N.Y.
Private Housing Finance Law Section 47-C
Special provisions related to certain bonds and notes
1.
Any public corporation or officer responsible for the acquisition of real property or the planning, supervision or administration of facilities thereon which may be constructed, acquired, reconstructed, rehabilitated or improved by the agency pursuant to this article is hereby authorized for and on behalf and in the name of the people of the state of New York, to execute and deliver to the agency, for such consideration, if any, as may be determined by such public corporation or officer and the agency, but not to exceed the cost of acquisition thereof and the cost of improvements thereon, a lease for a term not exceeding fifty years or a quitclaim deed conveying to the agency all the right, title and interest of the people of the state of New York in and to any of the lands acquired by such public corporation or officer for such facilities, and in and to any of the improvements thereon, for the purpose of constructing, reconstructing, rehabilitating or improving thereon one or more facilities pursuant to this article for lease or sublease to any such public corporation or officer, in accordance with the terms of an agreement entered into among them in accordance with law. The agency is hereby authorized to accept any such lease or conveyance, to lease or sublease such lands, improvements and facilities to such public corporation or officer, and to hold the same subject to the terms of any such lease, conveyance, sublease or other agreement, and such public corporation or officer is hereby authorized, with the approval of the governor, or where so designated by the governor for such purpose, the director of the budget, to lease or sublease any such lands or improvements or the facilities constructed, reconstructed, rehabilitated or improved thereon pursuant to this article or other provisions of law, and to hold such lands, improvements and facilities subject to the terms of any such lease, sublease or other agreement.2.
a. In the event that the agency shall fail, within five years from the date of a lease or conveyance authorized pursuant to subdivision one of this section, to construct, reconstruct, rehabilitate or improve the facility or facilities thereon for which the conveyance was made, as provided for in a lease, sublease or other agreement entered into with such public corporation or officer, or in the event that such facility or facilities shall cease to be used for the purposes intended, then and in either event but subject to the terms of any lease, sublease or other agreement undertaken by the agency, such lands, and the improvements and facilities thereon, shall revert to the people of the state of New York with right of re-entry thereupon, and such lease or deed shall be made subject to such conditions; provided, however, that as a condition precedent to the exercise of such right of re-entry the state of New York, or such public corporation or officer, shall pay to the agency an amount equal to the purchase price of such lands and improvements, the depreciated cost of any facility or facilities constructed, reconstructed, rehabilitated or improved thereon, and all other costs of the agency incident to the acquisition of such lands and the financing of construction, reconstruction, rehabilitation or improvement relating to such facility or facilities, all as provided in the aforesaid lease, sublease or other agreement entered into with such public corporation or officer.b.
In the event that the agency shall determine that any portions of the lands leased or conveyed pursuant to subdivision one hereof are in excess of the lands needed to construct, reconstruct, rehabilitate or improve the facility or facilities thereon for which the conveyance was made, as provided in a lease, sublease or other agreement entered into with such public corporation or officer, the agency may terminate its lease with respect to such excess portions of such lands or reconvey such excess portions to the people of the state of New York; provided, however, that the state of New York or such public corporation or officer shall pay to the agency an amount equal to the consideration, if any, paid by the agency to such public corporation or officer allocable to such excess lands and such other costs of the agency as are incident to the acquisition of such excess lands, all as may be approved by such public corporation or officer and the agency. Any monies so paid to the agency shall be used and applied, subject to the provisions of any contract with noteholders and bondholders, for the sole purpose of paying costs and expenses of the agency incident to the financing of the facility or facilities to be constructed, reconstructed, rehabilitated or improved on such other portions of the land as shall have been leased or conveyed to the agency pursuant to subdivision one hereof.3.
The attorney general shall pass upon the form and sufficiency and manner of execution of any deed of conveyance and of any lease or sublease of lands authorized to be given under subdivision one of this section and the same shall not be effective unless so approved by him.4.
