§ 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 developmental disabilities 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 developmental
disabilities 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 developmental disabilities 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 developmental disabilities 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 event an
amount for contingencies is appropriated or advanced to the corporation
to pay the added costs during the then current state fiscal year of all
modifications made in the course of construction, reconstruction,
rehabilitation and improvement of mental hygiene facilities, no such
modifications shall be made or authorized in such fiscal year without
the approval of the director of the budget unless the cost thereof shall
be less than five percentum of the total estimated cost of the facility
as set forth in the budget bill referred to in paragraph a of
subdivision two of this section, but in no event shall any such
modification be made or authorized in such fiscal year if the cost
thereof, plus the cost of all modifications theretofore made or
authorized during the same state fiscal year, would exceed the amount
for contingencies appropriated or advanced for the purpose of such
modifications, and (iv) that in the event an amount for contingencies is
not appropriated for the purpose of such modifications, no such
modification involving an estimated expense of ten thousand dollars or
more shall be made or authorized without the prior approval of the
director of the budget.

c. In the design, construction, acquisition, reconstruction,
rehabilitation, alteration and improvement of mental hygiene facilities
to be made available under license or permit from the corporation to
voluntary agencies for use in providing community mental health and
developmental disabilities services, the corporation shall be governed
by the provisions of this act relating to the design and construction of
mental hygiene facilities provided, however, that the program for each
such facility shall have been prepared under the supervision of the
appropriate commissioner of the department pursuant to the mental
hygiene law at the request of such voluntary agency and with the
approval of the community mental health board established pursuant to
article forty-one of title E of the mental hygiene law.

d. In the design, construction, acquisition, reconstruction,
rehabilitation, alteration and improvement of alcoholism or substance
abuse facilities to be made available under license or permit from the
corporation to voluntary agencies for use in the conduct of an
alcoholism or substance abuse treatment program, the corporation shall
be governed by the provisions of this act relating to the design and
construction of alcoholism or substance abuse facilities provided that
the program for such facility shall have been approved by the
appropriate division of the office of alcoholism and substance abuse at
the request of the local agency.

e. No county, city, town or village shall have power to modify or
change the plans or specifications for mental hygiene facilities to be
constructed, reconstructed, rehabilitated or improved pursuant to this
act, or the construction, plumbing, heating, lighting or other
mechanical branch of work necessary to complete the work in question,
nor to require that any person, firm or corporation employed on any such
work shall perform any such work in any other or different manner than
that provided by such plans and specifications, nor to require that any
such person, firm or corporation obtain any other or additional
authority or permit from such county, city, town or village as a
condition of doing such work, nor shall any condition whatever be
imposed by any such county, city, town or village in relation to the
work being done pursuant to this act, but such work shall be under the
sole control of the supervising architect or engineer in accordance with
the drawings, plans, specifications and contracts in relation thereto;
and the doing of any such work for the corporation by any person, firm
or corporation in accordance with the terms of such drawings, plans,
specifications or contracts shall not subject said person, firm or
corporation to any liability or penalty, civil or criminal, other than
as may be stated in such contracts or incidental to the proper
enforcement thereof.

2. Letting of construction contracts. a. The corporation shall design,
construct, acquire, reconstruct, rehabilitate and improve all mental
hygiene facilities, or cause the same to be designed, constructed,
acquired, reconstructed, rehabilitated and improved either on its own
behalf or as agent for the state housing finance agency or the medical
care facilities finance agency, except that in the case of all mental
hygiene facilities owned or leased by one or more voluntary agencies
that are to be designed, constructed, reconstructed, rehabilitated and
improved under any lease, sublease, loan or other financing agreement
entered into with such voluntary agency, the same may be designed,
constructed, acquired, reconstructed, rehabilitated and improved by such
voluntary agencies, provided that legislation or appropriations
authorizing the same (i) have been requested by the appropriate
commissioner or director of the department, (ii) have been recommended
by the governor in a budget bill, which is approved by the legislature
for the fiscal year for which the recommendation was made which
specifies the mental hygiene facilities to be designed, constructed,
acquired, reconstructed, rehabilitated or improved, the total estimated
cost for each such facility, and the date when it is desired that the
design, construction, acquisition, reconstruction, rehabilitation or
improvement of each mental hygiene facility referred to therein be
completed. All such work shall be performed in such manner as to assure
completion, so far as practicable, by the dates specified.

