Relates to capital upgrades to certain residential health care facilities

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          11062

                                  I N  A S S E M B L Y

                                     April 24, 2026
                                       ___________

        Introduced by M. of A. McDONALD -- read once and referred to the Commit-
          tee on Health

        AN  ACT  to amend the public health law, in relation to capital upgrades
          to certain residential health care facilities

          THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section  1.    Paragraph (d) of subdivision 2-a of section 2808 of the
     2  public health law, as amended by section 52 of part B of chapter  57  of
     3  the laws of 2015, is amended to read as follows:
     4    (d)  For  facilities  granted operating certificates on or after March
     5  tenth, nineteen hundred seventy-five, recognition of real property costs
     6  in such regulations shall be based upon historical costs to the owner of
     7  the facility, provided that payment for real property costs shall not be
     8  in excess of the actual debt service, including principal and  interest,
     9  and  payment  with respect to owner's equity, and further provided that,
    10  subject to federal financial participation, and subject to the  approval
    11  of  the  commissioner,  effective April first, two thousand fifteen, the
    12  commissioner may modify  such  payments  for  real  property  costs  for
    13  purposes  of  effectuating  a shared savings program, whereby facilities
    14  share a minimum of fifty percent of savings, for facilities  that  elect
    15  to  refinance  their  mortgage  loans; AND FURTHER PROVIDED THAT FOR ANY
    16  RENOVATION OR NEW CONSTRUCTION OF A  RESIDENTIAL  HEALTH  CARE  FACILITY
    17  WHICH  COMMENCES ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE, THERE
    18  SHALL BE NO MINIMUM EQUITY REQUIREMENTS IN EXCESS OF 10 PERCENT OF TOTAL
    19  PROJECT COSTS OR PER BED LIMITATIONS ON TOTAL PROJECT COSTS UTILIZED  IN
    20  THE DETERMINATION OF PAYMENTS FOR REAL PROPERTY COSTS UNDER THIS ARTICLE
    21  FOR  THE  FOLLOWING FACILITIES: (I) ANY FACILITY WHICH RECEIVED AN AWARD
    22  PURSUANT TO SECTIONS TWENTY-EIGHT  HUNDRED  TWENTY-FIVE-F,  TWENTY-EIGHT
    23  HUNDRED  TWENTY-FIVE-G  OR  TWENTY-EIGHT  HUNDRED  TWENTY-FIVE-H OF THIS
    24  ARTICLE; AND (II) ANY NON-STATE OPERATED PUBLIC RESIDENTIAL HEALTH  CARE
    25  FACILITY.  For  purposes  of  this  subdivision, owner's equity shall be
    26  calculated without regard to  any  surplus  created  by  revaluation  of
    27  assets  and  shall  not  include amounts resulting from mortgage amorti-

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15555-01-6
        A. 11062                            2

     1  zation where the payment therefor has been  provided  by  real  property
     2  cost reimbursement.
     3    §  2.  This act shall take effect immediately; provided, however, that
     4  the amendments to paragraph (d) of subdivision 2-a of  section  2808  of
     5  the  public  health law made by section one of this act shall be subject
     6  to the expiration and repeal of such paragraph and shall expire  and  be
     7  deemed repealed therewith.