New York Laws
Article 28 - Hospitals
2815-A - Community Health Care Revolving Capital Fund.

§ 2815-a. Community health care revolving capital fund. 1.
Definitions. As used in this section, the following words and phrases
shall have the following meanings unless a different meaning is plainly
required by the context:

a. "Administrator" shall mean a not for profit Community Development
Financial Institution CDFI that is certified by the U.S. Treasury
community development financial fund, has experience financing projects
in the New York state healthcare sector and otherwise meets the
requirements of this section.

b. "Dormitory authority" or "authority" shall mean the dormitory
authority of the state of New York created by title four of article
eight of the public authorities law which has succeeded to the powers,
functions and duties of the medical care facilities finance agency
pursuant to chapter eighty-three of the laws of nineteen hundred
ninety-five.

c. "Participating borrower" shall mean a community-based health care
provider, which for the purposes of this section, shall be defined as
diagnostic and treatment center licensed or granted an operating
certificate under article twenty-eight of this chapter, a mental health
clinic licensed or granted an operating certificate under article
thirty-one of the mental health law; or an alcohol and substance abuse
treatment clinic licensed or granted an operating certificate under
article thirty-two of the mental hygiene law, each organized under the
laws of this state.

d. "Revolving capital fund" shall mean community health care revolving
capital fund authorized to be established by the dormitory authority and
administered pursuant to this section.

2. Revolving capital fund. The dormitory authority shall, within
amounts appropriated, establish the community health care revolving
capital fund. Monies in the revolving capital fund shall be utilized for
the purpose of making loans to qualifying participating borrowers to
improve access to affordable capital financing to expand and improve
capacity to provide health care in the State. Funds shall be transferred
by the commissioner to the dormitory authority for deposit in the
revolving capital fund in an amount as authorized by appropriation.
Monies in the fund shall be: (a) held by the authority pursuant to this
section as custodian pursuant to an agreement with the commissioner
until transferred to the administrator pursuant to this section, and (b)
invested by the authority in accordance with the investment guidelines
of the authority during said custodial period. All investment income
shall be credited to, and shall be deposited in, the revolving capital
fund.

3. Administration agreement. The commissioner and the authority shall
enter into an agreement, subject to the approval of the director of the
budget, for the purpose of administering the funds in the revolving
capital fund through an administrator. A copy of such agreement, and any
amendments thereto, shall be provided to the chair of the senate finance
committee, the director of the division of budget, and the chair of the
assembly ways and means committee. The agreement shall specify that the
administrator shall administer the community health care revolving
capital fund in a manner that will benefit the public health by
encouraging improvements in the community health care delivery system in
the state, in compliance with all applicable laws, rules, regulations
and other requirements.

4. Agreement with the administrator. The dormitory authority shall, in
consultation with the commissioner, enter into an agreement with the
administrator. Such agreement shall provide for the administration of
the revolving capital fund administrator, in accordance with the

requirements of this section, the commissioner and dormitory authority
and all applicable laws, rules, regulations and other requirements. Upon
the effective date of the agreement, custody of, and responsibility for,
the revolving capital fund shall be transferred from the dormitory
authority to the administrator, subject to the requirements of the
agreement. Such agreement shall include, but not be limited to, the
following provisions:

a. That the administrator shall be responsible for the receipt,
management and expenditure of monies held in the revolving capital fund;

b. That the administrator shall maintain books and records pertaining
to all monies received and disbursed pursuant to this section and the
agreement;

c. That monies in such revolving capital fund shall be utilized for
the purpose of making loans to qualifying participating borrowers, to
provide participating borrowers with improved access to affordable
capital to expand and improve preventive or primary care capacity;

d. That participating borrowers shall be chosen by the administrator
through an application process approved by the authority and the
commissioner;

e. That eligible uses of funds so loaned to participating borrowers
shall include but not be limited to: (i) eligible costs as described in
paragraph (f) of this subdivision, attributable to the proposed
construction, reconstruction, renovation, rehabilitation, refurbishing,
expansion, upgrading and equipping of a participating borrower's
community-based health care facility; (ii) reserves for credit
enhancement including loan guarantees; (iii) loan loss and debt service
reserves and subordinated loans; and (iv) facility financing, including
loans for predevelopment, acquisition and construction, permanent
financing and bridge loans;

f. That eligible costs under this section shall include, but not be
limited to, all hard construction costs and associated professional and
other costs, furniture, fixtures and equipment, including health
information technology, acquisition, predevelopment due diligence,
initial operating expenses and working capital;

g. That the administrator administering the revolving capital fund
shall report quarterly on the transactions in the revolving capital fund
in a form and manner specified by the authority in consultation with the
commissioner, including but not limited to: receipts or deposits to the
fund, disbursements, loans or credit enhancement made from the fund,
investment income, and the balance on hand as of the end of the month
for each such quarter;

h. That the administrator shall be required to invest monies on
deposit in the fund in accordance with investment guidelines meeting the
requirements of the department and dormitory authority, and all
investment income shall be credited to, and any repayment of loans as
hereinafter provided shall be deposited in, the revolving capital fund,
and spent therefrom only for the purposes set forth in this section;

i. That only the reasonable expenses of the administrator, as
determined by the commissioner and president of the authority, incurred
in the establishment and administration of the revolving capital loan
program (including the retention of professionals and consultants, if
any) may be paid or reimbursed from the revolving capital fund;

j. That revolving capital fund monies shall be held in trust and used
for the benefit of eligible community-based health care facility capital
projects; and

k. Any other term or condition as determined by the authority, in
consultation with the commissioner.


5. Loan documentation. Loans from the revolving capital fund shall be
made pursuant to a written loan agreement between the administrator and
the participating borrower, specifying the terms thereof including
repayment terms. The loan agreement shall be in such form and content as
shall be acceptable to the commissioner and dormitory authority, and may
include such other any further written documentation and/or agreements
as shall be required in the judgment of the commissioner and dormitory
authority, including but not limited to all required filings under the
Uniform Commercial Code.

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