Relates to the ability of the New York state medical care facilities finance agency to issue certain bonds and notes

◆ The sponsor's argument

Why Leroy Comrie says this is needed

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.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.