b. (i) The corporation may design, construct, reconstruct,
rehabilitate and improve a mental hygiene facility, other than a
community mental health and developmental disabilities facility, whether
as principal or as agent for the state housing finance agency or the
medical care facilities finance agency, only by agreement with the
commissioner of general services, except that in the case a mental
hygiene facility owned or leased by a voluntary agency that is to be
designed, constructed, reconstructed, rehabilitated and improved under
any lease, sublease, loan or other financing agreement entered into with
such voluntary agency, or jointly with such voluntary agency and one or
more voluntary agencies that operate such facility the same may be
designed, constructed, reconstructed, rehabilitated and improved by such
voluntary agencies, and except that:

(a) if the commissioner of general services for any reason declines to
enter into an agreement with the corporation for such purpose; or

(b) if the commissioner of general services fails to enter into an
agreement with the corporation for such purpose within forty-five days
after receiving notification from the directors of the corporation of
the work to be performed; or

(c) if the commissioner of general services fails to advertise such
work for bids within one year after entering into an agreement with the
corporation for the performance of such work; or

(d) if the estimated expense of any such work is less than ten
thousand dollars, the corporation may construct, reconstruct,
rehabilitate and improve a mental hygiene facility by its own employees
or by contract awarded pursuant to paragraph g of this subdivision.

(ii) The corporation, with the approval of the director of the budget,
may construct, reconstruct, rehabilitate and improve a community mental
health and developmental disabilities facility by its own employees, by
agreement with a city or county or with any state department or agency
authorized to perform such work, or by contract awarded pursuant to
paragraph g of this subdivision. All contracts awarded by a city or
county on behalf of the corporation shall be awarded pursuant to
paragraph g of this subdivision, notwithstanding any provision of any
general, special or local law or any charter.

c. In the event that the commissioner of general services enters into
an agreement with the corporation for the construction, reconstruction,
rehabilitation or improvement of a mental hygiene facility, the work
required shall be performed in accordance with the terms of such
agreement and in accordance with the provisions of paragraphs d and e of
this subdivision, either by employees of the office of general services
or by contract or contracts awarded pursuant to the public buildings
law, the public works law and the state finance law.

d. No contract for the construction, reconstruction, rehabilitation or
improvement of a mental hygiene facility shall be awarded by any letting
agency unless (i) the appropriate commissioner or director of the
department shall have separately approved the architectural concept and
the detailed plans and specifications for the facility to be
constructed, reconstructed, rehabilitated or improved and (ii) the
directors of the corporation, whether as principals or as agents for the
state housing finance agency or the medical care facilities finance
agency, shall have approved the proposed terms of such contract,
including the detailed plans and specifications for the facility.
Provided, however, the corporation shall only enter into any lease,
sublease, loan or other financing agreement with a voluntary agency
under which a mental hygiene facility owned or leased by such a
voluntary agency is to be designed, acquired, constructed,
reconstructed, rehabilitated or improved when the appropriate
commissioner or director shall have approved the plans for such a
facility. The form and content of such approval shall be approved by the
division of budget however such agency approval shall allow maximum
access to financing for design, acquisition, construction,
reconstruction, rehabilitation and improvement, and shall be timely to
reduce the need for utilization of short term commercial loans by
voluntary agencies for services eligible for financing under this
program. The medical care facilities financing agency shall advise the
director of the budget on the form of such approval.

