New York Codes, Rules and Regulations
Title 14 - DEPARTMENT OF MENTAL HYGIENE
Chapter XXI - OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES
Part 813 - Financial Assistance for Capital Improvement Projects
Section 813.7 - Liens of the Office

Universal Citation: 14 NY Comp Codes Rules and Regs ยง 813.7

Current through Register Vol. 46, No. 12, March 20, 2024

(a) Recorded liens. Upon request of the Office, the recipient must file proof of any State Aid Grant Lien, mortgage or other security with the clerk of the county wherein such facility is located and provide OASAS proof of such filing.

(b) Remedial actions. In the event the facility is not utilized for the operation of an addiction services treatment program pursuant to all applications, contracts and agreements required for state aid grants and DASNY loans, in addition to any other legal remedies:

(1) OASAS shall have the right to possession and occupancy, without any charge or fee therefore, during the unexpired period of time during which the facility was to have been operated pursuant to this Part. The possession and occupancy shall be under the following terms and conditions:
(i) If OASAS is obligated to make any payment on any mortgage, lien, judgment or other encumbrance on the facility, then the amount of such payment or payments shall be an obligation of the recipient due and owing to OASAS;

(ii) If OASAS is obliged to make such structural repairs then the amounts so expended shall become and be an obligation of the recipient due and owing to OASAS;

(iii) Notwithstanding any of the provisions contained herein, OASAS shall be entitled to recover an amount equal to five percent (5%) of any state aid granted for capital costs of the facility for each year of the unexpired first twenty (20) years of the term during which the applicant has agreed to operate said facility. The total amount shall become an obligation of the recipient due and owing to OASAS; or

(2) Receipt of fee title to the improved real property or transfer of fee title to another Office approved provider of addiction treatment services.

(c) Subordinate liens. A State Aid Grant Lien shall be junior only to:

(1) liens to which OASAS has consented to subordination; and

(2) liens pre-existing the grant of state aid.

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