FDC - Facilities Development Corporation Act 359/68
Chapter 359 of the laws of 1968 § 1. Short title. This act shall be known and may be cited and referred to as the "facilities development corporation act." § 2. Statement of legislative findings and purposes. It is hereby found and declared that the provision of new and improved state facilities relating to the care, maintenance and treatment of the mentally disabled must be accelerated if the state is to meet its responsibilities in the face of an increasing state population, a growing awareness that mental disability can be treated effectively, and new research advances in treatment methods. An expanded construction program is essential to relieve overcrowding in the state hospitals for the mentally ill, to provide treatment and care for the increasing population of mentally retarded in state schools, and to permit the establishment of special treatment programs for mentally ill and emotionally disturbed children and for the mentally ill blind and the mentally ill deaf. Existing state facilities require substantial modernization and structural change to accommodate new concepts of treatment for the mentally disabled and special units for the treatment of alcoholism and narcotics addiction. Larger and better equipped research facilities must be installed in order to insure that state treatment units are in the forefront of applying and developing advanced therapeutic methods. At the same time, improved training facilities and quarters are needed to attract and retain the best-qualified staff personnel. To assure that the required facilities are completed and ready for use as promptly as possible, the legislature hereby finds and declares that there should be created a corporate governmental agency, constituting a public benefit corporation, to be known as the "Facilities Development Corporation", which could receive and administer monies for the construction and improvement of mental hygiene facilities and provide such facilities in accordance with the foreseeable needs for the care, maintenance and treatment of the mentally disabled. The legislature further finds and declares that while responsibility for the professional care, maintenance and treatment of the mentally disabled at all mental facilities should continue in the department of mental hygiene, exclusive possession, jurisdiction, control and supervision of the physical facilities used therefor should be vested in the corporation in order to facilitate the exercise of its powers. It is further found and declared that the provision of new and improved community mental health and retardation facilities must be accelerated, in order to provide comprehensive care and treatment of the mentally ill and mentally retarded. Such community mental health and retardation facilities should be located close to the people they serve, in order to speed rehabilitation and restoration, by involving families and community resources to the extent practicable. Such an accelerated construction program will also help relieve overcrowding in state facilities for the mentally ill and mentally retarded and will afford treatment and care for the increasing number of mentally retarded. Such a program will increase the number of local facilities for out-patient care and short-term in-patient care, including after care, diagnostic and rehabilitative services, training and research. While the responsibility for the professional care, maintenance and treatment of the mentally ill and mentally retarded at all such community mental health and retardation facilities should continue in the local governments, subject to the provisions of article forty-one of the mental hygiene law and the regulations of the commissioners of the offices of the department having jurisdiction thereof, the legislature further finds and declares that the Facilities Development Corporation
should be empowered to aid cities and counties, at their request, to provide new and improved community mental health and retardation facilities in order to insure their timely construction, acquisition, reconstruction, rehabilitation and improvement in relation to current and foreseeable needs and the emergence of new patterns of treatment and care and should be empowered to receive and administer monies for such purpose. It is further found and declared that hospital and related services of municipalities are of vital concern to the health, safety and welfare of the people of the state. Many municipal hospital facilities today are no longer adequate to meet the needs of modern medical care. Because of the rapidity of technological change in the medical field, a great number of such facilities require substantial structural and functional changes. Many municipal hospitals are overcrowded in their ancillary service areas. Many still have large open wards, while the growth of hospitalization insurance has brought increased demand for semi-private accommodations. Many of such hospitals have permitted their buildings to deteriorate prematurely and other suffer inefficiencies caused by piecemeal and uncoordinated additions. The educational programs of hospitals have become indispensable. Many hospitals are, in fact, educational institutions but their plants and equipment are not equal to their educational commitment. They lack facilities for needed conferences and seminars and their libraries and medical records departments do not meet the needs of individual studies and research. Many of such hospitals no longer have adequate protection against the hazards of fire, explosion and infection. Many of such hospitals lack facilities for ambulant or wheelchair patients, and are inadequately designed for the tremendous increase in personnel traffic and movement of supplies and equipment within the hospital. It is further found and declared that the construction, modification, reconstruction and rehabilitation of municipal hospitals and related health care facilities, including the provision of equipment, are public purposes and are necessary for the protection of the health, safety and welfare of the people of the state. To assure that such purposes are carried out, it is further found and declared that the facilities development corporation created by this act should be empowered, in cooperation with the state, municipalities and the New York state housing finance agency or the New York state medical care facilities finance agency, as the case may be, to provide for the timely construction and modernization of municipal hospitals and related facilities at a reasonable cost and in accordance with the health needs of the community. It is hereby found and declared that the acquisition, construction, reconstruction, rehabilitation and improvement of facilities for the department of correctional services are public purposes which are essential to enable comprehensive modernization of the state's programs of correctional services. To assure that such purposes are carried out, it is further found and declared that the facilities development corporation should be empowered in coorperation with the department of correctional services to provide for the acquisition, construction, reconstruction, rehabilitation and improvement of facilities for the department of correctional services. In order to accomplish all of these purposes, the legislature hereby declares that the existing corporate governmental agency constituting a public benefit corporation, created by article two-B of the mental hygiene law, shall be reconstituted and continued as the facilities development corporation which corporation shall also have such additional powers and duties as are granted to it in this act.