e. Each contract for the construction, reconstruction, rehabilitation
or improvement of a mental hygiene facility shall 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
contract therefor.

f. If the corporation is the letting agency, whether as principal or
as agent for the state housing finance agency, the directors of 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 directors of the
corporation may in their discretion assign such contracts for
supervision to the successful bidder for the remaining work to be
performed at the time the contracts for the particular mental hygiene
facility are awarded.

g. All contracts which are to be awarded pursuant to this paragraph
shall be awarded by public letting in accordance with the following
provisions, notwithstanding any contrary provision of section one
hundred thirty-six, one hundred thirty-nine or one hundred forty of the
state finance law, except that in the discretion of the directors of the
corporation, a contract may be entered into for such purposes without
public letting where the estimated expense thereof is no more than
eighty thousand dollars:

(i) If contracts are to be publicly let, the directors of the
corporation shall advertise the invitation to bid in a newspaper
published in the county of Albany and in such other newspapers as will
be most likely in their 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 directors of 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 directors of the corporation shall not award any contract
after public bidding except to the lowest bidder who in their opinion is
qualified to perform the work required and is responsible and reliable.
The directors of the corporation may, however, reject any or all bids,
again advertise for bids, or waive any informality in a bid if they
believe that the public interest will be promoted thereby. The directors
of the corporation may reject any bid if in their 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 directors of the corporation may deem desirable.

(iv) The directors of 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 they shall determine to be
in the public interest and for the protection of the state and affected
state agencies, including the corporation.

h. The directors of the corporation shall determine when minor work of
construction, reconstruction, alteration or repair of any mental hygiene
facility may be done by special order. Special orders for such work
shall be short-form contracts approved by the attorney general and by
the comptroller. 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 the
directors have presented to the comptroller evidence that they have made
a diligent effort to obtain competition sufficient to protect the
interests of the state prior to selecting the contractor to perform the
work. Notwithstanding the provisions of paragraph g of this subdivision,
work done by special order under this paragraph 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. The directors may also authorize the
corporation to enter into special order contracts using bids advertised
for, received and opened by any office of the department, in compliance
with this act and all other applicable laws, and transmitted to the
corporation. All payments on special orders shall be made on the
certificate of the directors of the corporation and audited and approved
by the state comptroller. 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 state beyond
the moneys available for the purpose.

3. Resources of the corporation. a. Subject to the provisions of this
act, the directors of the corporation shall receive, accept, invest,
administer, expend and disburse for its corporate purposes, other than
for the purposes of any health facilities improvement program, (i) all
payments made on or after January 1, 1964, for the care, maintenance and
treatment of patients in every mental hygiene facility, other than a
community mental health and developmental disabilities facility or a
mental hygiene facility made available under license or permit from the
corporation to a voluntary agency for use in providing community mental
health and developmental disabilities services, or an office of
addiction services and supports facility made available under license or
permit from the corporation to a voluntary agency for use in the conduct
of an alcoholism or substance abuse treatment program, (ii) all payments
made to the corporation by a lessee or permittee as rentals, permit fees
or otherwise under any lease, sublease, permit or agreement undertaken
with respect to a community mental health and developmental disabilities
facility or current or former mental hygiene facility or from a
voluntary agency with respect to a mental hygiene facility made
available under lease, license or permit from the corporation to a
voluntary agency, and (iii) all payments made to the corporation for the
purchase of real property held by the corporation for the use of the
department, other than payments derived from New York state medical care
facilities finance agency financing or refinancing of the design,
construction, acquisition, reconstruction, rehabilitation, improvement
or renovation of state operated mental hygiene facilities, and may
receive, accept, invest, administer, expend and disburse for its
corporate purposes, other than for the purposes of any health facilities
improvement program, appropriations or advances from the capital
projects fund and the state purposes account of the general fund of the
state, and other revenues and monies made available or to be made
available to the corporation from any or all sources, including gifts,
grants, loans and payments from the federal government, any state
agency, any county, city, town or village, any private foundation,
organization or individual, or any other source, for the construction,
acquisition, reconstruction, rehabilitation and improvement of mental
hygiene facilities, and for the maintenance and repair of such
facilities.

