2022 New York Laws
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 people with developmental disabilities 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   developmental   disabilities
facilities  must  be accelerated, in order to provide comprehensive care
and treatment of the mentally ill  and  developmentally  disabled.  Such
community mental health and developmental disabilities 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 developmentally disabled and will afford treatment and
care  for  the  increasing   number   of   people   with   developmental
disabilities.   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 developmentally
disabled  at  all  such  community  mental  health   and   developmental
disabilities  facilities  should  continue  in  the  local  governments,
subject to the provisions of article forty-one of title E 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 developmental disabilities
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 corrections and community supervision are public  purposes
which are essential to enable comprehensive modernization of the state's
programs  of  corrections. To assure that such purposes are carried out,
it is  further  found  and  declared  that  the  facilities  development
corporation  should  be  empowered in cooperation with the department of
corrections and community supervision to provide  for  the  acquisition,
construction,   reconstruction,   rehabilitation   and   improvement  of
facilities for the department of corrections and community supervision.
  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 developmental  disabilities  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 41 of the mental  hygiene  law,  which  is  utilized  or  to  be
utilized for the administration and conduct of programs for persons with
mental  illness  or  developmental  disabilities,  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 developmental disabilities 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, and alcoholism and substance abuse services
and the office  for  people  with  developmental  disabilities  of  such
department.
  2-b.  "Commissioner"  means  the  commissioner  of  mental health, the
commissioner of the office for people with  developmental  disabilities,
the commissioner of alcoholism and substance abuse services.
  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  corrections  and  community
supervision"  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 corrections and community supervision, 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 corrections and community supervision.

  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   developmental
disabilities  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  developmental  disabilities  facility  or
alcoholism  or  substance  abuse  facility is expressly excepted, or the
context clearly requires otherwise, and shall also mean and include  any
treatment  facility for use in the conduct of an alcoholism or substance

abuse treatment program that is also operated as  an  associated  health
care facility. 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
developmental  disabilities  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.
  20. "Associated health care facility" shall mean a  facility  licensed
under  and  operated  pursuant to article 28 of the public health law or
any health care facility licensed under and operated in accordance  with
any  other provisions of the public health law or the mental hygiene law
that provides health care services  and/or  treatment  to  all  persons,
regardless  of  whether  such persons are persons receiving treatment or
services for alcohol, substance abuse, or chemical dependency.
  § 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  developmental
disabilities 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  title  E  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 developmental disabilities 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 title D 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 corrections
and community supervision 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.  (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, and  in
the  case  of  community  mental  health  and developmental disabilities
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, except as otherwise provided in paragraph (b)  of
this  subdivision,  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 supersede 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.

(b) Notwithstanding any other provision of law to the contrary, for the purposes of transferring and conveying the westernmost portion of that certain property commonly known as the Kingsboro Psychiatric Center, located at 681 Clarkson Avenue in Brooklyn, New York to a housing development fund corporation formed pursuant to article XI of the private housing finance law, for the purposes described below, the term "fair value" shall be deemed to be an amount determined to be in the public interest and agreed upon between the commissioner of the office of mental health and the commissioner of the division of housing and community renewal, provided, however, that such agreed upon amount may be less than the appraised fair value, in order to facilitate the development of the public benefit Vital Brooklyn project and in reflection of the Vital Brooklyn initiative and the intended use of the property, to increase access to open spaces, increase access and quality of health care services and preventative care, create affordable housing, and to provide at least one hundred supportive housing units for office of mental health recipients. The description of the lands to be transferred and conveyed as set forth above is not intended to be a legal description but, intended only to identify the property subject to this paragraph. 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. 1. 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. 2. Subject to the terms and conditions of any lease, sublease, loan or other financing agreement with the medical care facilities finance agency, to make grants to voluntary agencies or provide proceeds of mental health services facilities bonds or notes to the department to make grants to voluntary agencies or to reimburse disbursements made therefor, in each case, 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. 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 for people with developmental disabilities, the commissioner of alcoholism and substance abuse services, 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 developmental disabilities 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 developmental disabilities 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 title E 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 developmental disabilities 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 corrections and community supervision. § 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 corrections and community supervision. 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 corrections and community supervision 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 corrections and community supervision and the department of corrections and community supervision in matters relating to their responsibilities for site selection, acquisition of and capital planning relating to facilities for the department of corrections and community supervision. During the course of construction, acquisition, reconstruction, rehabilitation and improvement of such facilities, the corporation shall consult with the commissioner of corrections and community supervision and the personnel of the department of corrections and community supervision 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 corrections and community supervision and the department of corrections and community supervision 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 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. § 9-a. Equal employment opportunity program. 1. All contracts for design, construction, services and materials executed by the corporation pursuant to the provisions of this act, other than contracts the cost of which is borne solely by a municipality or municipalities, and all documents soliciting bids or proposals therefor shall contain or make reference to the following provisions:

(a) The contractor will not discriminate against employees or applicants for employment because of race, creed, color, national origin, sex, age, disability, or marital status, and will undertake or continue existing programs of affirmative action to ensure that minority group persons and women are afforded equal opportunity without discrimination. Such programs shall include, but not be limited to, recruitment, employment, job assignment, promotion, upgrading, demotion, transfer, layoff, termination, rates of pay or other forms of compensation, and selections for training or retraining, including apprenticeship and on-the-job training.

(b) At the request of the corporation, the contractor shall request each employment agency, labor union, or authorized representative of workers with which it has a collective bargaining or other agreement or understanding and which is involved in the performance of the contract with the corporation to furnish a written statement that such employment agency, labor union or representative shall not discriminate because of race, creed, color, national origin, sex, age, disability or marital status and that such union or representative will cooperate in the implementation of the contractor's obligations hereunder.

(c) The contractor will state, in all solicitations or advertisements for employees placed by or on behalf of the contractor in the performance of the contract with the corporation, that all qualified applicants will be afforded equal employment opportunity without discrimination because of race, creed, color, national origin, sex, age, disability or marital status.

(d) The contractor will include the provisions of paragraph (a) through (c) of this subdivision in every subcontract or purchase order in such a manner that such provisions will be binding upon each subcontractor or vendor as to its work in connection with the contract with the corporation. 2. The corporation shall establish procedures and guidelines to ensure that contractors and subcontractors undertake programs of affirmative action and equal employment opportunity as required by this section. Such procedures may require after notice in a bid solicitation, the submission of an affirmative action program prior to the award of any contract, or at any time thereafter, and may require the submission of compliance reports relating to the operation and implementation of any affirmative action program adopted hereunder. The corporation may take appropriate action including contractual sanctions for noncompliance to effectuate the provisions of this section and shall be responsible for monitoring compliance with this act. § 9-b. Minority and women-owned business enterprise program. 1. (a) Minority and women-owned business enterprises shall be given the opportunity for meaningful participation in all contracts executed by the corporation pursuant to the provisions of this act other than contracts the cost of which is borne solely by a municipality or municipalities. The corporation shall establish measures and procedures to secure meaningful participation and identify those contracts and items of work for which minority and women-owned business enterprises may best bid to actively and affirmatively promote and assist their participation in the projects, so as to facilitate the award of a fair share of contracts to such enterprises; provided, however, that nothing in this act shall be construed to limit the ability of the corporation to assure that qualified minority and women-owned business enterprises may participate in the program. For purposes hereof, minority business enterprise shall mean any business enterprise which is at least fifty-one per centum owned by, or in the case of a publicly owned business, at least fifty-one per centum of the stock of which is owned by citizens or permanent resident noncitizens who are Black, Hispanic, Asian or American Indian, Pacific Islander or Alaskan natives and such ownership interest is real, substantial and continuing and have the authority to independently control the day to day business decisions of the entity for at least one year; and women-owned business enterprise shall mean any business enterprise which is at least fifty-one per centum owned by, or in the case of a publicly owned business, at least fifty-one per centum of the stock of which is owned by citizens or permanent resident noncitizens who are women, and such ownership interest is real, substantial and continuing and have the authority to independently control the day to day business decisions of the entity for at least one year. The provisions of this paragraph shall not be construed to limit the ability of any minority or women-owned business enterprise to bid on any contract.

(b) In the implementation of this section, the corporation shall consider compliance by any contractor with the requirements of any federal, state, or local law concerning minority and women-owned business enterprises, which may effectuate the requirements of this section. If the corporation determines that by virtue of the imposition of the requirements of any such law, in respect to contracts, the provisions thereof duplicate or conflict with this section, the corporation may waive the applicability of this section to the extent of such duplication or conflict.