§ 3. Definitions. As used in this act, unless the context otherwise requires: 1. "Comptroller" means the comptroller of the state of New York. 2. "Community mental health and retardation facility" shall mean a building, a unit within a building, a laboratory, a classroom, a housing unit, a dining hall, an activities center, a library, or any structure on or improvement to real property, or an interest in real property, including an interest in, and proprietary lease from, an organization formed for the purpose of cooperative ownership of real property, of any kind or description, including fixtures and equipment which are an integral part of such building, unit or structure or improvement, a walkway, a roadway or a parking lot and improvements and connections for water, sewer, gas, electrical, telephone, heating, air conditioning and other utility services, or a combination of any of the foregoing, whether for patient care and treatment or staff, staff family or service use, located in a city, or in a county not wholly included within a city, authorized to provide community mental health services in accordance with the provisions of article forty-one of the mental hygiene law, which is utilized or to be utilized for the administration and conduct of programs for the mentally ill or the mentally retarded, or both, and for the provision of services therefor, or utilized or to be utilized in the performance of services benefitting or assisting the care, treatment, rehabilitation or maintenance of persons with mental disabilities, and approved to provide such services, pursuant to a written agreement with the appropriate commissioner of an office of the department of mental hygiene. Nothing in this subdivision shall be deemed to supercede the provisions of article 41 of the mental hygiene law, where applicable. A community mental health and retardation facility shall also mean and include a residential facility to be operated as a community residence for persons with mental disabilities and a treatment facility for use in the conduct of an alcoholism treatment program or of a substance abuse treatment program as defined in the mental hygiene law. 2-a. "Department" means the department of mental hygiene and the offices of mental health, mental retardation and developmental disabilities and alcoholism and substance abuse of such department. 2-b. "Commissioner" means the commissioner of mental health, the commissioner of mental retardation and developmental disabilities, the director of the division of alcoholism and alcohol abuse and the director of the division of substance abuse. 3. "Corporation" means the facilities development corporation created by this act. 3-a. "Dormitory authority" means the dormitory authority created by the dormitory authority act as amended, being title four of the public authorities law. 3-b. "Facility for the department of correctional services" means real property, a building, a unit within a building, or any structure on or improvement to real property of any kind or description essential, necessary or useful in the program of the department of correctional services, including all usual attendant and related facilities, fixtures, equipment, and connections for utility services or any combinations thereof, designed, acquired, constructed, reconstructed, rehabilitated and improved, or otherwise provided for the department of correctional services. 4. "Federal government" means the United States of America, and any officer, department, board, commission, bureau, division, corporation, agency or instrumentality thereof.