b. All monies of the corporation received or accepted pursuant to
paragraph a of this subdivision, other than appropriations and advances
from the state and except as otherwise authorized or provided in this
section, shall be paid to the commissioner of taxation and finance as
agent of the corporation, who shall not commingle such monies with any
other monies. Such monies shall be deposited in two or more separate
bank accounts. One of such accounts, to which shall be credited (i) all
payments made on or after January 1, 1964, for the care, maintenance and
treatment of patients in every mental hygiene facility, other than a
community mental health and developmental disabilities facility, (ii)
all payments made to the corporation as rentals, lease payments, permit
fees or otherwise under any lease, sublease or agreement undertaken with
respect to a community mental health and developmental disabilities
facility or a current or former mental hygiene facility, (iii) all
payments made to the corporation for the purchase of real property held
by the corporation for the use of the department, other than payments
derived from New York state medical care facilities finance agency
financing or refinancing of the design, construction, acquisition,
reconstruction, rehabilitation, improvement or renovation of state
operated mental hygiene facilities, (iv) all income from investments and
(v) all monies received or to be received for the purposes of such
account on a recurring basis, shall be denominated the "mental hygiene
facilities improvement fund income account". The monies in any account
shall be paid out on checks signed by the commissioner of taxation and
finance on requisition of the chairman of the corporation or of such
other officer or employee or officers or employees as the corporation
shall authorize to make such requisition. All deposits of such money
shall, if required by the commissioner of taxation and finance or the
directors of the corporation, be secured by obligations of the United
States or of the state of a market value equal at all times to the
amount of the deposit and all banks and trust companies are authorized
to give such security for such deposits. Any moneys of the corporation
not required for immediate use or disbursement may, at the discretion of
the corporation, be invested by the commissioner of taxation and finance
in accordance with the provisions of section 98-a of the state finance
law. The mental hygiene facilities improvement fund and the income
account therein shall remain in existence until terminated by the
corporation by written notice to the commissioner of taxation and
finance. Any moneys on deposit in the mental hygiene facilities
improvement fund or the income account therein upon the termination of
said fund and account shall be transferred by the commissioner of
taxation and finance to the mental health services fund. The corporation
shall not terminate the mental hygiene facilities improvement fund and
the income account therein until all mental health services facilities
bonds issued pursuant to: (i) the New York state medical care facilities
finance agency act; (ii) article five-C of the state finance law; and
(iii) article five-F of the state finance law and payable from the
income account as described in paragraph g of this subdivision are no
longer outstanding.

c. Subject to the terms of any lease, sublease or agreement undertaken
by the corporation, any such monies of the corporation, not required for
immediate use may, at the discretion of the corporation, be invested by
the commissioner of taxation and finance in obligations of the United
States or the state or obligations the principal and interest of which
are guaranteed by the United States or the state.

d. No lease, sublease or other agreement relating to an alcoholism or
substance abuse facility shall be undertaken by the corporation pursuant
to this subdivision unless the appropriate division of the office of
alcoholism and substance abuse shall have approved the terms thereof.

e. The directors of the corporation shall at all times maintain on
deposit in the mental hygiene facilities improvement fund income account
the aggregate amount of money needed by the corporation during the next
succeeding twelve calendar months to comply in full with all obligations
of the corporation under the terms of every lease, sublease or agreement
undertaken by the corporation which is then in effect, including without
limitation by the specification thereof, (i) the amount needed to make
rental payments thereunder during such year, and (ii) the amount needed
to establish and maintain reserves thereunder during such year provided,
however, that the provisions of this paragraph shall not apply with
respect to agreements entered into pursuant to section nine-a of the New
York state medical care facilities finance agency act.

