N.Y. Comp. Codes R. & Regs. tit. 14, § 621.10 – Requirements for a Facilities Development Corporation loan.

(a) A voluntary agency may apply to the commissioner for an FDC mortgage loan to meet any of the costs set forth in section 621.11 of this Part. The commissioner may deny such an application if the conditions set forth in this section are not met.
(b) A completed application must be submitted to the commissioner in the format and on forms prescribed by the commissioner. Such forms may include a capital schedule of proposed costs to be met by the FDC mortgage loan.
(c) A certificate of need application pursuant to Part 620 of this Title must have been completed, and approved by the commissioner.
(d) The voluntary agency must prepare and submit a certificate of incorporation in a form satisfactory to the commissioner for the corporation which will receive the FDC mortgage loan. The voluntary agency must demonstrate to the satisfaction of the commissioner that the corporation has obtained a certificate from the U.S. Internal Revenue Service that it is an exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code, and a statement of exemption from the New York State Department of Taxation and Finance.
(e) The voluntary agency must have, or demonstrate to the satisfaction of the commissioner that it will have as of the time the FDC loan is made:
1. (1) a fee simple interest in the real property; or a leasehold interest of at least 50 years in the real property; or a leasehold interest in the real property equal to or greater than the term of the FDC loan from a State, local governmental, or quasi-governmental entity or public benefit corporation; or an ownership interest in, and a leasehold estate in the premises as evidenced by a proprietary lease from an organization formed for the purpose of the cooperative ownership of real estate, for or upon which the loan will be used to finance or refinance the acquisition, construction, rehabilitation or improvement of a community facility; and
2. (2) title to any of the personal property which the commissioner determines must serve as additional security for the loan; and
3. (3) any necessary easements and rights-of-way free and clear of any convenants, restrictions, mortgages, easements and encumbrances determined sufficient by the commissioner to assure undisturbed use and possession for the purpose of operating the facility.
(f) The voluntary agency must execute any mortgage, security, financing or other agreement as may be required by the commissioner.
(g) At the discretion of the commissioner, the voluntary agency must execute, at the time the FDC loan is made or at any time during the term of such loan:
1. (1) an assignment to OPWDD of a portion of the facility's periodic rate or fee reimbursement which it receives as a result of services rendered to OPWDD and/or the New York State Medicaid program; or
2. (2) an assignment of all or a portion of any other periodic rate or fee reimbursement receivable by such voluntary agency as a result of services rendered to OPWDD and/or the New York State Medicaid program; or
3. (3) a general assignment or pledge of such voluntary agency's revenues, income or accounts receivable or proceeds thereof; or
4. (4) an agreement with OPWDD whereby OPWDD may recover on a monthly or other periodic basis a portion of the FDC loan; or
5. (5) any such combination of the above. Such assignments or agreements shall be made in the format and in such manner and amounts as shall be prescribed by the commissioner to meet the monthly or other periodic payment of all principals, interest, annual administrative fees and expenses, and any other amount due and owing the FDC by the voluntary agency under the FDC loan until the loan is satisfied.
(h) The use of FDC mortgage loan funds for the financing or refinancing of any construction, reconstruction, acquisition, rehabilitation or improvement of a community facility must be approved by the Director of the Division of the Budget.
(i) A voluntary agency must establish accounting and fiscal records in a manner approved by the commissioner to reflect the receipt and expenditure of FDC mortgage loan funds. A voluntary agency whose application under this section has been accepted must maintain such records in such a manner, and must make fiscal reports to the commissioner in such a manner and at such intervals as he may require.
(j) The commissioner shall have access to the books, records, and physical site of any facility for which FDC mortgage loan funds are received.