The California Health Facilities Financing Authority (CHFFA) provides financial assistance to public and non-profit health care providers through loans, grants and bonds. Facilities funded by CHFFA reflect the range of financial needs experienced by health care facilities throughout the state – from rural community-based organizations to large multi-hospital systems.
CHFFA is chaired by State Treasurer Fiona Ma. Other members include the State Controller, the state’s Director of Finance, two members appointed by the Senate Rules Committee (one must be a licensed physician and the other a past or present executive of a health facility), two members appointed by the Speaker of the Assembly (one experienced in investment or finance and one a representative of the general public), and two members appointed by the Governor (each of whom are subject to Senate confirmation). The group meets monthly to review requests for funding, receive informational updates on programs, and provide direction to staff.
Financing programs administered by CHFFA include:
Bonds and Notes
- Bond Financing: This program provides eligible borrowers with access to low interest rate capital markets through the issuance of tax-exempt revenue bonds. Bond proceeds may be used to fund construction or renovation, land acquisition, acquisition of existing facilities, refinancing, costs of issuance, and other qualified expenses.
- Tax-Exempt Equipment Financing: Similar to the bond financing program, CHFFA may issue notes to provide health facilities with access to tax-exempt fixed-rate financing of at least $500,000 for equipment purchases.
Loans
- HELP II: Low-interest rate loans to nonprofit small or rural health facilities to purchase or construct new facilities, remodel or renovate existing facilities, purchase equipment or furnishings, and refinance existing debt.
Grants
- Children’s Hospital: Grants available on a non-competitive or competitive basis to construct, expand, remodel, renovate, furnish, equip, finance, or refinance a children’s hospital. Investment in Mental Health Wellness: Grants to support capital improvement, expansion, and limited start-up costs to California counties or to their nonprofit or public agency designees for the purpose of developing mental health crisis support programs, including crisis residential treatment, crisis stabilization, mobile crisis support teams, and peer respite care.
- Investment in Mental Health Wellness for Children and Youth (Children and Youth): Grants to support capital improvement, expansion, and limited start-up costs for a continuum of crisis services for children and youth, ages 21 and under, for the purpose of developing mental health crisis support programs, including crisis residential treatment, crisis stabilization, mobile crisis support teams, and family respite care.
- Community Services Infrastructure (CSI): Grants to expand access to jail and prison diversion programs and services; create or expand mental health treatment facilities, substance use disorder treatment facilities, and trauma-centered service facilities in local communities; and reduce the need of mental health treatment, substance use disorder treatment, and trauma-centered services in jails and prisons.
- Lifeline: Grants to assist small and rural health facilities, including community-based clinics that may be adversely affected financially by a reduction or elimination of federal government assistance and that may have little to no access to working capital.
Since January 2019, CHFFA has approved more than $1 billion in conduit bond financing for five borrowers, extended more than $5 million in HELP II loans for five borrowers, and provided more than $30 million in grants to 11 counties and one hospital. Of these grants, three were new programs that provided awards for the first time.
In May, the Children and Youth Program provided its first grant awards to four counties -- Marin, Monterey, Sacramento, and Santa Cruz. These counties received a total of approximately $2 million ($730,000 in capital funding and $1.3 million in personnel funding) to establish mobile crisis support teams.
In July, the first children’s hospital, Valley Children’s Hospital received a $9.8 million grant award from the Children’s Hospital Program of 2018. Lastly, also in July, the CSI Program provided its first awards to eight counties -- Los Angeles, Plumas, Riverside, San Joaquin, San Luis Obispo, Santa Cruz, Sonoma, and Yolo. The counties were awarded a total of $18.2 million to expand jail diversion programs and services to serve an additional 2,022 individuals annually.
Note: Each month we will be sharing information on one of our BCAs and explain how the programs behind the acronym are enhancing the lives of Californians all across the state -- and how you, your family, or your business can share in, and contribute to, California's prosperity