The cost of construction, acquisition, reconstruction, rehabilitation or improvement of facilities undertaken by the agency pursuant to this article may include the cost of acquisition of any land and improvements leased or conveyed to the agency in accordance with subdivision one of this section and the cost of the original furnishings, equipment, machinery and apparatus determined by the responsible public corporation or officer to be needed to furnish and equip such facilities upon the completion of work. The agency shall have power to acquire or lease and to hold land and improvements required for the construction, acquisition, reconstruction, rehabilitation or improvement of facilities undertaken by the agency pursuant to this article and to provide the original furnishings, equipment, machinery and apparatus determined by the responsible public corporation or officer to be needed to furnish and equip such facilities upon the completion of work and to issue its bonds and notes to provide sufficient funds to pay the cost thereof.5.
Any public corporation or officer referred to in subdivision one of this section is hereby authorized and empowered, in connection with any lease, sublease or other agreement with the agency to which such public corporation or officer is a party, and subject to such agreements with third parties as may then exist, to:(a)
pledge or assign to the agency all or any portion of the revenues and monies received or to be received by such public corporation or officer, which may be available for the purpose of paying rentals for the use of the facilities constructed, acquired, reconstructed, rehabilitated or improved or to be constructed, acquired, reconstructed, rehabilitated or improved under such agreement, so that the payment of such rentals may be fully secured and protected; provided, however, that such pledge or assignment shall not extend to appropriations or advances from the state except appropriations or advances made specifically for the purpose of paying all or any part of such rentals;(b)
use and dispose of such revenues and monies, or any portions thereof, for the purpose of defraying, in whole or in part, (1) the cost of acquiring any real property for the purpose of constructing, acquiring, reconstructing, rehabilitating or improving facilities thereon which may be constructed, acquired, reconstructed, rehabilitated or improved by the agency pursuant to this article, (2) the cost of financing the construction, acquisition, reconstruction, rehabilitation or improvement of such facilities, and (3) the cost of acquiring the original furnishings, equipment, machinery and apparatus needed to furnish and equip such facilities upon the completion of work;(c)
set aside rental reserves and to agree to the maintenance, regulation and disposition thereof;(d)
agree to limitations on the purposes to which the proceeds of sale of agency notes or bonds may be applied and to the pledging of such proceeds to secure the payment of agency notes or bonds or of any issue thereof;(e)
agree to limitations on the making of additional leases, subleases or agreements with the agency or with others, and the terms upon which such additional leases, subleases or agreements may be made;(f)
recognize and give effect to such assignment, upon receipt of any notice of assignment by the agency of any such lease, sublease or other agreement with the agency, or of any of its rights under such lease, sublease or other agreement, and to pay the assignee thereof rentals or other payments then due or which may become due under any such lease, sublease or other agreement which has been so assigned by the agency; and(g)
agree to any other matters, of like or different character, which in any way affect the security or protection of the rental payments required to be made under the terms of such lease, sublease or other agreement with the agency.6.
(a) Any state university facility, as defined in § 47-A (State university construction bonds and notes)section forty-seven-a of this article, which has been constructed, acquired, reconstructed, rehabilitated or improved, in whole or in part, out of monies advanced to the state university of New York, the state university construction fund, the state office of general services or the dormitory authority since August first, nineteen hundred sixty-two pursuant to appropriations or reappropriations as advances from the capital construction fund, and the lands upon which such a facility is located, may be leased or conveyed to the agency by the state university of New York, the state university construction fund or the dormitory authority in accordance with the provisions of subdivisions one through five of this section, notwithstanding that the construction, acquisition, reconstruction, rehabilitation or improvement of such facility may have been completed by the state university of New York, the state university construction fund, the dormitory authority or the state office of general services, or may have been undertaken or may hereafter be undertaken by the dormitory authority under agreement with the state university of New York or the state university construction fund.(b)
Subject to such agreements with third parties as may then exist, the state university of New York and the state university construction fund are hereby authorized and empowered to enter into leases, subleases and other agreements with the agency with respect to any state university facility described in paragraph (a), and the lands upon which such a facility is or may be located, in accordance with the provisions of Education Law § 378 (Lease agreements)section three hundred seventy-eight of the education law and the provisions of subdivisions one through five of this section; and the agency is hereby authorized and empowered to accept any lease or conveyance of any such state university facility, and the lands upon which such a facility is or may be located, to acquire, construct, reconstruct, rehabilitate or improve any such facility and to issue bonds and notes to provide sufficient funds therefor in accordance with the provisions of § 47-A (State university construction bonds and notes)section forty-seven-a of this article and the provisions of subdivisions one through five of this section.(c)
