0977 Health Facilities Financing Authority
Program Descriptions

0880 - CHILDREN'S HOSPITAL PROGRAM

In 2004, California voters approved Proposition 61, which established the Children's Hospital Program. In 2008, Proposition 3 established the second Children's Hospital Program. The purpose of both programs is to improve the health and welfare of California's critically ill children by providing a stable and ready source of funds for capital improvement projects for children's hospitals. Children's Hospital Program grant funding is derived from the issuance of general obligation bonds, up to $750 million under Proposition 61 and $980 million under Proposition 3.

0885 - HEALTH FACILITIES GRANTS AND LOANS

CHFFA serves as a conduit provider of tax-exempt bonds and a direct provider of financial assistance to health institutions.

Tax-Exempt Bond Program

Bonds issued under this conduit program are not a debt or liability or a pledge of the full faith and credit of the taxing power of the state or any of its political subdivisions. The full faith and credit of the participating institutions are pledged for repayment of the bonds. To qualify for funding, the proposed project must be a health facility, operated by a private nonprofit corporation or association, city, city and county, county, or hospital district.

Clinic Grant Programs

Chapter 99, Statutes of 2000 (AB 2875), established the Cedillo-Alarcon Community Clinic Investment Act of 2000 and allocated $50 million dollars to CHFFA for the purpose of awarding grants to eligible primary care clinics for capital outlay projects. In 2004, as part of the Anthem-Well Point merger, $35 million dollars was allocated to CHFFA for the purpose of awarding grants to eligible health care facilities providing service to underserved communities throughout California. To qualify for funding, the proposed project must be a health facility, operated by a private nonprofit corporation or association, city, city and county, county, or hospital district.

HELP II Loan Program

CHFFA administers the Healthcare Expansion Loan Program II (HELP II) to assist small and rural health facilities in obtaining financing for their capital needs. The HELP II Program provides two percent (2%) and three percent (3%) fixed interest rate loans of up to $1,500,000 to California's nonprofit small and rural health facilities in an efficient, timely, and cost effective manner. The 2% interest rate applies to loans approved from April 30, 2015 - April 30, 2017, and is effective for the life of the loan. Refinancing loans are not eligible for the 2% interest rate. Refinancing loans are eligible up to $1,000,000. HELP II loans may be used to purchase or construct new facilities, remodel or renovate existing facilities, purchase equipment and/or furnishings, and refinance existing debt.

California Health Access Model Program

Chapter 23, Statutes of 2012 (AB 1467) authorized CHAMP, a new grant program, intended to support innovative methods of delivering health care services and improve health outcomes for vulnerable populations and communities by bringing services to individuals where they live or congregate.

0890 - MENTAL HEALTH WELLNESS GRANTS

Chapter 34, Statutes of 2013 (SB 82), the Investment in Mental Health Wellness Act of 2013 (the "Act") and related legislation provided $142.5 million in one-time General Fund, and $4 million in ongoing Mental Health Services Act ("MHSA") funding to provide grants for community based mental health crisis support, which may also be eligible for matching federal funding.

The Act established a new grant program to disburse funds to California counties or to their nonprofit or public agency designates for the purpose of developing mental health crisis support programs. Specifically, funds will increase capacity for client assistance and services in crisis intervention, crisis stabilization, crisis residential treatment, rehabilitative mental health services, and mobile crisis support teams. CHFFA grants will support capital improvement, expansion and limited start-up costs.