N.Y. Comp. Codes R. & Regs. Tit. 10 § 87.4 - Project construction

(a) All payments made by a nursing home company after mortgage closing for construction and development costs require the written approval of the State Department of Health. Payments may only be made for expenditures authorized in the development cost and capital requirement budget approved by the State Department of Health. Payments may be permitted monthly from either mortgage loans or capital contribution funds in accordance with procedures approved by the State Department of Health. Any capital or development costs determined by the State Department of Health to be ineligible will not be approved for payment. All payment approvals shall be subject to and conditioned upon audit by the State Department of Health.

(b) Acceptable surveys and title reports, or satisfactory updates of such acceptable to the State Department of Health, free and clear of all exceptions not approved by the State Department of Health, shall be required prior to approval of payments after mortgage closing.

(c) Any project materials to be stored off the site of the project shall require satisfactory evidence of identification of the materials and insurance coverage in a form and amount acceptable to the State Department of Health.

(d) All contract changes require prior written State Department of Health approval except changes that must be started immediately to correct emergency field conditions. Requests for change orders from contingency funds may only be approved if required to meet emergency and life safety requirements, unforeseen field conditions or errors and omissions in contract documents. Requested changes of scope or of quality or type of functions, materials or equipment may only be approved if the cost is reasonable, if funds are available and if the change will not result in an increase in operating cost. All change orders proposed must contain a statement specifying if the contract time is to be changed. The State Department of Health will limit all change order approvals from contingency funds to those necessary for completion of the project in order to protect the adequacy of the contingency budget.

(e) Acceptance of a restricted donation or a donation in kind which may result in an increase in operational costs requires the prior approval of the State Department of Health.

(f) The equity funds of a company not currently required shall be invested. Such investments shall have the prior approval of the State Department of Health.

(g) Equipment may only be purchased by projects after approval of an equipment list by the State Department of Health. Such list shall be in accordance with the requirements set forth in the State Department of Health Manual for the Preparation of Equipment Lists. Unit and total cost approval for all items shall be approved by the State Department of Health.

(h) Final payment for the completion of any contract shall require satisfactory evidence of payment of all subcontractors, the submission of all releases required by the State Department of Health, and such affidavits or certifications of the company, the architect, and the contractor as the State Department of Health may require.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 10 § 87.4