Sec. 621.8. Eligible capital costs for a Housing Finance Agency mortgage loan

(a) Capital costs (referred to as “project costs” in section 75.05 of the Mental Hygiene Law) eligible for a HFA mortgage loan may only include costs incurred by the applicant pursuant to article 75 of the Mental Hygiene Law relating to:

(1) refinancing of existing indebtedness associated with the development of the project which constitutes a lien or other encumbrance upon the real property or assets of a company to be mortgaged or otherwise pledged to the agency;

(2) carrying charges during construction up to and including the occupancy date;

(3) working capital not exceeding three percent of the estimated total project cost or three percent of the actual total final project costs, whichever is larger;

(4) studies, surveys, plans and specifications;

(5) architectural engineering, legal or other special services;

(6) acquisition of land and any improvements thereon;

(7) site preparation and development;

(8) construction, reconstruction, rehabilitation and improvement;

(9) equipment, including fixtures and articles of personal property required for the operation of the facility;

(10) the reasonable cost of financing during the course of the development of the project up to and including the occupancy date;

(11) the fees imposed by the commissioner and the New York State Housing Finance Agency and other fees and necessary expenses incurred in connection with the initial occupancy of the project; and

(12) such other items as the commissioner may determine to be reasonable and necessary for the development of the project.

(b) The foregoing costs shall be reduced by:

(1) any and all rents and other net revenues from the operation of the real property, improvements or personal property on the site of the facility; and

(2) any portion of any State, Federal or municipal assistance grant which the commissioner, prior to the making of a mortgage loan, shall determine to be available to the applicant to meet the project costs prior to the initial occupancy of the project.