N.Y. Facilities Development Corporation Act § 5

Current through 2024 NY Law Chapter 424

Section 5 - General powers and duties of corporation

The corporation shall have the following powers in addition to those specifically conferred elsewhere in this act.

1.To sue and be sued.

2.To have a seal and alter the same at pleasure.

3.To make and alter by-laws for its organization and internal management.

4.With the approval of the comptroller, to prescribe a system of accounts.

5.To make rules and regulations governing the exercise of its corporate powers and the fulfillment of its corporate purposes, which rules and regulations shall be filed with the secretary of state in the manner provided by section one hundred two of the executive law.

6.To accept jurisdiction over and to hold, use and improve, in accordance with such terms and conditions as the corporation and the state housing finance agency or the state medical care facilities finance agency, as the case may be, shall determine, any or all real property acquired by such agency for a health facilities improvement program.

7.Subject to the terms and conditions of any lease, sublease, loan or other financing agreement with the appropriate commissioner of the department or the state housing finance agency or the state medical care facilities finance agency, to possess, hold, use and improve, all mental hygiene facilities and all real and personal property acquired by or on behalf of the corporation for a mental hygiene facilities improvement program so long as its corporate existence shall continue.

8.

a. With the approval of the appropriate commissioner of the department and the director of the budget, to purchase real property necessary or convenient for a mental hygiene facilities improvement program in the name of the state, except where such purchase is for the purpose of providing community mental health and developmental disabilities facilities in which case such purchase shall be in its own name; provided, however, that all such purchases shall be made pursuant to legislation or appropriations in accordance with section nine of this act. Nothing in this section contained shall be construed to prohibit the acquisition of real property by purchase or appropriation by the appropriate commissioner of the department pursuant to article seventyone of title E of the mental hygiene law for the purpose of making mental hygiene facilities available under license or permit from the corporation to a voluntary agency, subject to the terms and conditions of any lease, sublease, loan or other financing agreement with the state housing finance agency or the state medical care facilities finance agency, (i) for use in providing community mental health and developmental disabilities services, including services in a residential care center for adults, or (ii) for the conduct of an alcoholism or substance abuse treatment program as defined in article nineteen of title D of the mental hygiene law.

b.To execute and deliver deeds for real property held in its own name.

c.To convey an easement as described in this subdivision, in or over state-owned lands under the jurisdiction of the facilities development corporation for the use of the department of mental hygiene subject to prior notice to the commissioner of general services by filing with him a copy of the proposed easement which shall be followed by such filing of a copy of the easement conveyed, to a public corporation or a public service corporation, in perpetuity or otherwise. For the purposes of this subdivision an easement may be granted for the connection of a water main, sewer pipe or other utility line or similar facility maintained for public use, owned by any public corporation or public service corporation, which shall be used for or in connection with any facility occupied, used or serving the program of one of the offices of the department of mental hygiene as defined in subdivision two-a of section three of section one of this act. The consideration for the grant of any such easement may consist of the agreement by the grantee to maintain the subject utility facility.

d.To convey an easement as described in this subdivision, in or over private lands under the jurisdiction of the facilities development corporation for the use of the department of mental hygiene subject to prior notice to the commissioner of general services by filing with him a copy of the proposed easement which shall be followed by such filing of a copy of the easement conveyed, to a public corporation or a public service corporation, in perpetuity or otherwise. For the purposes of this subdivision an easement may be granted for the connection of a water main, sewer pipe or other utility line or similar facility maintained for public use, owned by any public corporation or public service corporation, which shall be used for or in connection with any facility occupied, used or serving the program of one of the offices of the department of mental hygiene as defined in subdivision two-a of section three of section one of this act. The consideration for the grant of any such easement may consist of the agreement by the grantee to maintain the subject utility facility.

e.Nothing contained in paragraphs c and d of this subdivision shall limit, restrict or affect the authority of the commissioner of general services under section three of the public lands law.

9.To purchase, receive, lease or otherwise acquire in accordance with the requirements of article eleven of the state finance law, personal property necessary and convenient for its corporate purposes, including the original furnishings, equipment, machinery and apparatus required for mental hygiene or health facilities upon the completion of work: (i) in the case of a mental hygiene facility to transfer, sublease or otherwise make such personal property available to the department of mental hygiene or to a city or county, in accordance with the terms and conditions of any agreement with the appropriate commissioner of the department, the commissioner of general services, such city or county or the state housing finance agency; (ii) in the case of a health facility to transfer or otherwise make such personal property available to a municipality in accordance with the terms and conditions of any agreement with such municipality, the state housing finance agency or the state medical care facilities finance agency.