5. "Governing body" means the board of supervisors, county legislature, board of aldermen, common council, council, commission, or other elective governing board or body now or hereafter vested by state statute, charter or other law with jurisdiction to initiate and adopt local laws, whether or not such local laws or ordinances require the approval of the elective chief executive officer or other official or body to become effective, and except that with respect to a city having a population of one million or more the term "governing body" shall mean the board of estimate. 6. "Health facility" means a building, a unit within a building, a laboratory, a classroom, a housing unit, a dining hall, an activities center, a library, or any structure on or improvement to real property of any kind or description, including fixtures and equipment which are an integral part of any such building, unit, structure or improvement, a walkway, a roadway or a parking lot, and improvement and connections for water, sewer, gas, electrical, telephone, heating, air conditioning and other utility services, or a combination of the foregoing, whether for patient care and treatment of staff, staff family or service use, located at or related to or constituting a hospital of, and located in, a municipality. 7. "Health facilities improvement program" means a program or programs undertaken by the corporation pursuant to section eight of this act. 8. "Hospital" means a hospital as defined in article twenty-eight of the public health law. 9. "Letting agency" means, where the corporation is undertaking a mental hygiene facilities improvement program or a mental health facilities improvement program, (i) the commissioner of general services if by agreement with the corporation he is to award the contracts for a particular construction, reconstruction, rehabilitation or improvement project, or (ii) the corporation if it is to award such contracts as principal or as agent for the state housing finance agency or the state medical care facilities finance agency. 10. "Mental hygiene facility" shall mean a building, a unit within a building, a laboratory, a classroom, a housing unit, a dining hall, an activities center, a library, real property of any kind or description, or any structure on or improvement to real property, or an interest in real property, of any kind or description, owned by or under the jurisdiction of the corporation, including fixtures and equipment which are an integral part of any such building, unit, structure or improvement, a walkway, a roadway or a parking lot, and improvements and connections for water, sewer, gas, electrical, telephone, heating, air conditioning and other utility services, or a combination of any of the foregoing, whether for patient care and treatment or staff, staff family or service use, located at or related to any psychiatric center, any developmental center, or any state psychiatric or research institute or other facility now or hereafter established under the department. A mental hygiene facility shall also mean and include a residential care center for adults, a "community mental health and retardation facility" and a treatment facility for use in the conduct of an alcoholism or substance abuse treatment program as defined in the mental hygiene law unless such residential care center for adults, community mental health and retardation facility or alcoholism or substance abuse facility is expressly excepted, or the context clearly requires otherwise. The definition contained in this subdivision shall not be construed to exclude therefrom a facility owned or leased by one or more voluntary agencies that is to be financed, refinanced, designed, constructed, acquired, reconstructed, rehabilitated or improved under any lease, sublease, loan or other financing agreement entered into with such
voluntary agencies, and shall not be construed to exclude therefrom a facility to be made available from the corporation to a voluntary agency at the request of the commissioners of the offices of the department having jurisdiction thereof. The definition contained in this subdivision shall not be construed to exclude therefrom a facility with respect to which a voluntary agency has an ownership interest in, and proprietary lease from, an organization formed for the purpose of the cooperative ownership of real estate. 11. "Mental hygiene facilities improvement program" means a program or programs undertaken by the corporation pursuant to section nine of this act. 12. "Mentally disabled" means a person having a mental disability as defined in section 1.03 of the mental hygiene law. 13. "Municipality" means a county, city, town or village, except that, where the corporation is undertaking a health facilities improvement program, such term shall mean a county, city or town constituting a social services district as defined in sections two, sixty-one, seventy-five and seventy-five-a of the social services law, or any two or more of the foregoing which are acting jointly to provide a health facility or health facilities. 13-a. "Municipal building" shall mean a building, including grading or improvement of the site, furnishings, equipment and utility services in conjunction with such a building, to be principally used for the administrative offices of a municipality or for the storage or repair of maintenance equipment. Nothing herein shall be construed to prevent the corporation from entering into an agreement for the design and construction of a local correctional facility in combination with a municipal building. 14. "Division of alcoholism and alcohol abuse facility or division of substance abuse services facility" means a rehabilitation center, treatment program or other facility or part thereof established and operated under the professional jurisdiction and supervision of the office of alcoholism and substance abuse services, created pursuant to article 19 of the mental hygiene law. 15. "Real property" means lands and improvements and any fixtures, equipment and articles of personal property affixed to or used in connection therewith, lands under water, waterfront property, the water of any lake, pond or stream and any and all easements, franchises and hereditaments, corporeal or incorporeal, and every estate, interest and right therein, legal and equitable in lands or waters, and right, interest, privilege, easement and franchise relating to the same, including terms for years and liens by way of judgment, mortgage or otherwise. 16. "State" means the state of New York. 17. "State agency" means any officer, department, board, commission, bureau, division, public benefit corporation, agency or instrumentality of the state. 18-a. "State housing finance agency" means the New York state housing finance agency created by article three of the private housing finance law. 18-b. "State medical care facilities finance agency" means the New York state medical care facilities finance agency created by the New York state medical care facilities finance agency act. 19. "Voluntary agency" means a corporation organized under or existing pursuant to the not-for-profit corporation law providing or, pursuant to a written agreement with the appropriate commissioner, approved to provide housing that includes residences for persons with mental disabilities, or services benefitting or assisting in the care,