f. The directors of the corporation shall from time to time, but in no
event later than the fifteenth day of each month pay over to the
commissioner of taxation and finance and the state comptroller for
deposit in the mental health services fund, all monies of the
corporation in excess of the aggregate amount of money required to be
maintained on deposit in the mental hygiene facilities improvement fund
income account pursuant to paragraphs e and g of this subdivision. Prior
to making any such payment, the chairman of the corporation shall, on
behalf of the directors, make and deliver to the governor and the
director of the budget his certificate stating the aggregate amount to
be maintained on deposit in the mental hygiene facilities improvement
fund income account to comply in full with the provisions of paragraphs
e and g of this subdivision.

g. (1) In addition to the amount required to be maintained by
paragraph e of this subdivision, there shall be accumulated and set
aside in each month in the mental hygiene facilities improvement fund
income account, all receipts associated with loans, leases and other
agreements with voluntary agencies. The corporation shall provide the
amount of such receipts to be set aside to the commissioner of taxation
and finance in each month. (2) No later than five days prior to the
earlier of when payment is to be made on bonds issued for mental health
services facilities purposes pursuant to: (i) the New York state medical
care facilities finance agency act; (ii) article five-C of the state
finance law; and (iii) article five-F of the state finance law, such
set-aside receipts shall be transferred by the commissioner of taxation
and finance as agent of the corporation from the mental hygiene
facilities improvement fund income account in the amounts set forth in
schedules provided by the corporation to the commissioner of taxation
and finance in the following priority: first, to the trustee appointed
by the New York state medical care facilities finance agency for the
bonds issued pursuant to the New York state medical care facilities
finance agency act for both voluntary agency and state purposes to pay
debt service and other cash requirements due on such bonds on the
relevant payment date, second, any remaining amount of such set-aside
receipts to the trustee appointed by authorized issuers for the bonds
issued pursuant to article five-C of the state finance law to pay debt
service and other cash requirements due on such bonds on the relevant
payment date and third, any remaining amount of such set-aside to the
trustee appointed by authorized issuers for the bonds issued pursuant to
article five-F of the state finance law to pay debt service and other
cash requirements due on such bonds on the relevant payment date.

4. Agreements. a. Upon certification by the director of the budget of
the availability of required appropriation authority, the corporation,
or any successor agency, is hereby authorized and empowered to enter
into leases, subleases, loans and other financing agreements with the
state housing finance agency and/or the state medical care facilities
finance agency, and to enter into such amendments thereof as the
directors of the corporation, or any successor agency, may deem
necessary or desirable, which shall provide for (i) the financing or
refinancing of or the design, construction, acquisition, reconstruction,
rehabilitation or improvement of one or more mental hygiene facilities
or for the refinancing of any such facilities for which bonds have
previously been issued and are outstanding, and the purchase or
acquisition of the original furnishings, equipment, machinery and
apparatus to be used in such facilities upon the completion of work,
(ii) the leasing to the state housing finance agency or the state
medical care facilities finance agency of all or any portion of one or
more existing mental hygiene facilities and one or more mental hygiene
facilities to be designed, constructed, acquired, reconstructed,
rehabilitated or improved, or of real property related to the work to be
done, including real property originally acquired by the appropriate
commissioner or director of the department in the name of the state
pursuant to article seventy-one of the mental hygiene law, (iii) the
subleasing of such facilities and property by the corporation upon
completion of design, construction, acquisition, reconstruction,
rehabilitation or improvement, such leases, subleases, loans or other
financing agreements to be upon such other terms and conditions as may
be agreed upon, including terms and conditions relating to length of
term, maintenance and repair of mental hygiene facilities during any
such term, and the annual rentals to be paid for the use of such
facilities, property, furnishings, equipment, machinery and apparatus,
and (iv) the receipt and disposition, including loans or grants to
voluntary agencies, of proceeds of mental health service facilities
bonds or notes issued pursuant to section nine-a of the New York state
medical care facilities finance agency act. For purposes of the design,
construction, acquisition, reconstruction, rehabilitation or improvement
work required by the terms of any such lease, sublease or agreement, the
corporation shall act as agent for the state housing finance agency or
the state medical care facilities finance agency. In the event that the
corporation enters into an agreement for the financing of any of the
aforementioned facilities with the state housing finance agency or the
state medical care facilities finance agency, or in the event that the
corporation enters into an agreement for the financing or refinancing of
any of the aforementioned facilities with one or more voluntary
agencies, it shall act on its own behalf and not as agent. The
appropriate commissioner or director of the department on behalf of the
department shall approve any such lease, sublease, loan or other
financing agreement and shall be a party thereto. All such leases,
subleases, loans or other financing agreements shall be approved prior
to execution by no less than three directors of the corporation.

