and other agreements with the agency with respect to any state
university facility described in paragraph (a), and the lands upon which
such a facility is or may be located, in accordance with the provisions
of section three hundred seventy-eight of the education law and the
provisions of subdivisions one through five of this section; and the
agency is hereby authorized and empowered to accept any lease or
conveyance of any such state university facility, and the lands upon
which such a facility is or may be located, to acquire, construct,
reconstruct, rehabilitate or improve any such facility and to issue
bonds and notes to provide sufficient funds therefor in accordance with
the provisions of section forty-seven-a of this article and the
provisions of subdivisions one through five of this section.

(c) Any mental hygiene facility, as defined in section forty-seven-b
of this article, which has been constructed, acquired, reconstructed,
rehabilitated or improved, in whole or in part, out of monies advanced
or deemed to have been advanced to the health and mental hygiene
facilities improvement corporation, the state department of mental
hygiene or the office of general services, since April first, nineteen
hundred sixty-three pursuant to appropriations or reappropriations as
advances from the capital construction fund, and the lands upon which
such a facility is located, may be leased or conveyed to the agency by
the health and mental hygiene facilities improvement corporation or the
commissioner of mental hygiene in accordance with the provisions of
subdivisions one through five of this section, notwithstanding that the
construction, acquisition, reconstruction, rehabilitation or improvement
of such facility may have been completed by the health and mental
hygiene facilities improvement corporation, the state department of
mental hygiene or the office of general services.

(d) Subject to such agreements with third parties as may then exist,
the health and mental hygiene facilities improvement corporation is
hereby authorized and empowered to enter into leases, subleases and
other agreements with the agency with respect to any mental hygiene
facility described in paragraph (c), and the lands upon which such a
facility is or may be located, in accordance with the provisions of
subdivision four of section nine of the health and mental hygiene
facilities improvement act and the provisions of subdivisions one
through five of this section; and the agency is hereby authorized and
empowered to accept any lease or conveyance of any such mental hygiene
facility, and the lands upon which such a facility is or may be located,
to acquire, construct, reconstruct, rehabilitate or improve any such
facility, and to issue bonds and notes to provide sufficient funds
therefor in accordance with the provisions of section forty-seven-b of
this article and the provisions of subdivisions one through five of this
section.

7. a. The agency shall have the power to acquire by lease or deed from
the health and mental hygiene facilities improvement corporation any
real property acquired by the corporation pursuant to the provisions of
subdivision six of section nine of the facilities development
corporation act (i) for the purpose of constructing, reconstructing,
rehabilitating or improving thereon one or more community mental health
and developmental disabilities facilities or (ii) for the purpose of
financing the acquisition, construction, reconstruction, rehabilitation
or improvement thereon of one or more community mental health and
developmental disabilities facilities, pursuant to the provisions of
this article and the facilities development corporation act. The agency
is hereby authorized to lease or sublease such real property and
facilities thereon to the corporation for the purpose of making the same
available to a city or a county not wholly within a city, for use and
occupancy in accordance with the provisions of a lease, sublease or
other agreement between the corporation and such city or county.

b. In the event that the agency shall fail, within five years after
the date of a lease or conveyance of such real property from such city
or county to the corporation, to construct, reconstruct, rehabilitate or
improve the community mental health and developmental disabilities
facility or facility thereon for which such lease or conveyance was
made, as provided for in a lease, sublease or other agreement entered
into by such city or county and the corporation, then, subject to the
terms of any lease, sublease or other agreement undertaken by the
agency, such real property and any facilities thereon shall revert to
the corporation with right of re-entry thereupon, and such lease or deed
shall be made subject to such condition of reverter and re-entry;
provided, however, that as a condition precedent to the exercise of such
right of re-entry the corporation shall pay to the agency an amount
equal to the sum of the purchase price of such real property, the
depreciated cost of any community mental health and developmental
disabilities facility or facilities constructed, reconstructed,
rehabilitated or improved thereon and all other costs of the agency
incident to the acquisition of such lands and the financing of
construction, reconstruction, rehabilitation or improvement relating to
such community mental health and developmental disabilities facility or
facilities, all as provided in the aforesaid lease, sublease or other
agreement entered into with the corporation.

c. No real property or interest therein shall be acquired by the
agency pursuant to this subdivision unless the title thereto shall be
approved by the attorney general.

d. The attorney general shall pass upon the form and sufficiency and
manner of execution of any deed of conveyance and of any lease or
sublease of real property authorized to be acquired by the agency
pursuant to this subdivision and the same shall not be effective unless
such deed, lease or sublease shall be so approved by him.