treatment, rehabilitation or maintenance of persons with mental disabilities, community mental health or residential services, community mental retardation services, or alcohol, substance-abuse, or chemical-dependency residential or non-residential treatment services, or for any combination of the foregoing. Notwithstanding any other provision of law to the contrary, voluntary agency shall also include any entity receiving financing, approvals or assistance of any form from the state housing finance agency or the state division of housing and community renewal for one or more integrated housing projects including projects serving persons with mental disabilities, which shall be approved by the appropriate commissioner. Such commissioner is hereby authorized to enter into any agreements necessary or useful for such projects, subject to the approval of the director of the budget. § 4. Facilities Development corporation. There is hereby created the facilities development corporation. The corporation shall be a corporate governmental agency constituting a public benefit corporation. From and after the effective date of the health care financing consolidation act, as provided in subdivision 1 of section 1699-f of the public authorities law, the corporation shall continue its corporate existence in and through the dormitory authority, and the dormitory authority shall succeed to all of the powers, duties and functions of the corporation. § 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 retardation 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 seventy-one 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 retardation 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 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 correctional services 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. 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 retardation 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 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 supercede 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. 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 of mental retardation and developmental disabilities, the director of the division of substance abuse services, or the director of the division of alcoholism and alcohol abuse, 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.
§ 6. Purposes of the corporation. The purposes of the corporation are: 1. To facilitate the timely provision, acquisition, construction, reconstruction, rehabilitation or improvement of health facilities for the prevention, diagnosis or treatment of human disease, pain, injury, deformity or physical condition, at a reasonable cost, in order to reduce the time lag between the determination of the need for such facilities and their actual availability for use. 2. To assist the department of health, which is the state agency having the central, comprehensive responsibility for development and administration of the state's policy with respect to hospital and related services, in the discharge of its duties and responsibilities under article twenty-eight of the public health law. 3. To provide mental hygiene facilities, other than community health and retardation facilities, for the care, maintenance and treatment of the mentally disabled, for research and training related thereto, and for the members of the staff of state institutions in the department and their families, to reduce the time lag between determination of need for such facilities and actual occupancy thereof, to expedite the construction, acquisition, reconstruction, rehabilitation or improvement of such facilities, to assure that the same are completed and ready for the purposes intended in the light of foreseeable needs, to assure exclusive possession, jurisdiction, control and supervision over all mental hygiene facilities in order to effectuate the aforesaid purposes and to make such facilities available to the appropriate commissioner of the department for use in the care, maintenance and treatment of the mentally disabled. 4. To provide community mental health and retardation facilities for the mentally disabled, for out-patient care and short-term in-patient care, including after care and diagnostic and rehabilitative services and training and research, for and at the request of cities and counties not wholly within a city, authorized to provide community mental health services in accordance with the provisions of article forty-one of the mental hygiene law, to reduce the time between determination of the need for such facilities and actual occupancy thereof, to expedite the construction, acquisition, reconstruction, rehabilitation or improvement of such facilities, to assure that the same are completed and ready for the purposes intended in the light of current and foreseeable needs, all as approved by the appropriate commissioner of the department. 5. To provide mental hygiene facilities to be made available under license or permit from the corporation to voluntary agencies at the request of the appropriate commissioner of the department in accordance with the provisions of this act for use in providing community mental health and retardation services and services in a residential care center for adults. 6. To provide office of alcoholism and substance abuse services facilities to be made available under license or permit from the corporation to voluntary agencies at the request of the office in accordance with the provisions of this act for use in the conduct of an alcoholism or substance abuse treatment program. 7. To provide facilities for the department of correctional services. § 7. Relationship with the state departments of health and mental hygiene. 1. The corporation shall upon request assist and cooperate with and make its personnel and services fully available to the commissioner of health and the department of health in matters relating to their responsibilities for the approval of construction of hospital and health facilities pursuant to article twenty-eight of the public health law. The corporation shall also consult with the department of health in matters relating to construction standards, including space
