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 FINANCING PROCESS
The Authority staff assist institutions in analyzing alternatives and in structuring bond issues to meet their capital project needs. This financial advisory service is available to eligible borrowers even if the Authority is not the ultimate issuer for the financing.
The MHHEFA Program Officer coordinates the activities of the financing team and negotiates the terms of the transaction. The Program Officer is also responsible for obtaining approval of the MHHEFA board.

Tentative Approval:
Once the borrowing institution and its counsel have determined its financing needs, the institution will contact MHHEFA and provide an outline of the project (see below) and its approximate size. The Authority staff will review the following information and provide tentative approval to proceed with the formal application.

General Information:
  • Brief description of the entity.
  • Brief description of the project, including its purpose, and the facilities to be financed.
  • Schedule of estimated total project costs, including cost of new construction, renovation, professional fees, equipment, and refinancing of existing indebtedness, if applicable.
  • Schedule of funding sources, including bond proceeds, institution equity, and fund-raising (in-hand or pledged).
  • Estimated timetable, including general contractor, approval agency, and institutional schedules.
Legal Information:
Brief description of existing indebtedness, including any restrictions on borrowing, and any encumbrances on property, revenue, or assets of the institution.

Financial Information:
  • Audited financial statements for the past 3 years.
  • Board Resolution approving this financing request. (If necessary)
  • Most recent internal financial statements.
  • Ensure that the required environmental reviews, zoning permits and approvals, and other planning tasks are completed to enable the project to go forward.

See Application for Financing, General Instructions for more detailed information (here).

Bond Issuance Steps:
  • Select the financing team and determine funding structure
  • Prepare the legal transaction and disclosure documents
  • Create presentations for rating agencies and bond insurers
  • Conduct TEFRA hearings
  • Obtain MHHEFA board approval
  • Market the transaction; price and sell the bonds
  • Close the transaction and distribute funds