b. To secure the payment of moneys or rentals due or to become due in
any year under any lease, sublease, loan or other financing agreement
entered into with the state housing finance agency or the state medical
care facilities finance agency, pursuant to paragraph a of this
subdivision, the directors of the corporation may pledge or assign any
or all monies in the mental hygiene facilities improvement fund income
account and in any rental reserve account established pursuant to
paragraph c of this subdivision, and any or all monies which may be
receivable by the corporation and credited to either or both such
accounts in the future, whether equal to or in excess of the amount of
such rentals due or becoming due in any year, and any or all right,
title and interest of the corporation in and to the monies in or to be
deposited in such accounts.

c. The corporation may create and establish one or more separate
accounts to be known as "rental reserve accounts" and may pay into such
reserve accounts (i) any monies apportioned and paid by the state for
the purposes of such reserve account pursuant to this paragraph, (ii)
any monies in the mental hygiene facilities improvement fund income
account transferred to such reserve accounts by the directors of the
corporation pursuant to any lease, sublease or other agreement
undertaken by the corporation, and (iii) any other monies which may be
made available to the corporation from any source or sources
specifically for the purposes of such reserve accounts.

The monies credited to any rental reserve account established under
this paragraph shall be used, except as hereinafter provided, solely for
the payment of rentals as they become due under one or more of the
leases, subleases and agreements referred to in paragraph a of this
subdivision, provided, however, that the monies in such account shall
not be withdrawn therefrom at any time in such amount as would reduce
the amount thereof to less than the maximum amount of rental becoming
due in any succeeding calendar year under such leases, subleases and
agreements, except for the purpose of paying such rentals becoming due
for the payment of which other moneys of the corporation are not
available.

Subject to the terms of any lease, sublease or agreement referred to
in paragraph a of this subdivision, monies in a rental reserve account
not required for immediate use or disbursement may be invested in
obligations of the United States or the state or obligations the
principal and interest of which are guaranteed by the United States or
the state. In computing the amount of a rental reserve account for the
purposes of this paragraph, securities in which all or a portion of the
account are invested shall be valued at their market value as of a date
within seven days preceding the date of the computation or at their cost
to the corporation, whichever is less.

Any excess in a rental reserve account as of the last day of any state
fiscal year over the maximum amount of rental becoming due in any
succeeding calendar year under such lease agreements shall be withdrawn
by the corporation from such account and transferred to the mental
hygiene facilities improvement fund income account to be used for the
corporate purposes of the corporation, other than for the purposes of
any health facilities improvement program.

