BILL NUMBER: S1235
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the New York state medical care facilities finance agen-
cy act, in relation to the ability to issue certain bonds and notes
 
PURPOSE:
To increase the bond ceiling for the Dormitory Authority of the State of
New York by $1.8 billion
 
SUMMARY OF PROVISIONS:
Section 1: increases statutory bond ceiling in the medical care facili-
ties finance agency act (MCFFA) from $18.2 billion to $20 billion.
Section 2: Effective date.
 
JUSTIFICATION:
This bill is necessary to ensure that upgrades to medical facilities can
remain funded through 2025.
Under current law, DASNY is authorized to issue hospital and nursing
home project bonds and notes under the MCFFA Act in the aggregate amount
of up to $18.2 billion. DASNY issues such bonds and notes to fund loans
to not-for-profit hospital and nursing home corporations.
This authorization was most recently increased by $800 million (from
$17.4 billion to $18.2 billion) in 2023. Previously the existing bond
cap was increased by $800 million in 2021; 2018; 2011; 2009; 2008.
In recent years, DASNY has seen increased activity in the bond market in
both the number and dollar amount of healthcare financings. In July of
2024, DASNY had available approximately $1.367 billion of bond cap for
healthcare transactions. Subsequently, several hospitals contacted DASNY
regarding their financing needs.
As of mid-September 2024, the DASNY Board has authorized three new MCFFA
financings which will utilize cap in the amount of $1.222 billion -
leaving DASNY with MCFFA bond capacity of approximately $145 million.
Unfortunately, that is not enough for new MCFFA projects across New York
in the near term.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
BUDGET IMPLICATIONS:
None noted.
 
EFFECTIVE DATE:
Immediately.