BILL NUMBER: S10641
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 OF THE BILL:
This bill would increase the authorization of the Dormitory Authority of
the State of New York (DASNY), as successor to the New York State
Medical Care Facilities Finance Agency (MCFFA) pursuant to the Health
Care Financing Consolidation Act of 1995, to issue hospital and nursing
home project bonds and notes, from $20 billion to $21.8 billion.
 
SUMMARY OF PROVISIONS:
Section one of the bill would amend the MCFFA Act to increase DASNY's
authorization to issue hospital and nursing home project bonds and notes
from $20 billion to $21.8 billion.
Section two of the bill would make the bill effective immediately.
 
JUSTIFICATION:
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 $20 billion. DASNY issues such bonds and notes to fund loans to
not-for-profit hospital and nursing home corporations. This authori-
zation was most recently increased by $1,800,000,000 by Ch 101 L 2025;
and, similarly, the then existing bond cap was increased by $800,000,000
in each of the following: Ch 183 L 2018; Ch 516 L 2011; Ch 238 L 2009;
and Ch 33 L 2008.
Over the past few years, DASNY has seen increased activity in the bond
market in terms of the number and dollar amount of healthcare
financings. After the bond cap was last increased by $1.8 billion in
March 2025, DASNY authorized two health care financings which totaled $1
billion. In early May 2026, another client notified DASNY that it will
be seeking authorization for a financing that could be as much as $800
million. This client is planning to be in the market in September or
October. DASNY is reserving $800 million in cap for this client and will
authorize this financing this summer. As such, as of May 2026, this
leaves DASNY with MCFFA bond capacity of approximately $146 million.
The requested $1.8 billion increase is necessary to ensure that DASNY
has sufficient capacity to support any new healthcare financings that
may arise given recent robust activity and the limited bond cap current-
ly available. Although DASNY cannot predict the timing and dollar amount
of future financings, DASNY is seeking this additional bond cap authori-
zation to ensure it may adequately respond to the needs of its private
not-for-profit health-care clients on a timely basis. It should be noted
that the bonds issued by DASNY pursuant to this authorization are not a
debt of the State and are payable from loan repayments to be made by the
applicable hospital or nursing home.
 
PRIOR LEGISLATIVE HISTORY
The MCFFA bond cap has been routinely increased as needed and the most
recent such increases were chaptered as follows: Ch 101 L 2025; Ch 469 L
2023; Ch 183 L 2018; Ch 516 L 2011; Ch 238 L 2009; and Ch 33 L 2008.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.