1. (1) Prior to receiving funds an applicant must have, or be under contract to have, a fee simple or such other estate or interest in the site, including necessary easements and rights of way, sufficient to assure for a period of years, as such period may be determined by the office, undisturbed use and possession of the facility. The nature and extent of an applicant's present or anticipated property rights in the site must be established, based upon the type of interest, by:

   1. (i) a survey of the site; the surveyor's metes and bounds property description; and
   2. (ii) a policy of title insurance; or
   3. (iii) a lease sufficient to secure the property for use as a treatment facility for a term approved by the office.
2. (2) Property rights must be demonstrated to the satisfaction of the office which may require a provider’s counsel opinion letter certifying that the property interest is of sufficient quality and for the requisite duration and containing citations to supporting documentation upon which the legal opinion was based.

3. (3) At the discretion of the commissioner, limited State aid may be granted to an applicant who has not secured a property interest in the site, provided the applicant can demonstrate the required title characteristics pursuant to this subdivision.

   (b) Application.

4. (1) A certificate of need application must be submitted as appropriate and determined by the office.

5. (2) A completed application must be submitted in the format and on forms prescribed by the commissioner, such application to include at a minimum:

   1. (i) copies of existing contracts and any other materials requested by the office relating to the acquisition, construction, renovation and operation of the proposed facility;
   2. (ii) assurance that sufficient funds will be available to the applicant to enable the applicant to meet any non-State aid share of capital costs;
   3. (iii) assurance that sufficient funds will be available when the capital portion of the project is completed for effective use of the facility for the purposes for which the State aid grant has been provided;

   4. (iv) if the applicant is a certified provider or proposed incorporator of a provider, there must be an agreement between the applicant and the local governmental unit pursuant to section article 41 of the Mental Hygiene Law, including LGU certification that the project is consistent with its plan for the provision of services to those suffering from addictive disorders and their families and/or significant others.

      (c) Repayment.

      State aid grants received by an applicant must be repaid if and when the applicant receives a DASNY loan pursuant to section 813.6 of this Part. Such repayment shall be intended only for that portion of a grant represented by underlying costs for which the DASNY loan is made.

      (d) Accountability.

6. (1) Discrete records and accounts shall be maintained to show receipt and disbursement of Federal, local or other funds, costs incurred and expenditures paid with regard to said project. OASAS, or its agent, shall have the right to inspect and audit the project records at any time during the project or after its completion.
7. (2) The office or its designee shall have the right to inspect the physical site of any facility benefitting from a State aid grant.
8. (3) The applicant must agree to execute and record any lien on a security interest with respect to real and/or personal property as may be required by the commissioner.
9. (4) Upon completion of a capital project, if requested, the provider shall submit to the office, in a form prescribed by the office, a certified cost statement reconciling all costs incurred, revenues received and expenses paid with regard to the project.

(a) Site control.