§ 5-a. Federally-aided mortgage loans. In addition to the powers of
the agency to make mortgage loans pursuant to other provisions of this
act, the agency has the following powers:

1. The agency may make federally-aided mortgage loans to a municipal
hospital, municipal nursing home, non-profit hospital corporation,
non-profit corporation providing a residential health care facility or
non-profit medical corporation organized pursuant to article forty-four
of the public health law upon terms and conditions not inconsistent with
article twenty-eight of the public health law or article sixteen or
thirty-one of the mental hygiene law as the case may be and this
section. The proceeds of such loan are to be used substantially to
finance the construction, acquisition, reconstruction, refinancing,
rehabilitation, improvement, management or operation of the project.

2. A federally-aided mortgage loan made by the agency shall not exceed
an amount equal to the lesser of (i) the maximum mortgage loan
authorized or approved by the federal government or (ii) one hundred
percent of the cost of development of the project approved by the
agency.

3. With respect to a non-profit hospital corporation, non-profit
corporation providing a residential health care facility or non-profit
medical corporation, the agency shall not make a federally-aided
mortgage loan unless (a) the commissioner has approved the project,
recommended the project based on public need and the financial resources
available to it, and finds that the non-profit hospital corporation,
non-profit corporation providing a residential health care facility, or
non-profit medical corporation has complied with the provisions of
article twenty-eight of the public health law or article sixteen or
thirty-one of the mental hygiene law as the case may be, and that the
non-profit medical corporation also has complied with the provisions of
article forty-four of the public health law, and (b) the agency finds
that (i) the estimated revenues of the project will be sufficient to
cover all probable costs of operations and maintenance, all installments
of principal and interest on the indebtedness relating to the project,
taxes, and such other expenses, including the maintenance of reserves,
as may be projected or required by the agency or the federal government,
and (ii) with respect to a nursing home project, the project is to be
available for persons of low income as defined by paragraph two of
section twenty-eight hundred sixty of the public health law.

4. As used in this section or in connection with a federally-aided
mortgage loan, the term "project" means a specific work or improvement,
whether or not to effectuate all or any part of a plan, and includes
lands, buildings, improvements, fixtures and personal property
constructed, acquired, reconstructed, refinanced, rehabilitated,
improved, managed, owned or operated by a non-profit corporation
pursuant to this section, to provide hospital, residential health care,
residential facilities for developmentally disabled persons or mentally
disabled persons or for the care, treatment, training and education of
developmentally disabled persons or mentally disabled persons or
comprehensive health services facilities and such related incidental and
appurtenant facilities as the agency may approve. The term "project"
shall also mean a separate work or improvement, including lands,
buildings, fixtures and personal property related thereto, managed,
owned or operated by a non-profit corporation pursuant to this section
to provide such services, functions, capabilities and facilities as may
be convenient or desirable for the operation of a hospital, a
residential health care or comprehensive health services facility.

5. Notwithstanding any other provisions of law, general, special or
local, or any provision of any charter or ordinance, including local
finance law section twenty, a municipality is hereby authorized to
borrow for or give a mortgage on its municipal hospitals or nursing
homes for the purpose of constructing, reconstructing, rehabilitating or
improving one or more such hospitals or nursing homes pursuant to this
act in accordance with the terms of any agreement entered into pursuant
to this act.

6. As used in this section or in connection with federally-aided
mortgage loan regarding residential facilities for developmentally
disabled persons or mentally disabled persons or for the care,
treatment, training and education of developmentally disabled persons or
mentally disabled persons the term "commissioner" shall also mean the
commissioner of mental health or the commissioner of the office for
people with developmental disabilities.

7. (a) In connection with the making of federally-aided mortgage
loans, the commissioner of health shall charge to such non-profit
hospital corporation, non-profit corporation providing a residential
health care facility or non-profit medical corporation, for mortgage
closings on or after April first, nineteen hundred eighty-nine, a fee of
nine-tenths of one percent of the mortgage loan, payable on requisition
on or after the mortgage closing to the state department of health by
the mortgagor for deposit into the state general fund.

(b) In connection with the refinancing or refunding of federally-aided
mortgage loans or loans made pursuant to articles twenty-eight-A and
twenty-eight-B of the public health law, the commissioner of health
shall charge to such non-profit hospital corporation, non-profit
corporation providing a residential health care facility or non-profit
medical corporation, for mortgage closings on or after April first,
nineteen hundred eighty-nine, a fee of five-tenths of one percent of the
new mortgage loan, payable on requisition on or after the mortgage
closing to the state department of health by the mortgagor for deposit
into the state general fund.

(c) The fees and charges paid by a non-profit hospital corporation,
non-profit corporation providing a residential health care facility or
non-profit medical corporation pursuant to this subdivision shall be
deemed allowable capital costs in the determination of reimbursement
rates established pursuant to article twenty-eight of the public health
law. The cost of such fees and charges shall not be subject to
reimbursement ceiling or other penalties used by the commissioner for
the purpose of establishing reimbursement rates pursuant to article
twenty-eight of the public health law.