10.To design, construct, acquire, reconstruct, rehabilitate and improve health facilities, facilities for the department of corrections and community supervision and mental hygiene facilities, or cause such facilities to be designed, constructed, acquired, reconstructed, rehabilitated and improved, in accordance with the provisions of this act.

11.In connection with such design, construction, acquisition, reconstruction, rehabilitation and improvement, to install or cause to be installed water, sewer, gas, electrical, telephone, heating, air conditioning and other utility services, including appropriate connections.

12.Subject to the terms and conditions of any lease, sublease, loan or other financing agreement between the corporation and the state housing finance agency or the state medical care facilities finance agency, as the case may be, or between such agency and a municipality, as the case may be, and in the case of mental hygiene facilities with the appropriate commissioner of the department, to maintain, repair and keep up the real property held by it pursuant to this act.

13.

(a) Subject to the terms and conditions of any lease, sublease, loan or other financing agreement with the state housing finance agency or the state medical care facilities finance agency, and to the determination of the appropriate commissioner of the department, and in the case of community mental health and developmental disabilities facilities, of the city or county, that such real property held for the purposes of a mental hygiene facilities improvement program is unnecessary for the present or foreseeable future needs of a mental hygiene facility, with the approval of the director of the budget, to convey for fair value, except as otherwise provided in paragraph (b) of this subdivision, any right, title or interest of the people of the state of New York in and to such real property to any appropriate state agency, or public corporation, city or county for other public use or for sale, lease or other disposition in accordance with law, real property held by the corporation, provided, however, nothing in this subdivision shall be deemed to supersede the provisions of section 41.34 of the mental hygiene law and provided further that any such conveyance shall be subject to, and consistent with the terms and objectives of, any plan developed by the state interagency council on mental hygiene property utilization. The corporation shall provide written notice at least thirty days in advance of the effective date of any conveyance to the governor, the majority leader of the senate and the speaker of the assembly. No conveyance as authorized in this subdivision that may adversely affect the tax exempt nature of any such lease, sublease, loan or other financing agreement with the state housing finance agency or the New York state medical care facilities finance agency may occur until the attorney general or other designated bond counsel determines in writing that the conveyance is consistent with all applicable state and federal laws, rules and regulations, and with deeds, leases, subleases, loan agreements, financing agreements, and bond resolutions relating to or affected by the conveyance, and that the conveyance does not impair the tax exempt status of outstanding obligations issued by the state housing finance agency or the New York state medical care facilities finance agency to finance or refinance the design, construction, acquisition, reconstruction, rehabilitation or improvement of mental health service facilities as defined in the New York state medical care facilities finance agency act.

(b) Notwithstanding any other provision of law to the contrary, for the purposes of transferring and conveying the westernmost portion of that certain property commonly known as the Kingsboro Psychiatric Center, located at 681 Clarkson Avenue in Brooklyn, New York to a housing development fund corporation formed pursuant to article XI of the private housing finance law, for the purposes described below, the term "fair value" shall be deemed to be an amount determined to be in the public interest and agreed upon between the commissioner of the office of mental health and the commissioner of the division of housing and community renewal, provided, however, that such agreed upon amount may be less than the appraised fair value, in order to facilitate the development of the public benefit Vital Brooklyn project and in reflection of the Vital Brooklyn initiative and the intended use of the property, to increase access to open spaces, increase access and quality of health care services and preventative care, create affordable housing, and to provide at least one hundred supportive housing units for office of mental health recipients. The description of the lands to be transferred and conveyed as set forth above is not intended to be a legal description but, intended only to identify the property subject to this paragraph.

13-a.Subject to the terms and conditions of any lease, sublease, loan or other financing agreement with the state housing finance agency or the state medical care facilities finance agency and to the determination of the appropriate commissioner of the department, to make a mental hygiene facility available under lease, sublease, license or permit from the corporation to a voluntary agency, or, notwithstanding the provisions of the public lands law or any other general or special law to the contrary, to convey the right, title and interest of the people of the state of New York in and to such facility and the land appurtenant thereto to such voluntary agency upon such terms and conditions as shall be provided in an agreement among the appropriate commissioner of the department, the corporation and such voluntary agency with the approval of the director of the budget, the comptroller and the commissioner of any office of the department having programmatic or fiscal jurisdiction or licensing or certifying authority over that voluntary agency with respect to the intended use.

