Proceeds of an Authority financing were used to acquire and renovate new facilities for Asian Health Services, a nonprofit community health clinic in the Chinatown section of downtown Oakland.

he Authority issues tax-exempt and taxable financings for hospitals, nursing facilities, continuing care retirement communities, and a number of other types of healthcare and health-related agencies such as primary care clinics and substance abuse treatment facilities. These issues have utilized various municipal bond market structures including fixed and floating rate offerings for borrowers carrying various bond/credit ratings. The Authority has issued debt backed by FHA, Fannie Mae, commercial letters of credit, monoline municipal bond insurance and Cal-Mortgage insurance. Authority financings have also been issued on the borrowers' stand-alone investment-grade ratings.

State-Insured Financing Program

Nonprofit agencies providing health-related services, substance abuse treatment, service to the developmentally disabled, or other similar services may qualify for bond insurance from the California Health Facility Construction Loan Insurance Program (Cal-Mortgage).

The goal of the Authority's State Insured Nonprofit Facilities Financing Program is to provide an economical source of capital to fund healthcare-related projects eligible for tax-exempt financing. The program provides a low-cost financing alternative to conventional bank loans and access to national capital markets through an insured loan program.

Senior Housing and Healthcare Facilities

In this program, tax-exempt municipal securities are issued by the Authority and insured by Cal-Mortgage. Cal-Mortgage can extend insurance commitments to nonprofit health borrowers for up to 95 percent of total project costs for loans below $5 million, 90 percent for loans over $5 million, and up to 100% for cities, counties, or hospital districts.

To become eligible for the Program, each borrower must receive a loan insurance commitment from Cal-Mortgage. There are no borrowing limits, however, general program minimums have been set at $750,000 per applicant.

LifeLong Medical Center

Children's Hospital-San Diego