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The California Health Facilities Financing Authority (CHFFA) has convened a COVID-19 Task Force comprised of health facility association representatives as well as financing team members (including bond counsels, underwriters, and financial advisors) who have worked on previous CHFFA debt financings.
The goal of the task force is to come up with new short-term and long-term programs that CHFFA can establish to enable its stakeholders to weather the revenue and expenditure impacts that the COVID-19 pandemic has wrought on California’s public and nonprofit health facilities. The task force has come up with six potential new programs/concepts that may assist eligible hospitals in need. Some may be able to be used immediately while others could take some time and perhaps statutory changes to implement.
CHFFA has requested the feedback from eligible hospitals through a short survey. While the survey is voluntary, the feedback will enable them to better develop the programs’ sources of funding, timing, interest rates, maturities, etc.
Hospitals eligible for CHFFA funding must:
- Be a participating health institution under the CHFFA Act (which includes a public hospital, a nonprofit corporation or association authorized by the laws of California to provide or operate a health facility and undertake the financing or refinancing of a project)
- Have been operating for a minimum of three years and provide three years of audited financial statements
- Have revenue sufficient to cover debt service on the proposed financing
For-profit entities are not eligible for CHFFA financing.