Tax Exempt Financing Authority

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CHEFA Tax-Exempt Loan Program

CHEFA offers a variety of tax exempt financing options for nonprofit organizations across a broad range of sectors, including healthcare institutions, educational facilities, human service providers, cultural institutions, and health and wellness facilities. Bond offerings can be publicly sold or issued as a private placement, unenhanced or with credit enhancement, bear interest at fixed or variable interest rates, and have a maturity of not greater than fifty years. Click here to learn more about CHEFA’s tax-exempt bond financing program and eligibility requirements.

CHEFA's Tax-Exempt Capital Equipment Loan Program

A LOWER COST FINANCING ALTERNATIVE

CHEFA provides a tax-exempt financing alternative for the purchase of capital equipment. The program is available to eligible nonprofit organizations located in Connecticut. Click here to learn more about eligible institutions and projects and to take advantage of the EasyLoan financing program.

CHEFA Grant Programs

The CHEFA Grant Programs were established in 2002 to provide financial assistance to nonprofit organizations in the State of Connecticut. Grant funds support the healthcare, education, childcare, and cultural sectors. On a yearly basis, three grant cycles are conducted: client; non-client; and targeted, which addresses an identified statewide need within one of the four priority sectors. No state funds are utilized for the grant programs.

Hartford HealthCare Tees Up Massive $750M Bond Package

December 18, 2019

Hartford HealthCare tees up massive $750M bond package

By Matt Pilon

Hartford HealthCare is planning a $750-million bond issuance -- intended mainly to refinance older debt at lower interest rates but to also invest in its operations -- that would be the largest ever debt package of its kind in the state.

The board of the Connecticut Health and Educational Facilities Autorhity (CHEFA), a quasi-public agency that issues tax-exempt bonds and certain taxable debt on behalf of healthcare and educational facilities in the state, is slated to vote on the Hartford HealthCare debt package during a 1:30 p.m. meeting on Wednesday.

The deal would surpass CHEFA’s prior largest deal -- a $543-million bond issue for Yale New Haven Health in 2014, CHEFA managing director Michael Morris confirmed to HBJ.

The quasi-public agency has completed approximately 700 bond issuances since 1965, totaling $22 billion.

Hartford HealthCare said its current expectation is to issue $440 million in tax-exempt debt and $310 million in taxable debt.

The health system would use the bulk of the proceeds to refund outstanding debt, as well as to refinance several loans, including those that financed its recent acquisition of St. Vincent’s Medical Center in Bridgeport.

Richard Stys, treasurer and senior vice president of finance, said Hartford HealthCare expects its cost of capital to fall from just under 4 percent to about 3.6 percent as a result of the pending issue.

Approximately $50 million would be used for IT projects and ambulatory network buildout in Fairfield County, where Hartford HealthCare is a relative newcomer.

The health system is aiming to price the bonds and close the deal in January.

Editor's note: This story has been updated to reflect updated borrowing estimates provided to HBJ by Hartford HealthCare. The health system anticipates a total issuance of $750 million, which is $80 million higher than the figure originally included in this story, which was provided by CHEFA.

CHEFA Hosts First Nonprofit Education Forum

On June 26, 2019 The Connecticut Health and Educational Facilities Authority (CHEFA) held its’ first Nonprofit Education Forum featuring Jeff Fuhrer, Executive Vice President and Senior Policy Advisor for the Federal Reserve Bank of Boston. The session also featured Dan Haar, Columnist and Associate Editor of the Hearst Connecticut Media Group as the moderator. In attendance were seventy guests, primarily recent CHEFA grant applicants. “With this forum, CHEFA positions ourselves as more than just a grant funder, we can also be a convener to provide educational opportunities; allowing participants to think of the larger statewide, regional, and national economic forces that are affecting the work that they are doing in here in CT” said Betty Sugerman Weintraub, Grant Program Manager. She added, “Our grant applicants found Mr. Fuhrer’s presentation, informative, relevant, and also funny. He and Mr. Haar added humor to what can be a dry subject. In addition, Mr. Fuhrer provided tangible, real-life examples of how the economy has left too many of the low-income and minority populations behind while benefitting those of higher incomes”. To read more about the event please click on the link below:

https://www.bostonfed.org/news-and-events/news/2019/06/fed-economist-says-too-many-shut-out-from-economys-benefits.aspx

Photo Left to Right:

Estela Lopez, CHEFA Grant Committee Chairperson/Board of Directors; Betty Sugerman Weintraub, CHEFA Grant Program Manager; Jeff Fuhrer, Executive Vice President and Senior Policy Advisor, Federal Reserve Bank of Boston; Mike Angelini, CHEFA Board of Directors; Jeanette Weldon, CHEFA Executive Director;

Dar Haar, Columnist and Associate Editor, Hearst Connecticut Media Group

CHEFA's Student Loan Subsidiary

Connecticut Higher Education Supplemental Loan Authority (CHESLA)

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