requirements, site plans, architectural concept, original furnishings, equipment, machinery and apparatus needed to furnish and equip such facilities. 2. The corporation shall assist and cooperate with and shall make its personnel and services fully available to the department and its commissioners in matters relating to their responsibilities for land acquisition and capital planning relating to mental hygiene facilities. During the course of construction, reconstruction, rehabilitation and improvement of mental hygiene facilities, the corporation shall consult with personnel of the department as the work progresses in matters relating to space requirements, site plans, architectural concepts, and substantial changes in the plans and specifications therefor, and in matters relating to the original furnishings, equipment, machinery and apparatus needed to furnish and equip mental hygiene facilities upon the completion of work. The department and its commissioners on their part shall assist and cooperate with the corporation in such matters. 3. The corporation shall also assist and cooperate with and shall make its personnel and services fully available to the office of alcoholism and substance abuse services in matters relating to the responsibilities of such office for site selection, acquisition of and capital planning relating to alcoholism or substance abuse facilities. During the course of construction, reconstruction, rehabilitation and improvement of such facilities the corporation shall consult with personnel of such office as the work progresses in matters relating to space requirements, site plans, architectural concepts and substantial changes in the plans and specifications therefor and in matters relating to the original furnishings, equipment, machinery, and apparatus needed to furnish and equip such facilities upon the completion of the work. The office of alcoholism and substance abuse services shall assist and cooperate with the corporation in such matters. § 7-a. Relationship with the state department of correctional services. The corporation, upon the issuance by the director of the budget of a certificate of approval segregating funds to pay for their corporate services, shall design, construct, reconstruct, rehabilitate, improve, and equip facilities for the department of correctional services or cause facilities to be designed, constructed, reconstructed, rehabilitated, improved, and equipped. The corporation shall also assist and cooperate with and shall make its personnel and services fully available to the commissioner of correctional services and the department of correctional services in matters relating to their responsibilities for site selection, acquisition of and capital planning relating to facilities for the department of correctional services. During the course of construction, acquisition, reconstruction, rehabilitation and improvement of such facilities, the corporation shall consult with the commissioner of correctional services and the personnel of the department of correctional services as the work progresses in matters relating to space requirements, site plans, architectural concept and substantial changes in the plans and specifications therefor and in matters relating to the original furnishings, equipment, machinery, and apparatus needed to furnish and equip such facilities upon the completion of the work. The commissioner of correctional services and the department of correctional services shall assist and cooperate with the corporation in such matters. § 8. Provisions relating to health facilities improvement program. 1. Municipal health facilities agency. The mayor or other chief executive of a municipality shall designate a department, board, commission, bureau, division or other agency or official to act on behalf of the municipality as a municipal health facilities agency in order to
accomplish the purposes of this section and section forty-seven-d of the private housing finance law. 2. Construction. a. The corporation shall, as agent of the state housing finance agency, construct a health facility or health facilities or cause such facility or facilities to be constructed, provided that: (i) The state housing finance agency or the state medical care facilities finance agency, as the case may be, and the municipality, with the approval of the governing body, have entered into an agreement which shall set forth the health facility or health facilities to be constructed, the total estimated cost of each such facility, the estimated date of completion thereof and the estimated annual rentals to be paid by the municipality therefor. The agreement shall contain such other terms and conditions as may be agreed upon and shall be subject to the approval of the commissioner of health. Nothing herein contained shall preclude the corporation from being a party to any such agreement. (ii) The commissioner of health shall have certified that there has been compliance with all requirements of article twenty-eight of the public health law. b. When two or more municipalities act jointly to provide a health facility, the agreement referred to in subparagraph (i) of paragraph a of this subdivision shall require the approval of the governing body of each municipality and shall specify the rights, duties and obligations of each municipality. c. The corporation shall prepare separate specifications for and solicit separate and independent bids on and award separate contracts on the subdivisions of work to be performed specified in section one hundred thirty-five of the state finance law, but the corporation in its discretion may assign such contracts for supervision to the successful bidder for the remaining work to be performed at the time the contracts for the particular health facility are awarded. Each contract for the construction of a health facility may include a provision that the