(c) Nothing in this section shall be deemed to require that overall state and federal requirements for participation of minority and women-owned business enterprises in programs authorized under this act be applied without regard to local circumstances to all projects or in all communities. 2. In order to implement the requirements and objectives of this section, the corporation shall establish procedures to monitor the contractors' compliance with provisions hereof, provide assistance in obtaining competing qualified minority and women-owned business enterprises to perform contracts proposed to be awarded, and take other appropriate measures to improve the access of minority and women-owned business enterprises to these contracts. § 10. Monies of the corporation relating to health facilities improvement program. Subject to the terms of any agreement between the corporation and the state housing finance agency or the state medical care facilities finance agency, as the case may be, and except as otherwise authorized or provided by section nine of this act, all monies received by the corporation 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 a separate bank account or accounts. The monies in such account shall be paid out on checks signed by the commissioner of taxation and finance on requisition of the chairman of the corporation or such other officer or employee or officers or employees as the corporation shall authorize to make such requisitions. All deposits of such monies shall, if required by the commissioner of taxation and finance, the state housing finance agency or the state medical care facilities finance agency, 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. Subject to the terms of any agreement between the corporation and the state housing finance agency or the state medical care facilities finance agency, as the case may be, the corporation shall have power to invest any such monies not required for immediate use or disbursement in obligations of the state or the United States government or obligations, the principal and interest of which are guaranteed by the state or the United States government, or invested in accordance with the provisions of section 98-a of the state finance law. § 11. General fiscal requirements relating to the corporation. 1. The chairman of the corporation shall annually, at such time as the governor may request, prepare and submit to the governor and the director of the budget, on behalf of the directors of the corporation, an itemized budget request and any additional information required setting forth financial needs by programs for the administration of the corporation during the next succeeding state fiscal year including information as to the payment or provision for payment of obligations of the corporation expected to be required during such year under the terms of all leases, subleases and agreements expected to be undertaken by the corporation. The governor shall annually submit his recommended budget for the administration of the corporation to the legislature. The legislature shall act on such request and make appropriations for all administrative expenses of the corporation. 2. The comptroller, or his legally authorized representative, is hereby authorized and empowered from time to time to examine the books and accounts of the corporation, including its receipts and disbursements and any other matters relating to its financial standing. Such an examination shall be conducted by the comptroller at least once every five years; the comptroller is authorized, however, to accept from the corporation, in lieu of such examination, an external examination of its books and accounts made at the request of the corporation. § 12. Actions by and against the corporation. 1. The state supreme court shall have exclusive jurisdiction of any action, suit or special proceeding brought by or against or involving the corporation. The venue of any action, suit or special proceeding brought against the corporation shall be laid in the county of Albany. 2. In every action against the corporation for damages, for injuries to real or personal property, or for the destruction thereof, or for personal injuries or death, the complaint shall contain an allegation that at least thirty days have elapsed since the demand, claim or claims upon which such action is founded were presented to a director or officer of the corporation and that the corporation has neglected or refused to make an adjustment or payment thereof for thirty days after such presentment. 3. Except in an action for wrongful death, an action against the corporation for damages for injuries to real or personal property, or for the destruction thereof, or for personal injuries, alleged to have been sustained, shall not be commenced more than one year and ninety days after the cause of action therefor shall have accrued, nor unless a notice of claim shall have been served on the corporation within the time limit established by and in compliance with all requirements of section fifty-e of the general municipal law. An action against the corporation for wrongful death shall be commenced in accordance with the notice of claim and time limitation provisions of title eleven of article nine of the public authorities law. 4. All of the provisions of sections seventeen and nineteen of the public officers law shall apply to the directors, officers and employees of the corporation. § 13. Tax exemption of monies and property of the corporation. The monies and property of the corporation and its operations shall be exempt from taxation. § 14. Cooperation and assistance from other state agencies. 1. The departments of health, mental hygiene and law, the division of the budget, the office of general services, the state housing finance agency, the state medical care facilities finance agency, the state agency designated to implement an act of congress known as the comprehensive health planning and public health services amendments of nineteen hundred sixty-six (Public Law 89-749) and all other state agencies shall cooperate with and assist the corporation in the fulfillment of its corporate purposes and in the exercise of its corporate powers under this act and may render such services to the corporation within their respective functions as the directors of the corporation may reasonably request. 