13-b.Subject to the terms and conditions of any deed, lease, sublease, loan or other financing agreement with the state housing finance agency or the New York state medical care facilities finance agency, and upon the determination of the appropriate commissioner of the department of mental hygiene, to sublease as sublessor, in its own name, mental hygiene facilities leased to the corporation by the New York state medical care facilities finance agency, and to lease as lessor real property held by the corporation, upon such terms and conditions as may be provided in an agreement among the appropriate commissioner of the department, the corporation, and such sublessee or lessee, with the approval of the director of the budget, and, where pertinent, the commissioner of any office of the department having programmatic or fiscal jurisdiction or licensing or certifying authority over a voluntary agency or any other sublessee or lessee entity with respect to the intended use. Such a sublease or lease shall be effective only after the attorney general or other designated bond counsel determines, in writing, that it is consistent with all applicable federal and state laws, rules and regulations, and all deeds, leases, subleases, loan agreements, financing agreements and bond resolutions relating to or affected by the premises being sublet or let, and that such a sublease or lease does not impair the tax-exempt status of outstanding obligations issued by the housing finance agency or the New York state medical care facilities finance agency.

13-c.To lease, as lessee, and to sublease, as sublessor, in its own name, mental hygiene facilities owned or leased by one or more voluntary agencies that are to be financed, refinanced, designed, constructed, acquired, reconstructed, rehabilitated and improved under any lease, sublease, loan or other financing agreement entered into with such voluntary agencies or the medical care facilities finance agency in accordance with regulations that shall be promulgated by either one of the appropriate commissioners or directors of the department and approved by the director of the budget, which regulations shall require that any mental hygiene facility owned or leased by a voluntary agency the design, construction, reconstruction, acquisition, rehabilitation or improvement of which is to be financed or refinanced in whole or in part with proceeds of mental health services facilities improvement bonds or notes issued by the medical care facilities finance agency, and any other mental hygiene facilities that may be constructed or acquired with funds realized by or returned to such voluntary agency or jointly to such voluntary agency and one more voluntary agencies which will operate such facility as a result of such financing or refinancing, be approved for financing or refinancing pursuant to this act by the director of the budget and be operated, while such bonds or notes are outstanding, in a manner and for purposes pursuant to the mental hygiene law.

13-d.Subject to the terms and conditions of any lease, sublease, loan or other financing agreement with the medical care facilities finance agency in accordance with subdivision 13-c of this section, to make loans to voluntary agencies for the purpose of financing or refinancing the design, construction, acquisition, reconstruction, rehabilitation and improvement of mental hygiene facilities owned or leased by such voluntary agencies provided, however, that with respect to such facilities which are leased by a voluntary agency, the term of repayment of such loan shall not exceed the term of such lease including any option to renew such lease. Notwithstanding any other provisions of law, such loans may be made jointly to one or more voluntary agencies which own and one or more voluntary agencies which will operate any such mental hygiene facility.

13-e.To receive from the comptroller state aid payments pledged or agreed to be paid by any voluntary agency in accordance with any lease, sublease, loan or other financing agreement entered into with such voluntary agency. Such pledges may be made from sources of state aid including but not limited to payments made pursuant to: articles nineteen, twenty-five and forty-one of the mental hygiene law.

13-f. The executive director of the facilities development corporation is authorized and empowered to enter into and implement agreements under which the facilities development corporation may designate the commissioner of the office of mental health, the commissioner of the office for people with developmental disabilities, the commissioner of alcoholism and substance abuse services, with respect to their respective facilities, as agents for the facilities development corporation with respect to the financing of voluntary provider not-for-profit community development, and under which such commissioners and directors may act as its agent, with respect to any and all duties for such corporation as set forth and contained in this act. The commissioners, the directors, and the executive director shall enter into such agreements, subject to the approval of the director of the budget, which delineate the respective duties of each party when such commissioners and directors are designated agents of such corporation.

14.To make and execute contracts and all other instruments or agreements necessary or convenient for the exercise of its corporate powers or the fulfillment of its corporate purposes.

15.To engage the services of construction, engineering, architectural, legal and financial consultants, surveyors and appraisers, on a contract basis or as employees, for professional services and technical assistance and advice.

16.To procure insurance against any loss in connection with any facility in such amounts and from such insurers as it deems desirable.

17.With the consent of the commissioner of health, or the appropriate commissioner of the department, as the case may be, to use the agents, employees and facilities of the respective agencies.

18.Subject to the approval of the commissioner of health or the appropriate commissioner of the department, as the case may be, to apply for, accept, administer and disburse federal aid.

19.To accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality thereof or from the state, including appropriations, or from any other source, and to comply with the terms and conditions thereof.

20.To do any and all things necessary or convenient to carry out its corporate purposes and exercise the powers given and granted it in this act.

N.Y. Facilities Development Corporation Act Law § 5

Amended by New York Laws 2022, ch. 551,Sec. 1, eff. 8/17/2022.

Amended by New York Laws 2022, ch. 479,Sec. 48, eff. 7/26/2022.

Amended by New York Laws 2019, ch. 672,Sec. 68, eff. 12/16/2019.