The California Health Facilities Financing Authority (CHFFA) was established in 1979 and operates pursuant to the California Health Facilities Financing Authority Act in the California Government Code Sections 15430-15462.5.
CHFFA was created to be the State's vehicle for providing financial assistance to public and non-profit health care providers in our State through loans funded by the issuance of tax-exempt bonds. The diverse nature of the facilities funded by CHFFA reflects the changing health care needs of the State. From rural community-based organizations to large multi-hospital systems, CHFFA has financed a wide range of providers and programs throughout California.
In order to meet the requirements for CHFFA financing, an institution must be a public hospital, a private non-profit corporation, or an association authorized by the laws of California to provide or operate a health facility and undertake the financing or refinancing of a project. Generally, non-profit, licensed health facilities in the State of California including adult day health centers, community clinics, developmentally disabled centers, drug and alcohol rehabilitation centers are eligible for financing. Section 15432 (d) of the California Government Code defines health facilities eligible for financial assistance by CHFFA. Applicants must be approved by a resolution of the Authority Members at a regularly scheduled public meeting. Should you have questions on eligibility, contact Martha Maldonado, Operations Manager at (916) 653-2799.
In addition to initial eligibility, the Authority requires borrowers to comply with its Bond Issuance Guidelines per bond rating category and provide loan security provisions and bond covenants that correspond with its rating.
Savings resulting from issuance of tax-exempt bonds for borrowers must be transferred to the consuming public via lower or contained costs for delivery of health services.
Uses of Funds
Proceeds from CHFFA financings may be used for the following project related costs:
- Remodeling and renovation
- Land Acquisition (as part of the proposed project)
- Acquisition of existing health facilities
- Purchase or lease of equipment
- Refinancing or refunding of prior debt
- Working capital for start-up facilities
- Costs of bond issuance, feasibility studies & reimbursement of prior expenses