In order further to secure the maintenance in all rental reserve
accounts established pursuant to this paragraph of an amount equal to
the maximum amount of rental becoming due in any succeeding calendar
year under the leases, subleases and agreements to which the reserve
account relates, there shall be annually apportioned and paid to the
corporation for deposit in such rental reserve accounts such sum, if
any, as shall be certified by the chairman of the corporation to the
governor and director of the budget as necessary to restore such
accounts to an amount equal to the maximum amount of rental becoming due
in any succeeding calendar year under such leases, subleases and
agreements. The chairman of the corporation shall annually, on or before
December first, make and deliver to the governor and director of the
budget his certificate stating the amount, if any, required to restore
such rental reserve accounts to the amount aforesaid and the amount so
stated in said certificate, if any, shall be apportioned and paid to the
corporation during the then current state fiscal year.

d. No lease, sublease or other agreement shall be undertaken by the
corporation pursuant to this section unless the governor, or where so
designated by the governor for such purpose, the director of the budget,
shall have approved the terms thereof.

e. The attorney general shall pass upon the form and sufficiency and
manner of execution of any lease, sublease or other agreement entered
into pursuant to this section and the same shall not be effective unless
so approved by him.

f. The state shall not be liable for any rentals, loan, or other
payments payable by the corporation pursuant to the terms of a lease,
sublease, loan or other financing agreement entered into pursuant to
this section, and such lease, sublease, loan or other financing
agreement shall contain among its terms a statement to such effect.

5. Jurisdiction of mental hygiene facilities; maintenance and repair.
On and after the effective date of this act, the corporation shall be
entitled to exclusive possession, jurisdiction, supervision and control
of all real property, including mental hygiene facilities, theretofore
acquired and held for department purposes and of all mental hygiene
facilities thereafter constructed or acquired, and, to all payments made
after January first, nineteen hundred sixty-four, for the care,
maintenance and treatment of patients at such mental hygiene facilities.

The directors of the corporation shall make available to the
appropriate commissioner of the department for use in the care,
maintenance and treatment of the mentally disabled, all such real
property and facilities including newly constructed, acquired,
reconstructed, rehabilitated and improved facilities, together with the
original furnishings, equipment, machinery and apparatus therein, as
soon as practicable after the completion of work. Responsibility for the
maintenance and upkeep of such property, for the maintenance and routine
repair of such facilities, and for the replacement of furnishings,
equipment, apparatus and machinery, shall be in the appropriate
commissioner of the department, provided, however, if the terms of any
lease, sublease, loan or other financing agreement entered into between
the corporation and the state housing finance agency or the state
medical care facilities finance agency, pursuant to subdivision four of
this section so require, such responsibility shall be in the directors
of the corporation until the termination of such lease, sublease, loan
or other financing agreement.

The care, maintenance and treatment of the mentally disabled at all
mental hygiene facilities shall remain at all times the responsibility
of the appropriate commissioner of the department in accordance with the
provisions of the mental hygiene law.

Notwithstanding the foregoing provisions of this subdivision, title to
all real property on which mental hygiene facilities, other than those
owned or leased by voluntary agencies, are located shall continue to be
vested in the people of the state until conveyed in accordance with law.

The provisions of this subdivision shall not apply to community mental
health and developmental disabilities facilities.

