If a mental health institution or an institution for people with intellectual disability is closed and all or part of the real estate of such institution is sold, the proceeds from the sale of such real estate, after deduction of the costs of the sale and any costs of appraisal of such surplus real estate, shall be deposited in the state treasury to the credit of a new or existing special revenue fund. All expenditures of such moneys in any such special revenue fund shall be in accordance with the provisions of appropriation acts and shall be used (a) for capital improvement or operating expenditures for another state institution providing either mental health services or services for people with intellectual disability, whichever were provided by the closed institution or (b) to provide either mental health services or services for people with intellectual disability, whichever was provided by the closed institution, through community organizations in communities.