Any mental hygiene facility, as defined in § 47-B (Mental hygiene improvement bonds and notes)section forty-seven-b of this article, which has been constructed, acquired, reconstructed, rehabilitated or improved, in whole or in part, out of monies advanced or deemed to have been advanced to the health and mental hygiene facilities improvement corporation, the state department of mental hygiene or the office of general services, since April first, nineteen hundred sixty-three pursuant to appropriations or reappropriations as advances from the capital construction fund, and the lands upon which such a facility is located, may be leased or conveyed to the agency by the health and mental hygiene facilities improvement corporation or the commissioner of mental hygiene in accordance with the provisions of subdivisions one through five of this section, notwithstanding that the construction, acquisition, reconstruction, rehabilitation or improvement of such facility may have been completed by the health and mental hygiene facilities improvement corporation, the state department of mental hygiene or the office of general services.(d)
Subject to such agreements with third parties as may then exist, the health and mental hygiene facilities improvement corporation is hereby authorized and empowered to enter into leases, subleases and other agreements with the agency with respect to any mental hygiene facility described in paragraph (c), and the lands upon which such a facility is or may be located, in accordance with the provisions of subdivision four of section nine of the health and mental hygiene facilities improvement act and the provisions of subdivisions one through five of this section; and the agency is hereby authorized and empowered to accept any lease or conveyance of any such mental hygiene facility, and the lands upon which such a facility is or may be located, to acquire, construct, reconstruct, rehabilitate or improve any such facility, and to issue bonds and notes to provide sufficient funds therefor in accordance with the provisions of § 47-B (Mental hygiene improvement bonds and notes)section forty-seven-b of this article and the provisions of subdivisions one through five of this section.7.
a. The agency shall have the power to acquire by lease or deed from the health and mental hygiene facilities improvement corporation any real property acquired by the corporation pursuant to the provisions of subdivision six of section nine of the facilities development corporation act (i) for the purpose of constructing, reconstructing, rehabilitating or improving thereon one or more community mental health and developmental disabilities facilities or (ii) for the purpose of financing the acquisition, construction, reconstruction, rehabilitation or improvement thereon of one or more community mental health and developmental disabilities facilities, pursuant to the provisions of this article and the facilities development corporation act. The agency is hereby authorized to lease or sublease such real property and facilities thereon to the corporation for the purpose of making the same available to a city or a county not wholly within a city, for use and occupancy in accordance with the provisions of a lease, sublease or other agreement between the corporation and such city or county.b.
In the event that the agency shall fail, within five years after the date of a lease or conveyance of such real property from such city or county to the corporation, to construct, reconstruct, rehabilitate or improve the community mental health and developmental disabilities facility or facility thereon for which such lease or conveyance was made, as provided for in a lease, sublease or other agreement entered into by such city or county and the corporation, then, subject to the terms of any lease, sublease or other agreement undertaken by the agency, such real property and any facilities thereon shall revert to the corporation with right of re-entry thereupon, and such lease or deed shall be made subject to such condition of reverter and re-entry; provided, however, that as a condition precedent to the exercise of such right of re-entry the corporation shall pay to the agency an amount equal to the sum of the purchase price of such real property, the depreciated cost of any community mental health and developmental disabilities facility or facilities constructed, reconstructed, rehabilitated or improved thereon and all other costs of the agency incident to the acquisition of such lands and the financing of construction, reconstruction, rehabilitation or improvement relating to such community mental health and developmental disabilities facility or facilities, all as provided in the aforesaid lease, sublease or other agreement entered into with the corporation.c.
No real property or interest therein shall be acquired by the agency pursuant to this subdivision unless the title thereto shall be approved by the attorney general.d.
The attorney general shall pass upon the form and sufficiency and manner of execution of any deed of conveyance and of any lease or sublease of real property authorized to be acquired by the agency pursuant to this subdivision and the same shall not be effective unless such deed, lease or sublease shall be so approved by him.
Source:
Section 47-C — Special provisions related to certain bonds and notes, https://www.nysenate.gov/legislation/laws/PVH/47-C (updated Jul. 29, 2022; accessed Oct. 26, 2024).