6. Notwithstanding any provision of any general, special or local law
or of any charter:

a. The governing body, as such term is defined in article forty-one of
title E of the mental hygiene law (except that with respect to the city
of New York such term shall mean the board of estimate), of a city or
county may, upon such terms and conditions as shall be approved by such
governing body and for such consideration, if any, as may be determined
by such governing body, but not to exceed the cost of acquisition
thereof and the cost of improvements thereon, exclusive of any costs
reimbursed or to be reimbursed in accordance with the provisions of
article forty-one of title E of the mental hygiene law otherwise,
execute and deliver to the corporation a lease for a term not exceeding
forty years or a deed (i) conveying to the corporation real property and
one or more community mental health and developmental disabilities
facilities of the city or county located thereon, a portion of the costs
of which facilities are eligible for state reimbursement in accordance
with the provisions of article forty-one of title E or article
twenty-five of title D of the mental hygiene law or (ii) conveying to
the corporation real property of the city or county or an interest
therein, for the purpose of causing to be constructed, reconstructed,
rehabilitated or improved thereon one or more community mental health
and developmental disabilities facilities pursuant to this act, such
community mental health and developmental disabilities facilities to be
made available to such county or city for use and occupancy under lease,
sublease or other agreement upon such terms and conditions as may be
agreed upon, including terms and conditions relating to length of terms,
maintenance and repair of community mental health and developmental
disabilities facilities during such term and the annual rentals to be
paid therefor for the use thereof. The corporation is hereby authorized
to accept any such lease or conveyance, to hold such real property, to
enter into a lease, sublease or other agreement with such city or county
for the purpose of making such community mental health and developmental
disabilities facility so acquired or to be constructed, reconstructed,
rehabilitated or improved thereon available for use and occupancy by
such city or county, and to lease or convey real property so acquired to
the New York state housing finance agency or the medical care facilities
finance agency, provided, however, that any such further lease or
conveyance shall be solely for the purpose of causing community mental
health and developmental disabilities facilities to be acquired,
constructed, reconstructed, rehabilitated or improved thereon, such
community mental health and developmental disabilities facilities to be
made available to such city or county for use and occupancy under a
lease, sublease or other agreement between the corporation and such city
or county, upon such terms and conditions as may be agreed upon. No such
lease or conveyance from the corporation to the New York state housing
finance agency or the state medical care facilities finance agency shall
be for a consideration in excess of the cost of acquisition of such real
property and the costs of improvements thereon. The appropriate
commissioner of the department, on behalf of his or her office, and the
director of the budget shall approve all leases, subleases or
agreements, whether between the corporation and such city or county or
between the corporation and the housing finance agency or the state
medical care facilities finance agency, and the appropriate commissioner
of the department shall be a party thereto. The appropriate division of
the office of addiction services and supports shall also approve all
such leases, subleases or agreements relating to the construction,
reconstruction, rehabilitation or improvement of community mental health
and developmental disabilities facilities, constituting alcoholism or
substance abuse facilities for use in an alcoholism or substance abuse
treatment program as defined in the mental hygiene law.

b. In the event that the corporation shall fail, within five years
after the date of such lease or conveyance, to construct, reconstruct,
rehabilitate or improve the community mental health and developmental
disabilities facility or facilities thereon for which such lease or
conveyance was made, or to cause the same to be done, as provided for in
a lease, sublease or other agreement entered into with such city or
county, then, subject to the terms of any lease, sublease or other
agreement undertaken by the New York state housing finance agency or the
state medical care facilities finance agency, with respect thereto, such
real property and any facilities thereon shall revert to such city or
county 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, such city or county shall pay an amount equal to the sum of
the purchase price of such real property, the depreciated cost of any
facility or facilities constructed, reconstructed, rehabilitated or
improved thereon, and all other costs of the corporation or the New York
state housing finance agency or the state medical care facilities
finance agency incident to the costs of the acquisition of such real
property 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 city or county.

c. No real property or interest therein shall be acquired by the
corporation pursuant to this subdivision unless title thereto shall have
been 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 of real
property authorized to be given under this subdivision by any city or
county to the corporation, and any lease, sublease or agreement between
the corporation and a city or county, and the same shall not be
effective unless such deed, lease, sublease or agreement shall be so
approved by him.

e. The cost of construction, acquisition, reconstruction,
rehabilitation or improvement of community mental health and
developmental disabilities facilities undertaken by the corporation
pursuant to this act may include the cost of acquisition of any real
property leased or conveyed to the corporation pursuant to paragraph a
of this subdivision and the cost of the original furnishing, equipment,
machinery and apparatus as determined by the corporation.

f. The provisions of this act shall not be deemed to prevent a city or
county from financing the cost of constructing, acquiring,
reconstructing, rehabilitating or improving a community mental health
and developmental disabilities facility by the issuance of bonds or
capital notes of such city or county pursuant to the local finance law.