New York Laws
Article 9 - School Buildings and Sites
407-A - Authorization for Dormitory Authority Financing of Capital Facilities for Special Act School Districts.

(b) (i) There is hereby established in the custody of the state
comptroller a special fund to be known as the school capital facilities
financing reserve fund. Within such fund, there is hereby established a
special account for each special act school district which enters into a
lease, sublease or other agreement with the dormitory authority pursuant
to this section.
(ii) Notwithstanding the provisions of any other law, such fund shall
consist of part of the tuition payments from public school districts and
social services districts as determined by the commissioner, and state
aid to special act school districts pursuant to subdivision six of
section thirty-six hundred two of this chapter as determined by the
commissioner. The comptroller shall maintain sufficient amounts in the
fund in order to pay when due the annual rentals due to the dormitory
authority from each such special act school district pursuant to any

lease, sublease or other agreement entered into pursuant to the
provisions of this section. The dormitory authority shall certify to
the state comptroller the dates and amount of such annual payments as
scheduled in its leases, subleases or other agreements with such special
act school districts. The commissioner with respect to educational
facilities shall certify the amount of payments due the fund from public
school districts and social services districts, respectively and such
public school districts and social services districts shall make such
payments to the fund at such times as shall be prescribed by the
commissioner with respect to educational facilities, subject to the
approval of the director of the budget, and after consultation with the
dormitory authority.
(iii) Revenues in any special account in the school capital facilities
financing reserve fund may be commingled with any other moneys in such
fund. All deposits of such revenues with banks and trust companies shall
be secured by obligations of the United States or of the state of New
York or its political subdivisions. Such obligations shall have a
market value at least equal at all times to, but not less than, one
hundred five percent of the amount of such deposits. All banks and trust
companies are authorized to give security for such deposits. Any such
revenues in such fund may, in the discretion of the comptroller, be
invested in obligations of the United States or the state or obligations
the principal of and interest on which are guaranteed by the United
States or by the state. Any interest earned shall be credited to such
fund.
(iv) Upon receipt by the comptroller of a certificate or certificates
from the dormitory authority that it requires a payment or payments from
the appropriate special account established for a special act school
district in order for such special act school district to comply with
any lease, sublease or other agreement pursuant to this section, each of
which certificates shall specify the required payment or payments and
the date when the payment or payments is required, the comptroller shall
pay from such special account on or before the specified date or within
thirty days after receipt of such certificate or certificates, whichever
is later, to the paying agent designated by the dormitory authority in
any such certificate, the amount or amounts so certified.
(v) All payments of money from the school capital facilities financing
reserve fund shall be made on the audit and warrant of the state
comptroller.
9. Notwithstanding the provisions of any contract pursuant to article
eighty-one or eighty-nine of this chapter between a social services
district or a public school district and a special act school district,
if the special act school district enters into a lease, sublease or
other agreement with the dormitory authority pursuant to this section,
payments due from the public school district or social services district
shall be made in accordance with the provisions of this section.
10. All state and local officials are authorized and required to take
whatever actions are necessary to carry out the provisions of this
section and the provisions of any leases, subleases or other agreements
entered into pursuant to this section, including making the required
payments to the dormitory authority.
11. Any contract undertaken or financed by the dormitory authority for
any construction, reconstruction, rehabilitation or improvement for any
special act school district shall comply with the provisions of sections
one hundred one and one hundred three of the general municipal law.
12. Notwithstanding any other provision of law to the contrary, the
dormitory authority may execute leases, subleases, or other agreements
with special act school districts for financing of the design,

construction, rehabilitation, improvement, renovation, acquisition or
provision, furnishing or equipping of capital facilities; provided,
however, that during the two year period commencing July first, nineteen
hundred ninety-five, the amount of bonds inclusive of principal,
interest and issuance costs to be issued for each individual lease,
sublease, or other agreement shall not exceed fifteen million dollars
annually; and provided further that the total amount of such bonds for
all such leases, subleases, or agreements with special act school
districts during such period shall not exceed twenty million dollars.
On or before September first of each year, the commissioner shall submit
to the chairs of the assembly ways and means committee, the senate
finance committee and the director of the budget, a capital plan for
those projects expected to be bonded for special act school districts
pursuant to this section, within such twenty million dollar allowance.
After application of the principles of the capital assets preservation
program, such plan shall accord priority to health and safety
considerations and shall specify the name, location, estimated total
cost of the project at the time the project is to be bid, the
anticipated bid date and the anticipated completion date and may contain
any further recommendations the commissioner may deem appropriate.