California Health Facilities Financing Authority

Bond Financing Program

Standard Bond Financing Program

This program provides a borrower with access to low interest rate capital markets through the issuance of tax-exempt revenue bonds. Proceeds from the loan may be used by eligible borrowers to fund construction/renovation projects, land acquisition for future projects, acquisition of existing health facilities, refinancing of existing debt, working capital for start-up facilities and pay costs of issuance. Given the cost of issuing bonds, this is the option usually pursued by borrowers with capital projects in excess of $5 million.

Pooled Bond Financing Program

Borrowers with more modest financing needs are sometimes grouped or "pooled" by the Authority into a single bond financing, where bond issuance costs are shared by participants. This type of financing will generally allow a borrower to finance a loan for a minimum of $500,000 for eligible projects.

Blackout Periods

Please note that for Cal-Mortgage insured transactions, borrowers may not issue during the state’s blackout periods, roughly December 1 through January 10 and from May 1 through the date of the enactment of the State budget.