2. Subject to the approval of the office of alcoholism and substance abuse services and to the terms of any lease, sublease or other agreement with the state housing finance agency, the corporation, whether as principal or as agent for the state housing finance agency, is hereby authorized and empowered to provide facilities for the conduct of alcoholism or substance abuse treatment programs by the office of alcoholism and substance abuse services and as may be required by such office in the performance of its duties, powers and functions as specified in article nineteen of the mental hygiene law, including construction, acquisition, reconstruction, rehabilitation, alteration and improvement of buildings, structures and appurtenances, the purchase and installation of furnishings and equipment, the acquisition of property by purchase, lease or transfer, engineering, architectural and consulting services. In the design, construction, acquisition, reconstruction, rehabilitation, alteration and improvement of such facilities the corporation shall be guided by the provisions of this act relating to the design and construction of mental hygiene facilities, provided, however, that subject to the terms of any lease, sublease or other agreement with the state housing finance agency such facilities and the approvals to be given for the design and construction thereof shall be under the professional jurisdiction of the office of alcoholism and substance abuse services and the corporation shall make such facilities available to such office. 3. Notwithstanding the provisions of subdivision five of section nine of this act, the directors of the corporation, subject to the terms of any lease, sublease or other agreement with the state housing finance agency, shall make available to the office of alcoholism and substance abuse services for use as an alcoholism or substance abuse facility any real property or facility under the jurisdiction of the corporation as the office of alcoholism and substance abuse services shall request and the commissioner shall certify is no longer necessary for use in the care, maintenance and treatment of the mentally disabled. Such real property or facility shall continue under the professional jurisdiction of the office of alcoholism and substance abuse services until such office shall certify that such real property or facility is no longer necessary for use as an alcoholism or substance abuse facility, whereupon all of the provisions of subdivision five of section nine of this act shall govern. Responsibility for the maintenance and upkeep of such real property or facility, for the maintenance and routine repair of such real property or facility and for the replacement of furnishings, equipment, apparatus and machinery shall, subject to the terms of any lease, sublease or other agreement with the state housing finance agency, be in the office of alcoholism and substance abuse services so long as such real property or facility is under the professional jurisdiction of such office. A copy of any certificate made pursuant to this subdivision shall be filed with the director of the budget. § 14-a. Special provisions relating to municipal facilities. 1. The corporation is authorized to enter into an agreement with a municipality for the design, construction, reconstruction, rehabilitation and improvement for such municipality of a municipal building or buildings at the sole cost and expense of such 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. A municipality, by resolution of its governing body, is hereby authorized to enter into an agreement with the corporation and to provide for the payment to the corporation of all expenses incurred at such time 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. 2. In the design, construction, reconstruction, rehabilitation and improvement of a municipal building or buildings 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 paragraph d of subdivision two of section eight of this act. 3. 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 municipal building or buildings. Any such regulation shall be submitted to the director of the budget for his approval prior to its effectiveness. § 14-b. Special provisions relating to local correctional facilities. 1. The corporation is authorized to enter into an agreement with a municipality providing for the design, construction, reconstruction, rehabilitation and improvement for such municipality of a local correctional facility, as such term is defined in section forty of the correction law, including any place used by a municipality for the detention of persons charged with or convicted of a crime, at the sole cost and expense of such municipality. A municipality, by resolution of its governing body, is hereby authorized to enter into such an agreement 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 local correctional facility. 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 local correctional 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 paragraphs c and d of subdivision two of section eight of this act. § 15. Annual report of directors. The directors of the corporation shall submit to the governor, the state agency designated by him to implement the federal comprehensive health planning and public health services amendments of nineteen hundred sixty-six (Public Law 89-749), the public health council, the mental hygiene council, the commissioners of health and the offices of the department of mental hygiene, the legislature, the chairman of the senate finance committee and the chairman of the assembly ways and means committee, annually on or before October first, a full report of its activities and operations through the thirty-first day of the preceding March, including details as to projects in planning, projects in the process of construction, acquisition, reconstruction, rehabilitation or improvements, and projects completed, the performance record of the directors in completing construction in accordance with the desired completion dates and within the estimated cost recommended by the governor and approved by the legislature, the architects, engineers and other private consultants engaged by the directors of the corporation on a contract basis and a statement of the total amount paid and yet to be paid, or estimated yet to be paid, under each such contract, the letting agency and successful bidder or bidders for each project, the monies made available for the purposes of the corporation, details as to any lease, sublease or agreement executed by the directors of the corporation with the state housing finance agency or the state medical care facilities finance agency, as the case may be, and the annual rentals required to be paid on account thereof, and such other information related to the activities and operation of the corporation as the directors of the corporation may consider pertinent. § 15-a. Payment on corporation public work projects. Notwithstanding the provisions of any other law to the contrary, all contracts for public work awarded by the facilities development corporation pursuant to this chapter shall be in accordance with section one hundred thirty-nine-f of the state finance law. § 16. Separability. If any section, subdivision, paragraph, sentence, clause or provision of this act shall be unconstitutional or be ineffective in whole or in part, to the extent that it is not unconstitutional or ineffective, it shall be valid or effective and no other section, subdivision, paragraph, sentence, clause or provision shall on account thereof be deemed invalid or ineffective. § 17. Inconsistent provisions of other laws superseded. Insofar as the provisions of this article are inconsistent with the provisions of any other law, general or special, the provisions of this act shall be controlling.

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