architect who designed the facility, or an architect or engineer retained or employed specifically for the purpose of supervision, shall supervise the work to be performed through to completion and shall see to it that the materials furnished and the work performed are in accordance with the drawings, plans, specifications and contracts therefor. d. All contracts which are to be awarded pursuant to this subdivision shall be awarded by public letting in accordance with the following provisions, notwithstanding the provisions of section one hundred thirty-six, one hundred thirty-nine or one hundred forty of the state finance law, except that the corporation in its discretion may enter into a contract for such purposes without public letting where the estimated expense thereof is less than ten thousand dollars. (i) If the contracts are to be publicly let, the corporation shall advertise the invitation to bid in a newspaper published in the municipality in which the health facility project is situated and in such other newspapers as will be most likely in its opinion to give adequate notice to contractors of the work required and of the invitation to bid. The invitation to bid shall contain such information as the corporation shall deem appropriate and a statement of the time and place where all bids received pursuant to such notice will be publicly opened and read. (ii) The corporation shall not award any contract after public bidding except to the lowest bidder who in its opinion is qualified to perform the work required and is responsible and reliable. The corporation may, however, reject any or all bids, again advertise for bids, or waive any informality in a bid if it believes that the public interest will be
promoted thereby. The corporation may reject any bid if in its judgment the business and technical organization, plant, resources, financial standing or business experience of the bidder, compared with the work to be performed, justify such rejection. (iii) The invitation to bid and the contract awarded shall contain such other terms and conditions and such provisions for penalties as the corporation may deem desirable. (iv) The corporation shall require such deposits, bonds and security in connection with the submission of bids, the award of contracts and the performance of work as it shall determine to be in the public interest and for the protection of the state housing finance agency or the state medical care facilities finance agency, as the case may be, and the municipality. (v) The directors of the corporation shall determine when minor work of construction, reconstruction, alteration or repair of any health facility may be done by special order. Special orders for such work shall be short-form contracts. No work shall be done by special order in an amount in excess of twenty thousand dollars and a bond shall not be required for special orders. No work shall be done by special order unless a diligent effort has been made to obtain competition sufficient to protect the public interest prior to selecting the contractor to perform the work. Notwithstanding any other provision of this paragraph work done by special order under this subparagraph may be advertised through the regular public notification service of the office of general services or the state register. At least five days shall elapse between the first publication of such public notice and the date so specified for the public opening of bids. All payments on special orders shall be made on the certificate of the directors of the corporation. All special orders shall contain a clause that the special order shall only be deemed executory to the extent of the moneys available and no liability shall be incurred by the corporation or the state beyond the moneys available for the purpose. § 8-A. Provisions relating to agreements with certain non-profit corporations. 1. The corporation is authorized to enter into an agreement, at the request of the commissioner of health, with corporations which are eligible borrowers as defined in article 28-B of the public health law providing for such services and such compensation as shall be approved by the commissioner of health incident to an application for a mortgage loan pursuant to the provisions of article 28-B of the public health law. As a condition prerequisite to any such agreement, the commissioner of health shall have certified as to the public need for the proposed facility. 2. The corporation is authorized to enter into an agreement, with the approval of the commissioner of health, with a non-profit corporation organized under the laws of this state providing for the services of the corporation to be made available to such non-profit corporation incident to the design and construction of a facility or facilities included within the meaning of the word "hospital", as defined in article twenty-eight of the public health law, to be financed by means other than pursuant to article 28-B of such law. Such agreement shall provide that all such services and expenses of the corporation with respect to such facility or facilities shall be at the sole cost and expense of such non-profit corporation. As a prerequisite to any such agreement the commissioner of health shall have certified as to the public need for the proposed facility or facilities. § 8-b. Provisions relating to agreements with certain municipalities. 1. The corporation is authorized to enter into an agreement with a municipality providing for the design by the corporation of a health
