NY A09021

Authorizes eligible secured hospital borrowers (not-for-profit hospitals with outstanding special hospital project bonds) to refinance mortgage loans financed through special hospital project bonds issued under prior law.

Requires refinancing applications to be approved by the hospital's board and the state Commissioner of Health, with evidence demonstrating financial benefit including net present value savings of at least 2 percent of refunded bond par amount and 2 times the refunding bonds' issuance costs.

Establishes that hospitals cannot claim additional Medicaid reimbursement for interest payments on refinanced indebtedness and prohibits such interest from being included in Medicaid reimbursement rates.

Creates secured hospital special debt service reserve fund and capital reserve fund to secure special hospital project bonds, funded from hospital payments, mortgage insurance premiums, and other available sources.

Extends the expiration date of the underlying 1985 hospital financing law from March 1, 1998 to December 31, 2015, with sections 1-9 of this act expiring on the same date while allowing previously issued bonds and loans to remain unaffected.