Purpose

Under this Program, a commercial lender retains the role of lessor while the Dormitory Authority functions as a tax-exempt lessee. The Dormitory Authority subleases the equipment to the client institution, whose rental payments are assigned to the lending source. Since the lender does not pay federal, state or local taxes on the interest portions of the lease payments, the lease interest rate is lowered to reflect the full tax savings.
 

DASNY is one of the largest public financing and public construction authorities in the nation. Originally created to finance and build dormitories for the state’s teachers’ colleges, the Dormitory Authority is now authorized to issue bonds and to provide comprehensive construction services for a large group of clients. DASNY’s construction portfolio includes new construction and renovation projects for pubic clients in higher education, health care and court administration and other specifically authorized projects. The Authority issues bonds for private not-for-profit educational and health care clients and to  support the financing needs of certain State programs administered by the Department of Health, the Department of Education, the Office of Mental Health, the Office of Alcohol and Substance Abuse Services, the Office for People With Developmental Disabilities and certain economic development programs.

Eligibility

Almost all clients authorized to finance construction projects through the Dormitory Authority are eligible for this Program. This includes any non-profit hospital, residential health care facility, diagnostic and treatment center, higher education institution and non-profit corporation authorized by law to do business with the Dormitory Authority. Some of the equipment leased to date includes radiology equipment, computer equipment, angiographic systems, CT scanners and other imaging systems, MRI systems, laboratory analysis equipment, campus-wide computer and telecommunications systems. Although there is no limit as to the dollar amount of equipment that may be leased, TELP is most cost effective for leases greater than $1,000,000.

The application process involves a basic business letter application and obtaining any required Health Department or governmental approvals. Authority staff can also assist in finding lease funding sources that have the lowest borrowing rates. On average, the process takes six to eight weeks. Documentation for TELP involves only one master lease and standardized paperwork to save time on subsequent requests. Many of the Authority’s clients have come back two and three times for equipment leases. Once the initial master lease is set, additional equipment can be acquired by amending the master lease agreement. 

Contact

Art Ware
TELP Program Manager

Paul T. Williams
President
Dormitory Authority of the State of New York
515 Broadway
Albany, NY 12207
(518) 257-3000