facility or health facilities for such municipality at the sole cost and expense of the municipality. Such agreement may also provide for the construction, reconstruction, rehabilitation and improvement of such health facility or health facilities by the corporation at the sole cost and expense of the municipality or of any agency or instrumentality thereof. A municipality is hereby authorized to enter into such agreements with the corporation and to provide for the payment to the corporation of all expenses incurred at such times and in such amounts as shall be set forth in the agreement, notwithstanding the provisions of any general, special or local law or of any charter. The agreement shall contain such other terms and conditions as may be agreed upon by the corporation and the municipality. The corporation shall enter into an agreement with a municipality prior to the commencement of any corporation services. No agreement entered into between the facilities development corporation and a municipality pursuant to this section shall be effective until the director of the budget has determined that the total estimated charge to be collected by the corporation from the municipality is fair and reasonable in relationship to the estimated total project cost and also that sufficient provisions exist to insure the collection of such charge by the corporation from the municipality. The corporation shall by regulation prescribe a procedure or procedures for the application by a municipality to the corporation for its assistance and the corporation's procedure or procedures for the design, construction, reconstruction, rehabilitation and improvement of a health facility or health facilities. Any such regulation shall be submitted to the director of the budget for his approval prior to its effectiveness. 2. In the design, construction, reconstruction, rehabilitation and improvement of a health facility pursuant to an agreement entered into as provided in subdivision one of this section, the corporation shall be governed by the applicable provisions relating to the design and construction of health facilities as set forth in subparagraphs c and d of paragraph (ii) of subdivision two of section eight of this act. § 9. Provisions relating to mental hygiene facilities improvement program and monies thereof. 1. Capital construction planning, construction standards, design and municipal regulations. a. The appropriate commissioner or director of the department shall cause to be prepared, with the assistance of the corporation, the commissioner of general services and the division of the budget, proposed standards for all mental hygiene facilities or classes of mental hygiene facilities to be financed, refinanced, designed, constructed, reconstructed, rehabilitated or improved pursuant to contracts executed by the corporation, the commissioner of general services, the state housing finance agency or the medical care facilities finance agency, other than mental hygiene facilities owned or leased by one or more voluntary agencies that are to be financed, refinanced, designed, constructed, reconstructed, rehabilitated or improved pursuant to any such contract. The proposed standards may, in the discretion of the appropriate commissioner or director of the department, include, among other things, provisions relating to the quality and type of materials to be used in such facilities, provisions for safety, fire protection, health and sanitation, provisions for the installation of fixtures, furnishings, equipment, machinery and apparatus in such facilities, and construction features deemed by the appropriate commissioner or director of the department to be desirable for the care, maintenance and treatment of the mentally disabled or for the use of staff personnel at mental hygiene facilities and their families. The proposed standards shall be forwarded to the governor for his approval, disapproval or modification. The proposed standards shall
be deemed adopted, with or without modifications as the case may be, upon written approval by the governor. Such standards, in the form adopted, shall be filed by the appropriate commissioner or director of the department with the secretary of state in the manner provided by section one hundred two of the executive law. Changes in the construction standards so adopted may from time to time be formulated and proposed, approved, disapproved or modified, adopted and filed in the same manner as the original standards. b. The directors of the corporation shall prepare or cause to be prepared for the state housing finance agency or the medical care facilities finance agency, within the amounts appropriated therefor or otherwise available, the building plans, the exterior drawings or models displaying the architectural concept of each mental hygiene facility thereafter to be constructed, reconstructed, rehabilitated or improved, and the detailed plans and specifications for all such construction, reconstruction, rehabilitation and improvement work to be performed, all of which shall be subject to the separate approval of the appropriate commissioner of the department and, in the case of community mental health and retardation facilities, of the governing body of the city or county or of such officer, department, agency or community mental health board as may be designated by such governing body for the purpose of such approval. The directors of the corporation, except in the case of community mental health and retardation facilities, may cause the building plans, drawings, models and detailed plans and specifications for such work to be prepared under the direction of the commissioner of general services in accordance with the terms of any agreement entered into between the corporation and such commissioner pursuant to subdivision two of this section. In the case of community mental health and retardation facilities, the directors of the corporation may cause such building plans, drawings, models and detailed plans and specifications for such work to be prepared by its own employees, or on a contract basis, or by agreement with a city or county or with any state department or agency authorized to perform such work. The detailed plans and specifications for any such work to be performed pursuant to a contract shall comply with the construction standards in effect at the time the contract is executed. Subject to the terms of any agreement entered into between the corporation and the commissioner of general services pursuant to subdivision two of this section and between the corporation and the state housing finance agency or the medical care facilities finance agency pursuant to such section, the directors of the corporation may from time to time modify, or authorize modifications to, such detailed plans and specifications provided (i) that the plans and specifications as so modified shall comply with the construction standards, if any, adopted pursuant to paragraph a of this subdivision and in effect at the time of the modification, and (ii) that such modifications, if substantial, are made with the separate approval of the appropriate commissioner of the department and, in the case of community mental health and retardation facilities, of such governing body of the city or county or of such officer, department, agency or community mental health board as may be designated by such governing body for the purpose of such approval, and (iii) that in the